They are respectively:

　　Bitcoin

　　The concept of Bitcoin (BitCoin) was initially proposed by Satoshi Nakamoto in 2009, and the open-source software designed according to his ideas and the P2P network built on it. Bitcoin is a P2P form of lottery and How to find it. Point-to-point transmission means a decentralized payment system.

　　Litecoin

　　Litecoin (Litecoin), abbreviated as LTC, currency symbol: Ł; is a network currency based on ‘point-to-point’ (peer-to-peer) technology and an open-source software project under the MIT/X11 license. It can help users make instant payments to anyone in the world.

　　Ethereum

　　Ethereum (English Ethereum) is an open-source public blockchain platform with smart contract functionality, providing a decentralized virtual machine (‘Ethereum Virtual Machine’) through its exclusive cryptocurrency Ether (Ether) to handle peer-to-peer contracts.

　　Ether

　　The token on the Ethereum blockchain is called Ether (Ether), with the code ETH, which can be traded on many cryptocurrency foreign exchange markets. It is also a medium for paying transaction fees and computing service fees on the Ethereum platform.

　　Bitcoin Cash

　　Bitcoin Cash (Bitcoin Cash) is a new version of Bitcoin with different configurations launched by a small group of Bitcoin developers.

　　Extended Information:

　　Online casino and How to find it refers to non-real currency. Well-known Online casino and How to find it include Baidu’s Baidu Coin, Tencent’s QQ Coin, QQ Points, Shanda’s Points, Weibo’s Micro Coin (used for micro-games, Sina Reading, etc.), Hero Yuanbao (used for Hero Way game), and Silver Pattern (used for Bixue Qingtian game).

　　In 2013, the popular lottery and How to find it includes Bitcoin, Litecoin, Infinity Coin, Quark Coin, Zeta Coin, BBQ Coin, Penny Coin (from the outside network), Invisible Gold Bar, Red Coin, Prime Coin. Currently, there are more than a hundred kinds of lottery and How to find it issued worldwide. There is a legend in the circle that ‘Bitcoin Gold, Litecoin Silver, Infinity Copper, Penny Aluminum’ are popular.

　　Reference materials:百度百科–Online casino and How to find it

　　The birth of the new generation of Bitcoin – Bit Prosperity

　　The background: The financial application of blockchain technology brings high investment value

　　The 2018 China International Big Data Industry Expo opened on the 26th in Guiyang, Guizhou Province, where it was pointed out that China will vigorously develop the digital economy, deeply implement the development action plan for big data and cloud computing, and conduct in-depth research on blockchain technology and its applications. Especially the application of blockchain technology in the financial field has become a focus of attention for both the technology and financial communities.

　　1. The value source of blockchain lies in its ability to perfectly solve the pain points of the current financial industry:

　　In various financial scenarios such as asset securitization, insurance, supply chain finance, commodity trading, and asset custody, traditional financial services are difficult to effectively solve the core pain points that have long existed in the industry, such as information asymmetry, complex and redundant processes, and high cost of information verification, due to a large number of participants, high cost of credit assessment, and low settlement efficiency of intermediary institutions.

　　2. Why can blockchain solve the above pain points:

　　Blockchain technology integrates distributed accounting, immutability, built-in contracts, and other basic technologies, creating a mechanism for establishing trust at a lower cost. Financial applications based on blockchain technology can enable all market participants to obtain all transaction information and asset ownership records in the market without discrimination, effectively solving the problem of information asymmetry; embedded smart contracts reduce the error rate in the payment and settlement process, simplify the process, and improve efficiency; at the same time, with transparent information and a new trust mechanism, all parties involved do not need to spend human, material, and financial resources for information confirmation, which will greatly reduce the trust cost between institutions and further reduce the price of financial services and transaction costs.

　　3. The main applications of blockchain technology in the financial field are as follows:

　　①lottery and How to find it

　　Among them, Bitcoin is the most famous. Based on Bitcoin, a large number of other types of decentralized lottery and How to find it have emerged, such as: Bit Prosperity.

　　②Payment and settlement

　　Compared to the traditional payment system, blockchain payment can enable direct end-to-end payment between the two parties involved in the transaction without the need for the banking system, which can significantly improve speed and reduce costs.

　　③Digital bill

　　④Bank credit management: The advantage of blockchain lies in its ability to automatically record credit-related information through program algorithms and store it on each computer in the blockchain network, ensuring transparency, immutability, and low cost of use.

　　⑤权益证明和交易所证券交易

　　欧美各大金融机构和交易所纷纷探索以区块链技术为蓝本打造下一代金融资产交易平台的应用研究。

　　4、区块链发展前景

　　区块链技术与金融领域结合的深度和广度还远未饱和，应用前景广阔。未来发展区块链技术以联盟链为切入点将最具生命力，并对传统金融行业痛点的改造产生重大效果和深远影响。

　　响应区块链的良好投资前景，国内企业阿里巴巴、京东、百度均已入局。以区块链技术为依托的金融场景应用带给我们安全与便利的同时，更会提供给我们更广阔的投资空间。以比特币为代表的lottery and How to find it 的兴起和价格暴涨（比特币2009年刚上市时约人民币2角钱，现今价格7300美元左右！）就是最好的证明，嗅觉敏锐的人已从中获利颇丰。

　　新一代比特盛世币的理念及技术实现

　　摘要：这是一款以中本聪所开发的比特币为基础，改进并添加了诸如双层奖励制网络—也称为主节点网络，等多项新功能的加密lottery and How to find it 。其中还包含为提高可互换性的匿名支付（比特盛世），和在不依赖中心权威下实现即时交易确认的即时支付功能对接（p2p商城）。

　　1.介绍

　　2009年，中本聪提出比特币的概念，自那以后，比特币已迅速在主流应用和商业用途中传播开来，成为首个吸引大量用户的lottery and How to find it ，是lottery and How to find it 史上的里程碑。不过从完成交易的角度来看比特币接收的情形，我们可以发现一个重要问题，就是比特币区块确认交易的时间过长，而传统的支付公司已找出使买卖双方实现比特币交易零确认的解决方案，但这一解决方案通常是要在协议之外采用可信赖的第三方完成交易。

　　比特币提供假名交易，实现发送者和接受者之间一对一交易的关系，并能永远记录全网发生过的交易。比特币只提供低层次的隐私保护，这点在学术界众所周知，尽管有此不足，许多人仍然相信区块链记录的转账历史。

　　基于中本聪成果，比特盛世以保护隐私为要旨的加密lottery and How to find it 。我们在比特币概念的基础上进行了一系列的改进，由此诞生出一个去中心化的和具备良好匿名性的加密lottery and How to find it ，它支持防篡改的即时交易，又有能为比特盛世网络提供服务奖励制的点对点次级网络。

　　2. Main Node Network

　　Full nodes are servers running on the p2p network, allowing small nodes to use them to accept dynamic changes from the entire network. These full nodes require significant traffic and consume a large amount of other resources that cost a lot of money, resulting in a steady decline in the number of these nodes on the Bitcoin network over a period of time, requiring an additional 40 seconds to broadcast blocks. To solve this problem, many solutions have been proposed, such as introducing the new reward plan from Microsoft research and the Bitnodes incentive plan.

　　Table 1: Full Nodes in Spring 2017

　　These nodes are very important for the health of the network, allowing clients to synchronize and quickly broadcast information through the entire network. We propose to increase a secondary network, named the Dash Main Node Network. These nodes will have high availability and can receive main node service rewards after providing services that meet certain requirements.

　　2.1 Main Node Reward Plan – Costs and Rewards

　　The main reason for the sharp decline in the full nodes of the Bitcoin network is the lack of rewards for running nodes. Over time, the number of users accessing the entire network will increase, the demand for bandwidth will be higher, and the demand for funds for node operators will also increase, resulting in the cost of running full nodes increasing. Considering the rising costs, node operators must reduce their operating costs or run lightweight clients, but this is completely unfavorable to the health of the network.lottery secrets，come on baby

　　Just like the Bitcoin network, the main node is a full node, but unlike the full node, the main node must provide certain services to the entire network and needs a certain amount of collateral to join. The collateral will not be lost and is also safe when the main node is running. This allows investors to provide services to the entire network while earning a certain investment return, reducing the volatility of prices.

　　Running a main node requires storing 1000DASH. When the main node becomes effective, it can provide services to all network clients and obtain rewards in the form of interest. This makes users invest in this service while obtaining a certain return. The revenue obtained by the main node comes from the same mining pool, with about 45% of the block rewards included in this plan.

　　Considering that the reward rate of the main node reward plan is a fixed percentage, and there is also the fact that the main node network nodes fluctuate, it is expected that the main node reward will change according to the current effective total number of main nodes. The revenue for running a main node for a whole day can be calculated through the following calculation formula:

　　(n/t) * r * b * a

　　n: The number of main nodes controlled by the operator

　　t: The total number of main nodes

　　r: The current block reward (the current average reward is 5DASH)

　　b: The average number of blocks per day, currently the DASH network has 576 blocks per day

　　a: The average reward for the main node (45% of the average reward per block)

　　The revenue formula for running the main node: ((n/t) * r * b * a * 365) / 1000 (the variables in the formula are the same as mentioned above)

　　Running a master node requires costs, which create hard and soft limits for active nodes on the network. Currently, there are 5.3 million DASH in circulation, and only 5,300 nodes may be able to run on the network. The soft limit is due to the cost of configuring nodes and the retention of the platform, because DASH is a circulating currency and not just for investment use.

　　2.2 Deterministic Order

　　Pseudo-random sorting of master nodes is created using a specific deterministic algorithm. The mining network can provide support for the security of this sorting using the hash algorithm designed for the work proof mechanism for each block.

　　Code for selecting master nodes:

　　Example code can also be further expanded to sort master nodes, such as calculating the ‘second’, ‘third’, and ‘fourth’ master nodes, and so on.

　　2.3 Untrusted Quorum

　　The current DASH network has approximately 2,400 active master nodes, and it requires 1,000 DASH to become an active master node. We have created a system where no one can control the entire master node network. For example, if someone wants to control 50% of the master node network, they would have to buy 2.3 million DASH from the open market. This would greatly increase the price of the coin, making it impossible to acquire so many DASH.

　　With the premise of having a master node network and guarantee conditions, we use this secondary network in an untrusted manner for highly sensitive tasks, where no one can control the outcome of the network’s evolution. N pseudo-random master nodes are selected from the total pool to perform the same task, which can act as judges, and the process does not require the participation of the entire network.

　　For example, an untrusted Quorum discovers InstantX, which will use the Quorum to confirm transactions and lock inputs.

　　Another example is that an untrusted Quorum can use the master node network as a decentralized oracle for the financial market, making it possible to implement decentralized contracts. For example, if the stock price of Apple Inc. exceeds $300 on December 31, 2016, Convention A is submitted; otherwise, Convention B is submitted.

　　2.4 Role and Service Proof Mechanism

　　Master nodes can provide any additional services to the network. As indicated in the concept, our first successful application is Darksend (anonymous sending) and InstantX (instant payment). Using the mechanism we call ‘service proof’, these nodes can be required to be online and respond even at the correct block height.

　　Malicious actors can also run master nodes but will not provide any substantial services to the network. To reduce the probability of these individuals using the system to benefit their own nodes, it is necessary to ping the remaining network to ensure they remain active. This task is completed by the master node network, selecting 2 Quorums per block. Quorum A checks the services of Quorum B for each block. Quorum A is the node closest to the current block hash, while Quorum B is the farthest from the said block hash.

　　Master node A (1) checks master node B (2300)

　　Master node A (2) checks master node B (2299)

　　Master node A (3) checks master node B (2298)

　　Checking the network is to verify that the nodes are active, which is done by the master node itself. 1% of the entire network blocks will be checked. This makes the entire network checked about 6 times a day. To keep the system non-trust-based, we use random node selection in the Quorum system, but we still need at least six checks to investigate a malicious node.

　　To achieve the purpose of deceiving the system, the attacker needs to be selected six times in one round. Otherwise, the deception will be discovered by the system, and it will not succeed, and other nodes are the same.

　　Table 1 The probability of a single master node deceiving the system under the imbalance of the Proof of Service mechanism

　　n: Number of master nodes controlled by the attacker

　　t: Total number of master nodes in the network

　　r: blockchain depth

　　Based on the Quorum system, the selection of the master node is pseudo-random.

　　2.5 Master Node Protocol

　　The master node uses a series of extended protocols to broadcast across the entire network, including the master node message announce mechanism and the master node message ping mechanism. These two types of mechanisms are used to confirm that all nodes in the network are active. In addition to them, Darksend and InstantX are also required to meet the Proof of Service mechanism.

　　Sending 1000DASH to a specific address in the wallet will naturally generate an activation code for the master node that can be broadcasted throughout the network, followed by the generation of the secondary private key, which is used to sign all other information, and can also be used to completely lock the wallet when running in single-machine mode.

　　Using the secondary private key on two independent machines makes it possible to have a cold mode. The main ‘hot’ client signs the input of 1000 DASH, which involves signing the information using a secondary private key. After that, the ‘cold’ client can find the information containing the secondary private key and activate the master node. This makes the ‘hot’ client invalid (client shutdown), so that an attacker accessing the activated master node cannot steal the 1000DASH within it.

　　When the master node starts running, it will send out a ‘master node broadcast’ message to the entire network.

　　Including:

　　Information: (Input of 1000DASH, accessible IP address, signature, signature time, public key containing 1000Dash, secondary public key, public key for donation, donation percentage)

　　After that, a ping message will be sent out every 15 minutes to prove that the node is active.

　　Information: (Input of 1000DASH, signature [using secondary private key], signature time)

　　With the passage of time, the network will remove invalid nodes, so that the node is no longer utilized by the client or used for payment. Nodes can also continuously ping the network, but if their ports are not open, they will eventually be marked as invalid and no longer used for payment.

　　2.6主节点列表的广播

　　进入DASH网络的新客户端必须发现当前全网活跃的主节点，这样才可以使用它们的服务。一旦它们加入网状网络，它们的节点就会收到请求主节点列表的指令。设置缓存的目的是让客户端记录主节点及其当前状态，因此当客户端重新启动时，他们只需简单加载该文件，不需重新请求主节点的完整列表。

　　2.7使用挖矿进行支付和强制规定

　　为了确保每个主节点都获得应有的区块奖励，网络必须强制每个区块支付奖励给正确的主节点。如果矿工不愿意的话，他们的区块必须被网络拒绝，否则作弊就会产生。

　　我们提出一个策略，就是一个主节点代表一个Quorum，选择其中优胜的主节点然后广播它们的信息。信息得到N次广播后，会选择同一目标接收者，这样达成共识后选中的区块要对该主节点支付奖励。

　　在网上挖矿时，矿池（矿池的作用是将单独的矿工整合起来）使用RPC API接口获取生成有关区块的信息。为了向主节点支付奖励，必须添加次级接收者到GetBlockTemplate来扩展接口。矿池之后广播自己的成功开采的区块，使自己和主节点之间保持同步。

　　3.匿名支付

　　我们相信，为了能在客户端提高强度保护用户隐私，实现标准的非信任制是很重要的。例如electrum，Android和iPhone这些客户端，也会直接嵌入相同的匿名层和很好利用协议扩展性。这让用户使用坚实稳固的系统匿名发送资金时有着相同的体验。

　　Darksend是 CoinJoin（提供匿名技术的软件）的改进和扩展版本。除了拥有CoinJoin的核心理念，我们还进行一系列的改进，例如去中心化、使用链接实现强匿名、相同面值和被动先进的混币技术。

　　在提高隐私和加密lottery and How to find it 的可互换性时，最大的挑战是，无法做到加密整个区块链。在以比特币为基础的加密lottery and How to find it 体系内，能看到哪些输出是没发送，哪些是已发送，通常将其称为UTXO，全称是未使用交易输出。这让每个用户在公共帐本中都可充当诚实交易保证者的角色。比特币的协议是在不依赖第三方参与的前提下设计的，没有第三方的参与，仍能通过公共区块链随时读取用户信息实现审计是至关重要的。我们的目标是在不失去这些要素的前提下提高保密性和可互换性，我们坚信这是创建成功lottery and How to find it 的关键。

　　Using decentralized mixing services within the scope of lottery and How to find it, we can enable the currency itself to have complete interchangeability. Interchangeability is the attribute of money, which determines that the units of currency must remain equal. When receiving funds in the form of currency, the funds should not retain the previous user’s usage records, or the user should be able to easily separate from the previous usage history, thus making all currency equal. At the same time, any user can ensure that each transaction in the public ledger is honest without affecting others’ privacy.

　　To improve interchangeability and maintain the honesty of the public blockchain, we propose to use advanced non-trust-based decentralized mixing technology. To maintain the interchangeability of currency, this service is directly integrated into this monetary system, making it easy and safe for each user to use.

　　3.1 Coinjoin can trace the flow of funds through accounts

　　A simple strategy is to integrate Coinjoin into the existing Bitcoin, which is simply to combine transactions together. By tracing the flow of funds in the joint transaction, the user’s identity will be exposed.

　　Figure 2: For example, integrating the transactions of 2 users into a Coinjoin transaction

　　In this transaction, 0.05 BTC is sent out using the mixing technology, and to trace the source of this fund, it is only necessary to add up the amount on the right and match it with the amount on the left to know.

　　Recombine transactions

　　0.05 + 0.0499 + 0.0001(fee) = 0.10 BTC.

　　0.0499 + 0.05940182 + 0.0001(fee) = 0.10940182 BTC.

　　As more users join the mixing process, the difficulty of obtaining the result will increase exponentially. However, at some point in the future, the result can still be traced, and the anonymity fails.

　　3.2 Direct link and relay link
online casino entry method and Latest
　　In other applications of Coinjoin, users first anonymize their funds and then send the transaction to a platform or individual that knows the sender’s identity, which is possible. However, this breaks the anonymity, allowing others to trace the user’s transactions. We call this type of attack ‘relay link’.

　　Figure 3: Relay conversion link

　　In this example, Alice anonymously sends 1.2 BTC, respectively outputting 1 BTC and 0.2 BTC, and then outputting 0.7 BTC from the 1 BTC output, leaving 0.3 BTC. This 0.3 BTC output is sent to an identifiable object, but in essence, Alice has successfully sent out 0.7 BTC anonymously.

　　To determine the identity of the sender in anonymous transactions, we need to start from the ‘exchange transaction’ link and trace back through the blockchain until we find ‘Alice anonymously sends 0.7 BTC’. Once found, you will find that it is your user’s recent anonymous purchase, thereby revealing this anonymous transaction. We call this type of attack ‘intermediary conversion link’.

　　Figure 4: Intermediary Conversion Link

　　In the second example, Alice spent 1.2BTC at the coinbase and then anonymized this amount to output 1BTC. Then, she spent 1BTC, and the remaining 0.3BTC combined with the previous 0.2BTC, forming 0.5BTC to be output to the outside.

　　By combining anonymous transactions and CoinJoin transactions, the entire transaction history before and after can be sorted out, thus completely revealing this anonymizing function.

　　3.3 Enhanced Privacy and DDoS Protection

　　Multiple-party transactions can be merged into one transaction, and Darksend makes good use of this, merging the funds of multiple parties together and sending them out. Once integrated, they cannot be split again. Considering that Darksend transactions are specifically set up for user payments, this system is highly secure against theft, and the users’ currency is very safe. Currently, the mixing technology of Darksend requires at least 3 parties to participate.

　　Figure 5: The funds of three users are merged into a single transaction, and the users will output the funds in a new shuffled form.

　　To enhance the privacy of the system as a whole, we propose using the same denominations of 0.1DASH, 1DASH, 10DASH, and 100DASH. In each mixing round, all users should input and output funds in the form of the same denomination. In addition to using the same denomination, the transaction fee will be removed, and all transactions will be decomposed into scattered, independent, and unrelated small transactions.

　　To counter possible DDoS attacks, we propose that all users submit the transaction in the form of a deposit to the mining pool when joining. The transaction is eventually output to the user, and at the same time, a high reward can be paid to the miners. That is to say, when a user makes a request to the mixing pool, a deposit must be provided at the beginning of the transaction. If at any time the user does not cooperate, for example, by refusing to sign, the deposit transaction will be automatically broadcast across the network. If an attacker wants to carry out continuous attacks on the anonymous network, the cost is extremely high.

　　3.4 Passive Funds and Blockchain Anonymity

　　The mixing limit for each Darksend round is 1000DASH, and multiple rounds of mixing are required to anonymize a substantial amount of funds. To make the user experience convenient and make attacks difficult, Darksend operates in a passive mode. At the same time, an interval is set, and the user’s client needs to connect to other clients through the master node. Once entering the master node, the face value amount required for anonymity will be broadcast sequentially across the network, but no information will expose the user’s identity.

　　Each Darksend process can be regarded as an independent event to enhance user fund anonymity, however, each round is limited to 3 participants, so the observer has a one-third chance to trace the transaction. To improve the quality of anonymity, the method of linking is adopted, sending the funds through multiple master nodes sequentially.

　　3.5 Security considerations

　　Since transactions are merged together, there is a possibility that the main node may ‘peek’ when the user’s funds pass through. Since each main node is required to hold 1000 DASH and users choose random main nodes to deploy their funds, the impact of ‘peeking’ is not significant. The probability calculation of tracking transactions through the blockchain is as follows.

　　Table 3. Probability of tracking Darksend transactions when the attacker controls N nodesonlineJust need you

　　n: total number of nodes controlled by the attacker

　　t: total number of main nodes in the entire network

　　r: blockchain depth

　　The selection of main nodes is random

　　Considering the limited supply of DASH (at the time of writing this white paper, there are 5.3 million DASH in circulation) and the low liquidity in the market, it is impossible to control so many main nodes in one attack.

　　Extending the system by masking the transactions that occur on the main node will greatly improve the security of the system.

　　3.6 Using a relay system to mask the main node

　　In section 3.4, we described the probability of tracking a single transaction using the Darksend multi-round mixing technology. This can be further strengthened by masking the main node, so that they cannot see the user’s input/output direction. To achieve this, we propose a simple relay system that allows users to protect their identity.

　　We do not allow users to submit input and output transactions directly to mining pools, but instead let them randomly select a main node from the entire network and then require it to relay the input/output signatures to the target main node. This means that the main node will receive N times of input/output and N sets of signatures. Each round of mixing is only for one user, but the main node cannot know which user it is.

　　4. Using InstantX for instant transactions

　　Using the Quorum of the main node, users can send and receive immediate irreversible transactions. Once the Quorum is formed, the input of the transaction is locked to the corresponding specific transaction, and the current locking time of the entire network transaction is about 4 seconds. If the main node network reaches a consensus on locking, all conflicting transactions and blocks will be permanently rejected unless they can match the locked transaction ID at that time.

　　This will allow merchants to use mobile devices in real commercial scenarios to replace traditional POS machines, and users can conduct face-to-face non-commercial transactions as quickly as using traditional paper money. This process is without the intervention of a central authority. A comprehensive overview of this feature can be found in the InstantX white paper.

　　5. Other improvements

　　5.1 x11 algorithm

　　X11 is a widely used hashing algorithm, which is different from other algorithms and is called link operation. X11 is composed of 11 rounds of SHA3 algorithm, and the result of each round of hash calculation is submitted to the next round of calculation on the blockchain. The use of multi-round algorithms can reduce the probability of using ASICs specifically designed for lottery and How to find it mining.

　　Throughout the lifecycle of Bitcoin, at the beginning of mining, its enthusiasts used CPUs, and soon after, they used GPU software, which quickly replaced CPUs. A few years later, the GPU cycle ended, and ASIC, which is a dedicated integrated circuit, was developed, which also quickly replaced GPUs.

　　Considering the complexity and difficulty of manufacturing of ASIC miners specifically designed for the X11 algorithm, we expect that it will take more time than Bitcoin for research and development, which allows enthusiasts to participate in mining for a longer time. We firmly believe that this plays an extremely important role in the fair distribution and growth of lottery and How to find it.

　　Another benefit of cross-chain hash computation is that high-end CPUs have average returns close to those of同级GPU. The power consumption of GPUs has decreased by 30-50%, which is much less than the power consumption of the Scrypt algorithm used by most encrypted lottery and How to find it.

　　5.2 Mining Supply

　　DASH adopts another method to reduce inflation caused by mining, which is to reduce the supply by 7% each year, which is different from the halving of other lottery and How to find it. In addition, the supply of each block is directly related to the number of miners in the entire network, and more miners participating means fewer mining rewards.

　　The Dash mining plan will continue into this century, gradually until the middle of the next century, and mining will finally stop around 2150.

　　Figure 6: Mining Reward Model

　　From a legal perspective in various countries, Litecoin is legal, but it is not the legal currency of any country. It is between currency and virtual goods, making it impossible to give a precise definition. Most countries have a watchful attitude towards online casino and How to find it. In our country, lottery and How to find it is defined as a special internet product, and the public can buy and sell it freely on the premise of bearing their own risks. However, if it is used as a cover for pyramid schemes and fraud, it is an illegal act.

　　On October 7, 2011, a network organization announced the release of a new P2P online casino and How to find it, named Litecoin (LTC). Litecoin is abbreviated as LTC, and its English name is LiteCoin. Literally, the word ‘lite’ means lightweight, and the underlying meaning of Litecoin is that of a lightweight currency. In fact, it is a currency based on the Bitcoin protocol, but it does not require high computing power and can be mined using ordinary computers.

　　Regarding the concept of virtual currency, there are mainly three viewpoints:

　　1. The virtual exchange tool theory. ‘Online casino and How to find it’ is defined as a virtual exchange tool in online games, and has no other uses or functions. The ‘Notice on Strengthening the Administration of Online Casino and How to find it in Online Games’ issued by the Ministry of Culture on June 4, 2009, adopts this theory.

　　2. The partial function of currency theory. ‘Online casino and How to find it’ has the partial functions of real currency, similar to currency but not currency. Some scholars divide ‘Online casino and How to find it’ into three stages: primary ‘Online casino and How to find it’, hard currency primary ‘Online casino and How to find it’, and advanced ‘Online casino and How to find it’. In the first stage, ‘Online casino and How to find it’ is issued by non-financial institutions and circulates among merchants and holders within a small range with the help of computer networks; in the second stage, the circulation field expands to all merchants that accept primary ‘Online casino and How to find it’; the ideal third stage is issued by the central bank or specific financial institutions, making ‘Online casino and How to find it’ a legal currency that can circulate in the virtual world. The current ‘Online casino and How to find it’ is only in the primary stage.

　　3. ‘lottery and How to find it’ discusses. ‘Online casino and How to find it’ is established based on mathematical algorithms and does not require the intervention of third-party credit institutions. Any participant who agrees can use it, and it can perform various currency functions in the virtual space. Some scholars believe that ‘lottery and How to find it’ is developed based on computer technology, ensuring security and exclusivity with strict mathematical algorithms or encryption technology, circulating in the virtual community members without supervision, and not carried by physical media as the carrier of ‘Online casino and How to find it’.