Bitcoin (BTC): A second tier for governance?

Bitcoin (BTC): A second tier for governance?

Sango’s innovative Bitcoin (BTC) Layer-2 (L2) solution is driving the new digital currency system in the Central African Republic. This is a major step forward in cryptocurrency adoption worldwide.

Revolutionary L2 Solution for Bitcoin

Bitcoin L2 terminology refers to the second layer built upon the foundation of the Bitcoin blockchain. Considering the Sango blockchain as the second layer, it is basically a side chain which takes advantage of all the advantages of Bitcoin and manages to overcome its weaknesses. Sango fully interacts with the entire Bitcoin network and enables Sango Coin (SANGO) <> BTC transactions through a two-way match between the Manchester Bitcoin and the side chain Blood. Sango is therefore an ideal system without trust, suitable for a nation-state. It provides a new economic infrastructure with built-in transparency.

Although Lightning Network will likely become the main Bitcoin Layer-2 solution, it is currently only able to support a limited number of channels and its capacity is insufficient for day-to-day economic activity at scale.

Thus, thanks to its interoperability with Bitcoin, Sango promotes the financial inclusion of the citizens of the Central African Republic. The two-way pair will allow anyone to transact at low cost, with high capacity and fast confirmation times, while benefiting from e-governance (e-Gov), privacy and built-in programming solutions.

Sango’s Layer 2 solution aims to create a digital government infrastructure using blockchain technology. This solution also helps reduce congestion in the Bitcoin network, facilitating instant payments and cross-border remittances. Since Sango is a side chain distributing the work to the second layer not only reduces the processing load on the main chain, but also improves scalability and strengthens confidentiality and programmability through smart contracts. All this makes it the ideal solution for a national digital infrastructure capable of powering a new digital monetary system.

Sango Coins will be issued by a quorum of nodes controlled by institutions in the Central African Republic, collectively known as the Institutional Quorum. Its members are democratically elected, including the presidency, ministers and the National Assembly. The consensus mechanism is based on Tendermint Core, but modified by a system of it Proof of Convention Custom (“PoC”).

What about bitcoin (BTC) then?

Bitcoin alone is not an option for the Central African Republic as it cannot adequately meet all their needs. Although many people want the Central African Republic to become completely dependent on bitcoin, this is only possible with current technology.

Indeed, specific functionalities need to be created to meet the needs and constraints of government infrastructure, but the involvement of public authorities is a factor that should promote widespread adoption. Sango is a technical solution that improves the Bitcoin blockchain. It is therefore the ideal way to achieve the financial inclusion of African populations in the global payments ecosystem, while promoting the adoption of bitcoin.

In addition to Bitcoin, Sango also uses smart contracts to improve its utility. The infrastructure in place is solid and provides new specific use cases for widespread use across the country

Blockchain for Africa

Sango wanted to summarize some of the most important advantages of this type of technology in Africa and explain them in a simple way:

  • Increase transparency of key government activities: Building government infrastructure on blockchain helps achieve transparency.
  • The unbanked: As in much of Africa, the population of the Central African Republic has little or no access to financial services, including the most basic ones. Sango will establish mobile financial services.
  • Connecting the Central African Republic and Africa to the world: Establishing a two-way pair with bitcoin allows Sango to connect its users to the entire world through bitcoin.
  • Articulating natural resources: Given Africa’s wealth, access to capital through articulating natural resources is one of the most important points. The Central African Republic is therefore a leader in marking natural resources.
  • Developing other digital currencies on Sango: CBDCs (central bank digital currencies) and stablecoins are already very important to Africa, and Sango could be the blockchain to host them. The Bank of Central African States is considering launching a common digital currency for the CFA franc, Sango could be the blockchain used, which would guarantee global financial inclusion thanks to bitcoin.

Sango represents a vision for a digital future for the Central African Republic and Africa as a whole. Thanks to the projectThe backbone of Central Africawhich should be completed by the end of 2022 and will provide high-speed Internet coverage to the entire country, and the “Young People” initiative, which aims to give smartphones to the country’s youth, will change the Republic of the Central African Republic forever. the lives of its citizens and the future of the entire African continent.

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The Contribune Editorial Board

Cointribune’s editorial team unites their voices to express themselves on topics specific to cryptocurrencies, investment, the metaverse and NFTs, trying to answer your questions in the best possible way.

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