Enhancing Blockchain with a Layer 2 Scaling Solution

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We are a blockchain technology that uses formal methods to increase the scalability and security of smart contracts.

Our flagship product will make cryptocurrency payments as easy, fast, and reliable as using a debit card. So cryptocurrency can now be used for making everyday purchases like grocery, gas, and buying flowers for your mother.

Clock

Authorize payments
within seconds

Coffe

Have affordable fees for everyday transactions

City Hall

Appeal to established financial institutions and regulatory bodies

...all while remaining distributed, trustless, and secure.

Until now, speed, affordability, and security have not been possible without compromising one or the other. Even if this were achieved, it still isn’t enough to launch cryptocurrencies as mainstream forms of payment.

Even most trusted blockchain cryptocurrencies like Bitcoin process about 10 transactions per second, with full confirmation taking up to an hour.

All blockchain cryptocurrencies are dealing with some version of this problem, making it impossible to scale and achieve widespread market penetration.

Our solution

Legicash takes advantage of formal methods to develop smart contracts that bind blockchains together. Our flagship contract creates the blockchain analog of debit cards, enabling payment within seconds on a side-chain without sacrificing the security guarantees of a trustless decentralized consensus.

How it works

We accomplish this with three key innovations.

First, we accept that consensus can be slow and expensive. This is ok because consensus only matters when things go wrong. Just like you don't go to court every time you buy or sell a cup of coffee, you don't need to go to consensus for every transaction.

Second, we use Repudiable Facilitators to shoulder the liability for fraudulent transactions. They put up a bond for 5x the amount of liquid transactions. Facilitators then validate transactions in compliance with local regulations and make the transfer for a small fee.

Finally, we invented a way to write more elaborate smart contracts using formal methods to automatically enforce the accountability of all participants.

In the long run, our goal is to provide the replacement for debit card purchases, built on top of a decentralized and trustless ledger.

The consensus as a court

Our approach views the consensus at the heart of all cryptocurrencies as a necessarily slow and expensive mechanism to settle disputes.

Transactions flagged as fraudulent are arbitrated by the consensus and are cleared over a few days.

This allows most transactions to be validated within milliseconds.

Repudiable Facilitators

Repudiable facilitators (RFs) are service providers that collect nominal fees for each transaction.

They post a bond to guarantee payment recipients that their transactions are valid within a matter of seconds, not hours.

Also, facilitators can collect identifying information from their users in compliance with local regulations.

A unique approach to smart contracts

We take special precautions to ensure that RFs can’t break the overall system or be broken by the rest of the system.

  • 01 We use formal methods to express the rights and obligations of each party in terms of logical statements. Thus, our smart contracts are both more elaborate and much safer than smart contracts developed by other tools.
  • 02 Security also relies on aligning the incentives of all parties so it is continually in their best interest to be honest participants.
  • 03 If there is ever a dispute about transactions on a side-chain, the analog to a “judge” is invoked via a smart contract. This relatively slow “legal” process can proceed towards resolution automatically. In the event of malfeasance, transgressors will forfeit their bonds and victims will be compensated.

We hold RFs accountable both locally and globally in the event of failure, including fraud, hardware failure, seizure, etc.

Locally

RFs have to post a bond 5x the amount of liquid transactions they are liable for

Globally

RFs are repudiable by user consensus and smart law

A real world example

Presently, if Alice wants to pay Bob 5 coin, they both have to wait for the consensus to validate the transaction before Bob can walk away.

With Legicash, Alice pays Bob 5 coin and then Bob asks Alice’s RF if the transaction is valid.

The RF assumes liability and validates the transaction in a matter of seconds.

Bob can walk away knowing that he is guaranteed funds since the liability of the transaction has now been passed on to the RF.

Certified Facilitators

In the future, your local Starbucks might accept payments via Certified Facilitators, those that are reputable and comply with local regulation

The right Team, right now

Our combined understanding of both technology and economics uniquely positions Legicash to disrupt the cryptocurrency ecosystem.

Francois

François-René Rideau

Co-Founder, Chief Architect

François-René Rideau is an alumnus of the École Normale Supérieure (rue d’Ulm). He has a background as a Researcher in Computer Science (Programming Language Semantics and Distributed Systems). Formerly a Software Engineer at IDEALX, ITA Software, Google, and Bridgewater Associates, he is also an early member of the Tezos community.

Christopher

Christopher Swenor

Co-Founder, CEO

Chris is a tech entrepreneur, passionate about all things software. At East Coast Product, Chris leads his team to build the right digital product to get growth stage startups to their next milestone. Prior to East Coast Product, Chris was the CTO at Vsnap. In his free time, this tech guru is an advisor at Harvard Business School, Resilient Coders, and Techstars.

Paul

Paul Steckler

Engineering

й Paul has extensive experience in software engineering using functional programming and formal methods in both academic and industrial settings, including work on the internals of the Coq proof assistant.

Carla

Carla Cornejo

Operations

Carla served as the VP of Operations for East Coast Product. Before ECP, Carla was a Techstars associate and worked at Harvard University in scholarship management and pedagogical development. She graduated from Brown University in 2010 and serves on the Brown Club of Boston Board of Directors. In her spare time she volunteers at Resilient Coders and organizes Stitch & Pitch, a crafting meetup for those in tech.

Advisors

Max Faingezicht

Max Faingezicht

Pierre-Yves Strub

Pierre-Yves Strub

Thomas Hardjono

Thomas Hardjono

Rick Dudley

Rick Dudley

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