0xBitcoin is designed to be used as a decentralized ‘bitcoin-like’ token within the Ethereum ecosystem and beyond. It avoids problems related to centralization and security because it is powered by the Ethereum Network and by globally distributed anonymous miners. Since it follows a standard protocol (ERC20), it is stored in a traditional Ethereum wallet and it is transferred using standard software which supports EIP20/ERC20 tokens. Since every 0xBitcoin token has been mined in a completely decentralized manner, there is no central body or central organization which controls or enforces any aspect of 0xBitcoin. The community owns and operates the token in a flat structure and every individual has the same power over the smart contract as any other individual. This is on purpose in order to follow the same model of Bitcoin and to establish 0xBitcoin as a commodity.
One of the most effective side effects of Satoshi Nakamoto's desire to secure the original Bitcoin network with Proof of Work hash mining was tethering and bootstrapping the coin to computing power, thereby removing centralized actor jurisdiction. Transitioning the responsibility of work back onto individual miners, government organizations would have no jurisdiction, and indeed visibility, of mined 0xBitcoin. Government oversight is removed from an equation whereby miners are providing economic effort in direct exchange of a cryptographic commodity. This facilitates relatively decentralized distribution and establishes all involved parties as stakeholders. 0xBitcoin is a first in class token that allows projects to be funded not by centralized, direct-fiat conversion, but through decentralized computing power.
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