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Bitcoin OilThe New Bitcoin Fork From Switzerland

Version 1.2 | 03.14.2019Lightpaper

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Table of Contents

Abstract: Bitcoin’s 2019 BTCO Hard Fork01.02.03.04.05.06.07.08.

Founder’s Introduction: Helping to Make Satoshi Nakamoto’s Vision a Reality

Technological Imperfections: The Need for Speed, PoS and Other Improvements

The Bitcoin Oil Mission: Revolutionize Bitcoin and Accomplish Mass Adoption

Background: The Existing Bitcoin PoW Landscape and its Change to PoS

Bitcoin Improvement Proposals (BIP): Challenges Created by Slowness and Inability

Economy of Incentives: Creating the Best Bitcoin Cryptocurrency of All Times

Technical Details: Optimally Improved Ledger (“OIL“)

09.10.11.12.13.14.15.

Centralized Funding for a Decentralized Revolution: Bitcoin Oil’s ICO

The Final Countdown: Our Project Roadmap

The Ultimate Cryptocurrency: Bitcoin Oil (BTCO)

Architects of Change: Our Development Team

Risk Factors: Responsibility Through Transparency

Disclaimer: Forward Looking Statements

References

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01. Abstract: Bitcoin’s 2019 BTCO Hard Fork

Bitcoin Oil (BTCO) is a new cryptocurrency based on the original Bitcoin blockchain technology which will be launched in 2019. The implementation of the BTCO hard fork will create the technologically most advanced version of Bitcoin.

The centerpiece of BTCO and its "Optimally Improved Ledger" (OIL) will be the highly innovative "SSPSS" strategy focusing on the development and implementation of essential Bitcoin improvements in the fields of Stability, Sustainability, Privacy, Smart Sidechains, and Scalability ("SSPSS"), including but not limited to key new Bitcoin blockchain features such as (i.) minimizing Bitcoin's volatility (i.e. by creating an incentives-based economy), (ii.) drastically reducing Bitcoin's insane energy consumption (i.e. by altering the consensus protocol to PoS), (iii.) implementing true privacy features (i.e. by enabling confidential transactions), (iv.) empowering Bitcoin based ICOs and STOs (e.g. by employing full smart contract functionalities), and last but not least (v.) developing cutting-edge scalability solutions (i.e. by complete integration of layer 2 protocols and offline transactions).

In this sense, it is very important to understand that Bitcoin Oil – unlike Bitcoin – will not have to follow the lengthy and protracted BIP procedures which make rapid change almost impossible. Contrary to that inhibitor of innovation, Bitcoin Oil has straight forward agreements in place with some of the largest blockchain and Bitcoin development companies in the world, which will be commissioned by us to build Bitcoin's 2019 BTCO fork and all subsequent improvements thereof.

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02. Founder’s Introduction: Helping to Make Satoshi Nakamoto‘s Vision a Reality

Satoshi Nakamoto’s original Bitcoin white paper1 is titled “A Peer-to-Peer Electronic Cash System”. Those words clearly summarize what Bitcoin was intended to be a payment system that should be used like cash – for everyday transactions and purchases, as a store of value, as a unit of exchange, and as a medium of transfer. Bitcoin was designed as money. As cryptocurrency. So far, so good.

However, it has already been over a decade2 since Satoshi Nakamoto published Bitcoin’s white paper in November 2008, presenting the world with a revolutionizing cryptocurrency. Ten years on, Nakamoto’s vision is yet to be fully realized; as the broad acceptance of any cryptocurrency requires a significant amount of market participants through true decentralization, real mass adoption should have been the goal for Satoshi Nakamoto’s evangelists in the past decade, but Bitcoin is actually lagging dramatically behind.

According to a Cambridge University3 study4, currently there are only between 2.9 to 5.8 million active Bitcoin users in the world, which represents only 0.056 percent of the current world population5 of over 7.7 billion people. Almost in the same period Apple revolutionized the entire telecom industry by presenting its very first iPhone 1 in 20076 (total sales volume came to 6,124,000 units) and striving to surpass themselves year after year up to the forthcoming new iPhone 11 in 20197 (with 6.1 billion smartphone users globally expected by 20208, overtaking basic fixed phone subscriptions9, representing remarkable 78 percent of the world population10).

Without a doubt, the introduction of Bitcoin in 2008 has been revolutionary. But even though several technological innovations11 of Bitcoin’s blockchain12 concept13 may rightfully be considered disruptive14, the overall market penetration and acceptance by worldwide end users fall short of expectations. Next year, there will be over 6 billion smartphone users in the world but still only one thousandth of that represents the small number of active Bitcoin users. While other technologies have disrupted entire industries and accomplished true mass adoption in the last ten years, Bitcoin in 2019 is just at the level where Apple was 12 years ago – with its iPhone 1 in 2007 having roughly 6 million active users.

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This lack of success is for a variety of reasons on Bitcoin's behalf including an extensive amount of structural deficiencies15, conceptual flaws16, governance issues17 and technological insufficiencies18 19 20. If Bitcoin Oil's engineers and developers can find a way to deal with – amongst other issues – the intense volatility and lack of price stability, then Bitcoin's benefits will be able to be enjoyed by all, and true mass adoption could finally happen, which is one of the main objectives of Bitcoin Oil's strategy.

Daily price swings of 10 to 20 percent or more are not uncommon among Bitcoin and other major cryptocurrencies, making them exceptionally volatile in comparison to fiat currencies or government bonds; in comparison, the British Pound lost only 4 percent of its value against the Dollar on the infamous Black Wednesday21, one of its worst performing days ever. This inherent volatility means users run the huge risk of the value of their Bitcoins being eroded, which has turned out to be one of the major obstacles for Bitcoin mass adoption in the last decade. Bitcoin Oil believes a provable way to temper this instability would go a long way for the masses to view Bitcoin as a legitimate currency and pave the way for its true mass adoption.

Economist and philosopher Adam Smith22 said in the "Wealth of Nations" that "money can serve no purpose other than purchasing goods." Currencies are instrumental goods, and in order to be effective, currencies must be mediums of exchange and stores of value - both at the same time. So, the value of a currency is in its ability to do those things efficiently and effectively: facilitate transactions and act as stores of value.

Economist and Nobel Prize winner Paul Krugman wrote23, "to be successful, money must be both a medium of exchange and a reasonably stable store of value. And it remains completely unclear why Bitcoin should be a stable store of value." Talking with Bitcoin supporters, Krugman24, "when I try to get them to explain to me why Bitcoin is a reliable store of value, they always come back with explanations about how it's a terrific medium of exchange." Krugman was saying that a currency's ability to store value and its ability to mediate exchange are different matters entirely.

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So, if Bitcoin is going to be a store of value, the value of it must be relatively stable, and for Bitcoin to be that, it has to be ubiquitous (like what Apple accomplished with its iPhones), but a pretty poor penetration rate of only 0.056 percent is far from anywhere near that. The needed ubiquity of Bitcoin and the increase of value that comes with it is the network effect Bitcoin Oil will generate by creating real-world based monetary incentives for Bitcoin holders, taking it to a penetration rate of over 10 percent of the world population.

Therefore, the more widely Bitcoin will be used, the more flexibility it will have to facilitate transactions, which stabilizes its value; because simply, the more people accept it as a valid form of payment, the more people will use it as a form of payment. And as Bitcoin's ubiquity rises through real-world based monetary incentives, so too does its value. Ultimately, we will turn Bitcoin traders and pure speculators into long-term Bitcoin Oil "hodlers" by providing the only feasible, effective and efficient mechanism, as a constructive corrective, with an important restraining effect and the ability to finally contain outrageous volatility.

While Bitcoin currently pays 12.5 new free Bitcoins (mainly to huge mining farms) for each newly mined block, Bitcoin Oil intends to discontinue this flawed PoW protocol and implement PoS which will enable Bitcoin Oil to eliminate such wrongly directed miners-based coin distribution and drastically redirect reward payments to coin holders, stakers and participants. This change in consensus protocol releases extremely valuable reward capacities and enables Bitcoin Oil to optimize the allocation of reward resources by shifting incentives from huge mining monopolists to each Bitcoin Oil holder on transparent, equal and fair pro-rata basis, valid in perpetuity and without term limits or other timely restrictions.

Finally, let me tell you a little bit more about us at Bitcoin Oil and who we are. Our core team consists of highly experienced Bitcoin investors, Bitcoin followers and Bitcoin developers. So, we are part of the Bitcoin community, and we do not consider ourselves or our approach as competition for Bitcoin. Our mission is to create nothing less than the ultimate improvement of Bitcoin, the final evolution of Satoshi Nakamoto's blockchain concept.

So, make no mistake about it, Bitcoin Oil won't bring a knife to a gunfight. Our entire team of international law firms, global auditors, Bitcoin developers, blockchain partner firms as well as our experienced Board of Directors and our respectable Advisory Board is highly equipped and very well prepared for the challenging implementation process of our entire strategy, which will be a true revolution for Bitcoin.

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By bringing long overdue innovations like Stability, Sustainability, Privacy, Smart Sidechains, and Scalability (“SSPSS"). To all Bitcoin holders, we will fulfill many promises which were already implied in Bitcoin's original white paper in 2008. And as we say: "Bitcoin is dead - long live Bitcoin", so our Optimally Improved Ledger ("OIL") concept is not just another hard fork. We have positioned ourselves as the final solution for most of Bitcoins gradually accumulated problems and flaws.

With this in mind, and in the hope that this is also how many of you see things, we wish you a pleasant reading of our Light Paper and hope to see you soon at one of the forthcoming cryptocurrency events, and until then we remain with kind regards from Switzerland and Texas.

Signature

Donald H. Goree

(CEO)

Signature

Don W. Orr

(President)

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03. Technological Imperfections: The Need for Speed, PoS and Other Improvements

Mass adoption is one of the main objectives of Bitcoin Oil's strategy, and in order to accomplish a meaningful market penetration rate, various key Bitcoin improvements can be considered mission critical in order to eliminate the following weaknesses and flaws of Bitcoin:

Therefore, Bitcoin Oil has developed a whole range of Bitcoin improvements most of which we plan to implement in 2019 by the BTCO hard fork and ultimately lead to a new Bitcoin cryptocurrency based on Bitcoin's blockchain technology. Bitcoin Oil's in-house developers and engineers cooperate with some of the world's largest blockchain development companies enabling us to access hundreds of highly specialized blockchain developers in general and Bitcoin developers in particular who will jointly implement all forthcoming Bitcoin improvements for BTCO in a concerted action.

The centerpiece of Bitcoin Oil and its "Optimally Improved Ledger" (OIL) will be the highly innovative "SSPSS" strategy focusing on the development and implementation of essential Bitcoin improvements in the fields of Stability, Sustainability, Privacy, Smart Sidechains, and Scalability ("SSPSS"), including but not limited to key new blockchain features such as (i.) minimizing Bitcoin's volatility (i.e. by creating an incentives-based economy), (ii.) drastically reducing Bitcoin's insane energy consumption (i.e. by altering the consensus protocol to PoS), (iii.) implementing true privacy features (i.e. by enabling confidential transactions), (iv.) empowering Bitcoin based ICOs and STOs (e.g. by employing full smart contract functionalities), and last but not least (v.) developing cutting-edge scalability solutions (i.e. by complete integration of layer 2 protocols and offline transactions).

• High price volatility and no reliable stability mechanisms

• No intrinsic value and a lack of valuable coin holding incentives

• Insane energy consumption and environmentally unfriendly

• Very limited privacy protection and absence of anonymity

• No smart contract functionalities and token creation features

• Scalability problems and a limited amount of possible transactions

• Slow confirmation times and inability to process quick transactions

• Huge transaction fees leading to congestion in the network

• Long-term security implications of its hashing SHA256 algorithm

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04. The Bitcoin Oil Mission: Revolutionize Bitcoin and Accomplish Mass Adoption

One day, all people on this planet (and beyond) will have the opportunity to use cryptocurrencies, realizing the full potential of decentralization in general and Bitcoin in particular, to drive a new era of economic change, growth, productivity, and prosperity.

Therefore, Bitcoin Oil's mission is to create a better future for all by utilizing the unparalleled benefits of cryptocurrency and the amazing opportunities of an improved version of Bitcoin.

In order to accomplish such a complex process of change, a certain amount of temporary centralization will be required, which is why Bitcoin Oil develops its highly innovative BTCO hard fork. As key element of this strategy Bitcoin Oil focusses on its intention to "go green" by utilizing the Proof of Stake (PoS) protocol to solve Bitcoin's serious energy consumption problems and related issues. We have an opportunity as Bitcoin Oil to mitigate, for the first time, a significant concern that cryptocurrency users have regarding a large amount of electric energy consumed by Bitcoin miners.

Furthermore, Bitcoin Oil will create the technologically most advanced cryptocurrency by immediately implementing several of Bitcoin's most promising pending BIPs and adding several more of our own BIPs resulting in an unprecedented series of innovations. This is the reason why Bitcoin Oil will be leading by innovation and why we believe in leadership by progress and results, not just words and ideas.

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05. Background: The Existing Bitcoin PoW Landscape and its Change to PoS

In today's crypto ecosystem, Bitcoin and many other cryptocurrencies are experiencing a desperate need for electricity to meet the Proof of Work (PoW) protocol requirements. PoW is often described as "complicated puzzles" that miners must solve in order to earn the right to verify a block of transactions and claim the mining reward. Historically, cryptocurrencies were considered to be unregulated virtual currencies, using decentralized control as opposed to centralized currency and central banking systems, which means cryptocurrency networks could not be shut down.

Although that might have been true in the early days of cryptocurrency, Bitcoin Oil believes that Bitcoin cannot really be considered a truly decentralized cryptocurrency and government-independent25, e.g. given that almost 80%26 of Bitcoin's mining pools (and its votes) are controlled out of China – "Bitcoin's most powerful adversary" as many say.27 The truth of today's market is that abundantly cheap electricity supplies need to exist to continue PoW mining ventures, which represents one of Bitcoin's biggest problems28 which Bitcoin Oil will resolve once and for all. Over time, mining has transitioned29 from an ordinary activity carried out by many unrelated miners to giant mining pools. As a result, governments could have increasing influence and at least indirect oversight over Bitcoin's largest miners, which would be totally contrary to the values of decentralization.

In this context, government regulators30 are already taking action31 to ensure that miners no longer receive preferential policies for electricity prices, taxes or land use - a highly political set of options with a lot of leverage for governments to significantly influence and control all major Bitcoin mining farms. To combat these legislative restrictions and remain truly independent from political influence and government control, Bitcoin Oil's blockchain developers are "going green" by implementing the PoS32 protocol.

Ethereum will be the pioneer to this change as they have begun to convert from PoW to a PoS algorithm, which is named Casper33, as part of its Constantinople34 update35. As the second largest crypto asset in the world, this development is a huge endorsement for the PoS protocol. We believe the energy crisis is one of the first truly substantial trials facing the cryptocurrency world as it marches towards public prominence. Pitfalls and obstacles such as these are to be expected in such a nascent technology, but it's the responsibility of the community at large to adapt to these tribulations. Bitcoin Oil – as part of the overall Bitcoin community – will be following suit and "going green" with a conversion to an innovative PoS algorithm (which will at the same time – by the way – accomplish much more than "just" solving these environmental issues; more on this later).

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Alternative to PoW, PoS36 doesn't require miners to solve complex mathematical puzzles in order to secure transactions. Instead, PoS37 uses economic incentives to secure network security. The concept is that using an economic game theory is a better and more efficient way38 to maintain network consensus. Implementing this new "green" system would mean network validators must deposit and lock up, or "stake", coins to the network to act as de-facto collateral. These "staked coins" will be lost in the event a validator attempts to fake transactions or manipulates the system. In PoS39, the number of coins staked, along with the amount of time the coins have been staked to the network, help determine the likelihood a validator will be given the chance to secure the next block of transactions and thereby earning the validator additional coins as a reward for the validation work.

The divergence from completing mathematical computations in PoW to staking coins in PoS is the key factor in reducing the amount of energy required to operate and maintain a PoW-based network, such as Bitcoin, and PoS-based network such as Bitcoin Oil's hard fork. This innovation eliminates the need for miners to use computing power to maintain the network, and instead relies on network participants to stake their coins in order to be recognized as network validators (which – as an important side effect – enables Bitcoin Oil to also create an all-new economy of incentives by providing huge bonus amounts to its coin holders rather than miners).

So, if Ethereum's successful algorithm change in Q1 2019 means anything, it should be a clear signal to the crypto community that PoW cannot persist in its current state. Bitcoin Oil believes PoS could avert Bitcoin from self-sabotage, which is one of the reasons why we are totally convinced that Bitcoin Oil's PoS-based technology will be superior to Bitcoin's current PoW model. Hence, we will remain vigilant in the improvement of Bitcoin and proactive with our solutions outlined in this Light Paper and future documents to follow.

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06. Bitcoin Improvement Proposals (BIP): Challenges Created by Increased Slowness and Inability

As is generally known, Bitcoin is not governed or controlled by any single entity or corporation40, which is mainly why there is no innovation oriented formal structure or efficient process in place to propose improvements in the Bitcoin protocol or code and implement any such changes in an expedited manner. Instead, theoretically, any developer or anyone from anywhere in the world could propose a formal BIP41, but it is totally up to the small Bitcoin core developer community42 to start (or refuse to start) a formalized process43 for any such BIP (which raises the question of trust44, if there is a small group of more or less unselected individuals which has the power to change the core software, or block any changes thereof).

Another interesting fact of Bitcoin's understanding of governance or – let's call it – democracy is the role of its miners: At the end of the complicated and long-lasting BIP process, it is the miners or mining pools who decide whether a BIP will be accepted or not, while the actual coin holders who have invested in Bitcoin and collectively own billions of US$ worth of Bitcoin have not even one single vote in this process. The reason for that singularity is due to Bitcoin's governance rules: In order for a BIP to become accepted and labeled as "final", each of the following conditions must be met: follows the correct format as specified by BIP-1, includes code implementations of the proposed changes to the protocol, has 95% support from the last 2,016 miners (~14 days worth of mining with 10 min blocks).

In other words: Only when and if 95% of all miners support a BIP, it has a real chance of approval and implementation, otherwise it can be considered "dead on arrival", which is for example why an organic protocol change from PoW to PoS would never ever happen inside Bitcoin (BTC) as it would be unimaginable that the miners would vote to end their own cash cow business as PoW is what makes miners rich, and they would hardly bite the hand that feeds them, even though it might be in the best interest of the community and all other market participants.

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Remarkably enough, miners do not need to own any Bitcoin at all, but still, they are the only ones who have the right to vote and decide about any BIP based innovation. Imagine you are a large investor of the world's biggest automotive companies like Volkswagen or General Motors, but your shares would not allow you or any other stakeholders to decide anything since all important company decisions will be exclusively be made the suppliers; yes, you have read correctly, that's exactly the way Bitcoin votes when it comes to approving or disapproving innovations, which is one of the main reason for Bitcoins lack of innovation power and helps to understand why the market has not seen many Bitcoin improvements in the past decade at all. So, in Bitcoin's governance systems and BIP structure, the suppliers (or miners) decide whether innovations may happen or get rejected, even if their decision might be heavily biased and guided purely by their own interests45 (e.g. when it comes to a protocol change from PoW to PoS, which is just one example).

In general, there are three major types of BIPs46: 1. Standards Track BIPs, 2. Informational BIPs, 3. Process BIPs. Depending on the respective type of BIP, it may require community consensus. But even before this consensus, when any of the above types of BIPs are submitted, they go through various complicated statuses such as drafted, verified, accepted, and rejected or replaced, which takes time, mostly a lot of time. Many see this as a major weakness for innovation-driven change and suggest that Bitcoin developers treat their codebase like it was software for air traffic control47, while developers for other cryptocurrencies like Ethereum remain in a much more innovative kind of "move fast and break things" mindset which is considered essential to makes change happen.

Interestingly, Ethereum (ETH) even has more than twice as many core developers as Bitcoin48, and in general, Ethereum has 99 core developers working on its base protocol, the most of all cryptocurrencies, not counting community project developers49. At the same time Bitcoin (BTC), the largest of all cryptocurrencies by market capitalization only has a developer base of 47 core developers, over 52% less than Ethereum (and also less than the number of developers Bitcoin Oil will have access to with the proceeds from our ICO).

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Often, this unusual structure yields strange results instead of bearing timely innovations. For example, just recently Bitcoin's core developers took the BIP for Schnorr signatures to the next level (and treated this tough process as if it was some kind of success or achievement, which it was absolutely not). In this regard, it is noteworthy and really remarkable to understand how long it took50 Bitcoin's core developers to move forward with this improvement:

• Schnorr signatures were already developed 51 1989/199152 and used in many other cryptographic applications since.

• Even when its U.S. Patent 4,995,082 expired in late 2008 53 (coincidentally the same year when Bitcoin was created), the technology was, for another several years, still not convincing enough for Bitcoin's core developers to include it in Bitcoin's code, even though many discussions amongst core developers over the years have come to the conclusion that it would be very advisable to include Schnorr signatures.

• On April 20, 2015 (another seven years later) Bitcoin core developer Peter Maxwell elaborated again on the importance of privacy for Bitcoin and presented once more the concept of Schnorr signatures 54 to his fellow developers, but not much happened.

• In June 2015, also the Elements Project 55 advocated for the use of Schnorr signatures in Bitcoin's code in order to provide more privacy.

• On December 15, 2015, a SHA256 code module was published 56 which implements a custom Schnorr-based signature scheme (however, it would still take another four years before a formal BIP would be presented to Bitcoin's core developers).

• Then on May 20, 2016, Bitcoin's core developers met again (this time in Zurich 57) and discussed once more the privacy advantages of implementing Schnorr signatures, noting in their meeting protocol: "It will get better with Schnorr!"

• In July 2016, Bitcoin's core developers had another lengthy discussion about Schnorr signatures at their Bitcoin Developers & Miners Meet-Up 58, noting in their meeting transcripts: "Something I hope to be proposing in a while is that we switch to Schnorr signatures as a first step!”

• On October 10, 2016, Peter Wuille gave a presentation in Milan with the title "Schnorr Signatures for Bitcoin” 59, calling the subject of his presentation in a brief introduction 60 "new cryptography which has taken a while, and many smart people have talked about it for a very long time, and many issues have come up".

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• We could continue this time-consuming process for each of the following years, but to cut things short and make reading a little easier, we make a leap in time to 2018, when Peter Wuille sent an email 61 on July 6, 2018, for the first time presenting a formal BIP 62 for the implementation of Schnorr signatures (which constitutes just the beginning of the actual BIP process, not at all the end).

• Then in February 2019, Blockstream released test code for the proposed Bitcoin Schnorr upgrade 63, which has already been a theoretical upgrade for years and which many developers call one of the "biggest coming upgrades for Bitcoin" at all and most important change since SegWit 64.

• At the moment, the code of the Schnorr signature can be found on Github and all the community is able to give proper feedback about this new technology while it is still in development 65.

• Once all feedback has been provided, gathered and evaluated, it is expected that there will be a vote on Schnorr signatures and – possibly – the code could be used in the mainstream Bitcoin core projects in the future, but nobody knows exactly when that would finally happen.

To cut a long story short: Any potential changes to the Bitcoin protocol take an extensive amount of time, research, development, testing and formalities before they can be rolled out to the wider community for consideration and implementation 66 which constitutes a major obstacle for innovation and change. Just the Schnorr signature upgrade is being discussed and worked on for many years, and the technology itself has been available for patent-free use since 2008, the year Bitcoin was invented, but still – eleven years later – nobody knows when this innovation will be implemented.

Hence, decentralized governance 67 remains a huge issue and one of the main problems for Bitcoin in the future, when only a few core developers decide about reviewing an innovation over many years (without any development happening much later), and at the end of this very lengthy process it takes the approval of a 95% supermajority of miners to allow any change to happen.

Therefore, Bitcoin Oil has decided to end this innovation backlog by centralizing change. We believe "it takes a revolution to make a solution” 68, and important improvements can only be accomplished in a timely manner as a result of a concerted action, which is basically why Bitcoin Oil has organized itself and its group of people as company outside of Bitcoin and has chosen the means of a hard fork to accomplish the wide range of innovations identified in our SSPSS strategy.

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So, if it takes 47 Bitcoin's core developers far more than ten years just to present a BIP about something ostensibly as important as Schnorr signatures, it would probably take forever to get something as complex as our SSPSS innovations done in this long-winded BIP structure. Imagine what Bitcoin Oil's highly committed team of developers could accomplish in a few months or half a year, as after the ICO our team will have access to more developers than Bitcoin and our developers will be encouraged to fast-track all key developments without this lengthy BIP formalities.

Hence, we will take several of Bitcoin's most promising pending BIPs and add several more of our own BIPs and create an unparalleled wave of innovations in such a short time, that the world will be able to choose between two versions of Bitcoin, one of which is still looking at a whole range of pending innovations and one of which will have already incorporated all of these (and many more) improvements.

This is the reason why Bitcoin Oil will be leading by innovation and why we believe in leadership by progress and results, not just words and ideas.

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07. Economy of Incentives: Creating the Best Bitcoin Cryptocurrency of All Times

Historically, Bitcoin (BTC) has been extremely volatile, which Bitcoin Oil (BTCO) believes limits its capabilities for mass adoption and in turn its usefulness as a medium of exchange and a reasonably stable store of value. Hence, Bitcoin Oil's team considers price stability and reduced volatility as the pathway to Bitcoin mass adoption.

By leveraging Bitcoin Oil's Proof of Stake ("PoS") algorithm, Bitcoin Oil believes that the adoption of Bitcoin Oil by participants of the Bitcoin Oil distributed ledger network ("Bitcoin Oil Network") will create one of the first true incentive-based ecosystems, enabling price stability through coin holder's holding of Bitcoin Oil.

Bitcoin Oil intends to implement such incentive-based ecosystems through "Hodlers Rewards" and plans to implement the Hodlers Rewards in three different tiers, and to incorporate these Hodlers Rewards in Bitcoin Oil's algorithm as a reward in the form of Bitcoin Oil coins:

• Holding (Tier 1): buying and holding BTCOs for some time.

• Staking (Tier 2): staking a certain amount of BTCOs.

• Participating (Tier 3): becoming a key participant of the Bitcoin Oil Network, including, for example, as a validator, delegator, etc.

• Based on these three different tiers, Bitcoin Oil plans to implement the Hodlers Rewards as follows:

• Holders of BTCOs that hold and not transfer their BTCOs for a certain period of time will be able to receive Hodlers Rewards, which represents a Tier 1 reward.

• Holders of BTCOs that are eligible for Tier 1 reward may receive additional Hodlers Rewards as Tier 2 reward if such holders also stake their BTCOs for a chance to participate in the operation and security of the Bitcoin Oil Network.

• And holders of BTCOs are eligible for Tier 2 reward may receive additional Hodlers Reward as Tier 3 reward, if such holders participate in the security and operation of the Bitcoin Oil Network, including, among other things, acting as a validator or delegator.

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We believe that the three-tiered reward of the Hodlers Rewards program will create the right level of incentive to encourage holders of BTCOs to continue their engagement with the Bitcoin Oil Network on a long-term basis. No other cryptocurrency offers such a reward structure as part of their algorithm DNA. Hence, BTCO believes that the Hodlers Rewards program will likely reduce the current price volatility such as that of Bitcoin, which in turn will result in BTCO being a uniquely-positioned stable cryptocurrency that will become more useful as a medium of exchange and a reasonably stable store of value.

Hence, BTCO is creating stability through an economy of incentives with an improved structure of Bitcoin's blockchain enhanced with entirely new algorithms and technologies. BTCO holders will now for the first time ever not just be rewarded for loyalty but be playing a part in creating a true stable coin.

In addition, BTCO will introduce its transaction-based "oil cost" which will be paid to Bitcoin Oil's network participants (analogous to "gas prices" of other cryptocurrencies). The concept of Bitcoin Oil's "oil cost" was developed to keep a distinct value that solely indicates the consumption towards computational expenses on the blockchain. To draw an analogy 69, running a real-world car for X miles may require Y gallons of fuel, or moving X amount of money from one bank account to another may cost Y dollars in processing fees. In both cases, X indicates the utility value, while Y indicates the cost of performing the process of the car trip or financial transaction. Likewise, a transaction on Bitcoin Oil may be worth 25 BTCO (X), and the fee to process this transaction at that time may be for example 1/100 BTCO (Y), whereby the actual transaction fee ("oil cost") is determined by the formula (OilCost = OilConsumed x OilPrice). Hence, Bitcoin Oil participants, who perform the important tasks of verifying and processing a transaction, will be awarded this transaction fee ("oil cost") for their computational services.

As outlined before, to a large extent, high fees became another problem for Bitcoin (BTC). As fees climbed, some users looked for alternative cryptocurrencies while others stopped using BTC altogether. And as BTC's transaction fees continued to rise even further, more and more users and companies made them a top priority. As a result, these high fees have encouraged many companies to simply stop using BTC and shift to other blockchain networks 70 – like Litecoin, Ethereum, or Bitcoin Cash – where transaction fees are much lower, which is obviously not a positive sign for BTC's long-term future (even though reports show that the average BTC transaction fee has fallen to $0.244 71 as of February 16, 2019, this amount is still significantly higher than comparable fees in other networks and still way too high for low-cost driven mass transactions, especially as BTC's fees are highly volatile since its peak in December 2017, when the average transaction fee exceeded $40 72, leaving many users extremely skeptical about future BTC fees).

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Hence, Bitcoin Oil's innovative "oil cost" fee structure represents another important market-driven innovation which helps on the one hand to drastically increase the cryptocurrency's attractiveness for users (e.g. enabling micro-payments and other low-cost driven mass transactions on BTCO) and on the other hand to create the right level of incentive through the Hodlers Rewards program for network participants.

So, for the first time, a cryptocurrency like Bitcoin Oil is creating real stability through loyalty, an imperative component to be fit for the future. We aim to achieve mass adoption where hundreds of millions of wallets will speak for the strength of our strategy. And for the first time in Bitcoin history, we will avoid extreme volatility and be considered a legitimate medium of exchange for holders of Bitcoin Oil.

Already in some other cryptocurrencies staking creates an incentive for holders to remain with and continue to participate in such platform as they can earn a percentage of their staked assets on a monthly, quarterly or yearly basis 73 (whereby these earnings currently range from 20% to 50% or even 99% which is going to be optimized in Bitcoin Oil's PoS algorithm). What's even more unique about Bitcoin Oil's incentive-based ecosystem is the so-called "time warp factor" by which the Hodlers Rewards ratios for holding, staking, and participating will increase at the end of each full quarter by a pre-determined amount. The distinctive combination of the "time warp factor" on the x-axis and the fixation of three reward tiers on the y-axis is expected to result in greater price stability of BTCO as significant numbers of coins will be locked away and stored off the market for considerable amounts of time which will subsequently and constantly tighten the overall BTCO coin supply.

While Bitcoin (BTC) currently pays large amounts of new free Bitcoins for each newly mined block to its miners, Bitcoin Oil (BTCO) intends to convert from this unsound PoW protocol and implement PoS which will enable Bitcoin Oil to eliminate such mining-based rewards as future incentives will be differently awarded than current mining rewards. This change to PoS creates extremely valuable reward capacities and enables Bitcoin Oil to optimize the allocation of such rewards by shifting incentives from huge mining pools to each and every Bitcoin Oil holder on a transparent, equal and fair pro-rata basis.

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07.

Primarily the price of Bitcoin Oil will be determined by the simple and effective rules of supply and demand. As the maximum supply will be capped in general and as the available circulating supply will be reduced in particular through the aforementioned reward structure, any market pricing models based on ceteris paribus analysis will lead to the assumption that the BTCO price is going to be more stable and less volatile than the current and historic market of Bitcoin (BTC), which Bitcoin Oil believes will pave the way for BTCO's mass adoption.

This progress is based on the Hodlers Rewards part of the algorithm which creates stability through loyalty and by paying rewards for participation in the Bitcoin Oil Network. Daily price swings of 10 to 20 percent or more are not uncommon among Bitcoin and other major cryptocurrencies, making them exceptionally volatile in comparison to fiat currencies or government bonds. This inherent volatility means users run the risk of the value of their assets being eroded, which has turned out to be one of the major obstacles for Bitcoin's mass adoption in the last decade.

Rewarding Bitcoin Oil holders incentivizes long-term retainment of BTCO, which will create the stability Bitcoin so desperately needs. Hence, Bitcoin Oil believes a provable way to temper the historical instability would go a long way for the masses to view Bitcoin Oil as the most legitimate version of Bitcoin and pave the way for its true mass adoption.

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08.Technical Details: Optimally Improved Ledger ("OIL")

The implementation of the BTCO hard fork will create the technologically most advanced version of Bitcoin. The centerpiece of BTCO and its "Optimally Improved Ledger" (OIL) will be the highly innovative "SSPSS" strategy focusing on the development and implementation of essential Bitcoin improvements in the following fields:

Stability:

• Massive reduction of market price volatility

• Creating market price stability mechanisms

• Implementing an economy of incentives

• Rewarding coin holders, stakers, participants

• Generating constant passive income streams

Sustainability:

• Replacing BTC's PoW by BTCO's PoS algorithm

• Eliminating Bitcoin's insane energy consumption

• Ensuring a clean and environmentally friendly conscience

• Establishing independence from electricity supply

• Developing very competitive transaction fees

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08.

Privacy:

• Realizing anonymization strategies to protect privacy

• Preventing tracing and ascertaining of sender's IP addresses

• Enhancing on-chain privacy for senders and recipients

• Increasing competitiveness by adding confidential transactions

• Advancing tools such as Schnorr signatures, MAST, etc.

Smart Sidechains:

• Building innovative duplex micropayment channels

• Enabling ICOs and STOs on our Bitcoin-based blockchain

• Facilitating incentivized and enforced execution of smart contracts

• Representing decentralized autonomous applications worldwide

• Integrating numerous other platforms with a 2-way peg

Scalability:

• Featuring layer 2 protocols and off-chain computations

• Boosting the amount of possible network transactions

• Altering transaction size and frequency limitations

• Amplifying throughput without placing extra demand

• Researching further scalability solutions like sharding

All additional technical details and specifications will be outlined in our forthcoming white paper and yellow paper both of which will be released shortly, once our team has completed its white paper and yellow paperwork and approval process.

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09. Centralized Funding for a Decentralized Revolution: Bitcoin Oil's ICO

In order to implement all predetermined Bitcoin improvements in a relatively short timeframe, Bitcoin Oil has straight forward agreements in place with some of the largest blockchain and Bitcoin development companies in the world, which will be commissioned by us to build Bitcoin's 2019 BTCO fork and all subsequent improvements thereof. A significant amount of all ICO proceeds will be used for these technological developments (both front-end & back-end and hardware & software).

Currently, Bitcoin Oil is in the process of conducting its private presale of certain promissory notes in the aggregate principal amount of US$1.5 million, payable in BTCO upon the completion of the ICO. Bitcoin Oil has invited its network of "friends & family" purchasers and early-stage development partners and others to participate in the private presale which is expected to close in the second half of March 2019. The private presale will be completed in one or more transactions outside the United States in accordance with Regulation S of the Securities Act of 1933, as amended, and in the United States only to purchasers who are "accredited investors" within the meaning of subparagraph (a) of Rule 501 in reliance on Regulation D of the Securities Act of 1933, as amended. In addition, the offering and sale of the notes and the delivery and distribution of the notes or BTCO may be restricted by laws in certain other jurisdictions. Bitcoin Oil may, from time to time, revise the foregoing mechanics to comply with regulatory requirements or other governmental or business obligations as Bitcoin Oil deems appropriate or desirable under the circumstances.

• ICO Structure: Bitcoin Oil's ICO is structured in three rounds which followed the initial seed rounds: the private presale, the public presale, and the ICO crowdsale.

• Pricing and Bonuses: The bonus for the private presale is 85%, the bonus for the public presale ranges from 55% to 75%, and the bonus for the ICO crowdsale are expected to range from 15% to 45%.

• Amount of Proceeds: Based on the assumption that all three rounds of Bitcoin Oil's ICO would be entirely sold, the total amount of gross proceeds are expected to be approximately $102,000,000.

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09.

• Split Adjustment: To optimize fungibility and tradability (and avoid the Berkshire Hathaway share price problem) BTCO implements a computed 1:1,000 "forward split" resulting in a BTCO coin price divided by 1,000 and a maximum supply multiplied by 1,000 (compared to BTC), based on a predetermined BTC price of US$1,000.

• Maximum Supply: The maximum amount of BTCO that will ever exist in the lifetime of the cryptocurrency will be 21,000,000,000 (21 billion) BTCO (capped supply).

• Total Supply: The total amount of BTCO in existence at its launch after the ICO sale will be 5,000,000,000 (5 billion) BTCO.

• Circulating Supply: The number of BTCO that will be circulating in the market and in the general public's hands will be 3,000,000,000 (3 billion) BTCO.

• Reserve Amount: A total of 2,000,000,000 (2 billion) BTCO will be temporarily held by Bitcoin Oil (e.g. to increase network safety by making, for example, any 51% attack much harder) and released to the community (e.g. in form of reward payments) as decentralization increases over time.

• Bitcoin Airdrop: Bitcoin Oil will allocate a fair share of its total supply to all current Bitcoin (BTC) holders. Please note: Bitcoin Oil will never ask you for your private keys; for further information regarding airdrop details and procedures, please review our forthcoming white paper.

• Use of Proceeds: A significant amount of all ICO proceeds will be used for these technological developments (both front-end & back-end and hardware & software); for further details regarding the detailed use of proceeds, please review our forthcoming white paper.

All additional details regarding the public presale and the ICO sale will be outlined in our forthcoming white paper which will be released shortly, once our team has completed its white paper work and approval process.

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10. The Final Countdown: Our Project Roadmap

November 2017

Platform Idea

The origin of Bitcoin Oil's blockchain platform idea.

Development of the concept of our overall business plan.

January 2018

Elaboration of Platform

Elaboration of Bitcoin Oil's blockchain platform.

Integration into a suitable legal model for various jurisdictions.

Attracting internal investments from existing partners to pre-finance the initiative.

Development of a pilot paper for circulation.

June 2018

Internal Fundraising

Attracting of further investments from existing partners.

Preparation for Bitcoin Oil's company formations.

Additional team building.

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10.

August 2018

Attraction of Advisors

Further development of the Bitcoin Oil platform concept.

Preparations for technical details.

September 2018

Technical Details

Development of partnerships for technical details.

Agreements with key partners and partner companies.

Development of more detailed briefing documents.

October 2018

Preparing for ICO

Formation of Bitcoin Oil's Advisory Board.

Internal start of platform concept development.

Begin of ecosystem specifications (involving partners).

Attending key crypto events for strategic meetings.

November 2018

Preparing for ICO

Additional preparations for ICO.

Engagement of additional legal advisors.

Continue the concept development for the platform.

Ecosystem specifications continuation (more partners involved).

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10.

February 2019

Hiring Campaign

Begin of Bitcoin Oil's hiring campaign to increase team.

Signing LOIs with key blockchain partner firms.

Adding more people to the Advisory Board.

March 2019

Starting Private Presale

Receiving additional funding as part of the private presale.

The release of the first Light Paper.

Building a developer alliance to support our developments.

Working closely with highly specialized Bitcoin development companies.

April 2019

Conducting Public Presale

Launching the Public Presale of the ICO.

The release of the first white paper.

Attending more crypto events and presenting to investors.

Preparation for BTCO listings on cryptocurrency exchanges.

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10.

May 2019

Launching ICO

Conducting the ICO crowdsale for BTCO.

The release of the first technical yellow paper.

Development of further Bitcoin Oil specifications.

Definition of Bitcoin Oil integration with partner applications.

More detailed briefings of functionality development.

Q2 2019

Internal Beta Release

Internal Platform Beta release.

Internal Web Wallet and Mobile Wallet Beta versions.

Working on the integration of feature releases.

Continuation of an active development process.

Continuing preparation for BTCO listings on cryptocurrency exchanges.

Q3 2019

Hard Fork

The launch of Bitcoin's BTCO hard fork.

Distribution of total BTCO supply to all coin holders.

Conducting airdrop to participating BTC holders.

BTCO listings on various cryptocurrency exchanges.

The release of the final version of the technical yellow paper

Further development of additional improvements.

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Q4 2019

Further Developments

Additional development of more complex improvements.

Involvement of specialized partners to develop certain features.

BTCO listings on additional cryptocurrency exchanges.

Q1-Q4 2020

Implementation Additional Features

Introduction of our peer-to-peer micropayment platform.

Presentation of our integrated e-commerce solutions

Implementation of additional and more complex new features.

Further development of additional improvements.

Q1-Q4, 2021

Further Developments

Implementation of additional and more complex new features.

Further development of additional improvements.

10.

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11. The Ultimate Cryptocurrency: Bitcoin Oil (BTCO)

The implementation of the BTCO hard fork in 2019 will create the technologically most advanced version of Bitcoin, including but not limited to the following key characteristics:

Stable Currency

BTCO will provide price stability through holders' loyalty.

Energy Saving

BTCO will implement PoS and solve Bitcoins energy problems.

Privacy Protection

BTCO will make the privacy protection of its users a top priority.

Sidechain Mothership

BTCO will be the mothership for numerous sidechain applications.

Unlimited Scalability

BTCO will create unprecedented PoS based scalability solutions.

Capped Supply

BTCO will be a deflationary cryptocurrency with limited supply.

Low Fees

BTCO will introduce extremely competitive transaction fees.

Instant Transactions

BTCO will feature instant transactions with immediate execution.

Open Source

BTCO will be open source and available for review and verification.

Community Made

BTCO will be launched by and for members of the Bitcoin community.

Concentrated Decentralization

BTCO will use the advantages of a concentrated ICO to create decentralization.

Concerted Effort

BTCO will use its proceeds to finance a concerted major development effort.

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12. Architects of Change: Our Development Team

Fortunately, Bitcoin Oil will not have to follow the lengthy and protracted BIP procedures which make rapid change almost impossible. As outlined before, Bitcoin Oil has straight forward agreements in place with some of the largest blockchain and Bitcoin development companies in the world, which will be commissioned by us to build Bitcoin's 2019 BTCO fork and all subsequent improvements thereof.

Therefore, Bitcoin Oil recently announced details of its plan to partner with top-rated blockchain development companies to roll out its strategic plan and roadmap, including the forthcoming Proof-of-Stake ("PoS") based Bitcoin hard fork. Ahead of this hotly anticipated milestone, Bitcoin Oil has already launched a hiring campaign with several new job postings being published on the internet for its internal team of developers. At the same time, Bitcoin Oil built partnerships with more than a handful of well-known blockchain development companies in different countries to become development partners for Bitcoin Oil's technical blockchain developments providing a workforce of several hundred developers.

Bitcoin Oil is very pleased with the high degree of inquiries and the number of positive responses from blockchain developers from around the world who support our improvement proposals and wish to become part of our movement. Also, the exceptionally positive resonance from corporate partners is extremely encouraging for Bitcoin Oil.

And not only do we see a lot of boundless interest from both individual developers and development companies to partner with Bitcoin Oil, but more importantly many of these highly-experienced partners already entered into intense discussions with our management and development team about key details of the technical implementation process for various Bitcoin improvements.

In general, innovative blockchain ventures, like Bitcoin Oil, are competing with major technology companies and tapping the same talent pool for skilled professionals. Therefore, Bitcoin Oil is in the process of implementing a threefold development approach by integrating in-house development teams, outsourced individual developers, and large blockchain development companies, thereby enabling Bitcoin Oil to ensure the availability at all times the resources required for its continued technical implementation process.

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12.

Hence, Bitcoin Oil is looking for experienced blockchain developers, including individual developers with proven track records in various previous Bitcoin Improvement Proposals (BIPs) and an interest to join the existing team of blockchain developers (if you are interested to work with us and create the ultimate Bitcoin improvements, please send us your CV, include your Github repositories, outline your relevant Bitcoin blockchain work experience, tell us what your particular BIP focus areas of interest are, and let us know how you want to change Bitcoin even beyond the ideas outlined in this Light Paper: change@bitcoinoil.com).

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13. Risk Factors: Responsibility Through Transparency

Interested participants should refer to Bitcoin Oil's forthcoming White Paper and technical Yellow Paper for detailed information and for a comprehensive understanding of the potential risks as well as benefits and technical properties associated with Bitcoin Oil, of which a summary is contained herein.

Bitcoin Oil is still at a very early stage of development. The company may have to make changes to the specifications of Bitcoin Oil for any number of legitimate reasons or may be unable to develop Bitcoin Oil in a way that realizes those specifications or any form of a functioning network. To the extent that Bitcoin Oil is successfully developed and the Bitcoin Oil hard fork is completed, Bitcoin Oil may not meet participants' expectations and may be different from those set out in the Light Paper or White Paper.

Furthermore, despite Bitcoin Oil's efforts to develop and complete the Bitcoin Oil hard fork and subsequently to develop and maintain Bitcoin Oil, it is still possible that Bitcoin Oil will experience malfunctions or otherwise fail to be adequately developed or maintained, which may negatively impact Bitcoin Oil.

The development of Bitcoin Oil will require significant capital, expertise, time and effort. Bitcoin Oil may require substantially more funding or time in development than currently expected, which may result in suspension or cancellation of development of Bitcoin Oil.

If Bitcoin Oil is not successful in its efforts to demonstrate to users the utility and value of Bitcoin Oil, there may not be any sufficient demand for Bitcoin Oil to proceed with the development of the Bitcoin Oil hard fork. As a result, or if the development of the Bitcoin Oil hard fork does not occur, participants may lose all of the funds provided in connection with the Bitcoin Oil sale.

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13.

Due to the decentralized nature of Bitcoin Oil, there is no guarantee that the Bitcoin Oil hard fork (to the extent that it is developed) will be deployed as intended or at all. Bitcoin Oil might not come into existence, whether as part of the Bitcoin Oil hard fork or otherwise, if there is no deployment of the Bitcoin Oil hard fork.

Bitcoin Oil may not have or may not be able to obtain the technical skills and expertise needed to successfully develop Bitcoin Oil and progress it to develop the Bitcoin Oil hard fork. There is a general scarcity of management, technical, scientific, research and marketing personnel with appropriate training to develop and maintain Bitcoin Oil.

All additional details regarding the risks of the presale and the ICO crowdsale will be outlined in our forthcoming white paper which will be released shortly, once our team has completed its white paper work and approval process.

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14. Disclaimer: Forward-Looking Statements

This Light Paper shall not constitute an offer to sell or the solicitation of an offer to purchase any coin or right described herein, nor shall there be any sale of these coins or rights in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

This Light Paper contains information about pending transactions, and there can be no assurance that any of these transactions will be completed in accordance with the terms described in this Light Paper or at all.

This Light Paper contains information about a possible hard fork of the Bitcoin network. Neither the Bitcoin Oil generated through the hard fork nor the Bitcoin Oil generated thereafter by any other method will be registered under the Securities Act of 1933, as amended, or the securities laws of any other jurisdiction and may not be offered, sold, pledged or transferred within the United States or such other jurisdiction without registration or an applicable exemption from such registration requirements. Even though Bitcoin Oil intends to deliver and distribute certain initial Bitcoin Oil to the record holders of Bitcoin then existing on the Bitcoin network, such delivery and distribution may be restricted or prohibited by laws of the jurisdiction in which such holders reside or such distribution or delivery may result in Bitcoin Oil being required to register such Bitcoin Oil under the Exchange Act of 1934, as amended, or the securities law of any other applicable jurisdiction. Bitcoin Oil is in the process of assessing regulatory requirements for the delivery and distribution of such initial Bitcoin Oil to the then holders of Bitcoin and there can be no assurance whether Bitcoin Oil would be able to make such delivery or distribution to any such holder.

This Light Paper contains statements that are forward-looking (such as when Bitcoin Oil describes what it "plans," "believes," "intends," "seeks," "aims," or "anticipates" will occur, what "will," "potentially," or "could" happen, and other similar statements or the negative of such terms or statements), which may not be correct, even though Bitcoin Oil believes that they are reasonable at the time of this Light Paper. Bitcoin Oil does not guarantee that such forward-looking statements will happen as described or that they will happen at all. Further information regarding risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statement is included in the forthcoming White Paper. Bitcoin Oil undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made.

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15. References

In order to allow everyone to follow our thought process, Bitcoin Oil has decided to use active hyperlinks as the preferred way of quoting and referencing source texts (rather than following traditional academic quoting rules). Furthermore, if multiple sources exist, in many cases Bitcoin Oil has chosen more popular sources over too technical or academic sources in order to enable also less tech-savvy readers to understand the context. However, if you feel, we should add another source, please feel free to contact us at media@bitcoinoil.com).

1 https://bitcoin.org/bitcoin.pdf2 https://www.theguardian.com/commentisfree/2019/jan/03/10th-birthday-bitcoin-cryptocurrency3 https://www.jbs.cam.ac.uk/faculty-research/centres/alternative-finance/publications/global- cryptocurrency/#.XIZsIvZFzRM4 https://www.jbs.cam.ac.uk/fileadmin/user_upload/research/centres/alternative-finance/downloads/2017- global-cryptocurrency-benchmarking-study.pdf5 http://www.worldometers.info/world-population/6 https://en.wikipedia.org/wiki/IPhone_(1st_generation)7 https://www.cnet.com/news/iphone-11-rumors-price-specs-features-and-everything-else-we-know/8 https://www.digitaltrends.com/mobile/smartphone-users-number-6-1-billion-by-2020/9 https://techcrunch.com/2015/06/02/6-1b-smartphone-users-globally-by-2020-overtaking-basic-fixed-phone- subscriptions/10 http://www.worldometers.info/world-population/world-population-projections/11 https://www.ee.iitb.ac.in/~sarva/bitcoin/bitcoin-notes-v0.1.pdf12 https://dl.gi.de/bitstream/handle/20.500.12116/16570/DFN-Forum-Proceedings- 001.pdf?sequence=1&isAllowed=y13 https://unglueit-files.s3.amazonaws.com/ebf/05db7df4f31840f0a873d6ea14dcc28d.pdf14 https://cointelegraph.com/news/bitcoin-whitepaper-10-years-since-satoshis-vision-was-brought-to-life15 https://www.bis.org/publ/work765.htm16 https://www.continentaltelegraph.com/economy/why-bitcoin-will-fail-the-doomsday-loop-of-proof-of-work- explained/amp/17 https://beincrypto.com/the-cryptocurrency-industry-has-a-forking-problem-can-on-chain-governance-help- solve-it/amp/18 http://ijarcet.org/wp-content/uploads/IJARCET-VOL-5-ISSUE-6-1732-1735.pdf

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15.

19 http://www.globeco.ro/wp-content/uploads/vol/split/vol_5_no_2/geo_2017_vol5_no2_art_008.pdf

20https://openaccess.leidenuniv.nl/bitstream/handle/1887/42104/Bitcoin%2C%20The%20Pros%20and%20Con s%20of%20Regulation.pdf?sequence=121 https://en.wikipedia.org/wiki/Black_Wednesday22 https://www.adamsmith.org/the-wealth-of-nations23 https://www.forbes.com/sites/jeffreytucker/2018/08/05/has-paul-krugman-softened-on-crypto- tech/#3526b3723cca24 https://www.forbes.com/sites/jasonbloomberg/2017/06/26/what-is-bitcoins-elusive-intrinsic- value/#6659637e719425 https://news.bitcoin.com/chinese-mining-threatens-bitcoin/26 https://bitcoinmagazine.com/articles/report-links-74-bitcoin-mining-china-sees-threat-network/27 https://tokenmantra.com/researchers-argue-that-china-is-the-most-powerful-opponent-of-bitcoin/28 https://www.forbes.com/sites/francescoppola/2018/05/30/bitcoins-need-for-electricity-is-its-achilles-heel/ 29 https://www.riskscreen.com/kyc360/article/bitcoin-causes-electricity-crisis-parts-china-fresh-crackdown- looms/30 https://cointelegraph.com/news/what-world-leaders-think-about-crypto-and-how-they-want- decentralization-to-bolster-centralised-power31 https://www.caixinglobal.com/2018-01-04/china-clamps-down-on-preferential-treatment-for-bitcoin-mines- 101193622.html

32https://www.google.de/url?sa=t&rct=j&q=&esrc=s&source=web&cd=6&cad=rja&uact=8&ved=2ahUKEwjUqr PsxvrgAhXLbVAKHTxJBS4QFjAFegQIBBAB&url=https%3A%2F%2Fbitcoinist.com%2Fethereum-pos-blockchain- cut-energy%2F&usg=AOvVaw3O9h5PjZJWvaGS7NqiBJiV33 https://github.com/ethereum/casper

34 https://github.com/ethereum/pm/wiki/Constantinople-Progress-Tracker35 https://ethereumworldnews.com/ethereums-constantinople-hard-fork-goes-live-today-the-road-to-eth-2-0- begins/36 https://decentralize.today/why-pos-is-better-than-pow-2dc3cd9881a737 https://medium.com/@coinbag/advantages-of-pos-algorithm-over-pow-mining-cb0d461368d338 https://blockbasemining.com/how-the-switch-from-pow-to-pos-could-affect-ethereum-mining/39 https://blockgeeks.com/guides/proof-of-work-vs-proof-of-stake/

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40 https://coinsutra.com/bip-bitcoin-improvement-proposa/41 https://github.com/bitcoin/bips42 https://github.com/bitcoin/bips/blob/master/README.mediawiki43 https://en.bitcoin.it/wiki/Bitcoin_Improvement_Proposals44 https://medium.com/@galea/bitcoin-development-who-can-change-the-core-protocol-478b8ac5fe4345 https://hackernoon.com/protocol-evolution-and-the-future-of-blockchain-governance-24ffd53c052b46 https://en.bitcoinwiki.org/wiki/Bitcoin_Improvement_Proposals47 https://techcrunch.com/2019/03/11/bitcoin-gets-slower-smaller-and-more-like-ethereum/48 https://cointelegraph.com/news/ethereum-has-more-than-twice-as-many-core-devs-per-month-as-bitcoin- report49 https://medium.com/@ElectricCapital/dev-report-476df4ff1fd250 https://bitcoincore.org/en/2017/03/23/schnorr-signature-aggregation/51 https://en.wikipedia.org/wiki/Schnorr_signature52 https://de.wikipedia.org/wiki/Schnorr-Signatur53 https://coinjournal.net/schnorr-signatures-what-when-why/54 https://www.youtube.com/watch?v=TYQ-3VvNCHE55 https://elementsproject.org/ 56https://github.com/sipa/secp256k1/blob/968e2f415a5e764d159ee03e95815ea11460854e/src/modules/sch norr/schnorr.md57 https://bitcoincore.org/logs/2016-05-zurich-meeting-notes.html58 http://diyhpl.us/wiki/transcripts/2016-july-bitcoin-developers-miners-meeting/dan-boneh/59 https://www.youtube.com/watch?v=_Z0ID-0DOnc&feature=youtu.be&t=229760 https://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/schnorr-signatures/

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61 https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2018-July/016203.html62 https://github.com/sipa/bips/blob/bip-schnorr/bip-schnorr.mediawiki63 https://www.coindesk.com/blockstream-releases-test-code-for-bitcoin-tech-upgrade-schnorr64 https://www.coindesk.com/schnorr-is-looking-poised-to-become-bitcoins-biggest-change-since-segwit65 https://bitcoinexchangeguide.com/blockstream-announces-schnorr-signatures-test-code-a-massive-bitcoin- upgrade-in-the-making/66 https://cointelegraph.com/news/unpacking-schnorr-signatures-blockstreams-musig-to-improve-bitcoin- transactions67 http://gtf.org/garzik/bitcoin/BIP100-blocksizechangeproposal.pdf68 https://www.facebook.com/BobMarley/photos/it-takes-a-revolution-to-make-a-solutionart-by-jonathan- bruns-wwwjonathanbrunsfi/10152678647925757/69 https://www.investopedia.com/terms/g/gas-ethereum.asp70 https://arstechnica.com/tech-policy/2018/02/bitcoins-transaction-fee-crisis-is-over-for-now/71 https://u.today/bitcoin-btc-transaction-fees-continue-declining-despite-trading-volumes-being-on-the-rise 72 https://bitcoinmagazine.com/articles/bitcoin-transaction-fees-are-pretty-low-right-now-heres-why/73 https://www.investinblockchain.com/best-proof-of-stake-coins/

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