Sango’s innovative Bitcoin (BTC) Layer-2 (L2) solution is driving the new digital currency system in the Central African Republic. This is a huge leap forward in cryptocurrency adoption around the world.
A revolutionary L2 solution for Bitcoin
Bitcoin L2 terminology refers to a second layer built on the foundation of the Bitcoin blockchain. Considering the Sango blockchain as the second tier, it is essentially a side chain which exploits all the advantages of Bitcoin and manages to overcome its weaknesses. Sango fully interacts with the entire Bitcoin and Sango Coin (SANGO) network <> BTC transactions are enabled through two-way pairing between main chain Bitcoin and the side chain Blood. Sango is therefore an ideal system without trust, suitable for a nation-state. It offers a new economic infrastructure with built-in transparency.
While Lightning Network is likely to become the leading Bitcoin Layer-2 solution, it is currently only capable of supporting a limited number of channels and its capacity is insufficient for large-scale day-to-day business.
Thus, thanks to its interoperability with Bitcoin, Sango promotes the financial inclusion of citizens of the Central African Republic. The bidirectional 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 integrated programmability 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, which facilitates instant payments and cross-border remittances. The fact that Sango is a side chain Not only does it reduce the processing load on the main chain by distributing work on a second level, it also improves scalability by enforcing 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.
The Sango Coins will be issued by a quorum of nodes controlled by institutions from the Central African Republic, collectively known as the Institutional Quorum. Its members are democratically elected, including the presidency, ministers and the National Assembly. The consent mechanism is based on Tendermint Core, but modified by a system of Convention test Custom (“PoC”).
So what about bitcoin (BTC)?
Bitcoin alone is not an option for the Central African Republic as it cannot adequately meet all of its requirements. While many people are asking to see the Central African Republic rely solely on bitcoin, this is simply not feasible with current technology.
Indeed, specific functionalities need to be created to meet the needs and constraints of government infrastructure, but the participation of public authorities is a factor that should foster 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 enhance its usefulness. The infrastructure in place is robust and offers new specific use cases for widespread use nationwide
A 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 a government infrastructure on a blockchain helps achieve transparency.
- Banking the unbanked: As in much of Africa, the people of the Central African Republic have little or no access to financial services, including the most basic. Sango will allow you to create mobile financial services.
- Connecting the Central African Republic and Africa with the world: Establishing a two-way pair with bitcoin allows Sango to connect its users with the whole world via bitcoin.
- Tokenize natural resources: Given Africa’s wealth, access to capital through the tokenization of natural resources is one of the most important points. The Central African Republic is therefore at the forefront of the tokenization of natural resources.
- Development of other digital currencies on Sango: CBDC (central bank digital currency) and stablecoin are already very important topics for Africa, and Sango could be the blockchain that will host them. The Bank of Central African States is considering the launch of a common digital currency for the CFA franc, the blockchain used could be Sango, which would guarantee global financial inclusion thanks to bitcoin.
Sango represents the vision of a digital future for the Central African Republic and all of Africa. Thanks to the project Backbone of Central Africa which is expected to be completed by the end of 2022 and which will guarantee high-speed Internet coverage throughout the country, and the “Young People” initiative, which aims to equip the country’s young people with smartphones, the Central African Republic will forever change the life of its citizens and the future of the entire African continent.
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The editorial staff of Cointribune
The Cointribune editorial team joins their voices to express themselves on specific topics of cryptocurrencies, investments, metaverse and NFT, trying to best answer your questions.