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 when it comes to 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 layer, it is essentially a side chain which takes advantage of all the advantages of Bitcoin and manages to overcome its weaknesses. Sango interacts developed with the entire Bitcoin network and Sango Coin (SANGO) <> BTC transactions are enabled through a two-way match between the 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.
Although Lightning Network is likely to become the primary Bitcoin Layer-2 solution, it is only able to support a limited number of channels currently 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 citizens of the Central African Republic. The two-way pair will enable low-cost transactions with high capacity and fast confirmation times, while providing rapid e-governance (e-Gov), privacy and built-in programmability solutions.
Sango’s Layer 2 solution aims to create a digital government infrastructure using blockchain technology. This solution also reduces congestion in the Bitcoin network, which facilitates instant payments and cross-border remittances. The fact that Sango is a side chain not only reduces the processing load on the main chain by distributing the work to a second layer, but also improves scalability while strengthening privacy and programmability via smart contracts. All of 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, known collectively 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 proof of convention Custom (“PoC”).
What about bitcoin (BTC) then?
Bitcoin on its own is not an option for the Central African Republic as it cannot meet all of its requirements adequately. While many people are asking to see the Central African Republic solely dependent on bitcoin, this is simply not possible with current technology.
Indeed, it is necessary to create specific functionalities to meet the needs and constraints of government infrastructures, but the participation 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.
Along with Bitcoin, Sango also uses smart contracts to enhance its utility. The infrastructure in place is solid and offers new specific use cases for widespread use across the nation
A blockchain for Africa
Sango recommended summarizing some of the most important advantages of this type of technology in Africa and explaining them in a simple way:
- Increase transparency of key government activities: Building government infrastructure on a blockchain helps achieve transparency.
- Banking 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. Sango will make it possible to set up mobile financial services.
- Connecting 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 through bitcoin.
- Tokenize natural resources: Given the wealth of Africa, access to capital through the tokenization of natural resources is one of the most important points. The Central African Republic is thus leading the way in the tokenization of natural resources.
- Developer of other digital currencies on Sango: CBDCs (central bank digital currencies) and stablecoins are already very important topics for Africa, and Sango could be the blockchain that will host them. The Bank of Central African States has been 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 Central African spine which should be completed by the end of 2022 and which will provide high-speed Internet coverage to the whole country, and the “Young People” initiative, which aims to equip the country’s young people with smartphones, the Republic Central African Republic will forever change the lives of its citizens and the future of the entire African continent.
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The Cointribune editorial team unites its voices to express itself on topics specific to cryptocurrencies, investment, the metaverse and NFTs, while striving to best answer your questions.