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Core Concepts

This page explains the fundamental concepts behind Bitmark.

Blockchain Basics​

Blocks​

Bitmark uses a blockchain, a chain of cryptographically linked blocks containing transactions. Each block:

  • Contains a set of verified transactions
  • Links to the previous block via its hash
  • Is secured by proof-of-work

Block Time: Bitmark targets a 2-minute average block time, providing faster confirmations than Bitcoin (10 min) while maintaining network stability.

Transactions​

Transactions move MARKS between addresses. Each transaction:

  • Has inputs (source of funds)
  • Has outputs (destination of funds)
  • Is signed with the sender's private key
  • Pays a small fee to miners

Addresses​

Bitmark addresses are Base58-encoded identifiers:

  • Mainnet: Start with b (prefix 85)
  • Testnet: Start with u (prefix 130)

Example: bKxE7vRhRPMsda...

Multi-Algorithm Proof of Work​

Unlike most cryptocurrencies that use a single mining algorithm, Bitmark supports eight algorithms simultaneously.

Why Multi-Algo?​

  1. Decentralization: Different hardware types can participate
  2. Security: Attackers must control majority of ALL algorithms
  3. Accessibility: CPU, GPU, and ASIC miners all welcome
  4. Resilience: If one algorithm is compromised, others continue

The Eight Algorithms​

Each algorithm:

  • Has independent difficulty adjustment
  • Targets 16-minute intervals (8 algos × 16 min ÷ 8 = 2 min average)
  • Contributes 1/8 of the total coin emission

Difficulty Adjustment​

Bitmark uses Dark Gravity Wave v3 (DGWv3) for difficulty adjustment, customized for multi-algorithm use.

Key Features​

  • Per-Block Adjustment: Difficulty adjusts every block for each algorithm
  • 25-Block Window: Looks at last 25 blocks of the same algorithm
  • Responsive: Quickly adapts to hashrate changes

Special Mechanisms​

Surge Protector: Prevents mining dominance

  • Triggers after 9 consecutive blocks from same algorithm
  • Divides difficulty by 3
  • Discourages burst mining

Resurrector: Keeps algorithms viable

  • Triggers if algorithm halts for >160 minutes
  • Reduces difficulty proportionally
  • Prevents algorithm abandonment

Monetary Policy​

Supply​

ParameterValue
Maximum Supply~27,579,894 MARKS
Initial Block Reward20 MARKS
Current DistributionMulti-algorithm (1/8 each)

Emission Schedule​

The emission uses a combined halving + quartering pattern:

Where:

  • H = Halving (reward / 2)
  • Q = Quartering (reward × 0.75)

This creates a smoother emission curve than simple halving.

Scaling Factors​

A Subsidy Scaling Factor (SSF) adjusts rewards based on network hashrate:

  • Prevents hashrate spikes from accelerating emission
  • Maintains predictable monetary policy
  • Updates approximately every 24 hours

The Marking System​

Marking is Bitmark's unique reputation + currency system.

Core Idea​

A mark is a "like" that carries real economic value:

How Marks Work​

  1. You see valuable content
  2. You "mark" it (one click)
  3. A small amount of MARKS transfers to the creator
  4. Your reputation as a curator grows
  5. Their reputation as a creator grows

MRK Protocol​

Marks are recorded on-chain using OP_RETURN transactions:

Mark types include:

  • URL marks (web content)
  • Address marks (creator attribution)
  • Nostr profile marks
  • Git commit marks
  • Document proofs

Learn more: MRK Protocol

Units of Currency​

UnitSymbolValue
BitmarkBTM1.0
Mark₥0.001 BTM
MarkbitMB0.00000001 BTM

The smallest divisible unit is 1 satoshi = 0.00000001 BTM = 1 Markbit.

Network Architecture​

Key Terminology​

TermDefinition
BlockContainer of transactions, linked in a chain
TransactionTransfer of value between addresses
MarkA like with economic value
AlgorithmHash function used for proof-of-work
DifficultyMeasure of mining computational effort
UTXOUnspent Transaction Output - spendable coins
DGWv3Dark Gravity Wave v3 difficulty algorithm
AuxPowAuxiliary Proof-of-Work (merge mining)

Next Steps​