Wednesday, 22 February 2017

Analysis of OneCoin blockchain - Part 9 - Transfer of OneCoins to downline IMA - Video

Summary of Conclusions
  1. A transfer of Onecoins from an Upline IMA to a downline IMA is possible. The transfer is registered immediately and is visible in the TRANSACTION HISTORY of the Onecoin Account, initially with status "pending" and after more than 3.5 minutes with status "approved".
  2. The Transaction is not visible on the BLOCKCHAIN screens, while the website states that detailed information on each mined block and performed transactions is visible.
  3. This is conclusive proof that Transfers of Onecoins to a downline IMA are not recorded in the "Blockchain" and hence that the Blockchain is simulation software.
  4. This is new conclusive proof that OneCoin Founder Dr. Ruja Ignatova lied when she said that all transactions that are done by OneCoin members are visible in the Blockchain. 
  5. More than 8 hours after the execution of the Transfer process it was still possible to retrieve the Block and Transaction data which were visible in the video. This is proof that the Blockchain simulator data are recorded in a database.


A. Objective and Procedure 
DISCLAIMER: the authors of this article have tried to execute an objective investigation. None of the data have been manipulated, only some personal data on screenshots are hidden.

The complete procedure is step by step reproducible by anybody with a OneLife account with Onecoins.

The aim of this analysis is to transfer OneCoins from the OneCoin Account of an "upline IMA" (Independent Marketing Associate) to the OneCoin Account of a "downline IMA", to check the consistency and completeness of the Transactions and other data which are visible in the Blockchain explorer on the OneLife backend website. The consistency with info presented by the company on the www.onecoin.eu web page and statements made by OneCoin Founder Dr. Ruja Ignatova was checked also.

Information supplied by the OneCoin company
As stated on the https://www.onecoin.eu/en/blockchain page "The OneCoin Blockchain Consists of Every Transaction Ever Performed in OneCoin".

The Frequently Asked Questions page contains the following info about the Blockchain:
  • At OneCoin, we are able to execute your transactions in a minute thanks to the powerful blockchain – a technological innovation that stores cryptocurrencies. The OneCoin blockchain is based on protocols that authenticate, validate and store information in consistent, unbroken sequences. This guarantees that the system is safer by reducing fraud, duplicity and forgery.
Screenshot of the FAQ in the onelife.eu backoffice with the same text:


There is a relevant text underneath the animated GIF on the Blockchain page in the onelife.eu backend, also visible in the video:
  • "[...] The blockchain is based on a pre-programmed mathematical algorithm which allows for finite amount of solutions to occur - also called mining. You can see detailed information on each mined block and performed transactions in the tables above."


Hyperlink for video on YouTube: Proof: Onecoin Transactions are NOT recorded in the blockchain
Screenshot of video with two screen of the onelife.eu backoffice:

  • Left side: SEND ONECOIN TO DOWNLINE, timestamp 0 minutes, 22 seconds, immediately after Sending the Transaction password, which triggers the Transfer process of 3 OneCoins.
  • Right side: CRYPTOCURRENCY / BLOCKCHAIN page: on this screen the LATEST TRANSACTION and LATEST BLOCKS data are refreshed automatically. Detail Block and Transaction data are visible on separate screens also. Further down in this article you can find a number of screenshots of those screens.



During an interview with Pehr Karlsson and Udo Deppisch, Ruja Ignatova told that all OneCoin transactions that are done by members, are visible in the blockchain (Source: YouTube: Exclusive interview with Dr. Ruja Ignatova, PART I, May 2016)



Procedure
We used the following procedure during this analysis:
  1. Log in on an existing OneLife account which has a number of Onecoins in the Onecoin Account, and which has a Downline IMA in its COMMUNITY.
  2. From the Onecoin Account of the Upline, send 3 OneCoins to the Downline.
  3. Check in the Onecoin Account if the Transaction is executed and on which timestamp it is approved.
  4. Check on the Cryptocurrency Blockchain pages which Transactions are visible. If the Blockchain is valid (and complete) at least one Transaction for 3 OneCoins must be visible within a few minutes.

    In the words of Dr. Ruja Ignatova:
    "We decided to make it a very fast blockchain, so it runs every minute, in average this means that every 30 seconds your transaction gets approved".

Hyperlink and Description of video on YouTube: Proof: Onecoin Transactions are NOT recorded in the blockchain



B. Fact Finding and Analysis
The process of sending OneCoins started on Wednesday 22 February around 08:45 AM GMT/UTC. The entire process, as recorded on the video, took about nine minutes. The hyperlink of the first recorded Block #200167 (login required) was saved to enable further analysis of the data.

On the same day about 8 hours later screenshots of the OneCoin account and the Blockchain pages were made.

During the transfer process the following Observations were made:
  1. The transfer of 3 OneCoins was immediately visible in the Transaction History of the OneCoin Account, with status "pending". At that moment the latest "mined" Block was #200167.
    Video Timestamp: 0 minutes, 20 seconds.
  2. It took 3 minutes and 40 seconds until the status changed from "pending" into "approved". At that moment Block #200170 was the latest "mined" Block.
    Video Timestamp: 4 minutes, 2 seconds.
  3. We waited four more minutes until Block #200175 was mined.
    Video Timestamp: 8 minutes, 22 seconds.
  4. During the complete procedure the Transaction of 3 OneCoins was NOT visible on the LATEST TRANSACTION screen.
  5. Afterwards we checked all Transactions from Block #200167 up to and including Block #200175 and made screenshots. On none of these screenshots the Transaction of 3 OneCoins is visible.

Sub 2 - Status of Transaction changes from "pending" into "approved":


Sub 3 - Block #200175 is mined:


Sub 5 - Screenshots of transactions of Block #200167 up to and including Block #200175

Block #200167:

Block #200168:

Block #200169:

Block #200170:

Block #200171:


Block #200172:

Block #200173:

Block #200174:

Block #200175:


Table with Block and Transaction data:
HashHeightTimestampNumber of
Transactions
Output total
85c72ad67784af402278a0e50996bee05f16f5747a98692ed95df94dc367daa220016722/02/2017 08:45:49456 964.30049910 ONE
6d81d57f10cb97a4445630a27c928cd1a3d5f427944368321f21d5b02b9e96d120016822/02/2017 08:46:50261 375.28107599 ONE
4b3f5efeca2b12245cbbc49cd49ab04164b1bc8b831282870a995b8e5569cc8120016922/02/2017 08:47:49354 242.96689828 ONE
ca8031a600b8992f71607787b49f645543c93676c3c664e0cdd03176b36782fe20017022/02/2017 08:48:45250 775.71132936 ONE
788297aece1bfb4c76e442a7c143dbcfe006cceca5244de0f91226857c68179820017122/02/2017 08:49:57361 178.45582591 ONE
157423f2e82840d66a9e7aad8ac8239a575d1d1dab23ac0ab7599a75af9d70d720017222/02/2017 08:50:57262 860.61286244 ONE
44df6e03891db69111bb512ae3f024f59dd8fcdf1f04ac7da76d193a786cd48f20017322/02/2017 08:51:59150 000.00000000 ONE
e5c9486b5fd2596012f1a3ef91126e732f7c112b30d681d653a7877c1b2ae76420017422/02/2017 08:52:56353 947.66892718 ONE
5760609faa1195b479190ed5f09d66772dfc65f6517682d1b7e826b257b4859220017522/02/2017 08:53:57254 138.17228525 ONE

Monday, 13 February 2017

Analysis of OneCoin blockchain - Part 8: Blockchain Explorer Simulation Software

DISCLAIMER: ALTHOUGH THIS ARTICLE CONTAINS A NUMBER OF "RECOMMENDATIONS" TO IMPROVE THE ONECOIN BLOCKCHAIN SIMULATION SOFTWARE, WE NEITHER ENDORSE NOR ENCOURAGE THE DEVELOPMENT OF FAKE CRYPTOCURRENCIES, LIKE ONECOIN.

After spending hundreds of hours gathering hard facts and systematically analyzing all possible transaction types with OneCoins, this article is a once-only attempt to use an ironic approach.


However, if you read carefully, this article still contains a lot of investigative information and serious conclusions.

OUR ONLY AIM IS TO PREVENT THAT MORE VICTIMS WILL BE SCREWED.

A. Notice to developers of OneCoin Blockchain Simulation Software
Guys, at first sight you did a nice job.

We did not find any errors in the Block sequence (based on a full audit from 1 October till 31 December 2016), we did not find any "double spends", each Block contains one and only one Transaction for the "mining" of 50.000 new OneCoins and on the BLOCKCHAIN page you even created a live animation with automatic refeshes of Block and Transaction data.

Moreover, you successfully copied 95% of the items of the Bitcoin explorer on https://blockchain.info/, created some impressive hashes and the very important MINING page works flawlessly 24/7, even when the complete "Blockchain" is down for maintenance, great resilience!

Again you set a new standard, in the spirit of your great leader, self-proclaimed cryptocurrency expert, OneCoin Founder and Visionary Dr. Ruja Ignatova (Twitter hyperlink):


IMPRESSIVE, we almost fell for it.

However, after further analysis only one conclusion is possible: YOU FAILED MISERABLY.

In this article we present a number of DO's and DON'Ts, including specific recommendations on how to improve the OneCoin Blockchain Simulator, to make it look more "credible" and "trustworthy" (because the current one really sucks!).

Please adapt your software A.S.A.P so that OneCoin Founder and Visionary Dr. Ruja Ignatova can proudly present the new and improved Central Repository Analyzer and Presenter Version 3 during the next Global Event in Macau on 6th/7th May, 2017.

B. Summary of Conclusions
  1. All Block and Transaction data visible in the OneCoin Blockchain explorer/viewer on https://www.onelife.eu/backend/cryptocurrency/blockchain are fake. 
  2. The OneCoin Blockchain "explorer" (i.e. Simulator) is a fake mimicry of the Bitcoin explorer on www.blockchain.info, in other words, it is blockchain simulation software, connected to a database with data of Blocks, Transactions and Input/Output Addressess with a OneCoin balance amount.
  3. Despite the company statement that

    "OneCoin is not an altcoin, which means OneCoin is not a Bitcoin alternative or clone with slight alterations; it has an entirely different structure"

    the Onecoin software developers have done their best to mimic the Bitcoin blockchain explorer on www.blockchain.info. Each and every item in the OneCoin Blockchain Simulator is also present in the Bitcoin Blockchain explorer. 95% of the elements in the Bitcoin explorer are also present in the OneCoin Blockchain Simulator.
  4. Dr. Ruja Ignatova lied when she stated that everyone can mine OneCoins when the source code with the algorithm will be published.
  5. Even if the Transaction data in the Blockchain would represent real/genuine OneCoin Transactions (i.e. ignoring Conclusions 1 and 2), a large number of Transactions contain characteristics which are inconsistent with a peer-to-peer payment system without a company in the middle.
OUR ONLY AIM IS TO PREVENT THAT MORE VICTIMS WILL BE SCREWED.


C. Procedure
We used the following procedure during this analysis:
  1. Log in on an existing OneLife Account and go through the Cryptocurrency/Blockchain page in the www.onelife.eu backend to the page with the detail data of the Block with "height" (ID) #0, the so-called "genesis block".
  2. Use an automated tool to browse through the Blockchain via the "next block(s)" hyperlinks, browse all the way forward to the last Block in the chain. For a random sample of Blocks, check if the "previous block" leads to the previous Block.
  3. Check if each Block is following the previous one and if there are no errors in the Block sequence.
  4. During the browsing process, save the following Block and Transaction detail data in files for further analysis: Height (= Block sequence number), Hash, Number of Transactions, Output Total (Amount), Date/Timestamp, Transaction details (i.e. Transaction ID, Output Addresses and Output Amounts, Input Addresses and Input Amounts.
  5. For a sample of Blocks and Transactions, check all Transaction detail data, check if they are feasible and mutually consistent.
OUR ONLY AIM IS TO PREVENT THAT MORE VICTIMS WIL BE SCREWED."


D. DO's and DON'Ts regarding the OneCoin Blockchain Simulator

DON'T #1: Never create a genesis block with only one Output Address which receives 1,986,580,000 newly "mined" OneCoins for millions of IMAs
The software developers already blew it at the very start of OneCoin Blockchain Version 2. They should have listened to their boss Ruja Ignatova: YouTube: Exclusive interview with Dr. Ruja Ignatova, PART I, May 2016)
  • Pehr Karlsson: So it means we can trace every transaction, from me to you, to him?
  • Ruja Ignatova: Exactly, exactly. And the second thing that you can check in the blockchain is, every coin mined is recorded in the blockchain. So and this is also what our auditor audits every month, that all transactions that are done are really collected in the blockchain and that all coins mined are really also recorded in the blockchain.
On 1 October 2016 the "OneLife family" had an impressive 2.5 MILLION members and the only thing the software developers pre-programmed was one lousy transaction.


RECOMMENDATION: before the launch of OneCoin Blockchain Simulator Version 3, pre-program at least one Output Address and Transaction for every active IMA
Yes, that's a lot of work, but development of quality software is not for lazy bastards. Imagine the effect of 3 million output addresses and transactions flashing on the screen, it would be AMAAAAAAAZING! This way everyone could get a personalized "hashed" output address to store the OneCoins in the encrypted wallet.

It could look like this (DISCLAIMER: this screenshot is made by manually changing the html code):

It's a guessing game, if you check the address hashes, can you spot the names of the Company representatives and their role in the organization? There is a "finite number of solutions", just like the (non-existing) algorithm for finding coins, all names are unique and cannot be counterfeited. This also is a nice example of the implementation of the KYC / Know Your Customer procedures.

"By being the first cryptocurrency storing KYC documents in its new blockchain, we set a new industry standard".


DON'T #2: Never start your Blockchain with a large series of blocks with only 1 transaction for the "mining" of new OneCoins
In Part 4: "genesis block #0" - Version 2 we already reported that the first 16,040 Blocks after the genesis Block #0 had only one Transaction for 50,000 new mined coins with only one Output Address.

This means that the Blockchain Simulator fails on these aspects:
  1. Cryptocurrency info page:

    OneCoin is not a pre-mined cryptocurrency, meaning that the OneCoin miners create the market. By mining the coin, transactions are added and recorded to the OneCoin ledger, comprised of all past transactions. The ledger resembles a chain of blocks, which confirm that a certain number of transactions have been made.

  2. As the miners are supposed to co-operate in Mining Pools, at least the "reward" should be divided among the pool members.

  3. It was not until 13 October when the first "non-mining" transaction occurred, in Block #16041, as if not a single other transaction with earlier mined OneCoins occurred during that period.

RECOMMENDATION: To make the Blockchain Simulator more credible, always add a number of other (i.e. non-mining) transactions to each Block to simulate Buy/Sell orders via the Exchange in the backoffice (remember the good old times, when it was still open?) and transfers of OneCoins from upline to downline IMAs vice versa.

RECOMMENDATION: Divide the 50,000 mined OneCoins among a number of Input Addresses, at least in a number of blocks. Remember, not all IMAs buy hyper-inflated EUR 118,000 Ultimate Packages which "SNAP" generate 2 million OneCoins to get "educated" (YouTube link).


DON'T #3: If Ruja says that OneCoin has an entirely different structure from Bitcoin, don't make a OneCoin Blockchain Simulator in which each and every element is copied from www.blockchain.info

This is from the OneCoin Press Kit:
  • OneCoin is a digital currency, using cryptography, and created through a process called mining. Just like the serial number on a paper bill, each digital coin is unique.
    When joining OneCoin, users become part of a global network of millions of OneCoin users and are able to mine the coin and benefit from its value. OneCoin is not an altcoin, which means OneCoin is not a Bitcoin alternative or clone with slight alterations; it has an entirely different structure. In the future, users will also be able to make payments and transfer money to and from any part of the world.


This is a screenshot of Bitcoin genesis Block #0 on https://blockchain.info. All green elements are also present in the current and/or former versions of the OneCoin Blockchain Simulator.



RECOMMENDATION: Don't be lazy, OneCoin is "the Bitcoin killer", so make something original to show that OneCoin is unique. Remember Ruja in London? Listen to her, she's your boss, make her proud again.

By the way, does she often make sick jokes like this? Warped sense of humour, we actually like that!  ;-)  And so does SHE, apparently.


QUESTION concerning this text in the Press Kit: "Just like the serial number on a paper bill, each digital coin is unique".
In the Blockchain Simulator, and in our own OneCoin accounts as well, we saw numerous occasions with OneCoin amounts with 8 fractions.

What about these fractions, do they have a unique number too? Never mind, it's all fake anyway, so who cares?


DON'T #4: Don't let the statistics of the number of transactions look like it's the work of an intern who only comes into action on the day he/she gets a little paycheck and gets bored after three weeks.
As we wrote before, we downloaded all Block and Transaction data in the period from 1 October till 31 December 2016. We calculated the total number of Transactions on each calendar day in that period and generated a graph in an Excel spreadsheet.

This is how the graph looks like, we think it represents a company on his last legs.


EVERYTHING is wrong with this graph:
  1. The numerous news items via email, Facebook, Twitter, State Of The Nations videos and impressive figures on the increasing number of OneLife members make us believe that the OneLife/OneCoin network is a happy and fast growing family. Instead, these graph looks pitiful. It is the shape of a company on his last legs (which is the case by the way, but we already said that and it's out of topic).
  2. All orange bars are Mondays, when automatic Buy / Mining transactions take place. This is not visible in the figures however.
  3. 17 October 2016: the re-opening of the OneCoin Exchange in the onelife.eu backoffice does not give a visible effect. Actually, the number of succesful Buy/Sell transactions was so low, that the real figures wouldn't have made a big difference, but at least you should pretend that there was a lively trade in OneCoins.
  4. 20 November 2016: the opening of the Xcoinx Exchange (those were the days!) triggered a large number of Buy/Sell orders by IMAs who wanted to try it out. Not visible at all. See point 3, simple improvement point, quick win! 
  5. 7 December 2016: SuperSplit! IMAs with accounts which have received the maximum number of splits and are not on auto-mining, submit their Tokens to "mine" OneCoins. Not visible at all.

NB: the company is on it's last legs indeed, but we guess this is not what you wanted to show. Or is it a silent protest against the fact that you're partially paid in OneCoins and that your Christmas bonus consisted of 100,000 worthless OFCs ?

By the way isn't it strange, that the OneCoin OFC FAQ contains this question "Why are we giving the OFC for free?".

This is what Dr Ruja said during the CoinRush event on 11 June 2016 in London:

  • "Because our path starts now. The future comes, the future of payments is starting now. So where we want to go is where ... we said we want to do 10 million users, 1 million merchants and we would like to grow the coin value at least to 25 euro in the next years."

And what Dr. Ruja would like to happen, actually will happen, because she, and she alone, determines the OneCoin price.

So in our opinion, this exchange of OneCoin for OFCs "for free" is an unheard-of impudence and a smack in the face of all IMAs.

Seriously, PLEASE leave this sinking ship and find a decent job.


RECOMMENDATION: parameterize the random Transaction generator so that the transaction statistics represent a flourishing company:
  1. Important events must be visible in the figures and graphs.
  2. A steady increase in the number of OneCoin transactions must give the impression that everything is okay with the firm.
We manually changed the data and generated a new and improved version of the graph. This is a succesful company that we would like to join as soon as possible!


DON'T #5: Don't keep the Mining function running when the complete Blockchain simulation software is out of order
In Part 7: "Mining" outside the "Blockchain" we described and documented what happened. This was the biggest mistake you could make and again exposed your boss, self-proclaimed cryptocurrency expert and OneCoin Founder and Visionary Dr. Ruja Ignativa, as a liar!

Call us naive, but we really think that even the dumbest IMAs will understand that OneCoin is fake if they know this. But how can we attract their attention?

URGENT REQUEST: could you please mention the hyperlink of this blog ( www.OneCoinOneLifeFacts.blogspot.bg ) in your next newsletter and State Of The Nation video? Thanks in front!!!

PS: yes, we are Pictureless Profile Prick bloggers, but we don't have ads! And believe it or not, the authors of this blog don't own Bitcoins either.

OUR ONLY AIM IS TO PREVENT THAT MORE VICTIMS WILL BE SCREWED.

RECOMMENDATION: next time when you switch off the Blockchain Simulation software to prepare a new version of the onelife.eu backoffice, switch off the Mining function as well.

Or take the complete website down, the OneLife members are used to see "COMING SOOOOOOON" by now, isn't it?


DON'T #6: Don't re-use the same Input/Output address too often.
During our analysis we found that Input/Output Address 9ZTji2SeQcs7NPwGEgsARm3W355sjBuHzr is involved in 171,205 Transactions within the first 50,000 Blocks.

This Output Address occurs 320 times in one Transaction
https://www.onelife.eu/backend/cryptocurrency/blockchain/tx/1ffaae14a817b49e38db75e1acb60e59b81307811db0ad83cc0adca700b42a62

This is ludricous, don't do this again, use your phantasy and your randomizer in the right way.



DON'T # 7: Don't make transactions with micro amounts, they are not credible
Block #21510 contains two transactions with an amount of ONE 0.00000009, worth EUR 0,00000063 at a rate of EUR 6.95 per OneCoin. What is this? It does not make sense. This was the smallest one we could find, but there are many comparable Transactions.



OUR ONLY AIM IS TO PREVENT THAT MORE VICTIMS WILL BE SCREWED.

Not many readers get this far. Congrats and thanks for your patience.

Saturday, 4 February 2017

Analysis of OneCoin blockchain - Part 7: "Mining" outside the "Blockchain"

A. Summary of Conclusions
  1. We found new absolute proof that the OneCoin "Blockchain" is a fake mimicry of www.blockchain.info, in other words, it is a Blockchain simulation program.
  2. We found new absolute proof that OneCoin Founder Dr. Ruja Ignatova lied when she said that all transactions that are done by OneCoin members are visible in the Blockchain.
  3. For none of the "mined" OneCoins a Transaction is visible on the Blockchain screens, while the onelife.eu website states that detailed information on each mined block and performed transactions is visible.
  4. There is no relation whatsoever between the "mining transactions" which create OneCoins in the OneCoin Account on the one hand, and the Block and Transaction data which are shown on the BLOCKCHAIN pages on the other hand.
  5. New OneCoins in the Onecoin Account are the result of a straightforward division of the number of Tokens by the Mining Difficulty. This calculation is executed immediately after submitting Tokens, even when the Blockchain is down.
  6. Amount of Onecoins in the OneCoin Account = Number of submitted Tokens divided by the Mining Difficulty (value 79 during this investigation).
  7. Even after a maintenance periode longer than 26 hours, the number of Transactions is very low. The first 100 Blocks contained only 1 Transaction for 50,000 newly "mined"OneCoins. This means that the software developers of the Blockchain simulation program failed miserably (or the users did not read the manual).

    NB: we will dedicate a special article to the Blockchain and Transaction data which are visible, i.e. the Blockchain simulation program.



B. Explanation of technical terminology concerning "cryptocurrency" and "blockchain"
Note: some of the information we present in this paragraph is - maybe surprising - consistent with the definitions we found on the onelife.eu website. However, it is NOT consistent with the actual behaviour of OneCoin transactions and Block and Transaction data visible in the "blockchain explorer"; these data are completely fake.
  1. Cryptocurrency exists in a data storage - shared ledger - called the blockchain. Without a blockchain there is no cryptocurrency, since the coins can only exist in the blockchain. 
  2. Mining is the process of finding new blocks which are added to the ledger, the blockchain. All coin transactions must be recorded in the blockchain. Miners are rewarded for their work by giving them newly mined coins and/or fees. Without mining, coins cannot be created and other transactions (with coins which have been mined earlier) cannot be recorded in the blockchain since no new blocks have been created. 
  3. In the deceptive "world of OneCoin" promotional tokens are used for mining (i.e. tokens are needed as the resource of the actual work of mining). Onecoins that are created in the process are paid to the owner of tokens that were spent in the mining process. Without mining nothing consumes the tokens and there is nothing to pay for since no tokens are spent.
  4. Despite all the facts above, when we executed this investigation it was possible to convert tokens to OneCoins during a period when no blocks were created.

C. Objective and Procedure
DISCLAIMER: the authors of this article have tried to execute an objective investigation. None of the data have been manipulated.

The complete procedure is step by step reproducible by anybody with a OneLife account with "promotional Tokens".

The aim of this analysis is to submit Tokens for the "mining" of OneCoins, to check the consistency and completeness of the block and transaction data which are visible in the Blockchain explorer on the OneLife backend website, during a period when the Blockchain (explorer) was down for maintenance.
The consistency with info presented by the company on the www.onecoin.eu web page and statements by Ruja Ignatova during an interview were checked also.

Information supplied by the OneCoin company
The Frequently Asked Questions page contains the following info:
  • "At OneCoin, we are able to execute your transactions in a minute thanks to the powerful blockchain – a technological innovation that stores cryptocurrencies. The OneCoin blockchain is based on protocols that authenticate, validate and store information in consistent, unbroken sequences."
This info on the cryptocurrency page is also relevant:
  • "OneCoin is not a pre-mined cryptocurrency, meaning that the OneCoin miners create the market. By mining the coin, transactions are added and recorded to the OneCoin ledger, comprised of all past transactions. The ledger resembles a chain of blocks, which confirm that a certain number of transactions have been made.".

Finally there is a relevant text underneath the animated GIF on the Blockchain page, especially the sentence in bold:
  • "IMPORTANT: The above graphics is used for pure visual purposes and should not be perceived as a real representation of the blockchain system. The blockchain is based on a pre-programmed mathematical algorithm which allows for finite amount of solutions to occur - also called mining. You can see detailed information on each mined block and performed transactions in the tables above."

Example of Blockchain page:


Statements made by Dr. Ruja Ignatova, Founder of OneCoin
During a recent interview published in December 2016 Ruja Ignatova said the following about transactions which are recorded in the "block" which is "running":
  • "We want to create something like Paypal, saying it very very simple, but in the cryptocurrency world, and we all know how simple PayPal goes, you just press a button and you send from A to B money for the merchant. It's quite expensive, but it's very simple. You know you join a big network and you just can take money in from all over the world. I can send money to Australia today if I decide to and it's very very simple, so for us this is also why we did the changes on the blockchain. We decided to make it a very fast blockchain, so it runs every minute, in average this means that every 30 seconds your transaction gets approved, because you know ... you know you join like within the block running, and this is as fast as Visa and Mastercard do transactions."
During another interview with Pehr Karlsson and Udo Deppisch, Ruja Ignatova gave the following answer to the question "What is the blockchain?" (Source: YouTube: Exclusive interview with Dr. Ruja Ignatova, PART I, May 2016)
  • Pehr Karlsson: What is the blockchain?
  • Ruja Ignatova: Well in the blockchain, Pehr, it is something that makes cryptocurrency very very transparent and a bit more tangible. So what you can see in the blockchain is all the transactions that are done by OneCoin members. So if somebody trades a coin, if somebody transfers a coin to another one, you see this transaction in the blockchain and all transactions are in this blockchain. So it's like a ledger where we record all transactions.
  • PK: So it means we can trace every transaction, from me to you, to him?
  • RI: Exactly, exactly. And the second thing that you can check in the blockchain is, every coin mined is recorded in the blockchain. So and this is also what our auditor audits every month, that all transactions that are done are really collected in the blockchain and that all coins mined are really also recorded in the blockchain.

Procedure
We used the following procedure during this analysis:
  1. Submit Tokens for mining, four times in a row, during a period when the OneCoin Blockchain (explorer) was down for maintenance. With the current Difficulty set on value 79, each Token should generate 1/79 = 0.01265823 Onecoin, or "ONE". The sequence of submitted Tokens was 1, 2, 3, 4 respectively.
  2. Check on the Tokens Account whether the Tokens are submitted for mining at which points of time and which Difficulty was applicable.
  3. Check on the OneCoin Account how many Onecoins are mined at which points of time and which Difficulty was applicable.
  4. Check on the Blockchain and Mining pages which transactions for mined Onecoins are visible. Four transactions are expected if all mining actions are succesful.
  5. Check on the Mining page if the "your pools" and "coins mined" data are complete and consistent with the other visible data.

B. Fact Finding and Analysis
B.1 Observation that Blockchain (explorer) was under maintenance
On 31 January 2017 around 20:00 GMT/UTC we checked the "blockchain explorer" on https://www.onelife.eu/backend/cryptocurrency/blockchain (login required) and observed that this page was "UNDER MAINTENANCE":


We made a couple of screenshots and posted a Tweet "for the record" , to register the timestamp of this observation: 31 January 2017, 09:23 PM GMT/UTC.


NB: at that moment it was more than 12 hours ago since the last block was created: Block #171066 (login required)

Screenprint of MINING page with hyperlinks for last 6 Transactions at that moment:

The last Transaction, Transaction ID starting with 7434b1c55 was not included in a Block yet (just as the last but one Transaction):

B.2 Submitting Tokens for mining
Nine hours later, 1 February 2017 around 05:10 AM GMT/UTC we found that the Blockchain (explorer) was still out of order and we decided to examine if submitting Tokens for "mining" was possible in spite of that.

The process of submitting Tokens started on 1 February 2017 around 05:15 AM GMT/UTC. We executed four submit actions with 1, 2, 3, 4 Tokens respectively. The entire process took about 15 minutes, including the production of a number of screenshots.

The following Observations were made during this process:
  1. All transactions in the Tokens Account and OneCoin Account were visible immediately after submitting Tokens.
  2. Mining pool data "YOUR POOLS" and "COINS FOUND" became visible with some delay, after the transactions on the Tokens and OneCoin Account became visible.
  3. Transactions in the OneCoin Account first got status "mining" and after some time status "escrowed".
  4. Because we used an IMA account with a CoinSafe Account with the "Auto-Saving" feature, all OneCoins were automatically transferred to CoinSafe.
During this process we made a number of screenshots to illustrate the procedure and findings.

MINING page, first Submit of 1 Token:

OneCoin account after first Submit of 1 Token, with Transaction status "mining":

OneCoin account after second Submit of 2 Tokens, with Transaction status "mining":

Confirmation dialog for third Submit, 3 Tokens:

OneCoin Account, transactions with status "escrowed", "approved" and "mining":

Tokens Account after 4 submit actions:

MINING page with "Mining Pool IDs":

OneCoin Account, all Transactions "approved":

B.3 Tweet to register timestamp of end of investigation
We posted a second Tweet "for the record", to register the timestamp of the end of this investigation: 1 February 2017, 05:38 AM GMT/UTC.


B.4 Blockchain (explorer) active again
During this investigation we were not sure if the complete blockchain (i.e. the database/ledger and all software updating it) was down, or only the "blockchain explorer", i.e. the front-end software which shows the Block and Transaction data on the onelife.eu website.

The answer came almost six hours later. Block #171067 was created on 1 February 2017 11:25 AM GMT/UTC.

This block contains three Transactions: one for 50,000 new "mined" OneCoins, and the last two Transactions which were registered immediately before the maintenance period started.

The last two Transactions, created immediately before the maintenance periode started, ended up in Block #171067:

Block #171068 contains only 1 Transaction for 50,000 new "mined" OneCoins:

Block #171069 contains only 1 Transaction for 50,000 newly "mined" OneCoins:


Block #171070 contains only 1 Transaction for 50,000 newly "mined" OneCoins.
Note: this block is created with a delay of 1 hour after Block #171069.

B.5 Investigation of Block numbers #171067 until #171175
We found that the first 100 blocks after Block #161067 had only 1 Transaction for 50,000 newly "mined" OneCoins. If the Blockchain explorer would represent real transactions, a relatively high number of other Transactions should be visible. This is new proof that the Blockchain explorer is nothing more than a blockchain simulation program.

This table contains an overview of the data of a number of Blocks from Block #171067 until #171175
HashHeightTimestampNumber of
Transactions
Output total
d34d4f7d9aedb5196169965c4b35651ab7db8207940654e73dfff0746a7419e517106701/02/2017 11:25:50356837.55273433
a324d12b9ebd2113bbb819585fa658defcaf88712acdd871214792f4aeba3fdb17106801/02/2017 11:26:52150000.00000000
a0c45591a6111fda3978d463bdae91f505ecaa2b73a6dca519d008135f669a0b17106901/02/2017 11:28:14150000.00000000
9de45940cdf96621d1ed05a2224d37b9667dc1e0f034cc1f6e5ae8bd9992a7f117107001/02/2017 12:26:36150000.00000000
5453d74e967e8eb725a603e7d533f4a3bd9303253692899f52c27f291f140d5b17107101/02/2017 12:27:41150000.00000000
2bf32292fba929ab043cf38fb997671e5e3b0f744a828762981dd7513aa1e9c217107201/02/2017 12:28:50150000.00000000
...............
e91ebdca594c8300896d5d6aa945ce2c380d875b90a8de6477fb199f8217d5cd17116401/02/2017 14:11:43150000.00000000
01cb90d8a9eb8b49384f648adb33b00a99d3c489e08a824163418a1d7340097117116501/02/2017 14:12:45150000.00000000
7dc9ff273c3ae77730cbcb7a1e23619be08df389303df68b2505465c8b342ae217116601/02/2017 14:13:45150000.00000000
2338dca3affd90a5aa6397f763c4b8cb836ad2c64544bd1fe142f70bdd6f071f17116701/02/2017 14:14:49254221.72413445
5c270e05cda9c7f8a42b9e967d1c10c3d5c0c96516bf154de3002da0a9b0364917116801/02/2017 14:15:49355378.65759623
b9815f1e28ab38aac5d2008fe078dd241b5fecd40c59885af251e0a1c82c0f6317116901/02/2017 14:16:49150000.00000000
f88ea5af259b294e7eeee195679fa01c322b4aabb050d2327a43473facbbb18517117001/02/2017 14:17:48474486.47337973
3360652e9f37b97f2a87371d0c920383b3637c01062435b3c651d53d8d8fe39817117101/02/2017 14:18:48362523.77384113
f40f8cda7b327f9b32b6b0d95cd7b03303e53948f6647b9c75f3174f8a4d4fb717117201/02/2017 14:19:47589493.71640023
3a878b17b9bdf32973424b13794913302a62416a1d1f709c7d77355d90cbdcf817117301/02/2017 14:20:52250821.87174169
a0638deb8865cfcbbd4ef6c49f14d702991caa2dd150d72051f59ff6a410908617117401/02/2017 14:21:54251653.60766685
8ab4e0a42d848a29e05ac92562fdb433f4ec9f4a6244a8f0fe6953d4016e341317117501/02/2017 14:22:53250180.82476305