The first Bitcoin layer-2 e-governance solution

Focusing Sango’s entire vision around Bitcoin is not just a buzzword, and the adoption of Bitcoin as a legal tender was only the first step.

Sango’s innovative Level 2 (L2) Bitcoin (BTC) solution is what powers the new digital monetary system in the Central African Republic, representing a big step forward in the evolution of digital currencies around the world.

Bitcoin L2 is just a fictional crypto terminology for a second tier built on the foundation of the BTC blockchain. Referring to the Sango blockchain as the second tier, it is essentially a side chain that profits from all the best parts Bitcoin has to offer and triumphs even where it is lacking. Sango fully interacts with the entire Bitcoin network and transactions from Sango Coin (SANGO) to BTC are enabled by a two-way link between the Bitcoin mainchain and the aforementioned Sango sidechain. Sango creates the ideal trustless system suitable for a nation-state by building a new economic infrastructure with built-in transparency.

While the Lightning Network has the potential to become the leading Bitcoin Tier 2 solution, it currently supports a limited number of channels and has insufficient capacity for large-scale day-to-day business.

Therefore, by implementing interoperability with Bitcoin, Sango enables financial inclusion for citizens of the Central African Republic. The two-way peg would allow anyone to perform low-cost, high-capacity, and fast confirmation times, while benefiting from e-governance (e-Gov), privacy, and built-in programmability solutions.

How exactly does it achieve this goal? Sango breaks it down even more:

The Sango L2 solution aims to create a digital government infrastructure using blockchain technology. It also reduces congestion on the Bitcoin network, facilitating instant payments and cross-border remittances. Having Sango as a sidechain not only reduces the processing load on the mainchain by distributing the work on a second layer, but also improves scalability by adding privacy and programmability via smart contracts. All of these, combined, make it an 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 the institutions of the Central African Republic, collectively known as the Institutional Quorum, with democratically elected members, including the presidency, ministers and the National Assembly. The consensus engine is based on Tendermint Core but modified with a custom proof-of-convention (PoC).

Why not just use Bitcoin?

Having Bitcoin alone is not feasible for the Central African Republic, as it cannot adequately meet all of its requirements. Although many people request to see the Central African Republic rely solely on Bitcoin, it is not possible to obtain it with current technology.

Some features need to be specifically designed to meet the needs and requirements of government infrastructure, but government involvement is the factor that could enable widespread adoption. A technical solution like Sango, which enhances the Bitcoin blockchain, is the perfect way to achieve financial inclusion in the global payments ecosystem for the African population, while driving the adoption of Bitcoin.

Complementary to Bitcoin, Sango also implements the use of smart contracts in order to improve utility. Implement a robust infrastructure, enabling new specific use cases for extensive nationwide use.

It is clear that Level 2 solutions have the potential to revolutionize the blockchain landscape and Sango is the first Level 2 Bitcoin e-Gov solution.

Sango: Africa’s blockchain

Sango can summarize some of the most important benefits of this type of technology in Africa and explain them in layman’s terms:

  1. Increase transparency in key government activities: By building the government infrastructure on a blockchain, transparency is achieved.

  2. Banking the unbanked: the Central African Republic, like much of Africa, has a population with limited or no access to financial services, including very basic ones. Sango will allow mobile-first financial services to be built on it.

  3. Connecting the Central African Republic and Africa with the World: By building a two-way link with Bitcoin, Sango allows its users to connect with the whole world via Bitcoin.

  4. Tokenization of natural resources: access to capital through the tokenization of natural resources, with Africa so rich, is one of the most important aspects. The Central African Republic is at the forefront of natural resource tokenization.

  5. Build other digital currencies on top of Sango: Digital currencies and central bank stablecoins are already a very important topic for Africa and the Sango blockchain could be the blockchain to host them. The Bank of Central African States is considering launching a common digital currency for the CFA franc and the blockchain used could be Sango, ensuring global financial inclusion via Bitcoin.

Sango represents the Central African Republic’s vision for a digital future for it and for all of Africa. Together with the Central African Backbone project which will end in the fourth quarter of 2022, which means high-speed Internet coverage for the whole country, in addition to the “Young People Initiative”, which distributes smartphones to the country’s youth, it will forever be having a impact on the lives of its citizens and change the future of the entire African continent.

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