The first e-governance Bitcoin layer-2 solution

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

Sango’s innovative Bitcoin (BTC) layer-2 (L2) solution is what powers the new digital money system in the Central African Republic, and represents a major step forward in the development of digital currencies worldwide.

Bitcoin L2 is just fancy crypto terminology for a second layer built on top of the foundation of the BTC blockchain. Referring to the Sango blockchain as the second layer, it is essentially a sidechain that capitalizes on all the best parts that Bitcoin has to offer and also triumphs where it falls short. 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 fit for a nation-state, building a new economic infrastructure with integrated transparency.

Although the Lightning Network has the potential to become the leading Bitcoin layer-2 solution, it currently maintains a limited number of channels and has insufficient capacity for large-scale daily economic activity.

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

How does it achieve this? Sango breaks it down further:

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 transfers. Having Sango as a side chain not only reduces the processing burden on the main chain by distributing work on a second layer, but also improves scalability while adding privacy and programmability via smart contracts. All of these, combined, make it an ideal solution for a national digital infrastructure that can power a new digital money system.

Sango coins will be issued by a quorum of nodes controlled by institutions in 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 possible for the Central African Republic, as it cannot adequately meet all requirements. While many are calling for the Central African Republic to rely solely on Bitcoin, that could not be achieved with current technology.

Certain features must be designed specifically to meet the needs and requirements of government infrastructure, but government involvement is the factor that can enable widespread use. 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 use of Bitcoin.

In addition to Bitcoin, Sango also implements the use of smart contracts to improve utility. It implements a robust infrastructure, which enables new use cases specific to widespread use by the entire nation.

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

Sango: Africa’s blockchain

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

1. Increase transparency in central 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 no or limited access to financial services, including very basic ones. Sango will allow mobile-first financial services to be built on top of that.

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

4. Tokenization of natural resources: Access to capital through tokenization of natural resources, with Africa being so rich, is one of the most important aspects. The Central African Republic is leading the way in the tokenization of natural resources.

5. Build other digital currencies on top of Sango: Central bank digital currencies and stablecoins are already a very important topic for Africa, and the Sango blockchain could be the blockchain for 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, which guarantees worldwide financial inclusion through Bitcoin.

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

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