Here is what they state:
During the "blockchain maintanance" when there was an announcement on backoffice and 26 hour break between blocks 171066-171067, "mining" coins worked just fine, and coins appearing on account due to the "mining" clearly showed to us that the coin operations (mining, transfering to account) were not tied to blockchain at all. Because blockchain was not involved, coin operations done in SQL is the logical scenario.
Ok so let's try to explain how was this possible and compare it to real life public bitcoin exchanges.Look at these 2 images very closely.. Tokens submitted to mining and coins *mined* in pools. Coins found. Coins appear mined on difficulty 79
Pool ID xxx Coins Found 0.01265823
Pool ID xxx Coins Found 0.02531646
Coins mined on difficulty 79.00 +0.02531646 escrowed
Coins mined on difficulty 79.00 +0.01265823 escrowed
All these happened during the downtime. This is SQL "mining". Not only are the block generation stopped. See also latest transactions over 20 hours ago.
In my opinion based on observations and talk with some people, and also based on how bitcoin exchanges work, that has nothing to do with blockchain cause real mining of coins is done only in the blockchain where coins are discovered with each block and it is done by the company and all mined coins are sent to the main pool. Of course, back office DB stores the info how many OC there is in the main pool the similar to how coinmarkercap stores circulating supply of any coin or how bitcoin exchanges show your Bitcoin balance on their account system and they get that info from a blockchain.
So, when you "submit tokens to mining", you are actually only exchanging them to already-mined Onecoins (mined regularly, not premined). This is done in the back office at first, and after it is approved and stored in the back office DB, it is sent to the blockchain to be stored permanently. This is how also all the bitcoin exchanges work, back office is account centric and you start transactions there, and the blockchain is coin centric and those back office DB send data to the blockchain to be confirmed and permanently stored.
Let me demonstrate you this on "real world" on public tradable cryptocurrencies.
On kraken.com my ETH wallet is 0x45AdceA75EE0BDE789fEDEa6816E163602472A76:
and my balance was around 0.056 ETH
Tonight I sold ETH to BTC and I made a transaction at around midnight 00:11 August 12:
This means that I no longer have my ETH and now I should have my BTC.
When I search my ETH wallet on Ethereum blockchain explorer we can see that this transaction does not exist in the Ethereum blockchain, the last transaction was the same 0.056 ETH paid to me by genesis mining 11 days ago:
Yet my Kraken.com balance shows 0 balance for ETH and newly bought 0.00468 BTC, I made this screenshot so my date and time is seen so it is clear I took the screenshot after the transation (I am multitasking so I there is delay):
Ok since I have my BTC now, my Bitcoin wallet at kraken.com is 3Kd18E4zchZTGo1WSoq6Md4Q6cPt4ean6K
So when I search the Bitcoin blockchain explorer, I also can not see this transaction in the Bitcoin blockchain:
Conclusion? I had my ETH, sold them, bought BTC and now I have BTC, and none of blockchains, not ETH or BTC show my transaction yet my transaction is clearly shown in my back office and my balance now shows BTC.
So seems like I could do this with both blockchains offline.
When will these transactions be recorded in blockchains? I have no clue, I will monitor but I can show what happened earlier:
Here are two transactions I did on my coinmate.io wallet. I received around 0.849 at 13 May 15:27 and I sold those later that day at 13 May 22:54:51:
My Bitcoin wallet address on coinmate is 1HXZa6r66Yv75peNbfyLTEPMnWPWMDy1Vu:
When I search my address on the Bitcoin blockchain explorer:
We can see those transactions were recorded to the blockchain.
My deposit was recorded at 2017-05-13 15:18, so about 5 minutes before my exchange back office recorded it, which is logical cause sender first sent those coins to the blockchain and then my exchange recorded it to their back wallet. This sender sent those coins from direct wallet, cold storage so his transaction was recorded in a blockchain instantly cause there is not back office system as exchanges (and Onecoin) have. But my BTC sell transaction was recorded in the blockchain at 2017-05-15 17:42 so almost 2 days after it was recorded and approved in my exchange back office. Seems like I could execute it while the blockchain was offline
So, it is totally normal that transactions are made in back office DB (it is what Khan referred as SQL on that audio) and it is normal to have a backlog in case the blockchain is clogged or offline as was the case with Onecoin at 01.Feb 2017. and we see it is nothing strange to Bitcoin exchanges too. Onecoin must have a backlog system cause it can also be a safe switch should there be any problems with the blockchain at least in this fully centralized stage.
And also, we know that the backlog system exists even since the old blockchain cause people were submitting too many tokens and they waited to receive their coins for months since there weren't enough mined coins, they could not be delivered in the back office. Those operations were waiting for when there are available mined coins. In the new blockchain, way more coins are mined in much faster blocks so now there is an excess of coins in the main pool so it is also possible to do such "mining" transaction in the back office and those transactions will be sent to the blockchain to be validated and permanently stored. I am sure if you would try to send coins to another account that would work and it would be validated in the blockchain later. The only real "problem" for now is that we can not search blockchain for our transactions.