Open childx opened 5 months ago
B We define an electronic coin as a chain of digital signatures. Each owner transfers the coin to the next by digitally signing
R a hash of the previous transaction and the public key of the next owner and adding these to the end of the coin.
A A payee can verify the signatures to verify the chain of ownership.
V The problem of course is the payee can't verify that one of the owners did not double-spend the coin.
E A common solution is to introduce a trusted central authority, or mint, that checks every transaction for double spending
N After each transaction, the coin must be returned to the mint to
E issue a new coin, and only coins issued directly from the mint are trusted not to be double-spent.
W The problem with this solution is that the fate of the entire money system depends on thecompany running the mint,
W with every transaction having to go through them, just like a bank
O We need a way for the payee to know that the previous owners did not sign any earlier transactions.
R For our purposes, the earliest transaction is the one that counts
L so we don't care about later attempts to double-spend
D The only way to confirm the absence of a transaction is to be aware of all transactions.
B We define an electronic coin as a chain of digital signatures. Each owner transfers the coin to the next by digitally signing
R a hash of the previous transaction and the public key of the next owner and adding these to the end of the coin.
A A payee can verify the signatures to verify the chain of ownership.
V The problem of course is the payee can't verify that one of the owners did not double-spend the coin.
E A common solution is to introduce a trusted central authority, or mint, that checks every transaction for double spending
N After each transaction, the coin must be returned to the mint to
E issue a new coin, and only coins issued directly from the mint are trusted not to be double-spent.
W The problem with this solution is that the fate of the entire money system depends on thecompany running the mint,
W with every transaction having to go through them, just like a bank
O We need a way for the payee to know that the previous owners did not sign any earlier transactions.
R For our purposes, the earliest transaction is the one that counts
L so we don't care about later attempts to double-spend
D The only way to confirm the absence of a transaction is to be aware of all transactions.