Its complicated. If you dont have a bank that manages all the money, you really need to have something transparent. Something everyone can understand. A list of all the coins there are, and how they have moved around from the beginning. A list stored on lots and lots of different systems. This is what some person called the blockchain. A blockchain is essentially a shared ledger. Thousands of computers can keep a copy of the same transaction history. Whenever coins move from one person to another, the network updates the ledger.<\/p>\n
The advantage is that no single person owns or controls the database. The network itself verifies the transactions.<\/p>\n
For our project we do not need thousands of computers. We can start with a single database on a single server. It will not be decentralized, but it will allow us to explore many of the same ideas.<\/p>\n
In this experiment, I effectively act as the central bank. I decide how many coins exist, I maintain the database, and I can verify transactions. This means that trust in the coin is based not only on the software, but also on the trust you place in me.<\/p>","protected":false},"excerpt":{"rendered":"
Its complicated. If you dont have a bank that manages all the money, you really need to have something transparent. Something everyone can understand. A list of all the coins there are, and how they have moved around from the … Continue reading