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CRYPTOCURRENCY

Private Key

Public Key

never shared with anyone

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example: 6JCg34xv2a04op1BfSwPicDNOIcok235904jkd20gKOLa237k5pqer(etc…)

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example: 07986483TR6235KJO235L0YBA743756T23613S00C1LKPQEX46547W(etc…)

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shared with everyone

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Private Key

Public Key

never shared with anyone

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example: 6JCg34xv2a04op1BfSwPicDNOIcok235904jkd20gKOLa237k5pqer(etc…)

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example: 07986483TR6235KJO235L0YBA743756T23613S00C1LKPQEX46547W(etc…)

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shared with everyone

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LEDGER

Sky pays Anna $10

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Anna pays Charissa $5

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Jacob pays Sky $20

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Timothy pays Anusha $7

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Bethany pays Daija $10

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Charissa pays Daija $3

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Anusha pays Anna $5

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Bethany pays Timothy $8

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distributed ledger system

DECENTRALIZATION

Anna

Sky pays Anna $10

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Anna pays Charissa $5

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Jacob pays Sky $20

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Timothy pays Anusha $7

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Bethany pays Daija $10

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Charissa pays Daija $3

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Anusha pays Anna $5

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Bethany pays Timothy $8

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Sky

Sky pays Anna $10

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Anna pays Charissa $5

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Jacob pays Sky $20

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Timothy pays Anusha $7

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Bethany pays Daija $10

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Charissa pays Daija $3

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Anusha pays Anna $5

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Bethany pays Timothy $8

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Charissa

Sky pays Anna $10

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Anna pays Charissa $5

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​

Jacob pays Sky $20

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​

Timothy pays Anusha $7

​

​

Bethany pays Daija $10

​

​

Charissa pays Daija $3

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​

Anusha pays Anna $5

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Bethany pays Timothy $8

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Timothy

Sky pays Anna $10

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Anna pays Charissa $5

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​

Jacob pays Sky $20

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​

Timothy pays Anusha $7

​

​

Bethany pays Daija $10

​

​

Charissa pays Daija $3

​

​

Anusha pays Anna $5

​

​

Bethany pays Timothy $8

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Jacob

Sky pays Anna $10

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​

Anna pays Charissa $5

​

​

Jacob pays Sky $20

​

​

Timothy pays Anusha $7

​

​

Bethany pays Daija $10

​

​

Charissa pays Daija $3

​

​

Anusha pays Anna $5

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​

Bethany pays Timothy $8

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Anusha

Sky pays Anna $10

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Anna pays Charissa $5

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​

Jacob pays Sky $20

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​

Timothy pays Anusha $7

​

​

Bethany pays Daija $10

​

​

Charissa pays Daija $3

​

​

Anusha pays Anna $5

​

​

Bethany pays Timothy $8

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Bethany

Sky pays Anna $10

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​

Anna pays Charissa $5

​

​

Jacob pays Sky $20

​

​

Timothy pays Anusha $7

​

​

Bethany pays Daija $10

​

​

Charissa pays Daija $3

​

​

Anusha pays Anna $5

​

​

Bethany pays Timothy $8

​

​

Daija

Sky pays Anna $10

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​

Anna pays Charissa $5

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​

Jacob pays Sky $20

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​

Timothy pays Anusha $7

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​

Bethany pays Daija $10

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Charissa pays Daija $3

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Anusha pays Anna $5

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Bethany pays Timothy $8

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amount transmitted

receiver’s public key

sender’s private key (“signature”)

SHA-256 (example)

21a0408d289f1cb3e9cd779825080202de2e884f209fa28732dddf7c3bf7d6f9

amount transmitted

receiver’s public key

sender’s private key (“signature”)

SHA-256 (example)

21a0408d289f1cb3e9cd779825080202de2e884f209fa28732dddf7c3bf7d6f9

LEDGER

Sky pays Anna $10

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Anna pays Charissa $5

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Jacob pays Sky $20

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Timothy pays Anusha $7

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Bethany pays Daija $10

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proof of work example: 123457890

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SHA-256 (example)

F1CA31717CFD49850DBBF2B2AC6C57E1DFA0D3E8702C450726C9C9140415C7EE

123457890

Output (example: 34 starting zero’s)

00000000000000000000000000000000001100101001101010100010111010101000010101010000111101111010100101010100000001110101010010100

miner

“proof of work”

LEDGER

Sky pays Anna $10

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Anna pays Charissa $5

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Jacob pays Sky $20

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Timothy pays Anusha $7

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Bethany pays Daija $10

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proof of work example: 123457890

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SHA-256 (example)

F1CA31717CFD49850DBBF2B2AC6C57E1DFA0D3E8702C450726C9C9140415C7EE

123457890

Output (example: 34 starting zero’s)

00000000000000000000000000000000001100101001101010100010111010101000010101010000111101111010100101010100000001110101010010100

miner

“proof of work”

BLOCK 1

BLOCK 2

BLOCK 3

BLOCK 4

BLOCKCHAIN

Sky pays Anna $10

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Anna pays Charissa $5

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Jacob pays Sky $20

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Timothy pays Anusha $7

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Bethany pays Daija $10

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123457890

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Bethany pays Anna $5

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Anna pays Jacob $2

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Jacob pays Sky $20

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Timothy pays Anusha $7

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Jacob pays Daija $10

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3842985904

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Timothy pays Anna $10

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Anna pays Charissa $5

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Jacob pays Sky $20

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Timothy pays Anusha $7

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Bethany pays Daija $10

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7245762546

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Charissa pays Anna $10

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Anna pays Charissa $5

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Jacob pays Sky $20

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Timothy pays Anusha $7

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Bethany pays Daija $10

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2315462132

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BLOCK 1

BLOCK 2

BLOCK 3

BLOCK 4

BLOCK 3

BLOCK 4

BLOCK 5

(transaction history)

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Proof of Work

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(transaction history)

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Proof of Work

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(transaction history)

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Proof of Work

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(transaction history)

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Proof of Work

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(transaction history)

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Proof of Work

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(transaction history)

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Proof of Work

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(transaction history)

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Proof of Work

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BLOCK 1

BLOCK 2

BLOCK 3

BLOCK 4

BLOCK 3

BLOCK 4

BLOCK 5

(transaction history)

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Proof of Work

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(transaction history)

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Proof of Work

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(transaction history)

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Proof of Work

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(transaction history)

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Proof of Work

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(transaction history)

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Proof of Work

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(transaction history)

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Proof of Work

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(transaction history)

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Proof of Work

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