This method is favorable in this situation when there is umpteen number of people who don`t like to depend on a third-party. Then only the group is able to maintain a register of their own.
How many are required? Least, we can say three. For our example, imagine ten individuals who want to give up on banks or any third-party. Their mutual agreement enables each other to keep details of accounts all the time — without knowing other’s identity.
1. An Empty Folder
In order to initiate, each of them has an empty folder with themselves. Moving further, these ten individuals will put on counting pages to their presently empty folders. Group of pages thus form the register that allows them to tracks the transactions.
2. When a Transaction Happens
Before a transaction happens, everyone in the network site has a blank page and a pen in their hands and ready to write any transaction that occurs within the system.
Now, if you are sending #2 to $10 to #9.
#2 person tells everyone, “I am going to transfer $10 to #9. So, everyone makes a note on your pages.”
Entire group checks will check whether #2 has required balance to transfer $10 to #9. If yes, everyone then notes it down on their blank pages.
Thus, the transaction is then said to be successful.
3. Transactions Continue Happening
With the passage of time, people in the network will make more and more transactions and whenever they make a transaction. Before it, they announce in the group. Whomsoever, a person listens to the announcement, he/she should write it on a page.
Until everyone runs out of space on the current page, the exercise continues. Let`s imagine a page that has space to record ten transactions, once the last transaction is made, everyone in the group runs out of the space.
Put the page the away in the folder and start with a new page while following the process from the step 2.
4. Putting Away the Page
While putting out the page in folders, you`re required to seal it with a unique key, that everyone agrees upon in the network. Once sealed, make sure that no one will modify its copies that have been put away in everyone’s folder – never ever. Forever, the copy will always stay in the folder — sealed. However, if the group members trust the seal, then they must trust the contents of the page. This sealing of the page is - therefore crux of this method.
Sailing: the process of secure is entitled as ‘mining’. However, to make you well-understand the concept, we keep calling it ‘sealing.
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