On the internet, trading has been rendered almost entirely reliable in electronic payments by financial institutions that are trusted third parties. This article provides a solution with a peer to peer time stamp server, which can be used to produce computer evidence of the chronological order of transactions. As long as honest nodes are collected, the system is safe
As a digital signature series, we identify an electronic coin. Each owner transfers the coin to the next by signing the previous transaction digitally and connecting it to the end of the coin by the next owner’s public key.
A payee will check signatures for the ownership chain. Of course, the issue is that the payee cannot guarantee that one of the owners did not spend the coin twice. A popular remedy is to implement a trustworthy central authority or mint, which checks for double-dollar transactions. The coin must be returned to the mint after each transaction to issue a new coin, and only the coin issued directly from the mint can not be spent twice.
The problem with this approach is that every transaction has to be carried out, much like a bank, by the entire money system, depends on the company running the mint. We need to know that the payee did not make prior transactions by the previous owners. The earliest transaction, for our purposes, is that which matters, so later efforts to double-spend don’t matter to us. All transactions must be identified as the only way to prove the absence of a transaction.
The mint was aware of all the transactions in the mint model and determined which first. To do this without a trustworthy party, transactions must be publicly reported and a mechanism is required that allows participants to agree on single order history. The payee wants evidence that the majority of the nodes decided that they were received first at the time of each transaction.