How It Works
The basics
As a new user, you can get started with AmsterdamCoin without understanding the technical details. Once you have installed a AmsterdamCoin wallet on your computer or mobile phone, it will generate your first AmsterdamCoin address and you can create more whenever you need one. You can disclose your addresses to your friends so that they can pay you or vice versa. In fact, this is pretty similar to how email works, except that AmsterdamCoin addresses should only be used once.
Balances - Block Chain
The block chain is a shared public ledger on which the entire AmsterdamCoin network relies. All confirmed transactions are included in the block chain. This way, AmsterdamCoin wallets can calculate their spendable balance and new transactions can be verified to be spending AmsterdamCoins that are actually owned by the spender. The integrity and the chronological order of the block chain are enforced with cryptography.
Transactions - private keys
A transaction is a transfer of value between AmsterdamCoin wallets that gets included in the block chain. AmsterdamCoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. The signature also prevents the transaction from being altered by anybody once it has been issued. All transactions are broadcast between users and usually begin to be confirmed by the network in the following 5 minutes, through a process called mining.
Processing - mining
Mining is a distributed consensus system that is used to confirm waiting transactions by including them in the block chain. It enforces a chronological order in the block chain, protects the neutrality of the network, and allows different computers to agree on the state of the system. To be confirmed, transactions must be packed in a block that fits very strict cryptographic rules that will be verified by the network. These rules prevent previous blocks from being modified because doing so would invalidate all following blocks. Mining also creates the equivalent of a competitive lottery that prevents any individual from easily adding new blocks consecutively in the block chain. This way, no individuals can control what is included in the block chain or replace parts of the block chain to roll back their own spends.
Accept AmsterdamCoin In Your Store
Accepting AmsterdamCoin in your store is very easy. Payments are very fast and secure, much better than compared to traditional currency. You only need a internet connection with a computer or a specialized payment terminal. Please contact us for more information: info@amsterdamcoin.com
