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1:how_it_works


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Intro:

We'll give a brief overview of the functional aspects of Bakcoin on this page and deep-dive as needed on subpages here.

Mile High:

Bakcoin works by 'sponsering' worthy 'exchange currencies' (abv: 'SEC').  Bakcoin 'rides along' with all SECs informing them of the backing they currently have from Bakcoin.  This is possible due to the very light-weight nature of the solution.

Bakcoin demands support from the SECs by expecting them to merge-mine in support of Bakcoin.  That is to say, when the SEC mines for itself, it also mines for Bakcoin.

Bakcoin rewards a block solution in a somewhat interesting way.  Rather than being issued more Bakcoins as might be expected, Bakcoin instead removes value from BTC sponsoring all other SECs and especially from holders of BKC who are not sponsoring any SEC at all.

Holders of BKC are thus:
  • incentivized  to sponsor popular exchange currencies.  (See: TODO - link to goal entry, link to EC details.) 
  • highly disincentivized from not sponsoring any exchange currencies.
(Yes, the solution is highly deflationary.  That is fine.  Absolute numbers are not of consequence here, but ratios of backing are.  This deflation working in conjunction with aggressive (and oppressive) transaction trimming and similarly draconian transaction constraints are designed to keep the block chain very light-weight.)

The link between the 'reserve currency' and the 'exchange currency' is very light (TODO - link to simplicity)  From Bakcoin's perspective, all it knows is that a block was solved associated with a particular sponsor ID so it adjusts accordingly and mechanically.  Within Bakcoin, a BKC holder has a settable for such an ID and backing one SEC or another is a matter of adjusting that setting. (TODO - link to exchange of BKC.)



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