Shilling is an Autonomous, Anonymous & Decentralized Online Currency that represents monetary value. The system is peer-to-peer and transactions take place between users directly, without an intermediary (third party). These transactions are verified by network nodes and recorded in a publicly distributed database called a Blockchain. Shillings are created as a reward for payment processing work in which users offer their computing power by solving complex math problems to verify and record payments into the public database(Blockchain). This activity is called mining and miners are rewarded with transaction fees and newly created Shillings.
Besides being obtained by mining, shillings can be exchanged for other currencies on Yobit or Nova Exchange. When sending shillings, users can pay an optional transaction fee to the miners.
The unit of account of the shilling system is shilling & symbol used to represent shilling is SH. Small amounts of shilling used as alternative units are millishilling (equals to 0.001mSH), microshilling (equals to 0.000001µSH), and satoshi (smallest amount within shilling representing 0.00000001 shilling).
Blockchain (public database)
The blockchain is a public ledger that records Shilling transactions. A novel solution accomplishes this without any trusted central authority: maintenance of the blockchain is performed by a network of communicating nodes running Shilling software. Network nodes can validate transactions, add them to their copy of the ledger, and then broadcast these ledger additions to other nodes. The blockchain is a distributed database, to achieve independent verification of the chain of ownership of any and every Shilling (amount), each network node stores its own copy of the blockchain. In 6.133minutes, a new group of accepted transactions called a block, is created, added to the blockchain and quickly published to all nodes. This allows shilling software to determine when a particular shilling amount has been spent, which is necessary in order to prevent double-spending in an environment without central oversight. Whereas a conventional ledger records the transfers of actual bills or promissory notes that exist apart from it, the blockchain is the only place that shillings can be said to exist in the form of unspent outputs of transactions.
Ownership of shillings implies that a user can spend shillings associated with a specific address. To do so, a payer must digitally sign the transaction using the corresponding private key. Without knowledge of the private key, the transaction cannot be signed and shillings cannot be spent. The network verifies the signature using the public key. If the private key is lost, the shilling network will not recognize any other evidence of ownership hence the coins are then unusable, and thus effectively lost.
A transaction must have one or more inputs. For the transaction to be valid, every input must be an unspent output of a previous transaction. Every input must be digitally signed. The use of multiple inputs corresponds to the use of multiple coins in a cash transaction. A transaction can also have multiple outputs, allowing one to make multiple payments in one go. A transaction output can be specified as an arbitrary multiple of satoshi. As in a cash transaction, the sum of inputs (coins used to pay) can exceed the intended sum of payments. In such a case, an additional output is used, returning the change back to the payer. Any input satoshis not accounted for in the transaction outputs become the transaction fee.
Mining is a record-keeping service. Miners keep the blockchain consistent, complete, and unalterable by repeatedly verifying and collecting newly broadcast transactions into a new group of transactions called a block. Each block contains a cryptographic hash of the previous block, using the Scrypt hashing algorithm, which links it to the previous block thus giving the blockchain its name. In order to be accepted by the rest of the network, a new block must contain a so-called proof-of-work. The proof-of-work requires miners to find a number called a nonce, such that when the block content is hashed along with the nonce, the result is numerically smaller than the network's difficulty target. This proof is easy for any node in the network to verify, but extremely time-consuming to generate, as for a secure cryptographic hash, miners must try many different nonce values (usually the sequence of tested values is 0, 1, 2, 3, etc) before meeting the difficulty target. The proof-of-work system, alongside the chaining of blocks, makes modifications of the blockchain extremely hard, as an attacker must modify all subsequent blocks in order for the modifications of one block to be accepted. As new blocks are mined all the time, the difficulty of modifying a block increases as time passes and the number of subsequent blocks (also called confirmations of the given block) increases. The successful miner finding the new block is rewarded with newly created shillings and transaction fees. The shilling protocol specifies that the reward for adding a block will be halved every 300000 blocks (approximately every 41.1Months). Eventually, the reward will decrease to zero, and the limit of 30 million shillings will be reached in approximately 2148; the record keeping will then be rewarded by transaction fees solely. The main target is; as block reward reduce, transaction fee increases. Transaction fees are based on the storage size of the transaction generated, which in turn is dependent on the number of inputs used to create the transaction.
Shilling is a store of value, a medium of exchange, and a unit of account that is hard to earn, limited in supply and easy to verify.