From 6ac20bd752e7b2d9f84785ff3d725cdfe2a80b8b Mon Sep 17 00:00:00 2001 From: Thien-Thi Nguyen Date: Tue, 23 Feb 2021 11:05:13 -0500 Subject: new file: frags/taler-payment-cycle.rst --- frags/taler-payment-cycle.rst | 37 +++++++++++++++++++++++++++++++++++++ 1 file changed, 37 insertions(+) create mode 100644 frags/taler-payment-cycle.rst (limited to 'frags') diff --git a/frags/taler-payment-cycle.rst b/frags/taler-payment-cycle.rst new file mode 100644 index 00000000..00aa4473 --- /dev/null +++ b/frags/taler-payment-cycle.rst @@ -0,0 +1,37 @@ +The Taler payment cycle involves six parties: +(a) customer, +(b) exchange, +(c) merchant, +(d) customer bank, +(e) exchange bank, +(f) merchant bank. + +The exchange is the central entity that mediates the wire transfer of real +currency between (d), (e), (f) by way of "coins", cryptographically secure +tokens passed between (a), (b), (c). + +There are six steps to a Taler payment cycle. + +In step 1, (a) directs (d) to make real funds available to (b). + +In step 2, (d) does a wire transfer of real funds to (e), fulfilling the +request from step 1. (b) generates coins corresponding to those real funds; +these are called the "reserve". + +In step 3, (a) "withdraws" coins, either wholly or partially, from (b). These +coins are kept in a "wallet" under control of (a). The coins in the wallet +are anonymous. + +In step 4, (a) authorizes payment of coins from the wallet to (c). This +transfers payment coins from the wallet to (c), and change coins from (b) to +the wallet (unless the payment amount exactly matches the denomination of the +coins in the wallet). + +In step 5, (c) "deposits" coins into (b). These coins are still anonymous, +although the transaction itself is not anonymous. + +In step 6, (b) directs (e) to wire transfer real funds corresponding to the +accumulated deposited coins to (f). + +NB: The Taler payment cycle is part of the Taler payment system, which +includes also an auditor component, not described here. -- cgit v1.2.3