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@@ -13,6 +13,30 @@ $ curl --location --request POST 'localhost:8080/transaction' --header 'Content-
 }'
 ```
 
+# how?
+
+## authentication
+Students generate their own `keypairs` and authenticate with their METU Student IDs.
+Authenticated students propose transactions, between them and another node (=public keys) or between the grader (=bank) and themselves.
+
+## transactions
+Transactions are `signed` using the proposers private key.
+(This whole public/private key + signing process will require some crypto dependency, **todo**)
+
+## blocks
+Blocks are proposed using `N` transactions, this can be an exact number (=20) or if the last block is *some time* old then small blocks can be proposed.
+Block proposal: `Block` + some `nonce` is hashed using a *simple* hash function, resulting hash should have some property that will require some computation time (~1 minute? 10 minutes?) to find (=guessing) Proof-of-work scheme.
+First proposed valid block is accepted, if assertions hold.
+(No consensus, we are the sole authority, there's no blockchain here, only a glorified database and busywork)
+
+## payment
+First transaction in the block is called *Coinbase*, the block reward is paid to the *output* (Bitcoin notation, different) of this transaction.
+If we do this then the rest of the transactions are just make believe playing.
+So banker + block reward approach seems better.
+
+## then
+After the new block, stale transactions are cleared?
+
 # Big Thank List
 - https://github.com/blurbyte/restful-rust
 - https://github.com/zupzup/warp-postgres-example