Steps to Powning (password owning)

1. User puts images in the import folder
2. The import process takes the jpegs and stack files and breaks them into single stack files. These are placed in the Suspect folder. The original files are moved to the Imported folder for reference(A). If the files are malformed, they are moved to trash (B).
3. The Authenticity Detection process is run on each note in the suspect folder. They are moved from the drive to RAM one at at time so only one coin will be lost if the power goes out or the process is interpreted.
4. The coin’s information is sent to the RAIDA and a pass / fail is returned.
5. If the coin does not fail any RAIDA nodes, it is moved to the Bank. If a minority of RAIDA say it is Counterfeit then it is moved to Fracked folder. If a majority of RAIDA say it is counterfeit it is moved to the Counterfeit folder. If there are less than 16 RAIDA that respond, the coin is put back in the Suspect folder and be detected again later. The suspect folder is usually checked when the program starts to see if there are unfinished coins that need to be detected. The detection process will also look in the suspect folder the next time the user imports coins. If coins are fracked, a background process will fix them with the RAIDA and put them in the Bank.
6. The CloudCoin in the Bank folder are all authentic and perfect. When it is time to spend the coins that will be exported. Exporting removes the files from the bank and puts them in the export folder. During the export of jpg files, image templates are drawn from the template file. These templates can be customized.
7. The files in the export folder should be sent to where you want them to go and then deleted. If you do not delete them, you may accidentally try to spend them again and they will be counterfeit

8. The CloudCoin is passed electronically from the Current Owner to the Candidate Owner. The Candidate Owner opens the CloudCoin JPEG file in software that they trust and checks the denomination on the CloudCoin to see if it matches what the CloudCoin is purported to be. This thwarts any attempts to pass smaller denominations as higher denominations. The denomination of a CloudCoin can be determined by examining the subnet part of its serial number. If there is a difference, then the transaction ends. If the denomination matches the item, then process proceeds. The Candidate Ownersends a Counterfeit Detection Request to twenty-five data holding RAIDA clouds. Embedded in the request are the denomination, serial number, and corresponding authenticity number. The clouds will see if the authenticity number data sent to them agree with the denomination and serial number that they have in their storage. If the numbers do not match, then they respond as Counterfeit otherwise they respond as Authentic. Now the Candidate Owner knows the currency is authentic and they can take ownership. The Candidate Owner’s software generates twenty-five random PANs (Proposed Authenticity Numbers) to replace the ANs. The Candidate Owner sends a Take-Ownership-Request to the twenty-five RAIDA clouds. Embedded in each request are the denomination, serial number, the corresponding AN (Authenticity Number) and the PAN (Proposed Authenticity Number) or their corresponding parity data. 25 detection agents in the RAIDA will see if the Authorization Number data matches the Denomination and Serial Number that it has in its storage. If the numbers match, then the stored Authenticity Numbers will be replaced with the Proposed Authenticity Numbers. Now, only the Candidate Owner knows all these numbers, hence the Candidate Owner becomes the new Owner. The new Owner then writes over the original JPEG with a modified version that reflects the new secret Authenticity Numbers.

Fixing Redundancy
It is likely that the RAIDA clouds will not be available 100% of the time. This Is not a problem as only 10 of the RAIDA clouds are necessary for authentication. If some of the RAIDA clouds respond that the CloudCoin is counterfeit, these servers can be corrected by the client issuing Fix Redundancy Requests. The Fix Redundancy Requests use a form of Kerberos to allow RAIDA clouds to send encrypted data through the CloudCoin owners. The keys for the encryption are known to the RAIDA cloud’s redundancy partners. The authentication for the CloudCoin is stored in the CloudCoin files themselves. The redundancy of the CloudCoin is controlled by the user.