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It is all explained in the white paper and technical documents.
Click on the upright menu.

I can help here if you still have questions. The White Paper... sucks. Sorry to the people that wrote it, but it does. It sucks. The FAQ also suck. They are not doing a very good job of explaining this place to new people or people considering joining. /sigh I'll share some of the information I give in one of your other more recent posts. Also check out the last post I did for onboarding new people.