Kobocoin is a peer-to-peer micropayment system and digital currency similar to Bitcoin. All nodes verify transactions in a public distributed ledger called the blockchain. The ledger uses its own unit of account, also called kobocoin(s).
The kobocoin blockchain is distributed, to independently verify the chain of ownership of each and every kobocoin amount. The wallet on your device is a node. It works to maintain the security and integrity of the blockchain along with all other nodes. There is no central database. This is the decentralized nature of the Kobocoin ecosystem.
In the Kobocoin ecosystem every person who holds a funded wallet (or a funded kobocoin address to be more precise) becomes a stakeholder. This entitles them to freshly minted kobocoins as a reward for helping maintain the integrity of the blockchain (10% per annum credited daily). Stakeholders are rewarded with freshly minted kobocoins until the full allocation is in circulation. From then on, all rewards will be based on the transaction fees generated within the ecosystem.