A simple understanding of blockchain

blockchain is a kind of technology, which solves the core "trust" problem in the market economy and reces the trust cost between strangers to a very low level

there is one crucial thing in the market economy, which is "trust". Without trust, no deal can be established. When you go to LAICHANG to buy vegetables, if you don't believe that the pesticide content in vegetable is up to the standard, you won't trade with that dealer; If you buy a bottle of water in a small shop, the clerk will not sell you the water if he doesn't believe that the money you give is real

the traditional small-scale peasant economy is acquaintance economy, and the transaction scale is limited to people who are familiar with each other nearby. If an acquaintance deceives you, he will lose your social relationship and damage his reputation in the whole circle of acquaintances. We believe that acquaintances are less likely to cheat us than strangers

therefore, once we are beyond the scope of acquaintances, we need to use a high cost to identify whether a stranger will cheat me and how to avoid the risk of being cheated. This situation will hinder the transaction and restrict the transaction

in addition, different races, nationalities, cultures, religious beliefs and so on will naturally have this kind of trust problem

in the market economy, why can there be so many transactions between strangers? Because of the birth of a new mechanism to solve the problem of trust in strangers

so far, the most important mechanism to solve the trust problem is the "trust intermediary" organization and mode

as long as you and strangers trust a third-party organization, the trust problem between you can be solved through this third-party organization

this third-party organization, we call it trust intermediary. Both the government and the bank are trust intermediaries

you can sell the goods you have worked hard to proce to a stranger in exchange for a stack of RMB banknotes. It's because the credit of the note issuing bank and the guarantee of the authority of the government guarantee the currency value and effectiveness of the banknotes. Otherwise, sell things, in exchange for a few ordinary paper, who would like to

in the era of global village and Internet, the people who buy your things may be strangers who will not meet and thousands of miles away. Trust is lower, so Alipay assumes the role of trust intermediation. Buyers first pay the goods to Alipay's account. When they receive the goods, they confirm that they are OK, then they agree to sell the goods to the seller. Taobao and other e-commerce have been booming rapidly in just over ten years

trust intermediary is in a central position in the transaction system. All transactions should solve the trust problem through it

as a trust intermediary, how much transaction tax does the government charge each year? What is the most profitable instry? Financial services. The annual profits of Alipay's ant suit are over ten billion. p> What does this mean? Both sides of the market actually pay a huge trust cost

if there is any way to cancel or greatly rece the trust cost, the transaction cost of the general public can be reced, and the profits can be greatly increased

so in the Internet era, blockchain technology is on the stage

it allows the trading party to get rid of the intermediary, solve the problem of trust among strangers, and greatly rece the cost of trust

the blockchain can be expanded on a large scale, the data is open and transparent, the data of each client is consistent, and even if some clients are destroyed, the data security will not be affected. These highly reliable technical features can solve the trust problem of strangers with low cost

this technology can be extended to all fields that can be digitized, such as digital currency, payment and clearing, digital bills, proof of rights and interests, credit reference, government services, medical records, etc

in the medium and long term, blockchain will be a revolutionary technology, which will bring about great social changes like the existing Internet, and has great investment value and money making opportunities

in the future, the companies that can combine blockchain with different scenarios to promote applications may be the next group of bat, the next Google, Microsoft and apple

as the first practical application of blockchain technology, bitcoin has been widely accepted and used all over the world. Millions of users and tens of thousands of merchants have accepted the payment of bitcoin as a digital currency, and the exchange value of bitcoin as a currency is growing. Even e to the consensus that the total amount is fixed and the long-term value is bullish, bitcoin has become a hedge asset similar to gold, and the price has skyrocketed

Blockchain is a term in the field of information technology. In essence, it is a shared database. The data or information stored in it is characterized by "unforgeability", "trace in the whole process", "traceability", "openness and transparency" and "collective maintenance". Based on these characteristics, blockchain technology has laid a solid "trust" foundation, created a reliable "cooperation" mechanism, and has broad application prospects

on January 10, 2019, the state Internet Information Office issued the regulations on the management of blockchain information services. In October 24, 2019, ring the eighteenth collective learning of the Central Political Bureau, general secretary Xi Jinping stressed that "block chain as an important breakthrough in core technology and independent innovation", "accelerating the development of block chain technology and instrial innovation". "Blockchain" has entered the public field of vision and become the focus of social attention

on December 2, 2019, the word was selected into the top ten catchwords of "biting words" in 2019

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Application of blockchain Finance:

since 2016, the major financial giants have also carried out blockchain innovation projects to explore the possibility of applying blockchain Technology in various financial scenarios. In particular, Puyin group took the lead in creating a "blockchain +" standard digital currency

standard digital currency refers to the process of assets identification, evaluation, right confirmation and insurance completed by a third party organization, which is written into the blockchain through careful digital algorithm to form the standard corresponding relationship between assets and digital currency, which is called standard digital currency

in order to realize the great leap forward development of blockchain finance, promote the new development of China's economy, accelerate the circulation of global assets, and realize the dream of rejuvenation that has been struggling for generations, Puyin group will hold the Guiyang strategic development ceremony of Puyin blockchain finance in Guizhou on December 9, 2016

the meeting will discuss the realization of digital circulation of assets by blockchain, the financial transaction mode of blockchain, and the application of blockchain services and social public instry. This conference will mark the beginning of the application of blockchain finance and the change and development of the new financial ecology

blockchain is a distributed shared ledger and database, which has the characteristics of decentralization, distributed storage, encryption algorithm, whole process trace, traceability, collective maintenance, openness and transparency

take taking charge of Department funds as an example, the traditional way is to assign a person in the Department to keep accounts and manage the Department funds. This person can directly manipulate the remaining amount or the amount of each use, and make profits from it by taking advantage of his authority. This is the traditional centralized management