Blockchain allowing administrative intervention
Contracts, transactions and their records are an important part of our social, economic, legal and political systems. They protect our assets and define the boundaries of the organization. They formed and verified our personal identity and various historical events. They manage a series of activities between the state, organizations, communities and indivials. They direct all management and social activities. But these key tools and the bureaucracy that manages them have not kept pace with the digital transformation of the economy. It's like F1 racing in a big jam. In a digital world, our way of supervision and administrative control must be changed
blockchain has the potential to solve this problem. As the core supporting technology of bitcoin and other virtual currencies, blockchain is an open, distributed ledger, which can effectively record the transaction records between the two parties, and can be verified and permanently saved. The ledger itself can be programmed to automatically trigger transaction completion
five basic principles of blockchain technology
1. Distributed database
each party on the blockchain can obtain all data and complete historical records. No one can control data or information. Each party can directly verify the records of all parties to the transaction without mediation
2. Point to point communication
each independent point can communicate directly without a central node. Each node can store information and transfer all information to all other nodes
3. Limited transparency
users who have access to the system can see every transaction and its value. Each node or user on the blockchain has a unique address composed of letters and numbers, which can be used as the identity of the user. Users can choose to remain anonymous or disclose their identity to others. Transactions occur between addresses on the blockchain
4. Records cannot be changed
once the transaction results enter the database, the account information will be updated accordingly, and the records cannot be changed, because these information are related to all previous transaction records (this is the source of the term "chain"). Various calculation algorithms and methods are used to ensure that the records in the database are permanent, sorted in chronological order, and can be seen by all other people in the network
5. Computational logic
the digital nature of the ledger means that blockchain transactions can be connected with computational logic, and can actually be realized by programming. All users can set algorithms and rules, so that transactions can be automatically triggered between nodes
with blockchain technology, we can imagine that in a new world, contracts are stored in a transparent shared database in the form of digital programming, and will not be deleted, tampered with or revised. In such a world, every protocol, every process, every task and every payment will have a digital record and a digital signature that can be identified, verified, stored and shared. Intermediaries such as lawyers, brokers and bankers are no longer necessary. Indivials, organizations, machines and algorithms can freely interact and trade with each other without friction. This is the infinite potential of blockchain
in fact, almost everyone has heard that blockchain will bring revolutionary impact on enterprises and redefine enterprises and economy. Although we are enthusiastic about the potential of blockchain, we are also worried about exaggeration. It's not just security issues (such as the collapse of a bitcoin exchange in 2014 and the recent hacker attacks) that worry us. The experience of research on technological innovation tells us that if there is a blockchain revolution in the future, there will be many obstacles - technological, governance, organizational and social obstacles. It is likely to lead to a big mistake to rashly apply blockchain technology innovation before we really understand blockchain thoroughly
we believe that it will take many years for blockchain to bring real changes to enterprises and governments. Because blockchain is not a "disruptive" technology, disruptive technology can impact the traditional business model with low-cost solutions, and can quickly replace traditional enterprises. We believe that blockchain is a basic technology: it has the potential to create a new foundation for our economic and social system. But its impact is very extensive, and it will take decades for blockchain to penetrate into economic and social infrastructure. The process of blockchain popularization will be graal, and this process and its strategic significance will be the focus of this paper
technology adoption mode
before discussing blockchain strategy and investment, let's recall the technology adoption process we know below, especially the adoption process of other basic technologies. One of the most relevant examples is the distributed computer network technology, that is, the adoption of TCP / IP protocol, which has laid the foundation for the development of the Internet
TCP / IP first appeared in 1972 and has been widely concerned in an independent application scenario: it is the basis for sending e-mail between researchers on ARPANET, which is the predecessor of the commercial Internet developed by the U.S. Department of defense. Before TCP / IP, the communication system architecture was built on the basis of "circuit switching". The connection between two parties or two machines must be preset and maintained through the switch. In order to ensure that any two nodes can communicate, telecom service providers and equipment manufacturers have invested billions of dollars in dedicated lines
TCP / IP has completely changed the above mode. The new protocol digitizes the information and decomposes it into many small packets, each packet contains address information. Once these packets are released into the network, they can reach the receiver by any route. The data sending point and receiving point in the network can decompose the data packets, combine the data packets again, and interpret the data. There is no need for dedicated lines or large-scale infrastructure. TCP / IP creates an open and shared public network, which has no central organization or main body responsible for maintenance and update
traditional telecom enterprises and related enterprises are suspicious of TCP / IP. Rarely imagine that data, information, audio and video can be established under the new system, and rarely imagine that the related system will be very safe and develop rapidly. However, from the late 1980s to the 1990s, more and more enterprises, such as sun, next, HP and silicon graphics, used TCP / IP to develop their internal LAN. By doing so, they have developed technologies that go beyond e-mail and graally replace traditional LAN technologies and standards. With the adoption of these newly developed technologies and tools, the proction efficiency of enterprises has been greatly improved< In the mid-1990s, the emergence of the world wide web made TCP / IP widely used. The newly founded high-tech enterprises began to provide relevant "tools" - hardware, software and related services, which are necessary for connecting with the current open network and exchanging information. Netscape has commercialized browsers, web servers and other tools and components. Sun company promotes the development of Java. With the exponential growth of information on the Internet, Infoseek, excite, Altavista, and Yahoo are leading users to use TCP / IP technology
once this basic infrastructure is widely accepted, the new generation of enterprises can seize the opportunity brought by low-cost Internet access to create more Internet services, which in turn helps to replace the original business model. CNET has moved news online. Amazon sells more books than any physical bookstore. Priceline and Expedia make it easier to buy tickets, and the whole purchase process is more transparent. These new enterprises expand their business at a very low cost, making traditional enterprises such as newspapers and physical retail stores feel unprecedented pressure
relying on the widespread Internet, enterprises can create novel and revolutionary applications, which are enough to fundamentally change the traditional business model and create value. These enterprises are built on the new P2P architecture, and generate value by coordinating the users of the distributed network. Imagine how eBay has changed the online retail business through auction mode, Napster has changed the music instry, Skype has changed the telecommunications instry, and Google has changed the Internet search by using the links formed by users to provide more accurate search results
many enterprises have used blockchain to track goods in the supply chain. Finally, it took more than 30 years for TCP / IP to become widely accepted - used alone, locally applied, replaced and transformed - and reshape our economy. Today, more than half of the world's most valuable listed companies are Internet driven, platform based business models. The foundation of our economy has fundamentally changed. Physical assets and proprietary intellectual property rights are no longer the guarantee of competitive advantage; Enterprises that lead economic development can play a key role, especially in organizing, influencing and coordinating a wide range of community networks, users and organizations
new system
blockchain, the P2P network at the top of the Internet, came into people's view as the core foundation of bitcoin in October 2008. Bitcoin is a virtual monetary system, which does not issue currency through the central authority, transfers ownership and confirms transactions. Bitcoin is the first practical application of blockchain technology
the similarities between blockchain and TCP / IP are obvious. Just as email allows people to exchange information, bitcoin allows people to trade with each other. The development and maintenance of blockchain is open, distributed and shared - just like TCP / IP. There's a group of volunteers around the world maintaining their core software. Like email, bitcoin has received enthusiastic support from people at the beginning, but only a relatively small number of people
TCP / IP greatly reces the cost of interconnection, thus creating new value for economic development. Similarly, blockchain can significantly rece transaction costs. Blockchain has the potential to become all transaction recording systems. If this becomes a reality, new enterprises based on blockchain technology will influence and control emerging instries, and the economy will experience fundamental changes again
let's first look at how enterprises operate. Recording transactions is the core work that every enterprise must do. These records track past activities and achievements and provide guidance for the future. They can not only let people understand how the enterprise operates internally, but also let people know how to keep in touch with the outside world. Every enterprise or organization has its own records, and these records are private and confidential. Many enterprises do not have a general ledger record of all activities of the enterprise; On the contrary, all records are scattered in various branches or departments within the enterprise. The problem is that it takes a long time to coordinate transactions between indivials and private ledgers
One of the characteristics of blockchain projects (especially public chains) is open source. Through open source code, to improve the credibility of the project, so that more people can participate. But the open source code also makes it easier for attackers to attack blockchain system. In the past two years, there have been a number of hacker attacks. Recently, the anonymous currency verge (xvg) was attacked again. The attacker locked a vulnerability in the xvg code, which allowed malicious miners to add false timestamps on the block, and then quickly dig out new blocks. In a few hours, the attacker obtained nearly $1.75 million worth of digital currency. Although the subsequent attack was successfully stopped, no one can guarantee whether the attacker will attack again in the future
of course, blockchain developers can also take some measures
one is to use professional code audit services,
the other is to understand the security coding specifications and take preventive measures
the security of cryptographic algorithm
with the development of quantum computer, it will bring a major security threat to the current cryptosystem. Blockchain mainly relies on elliptic curve public key encryption algorithm to generate digital signature for secure transactions. Currently, the most commonly used ECDSA, RSA, DSA, etc. can not withstand quantum attacks in theory, and there will be greater risks. More and more researchers begin to pay attention to cryptographic algorithms that can resist quantum attacks
of course, in addition to changing the algorithm, there is another way to improve the security:
refer to bitcoin's treatment of public key address to rece the potential risk of public key disclosure. As users, especially bitcoin users, the balance after each transaction is stored in a new address to ensure that the public key of the address where bitcoin funds are stored is not leaked
security of consensus mechanism
the current consensus mechanisms include proof of work (POW), proof of stake (POS), delegated proof of stake (dpos), practical Byzantine fault tolerance (pbft), etc
POW faces 51% attack. Because POW depends on computing power, when the attacker has the advantage of computing power, the probability of finding a new block will be greater than that of other nodes. At this time, the attacker has the ability to cancel the existing transaction. It should be noted that even in this case, the attacker can only modify his own transaction, but not the transaction of other users (the attacker does not have the private key of other users)
in POS, attackers can attack successfully only when they hold more than 51% token, which is more difficult than 51% computing power in pow
in pbft, when the malicious nodes are less than 1 / 3 of the total nodes, the system is secure. Generally speaking, any consensus mechanism has its own conditions. As an attacker, we also need to consider that once the attack is successful, the value of the system will return to zero. At this time, the attacker does not get any other valuable return except destruction
for the designers of blockchain projects, they should understand the advantages and disadvantages of each consensus mechanism, so as to select an appropriate consensus mechanism or design a new consensus mechanism according to the needs of the scene
security of smart contract
smart contract has the advantages of low operation cost and low risk of human intervention, but if there are problems in the design of smart contract, it may bring greater losses. In June 2016, the Dao, the most popular funding project of Ethereum, was attacked. The hacker obtained more than 3.5 million Ethereum coins, which later led to the bifurcation of Ethereum into Eth and etc
there are two aspects of the proposed measures:
one is to audit the security of smart contract, and the other is to follow the principle of smart contract security development
the security development principles of smart contract are: to be prepared for possible errors, to ensure that the code can correctly handle the bugs and vulnerabilities; Release smart contracts carefully, do well in function test and security test, and fully consider the boundary; Keep smart contracts simple; Pay attention to the threat intelligence of blockchain and check and update in time; Be clear about the characteristics of blockchain, such as calling external contracts carefully
security of digital wallet
there are three main security risks in digital wallet: first, design defects. At the end of 2014, a user lost hundreds of digital assets e to a serious random number problem (repeated r value). Second, the digital wallet contains malicious code. Third, the loss of assets caused by the loss or damage of computers and mobile phones
there are four main countermeasures:
one is to ensure the randomness of the private key
The second is to check the hash value before installing the software to ensure that the digital wallet software has not been tampered with The third is to use cold wallet The fourth is to back up the private keycan help the government integrate information efficiently, strengthen department collaboration, improve the performance of various functions, and improve administrative efficiency< (2) changing government functions is concive to the prudent use of power and the improvement of government's scientific decision-making level
③ better serve the people and improve the executive power and authority of the government.
"Financial crimes in the name of Internet finance are becoming more and more serious." Jiang Shuzhen, director and prosecutor of the economic crime Department of the Beijing municipal procuratorate, told reporters that in recent years, the number of cases of building self financing platform in the name of P2P and issuing false credit transfer projects to finance themselves has increased year by year, and the harm has become more and more serious. In addition, illegal fund-raising in the name of virtual currency and blockchain also began to appear
According to Jiang Shuzhen's analysis, there are still some problems in financial crime cases, such as difficult investigation and evidence collection, and many disputes on the application of law. For example, in the case of illegal fund-raising, the amount of evidence collection is large, cross regional evidence collection is difficult, and there are disputes between crime and non crime, indivial crime and unit crimein addition, the regulation of financial laws and regulations on new financial formats such as Internet finance is relatively backward. Jiang Shuzhen, for example, in recent years, there have been illegal and criminal activities such as "Huaqiang coin" and "five element coin" with virtual currency as a gimmick. On September 4, 2017, the central bank and other seven ministries and commissions jointly issued the "notice on preventing the risks of token issuance and financing", which timely reminded the public to be alert to the risks of token issuance and financing and transactions, and achieved good results. But what is the meaning of token, There is a lack of law enforcement norms to regulate the illegal issuance of securities, illegal fund-raising, financial fraud, pyramid schemes and other illegal activities. In view of the problems exposed in Internet finance, blockchain and other new formats, we should improve the relevant laws and regulations as soon as possible to promote the effective connection between administrative law enforcement and criminal justice
content source: Red Star News
Blockchain itself is not illegal, but if it is used illegally, it is illegal
Li Bin, deputy director of Chongqing big data application and development administration, said that as a disruptive innovative frontier technology in the field of big data intelligence, the Chongqing municipal government attaches great importance to active layout, and the municipal government and Yuzhong District Government jointly build a blockchain base. In the second half of last year, the government issued the opinions on accelerating the cultivation and innovative application of blockchain instry, It has officially launched the construction of a place for strategic innovation of blockchain
while actively encouraging the technological progress and instrial development of blockchain, we will resolutely prohibit the illegal use of blockchain technology in accordance with the requirements of relevant national policies
at present, China's blockchain technology and application continue to innovate, and are graally applied in supply chain finance, credit reference, proct traceability and other fields, with huge development space. As a new technology, if blockchain wants to realize large-scale practical application, it must strengthen the cooperation of instry, University, research and application, and promote the continuous development and maturity of technology and application
since 2017, the development of blockchain technology has aroused the deep concern of the government, enterprises and other sectors. Because of its decentralized, tamperable and traceable characteristics, blockchain attracts investors to add weight to this new technology field. For the previous hot speculation of blockchain technology, the cognition of it and investment circles has become increasingly rational
extended data
"Regulations on the management of blockchain information services (Draft)"
Article 9 blockchain information service providers and users shall not use blockchain information services to engage in activities that are prohibited by laws and regulations, such as endangering national security, disrupting social order, and infringing the legitimate rights and interests of others, and shall not use blockchain information services to proce and use blockchain information services Copy, publish and disseminate information prohibited by laws and regulations
Article 13 a blockchain information service provider shall, as the case may be, take such measures as warning, limiting functions, closing account numbers, etc. for users of blockchain information services who violate laws, regulations and service agreements, so as to timely eliminate illegal information, prevent information diffusion, keep relevant records, and report to relevant competent authorities
Article 18 If a blockchain information service provider, in violation of the provisions of Article 9 of these Provisions, makes, copies, publishes and disseminates information content prohibited by laws, regulations and relevant national regulations, the Internet Information Office of the state, provinces, autonomous regions and municipalities directly under the central government shall give a warning and order it to correct within a time limit according to law
if the circumstances are serious or refuse to correct, the service shall be ordered to suspend, and a fine of not less than 5000 yuan but not more than 30000 yuan shall be imposed, until the relevant departments close the service according to law. If a crime is constituted, criminal responsibility shall be investigated according to law
If a blockchain information service user violates the provisions of Article 9 of these provisions and makes, copies, publishes and disseminates information content prohibited by laws and regulations and relevant national regulations, the Internet Information Office of the state, provinces, autonomous regions and municipalities directly under the central government shall deal with it in accordance with relevant laws and administrative regulations
Article 19 If a blockchain information service provider violates the provisions of Article 6 of these provisions and fails to mark its record number on its network platform, the Internet Information Office of the state, provinces, autonomous regions and municipalities directly under the central government shall order it to make corrections within a time limit according to its ties, and if it refuses to make corrections, it shall be given a warning and fined not less than 5000 yuan but not more than 10000 yuan
Article 20 If a blockchain information service provider violates the provisions of paragraph 1 of Article 4 of these provisions and fails to go through the filing proceres in accordance with these Provisions, the Internet Information Office of the state, provinces, autonomous regions and municipalities directly under the central government shall order it to make corrections within a time limit according to its ties, and if it refuses to make corrections or if the circumstances are serious, it shall be given a warning and fined not less than 10000 yuan but not more than 30000 yuan
Article 21 if the blockchain information service provided by the blockchain information service provider has potential information security risks, the Internet Information Office of the state, provinces, autonomous regions and municipalities directly under the central government shall, according to its ties, order it to rectify and suspend the service within a time limit, and continue to provide information services until it meets the relevant requirements of laws and regulations and national mandatory standards after rectification
if the blockchain information service provider violates the provisions of Article 4, paragraph 2, Article 8, Article 11, Article 12, Article 15 and Article 16 of these Provisions, the state and local Internet Information Office shall give a warning and order it to correct within a time limit according to its ties; If the circumstances are serious or if he refuses to make corrections, he shall be ordered to suspend service and be fined not less than 5000 yuan but not more than 30000 yuan; If a crime is constituted, criminal responsibility shall be investigated according to law
if the blockchain information service provider violates the provisions of Articles 10, 13 and 14 of these Provisions, it shall be handled by the Internet Information Office of the state, provinces, autonomous regions and municipalities directly under the central government in accordance with the provisions of the network security law of the people's Republic of China
the latest technology application of blockchain: born out of bitcoin technology in 2008, it provides a decentralized credit establishment paradigm without trust accumulation. The essence of blockchain technology is a decentralized and distributed data storage, transmission and proof method. It replaces the dependence of the Internet on the central server with data block, so that all data changes or transactions are recorded on a cloud system. In theory, it realizes the self proof of data in data transmission, This kind of point-to-point verification will proce a "basic protocol", which is a new form of distributed artificial intelligence. It will establish a new interface and sharing interface between human brain intelligence and machine intelligence
at present, almost all decentralized virtual currencies will use blockchain technology, such as bitcoin, Fuyuan, Laite, doggy and so on.
Blockchain technology is a modern information technology. To use this technology for governance, we must adhere to the unity of the party's leadership, the people's ownership and the rule of law, and adhere to the people-centered idea
the government must adhere to the principle of administration according to law, use power prudently, perform legal ties, and do nothing without legal authorization
The organs of state power should legislate according to law, provide legal protection and strengthen supervisionother state organs should perform their ties according to law and pay attention to information security