What does the application of digital currency mean
Publish: 2021-05-03 20:05:52
1. digital currency is a kind of legal tender, which must be issued by the central bank. Both digital gold coin and cryptocurrency belong to digital currency, which is not a network virtual currency, because it is not limited to virtual space, but is often used for real goods and services transactions, such as bitcoin, Wright coin, bitstock, etc. at present, there are thousands of digital currencies issued around the world
the digital currency launched by the central bank is a national sovereign currency, which is based on the digitalization of RMB. This is a piece of data generated by a complex algorithm, which contains blockchain and encryption technology, making it unique. The payment of Alipay and WeChat is not digital money, but only based on the payment realized by electronic accounts. Compared with the current pattern of "payment transfer collection" with the help of third-party payment, what digital currency needs to achieve is "decentralization", that is, to cancel the transfer link and directly hand over the money from the payer's account to the payee, so as to rece the payment cost in currency circulation
types of digital currency
according to different issuing or consensus mechanisms, it can be divided into four categories:
1, proof of work (POW)
proof of work. The system rewards are obtained through the mining of computing power to complete the issuance and distribution of currency. More work, more gain. Such as bitcoin, lightcoin (LTC)
the advantage is that the mining cost can form a monetary price support to a certain extent, and the disadvantage is that energy consumption and environmental protection are criticized< 2. Proof of stake (POS). Allocate the newly generated currency or interest according to the amount and time of cryptocurrency you hold. Such as dash and Neo
compared with pow, POS is more energy-saving, but it increases the security risk
3. The evolution scheme of delegated proof of stake (dpos)
POS. Similar to the voting mechanism of the board of directors, through the election of representatives to vote and make decisions, n accounting nodes are elected to create, verify, sign and supervise each other. Such as the grapefruit coin (EOS)
the advantage is high efficiency, but the problem is that it presents a semi centralized state
4. POW + POS hybrid mechanism
POW is mainly used to issue currency, and POS is used to maintain the system. For example, PPC
according to the project type, it can also be divided into four categories:
1. Currency category
digital currency issued for the purpose of transfer, payment and value storage. For example, bitcoin, bitcoin cash (BCH), Monroe (XmR), and grin
2. Public chain currency, that is, the digital currency issued by public chain projects, is generally the "fuel" for the application projects to run on the public chain. Such as eth, grapefruit coin, TRX and ont
3. Application token, that is, digital currency issued by decentralized application projects, is equivalent to equity or points. For example, OMG (payment application), GXC (data application), 1st (game application)
4. Platform currency, that is, the digital currency issued by the digital currency exchange, is equivalent to equity, points or fuel. For example, BNB, HT and okb.
the digital currency launched by the central bank is a national sovereign currency, which is based on the digitalization of RMB. This is a piece of data generated by a complex algorithm, which contains blockchain and encryption technology, making it unique. The payment of Alipay and WeChat is not digital money, but only based on the payment realized by electronic accounts. Compared with the current pattern of "payment transfer collection" with the help of third-party payment, what digital currency needs to achieve is "decentralization", that is, to cancel the transfer link and directly hand over the money from the payer's account to the payee, so as to rece the payment cost in currency circulation
types of digital currency
according to different issuing or consensus mechanisms, it can be divided into four categories:
1, proof of work (POW)
proof of work. The system rewards are obtained through the mining of computing power to complete the issuance and distribution of currency. More work, more gain. Such as bitcoin, lightcoin (LTC)
the advantage is that the mining cost can form a monetary price support to a certain extent, and the disadvantage is that energy consumption and environmental protection are criticized< 2. Proof of stake (POS). Allocate the newly generated currency or interest according to the amount and time of cryptocurrency you hold. Such as dash and Neo
compared with pow, POS is more energy-saving, but it increases the security risk
3. The evolution scheme of delegated proof of stake (dpos)
POS. Similar to the voting mechanism of the board of directors, through the election of representatives to vote and make decisions, n accounting nodes are elected to create, verify, sign and supervise each other. Such as the grapefruit coin (EOS)
the advantage is high efficiency, but the problem is that it presents a semi centralized state
4. POW + POS hybrid mechanism
POW is mainly used to issue currency, and POS is used to maintain the system. For example, PPC
according to the project type, it can also be divided into four categories:
1. Currency category
digital currency issued for the purpose of transfer, payment and value storage. For example, bitcoin, bitcoin cash (BCH), Monroe (XmR), and grin
2. Public chain currency, that is, the digital currency issued by public chain projects, is generally the "fuel" for the application projects to run on the public chain. Such as eth, grapefruit coin, TRX and ont
3. Application token, that is, digital currency issued by decentralized application projects, is equivalent to equity or points. For example, OMG (payment application), GXC (data application), 1st (game application)
4. Platform currency, that is, the digital currency issued by the digital currency exchange, is equivalent to equity, points or fuel. For example, BNB, HT and okb.
2. I'm too young to remember the birth of the Internet. When the Internet was booming, I was in high school, a little confused about what happened. At a family party, when my cousin bragged about how much money he made from buying and selling domain names, I thought it was stupid
it's not a reality. Up to now, I still think it's stupid to make money by buying and selling domain names. I know it happens sometimes. It's like a high-risk, low return investment
as a result, the Internet did. Now, 20 years on, domain names are cheap, and search engines make them brand specific Note: the author means that the convenience of search engines makes domain names cheaper and cheaper. Domain names are only related to brands.)
What does this have to do with the value of bitcoin
this is an example of how people's views on value change with the development of technology
at this point, most people see bitcoin as money. The chairman of the US SEC said, "yes, that's how drug gangs use it. Everyone I know thinks so.". It's called "bit coin" for a reason
bitcoin maximalists call it hard currency, critics call it fake money, and veteran players call it cyber currency
W bq89998 push the latest currency from time to time to ensure the minimum 10 times
it's not a reality. Up to now, I still think it's stupid to make money by buying and selling domain names. I know it happens sometimes. It's like a high-risk, low return investment
as a result, the Internet did. Now, 20 years on, domain names are cheap, and search engines make them brand specific Note: the author means that the convenience of search engines makes domain names cheaper and cheaper. Domain names are only related to brands.)
What does this have to do with the value of bitcoin
this is an example of how people's views on value change with the development of technology
at this point, most people see bitcoin as money. The chairman of the US SEC said, "yes, that's how drug gangs use it. Everyone I know thinks so.". It's called "bit coin" for a reason
bitcoin maximalists call it hard currency, critics call it fake money, and veteran players call it cyber currency
W bq89998 push the latest currency from time to time to ensure the minimum 10 times
3. Recently, a recruitment information from the central bank revealed that the life of banknotes may have entered the countdown. Last Friday, the people's Bank of China's official website released the 2017 annual personnel recruitment plan of the printing Science Research Institute, a unit directly under the people's Bank of China, which shows that it plans to recruit six professionals with master's or doctor's degrees to carry out the research and development of digital currency, which makes the digital currency once again become the hot spot of public opinion<
Yao Qian, head of the preparatory group of the digital currency Research Institute of the people's Bank of China, said a few days ago that the prototype scheme for the central bank to issue legal digital currency has completed two rounds of revision, and is expected to be tested in relatively closed application scenarios such as the bill market in the future. The prototype system of legal digital currency is being developed. As for when the legal digital currency of the people's Bank of China can be launched, there is no timetable
from the start of digital currency research two years ago, to the digital currency seminar held by the central bank in January this year, to the establishment of the digital currency Research Institute and the recruitment of professionals by the central bank in the near future, digital currency is graally approaching.
Yao Qian, head of the preparatory group of the digital currency Research Institute of the people's Bank of China, said a few days ago that the prototype scheme for the central bank to issue legal digital currency has completed two rounds of revision, and is expected to be tested in relatively closed application scenarios such as the bill market in the future. The prototype system of legal digital currency is being developed. As for when the legal digital currency of the people's Bank of China can be launched, there is no timetable
from the start of digital currency research two years ago, to the digital currency seminar held by the central bank in January this year, to the establishment of the digital currency Research Institute and the recruitment of professionals by the central bank in the near future, digital currency is graally approaching.
4.
The role of digital currency:
1. First of all, the central bank's digital currency can provide a huge data base for monetary policy and macro Prudential policy, so that the regulatory authorities can collect real-time trading books of different frequency and different institutions according to their needs, and it is complete and real. This information advantage can help the central bank use policy tools more accurately and flexibly
Secondly, the central bank's digital currency technology can track the flow of funds and help the regulatory authorities to comprehensively monitor and assess financial risks. Finally, the central bank's digital money technology is concive to the transmission of interest rate of monetary policy. Digital currency technology supports "point-to-point" payment and settlement, which can improve the liquidity of market participants. Only the digital currency of the central bank, which is generally accepted by the whole society, can radiate this advantage to the participants of different financial markets, so as to improve the liquidity of financial markets. This will make the term structure of interest rate smoother and the transmission mechanism of interest rate smoother 
extended data:
digital currency can be considered as a virtual currency based on node network and digital encryption algorithm. The core characteristics of digital currency are mainly reflected in three aspects: because it comes from some open algorithms, digital currency has no issuing subject, so no one or institution can control its issuing; Because the number of algorithm solutions is fixed, the total amount of digital currency is fixed, which fundamentally eliminates the possibility of inflation caused by the overuse of virtual currency; Because the transaction process needs the approval of each node in the network, the transaction process of digital currency is safe enough
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