Payment solution based on Ethereum

There is an essential difference between Ethereum and bitcoin. What is the difference? Bitcoin defines a set of currency system, while Ethereum focuses on building a main chain (which can be understood as a road) to allow a large number of blockchain applications to run on this road

from this point of view, Ethereum's application scenarios are more extensive, which is why we say that Ethereum marks a simple monetary system in the era of blockchain

1.0, and a transformation to other instries and application scenarios in the era of blockchain 2.0

however, there is no perfect thing in the world. Although Ethereum has expanded the application scope of blockchain in all walks of life and improved the speed of transaction processing, it also has some disputes and doubts

first, the solution to the lack of scalability of Ethereum: slicing technology and lightning network

the bottom design of Ethereum, the biggest problem is that Ethereum has only one chain and no side chain, which means that all programs have to run on this chain equally, consuming resources and causing system congestion. Just like last year's very popular Ethereum game "encryption cat", when this game was very popular, it once caused Ethereum network paralysis

to improve the processing capacity, Ethereum proposes two ways: shard and lightning network. Let's introce these two technologies respectively

(1) fragmentation technology

vitalik buterin, founder of Ethereum, believes that the reason why mainstream blockchain networks such as bitcoin process transactions very slowly is that every miner has to process every transaction in the whole network, which is actually very inefficient. The idea of fragmentation technology is: a transaction does not need to be processed by all nodes in the whole network, as long as some nodes (miners) in the network are allowed to process it. Therefore, Ethereum network is divided into many pieces. At the same time, each piece can handle different transactions. In this way, the network performance will be greatly improved

however, the slicing technology is also controversial. As we all know, the important idea of blockchain technology is decentralization. Only when the whole network witnesses (processes) the same transaction can it have the highest authority. The Ethereum slicing technology is similar to the group witness, not all nodes witness together. In this way, it will lose the absolute "decentralization" attribute, and can only achieve the purpose of high performance by sacrificing certain characteristics of decentralization

(2) lightning network

lightning network uses the way of transaction under the chain. What does that mean? It means: when the participants of lightning network transfer money to each other, they do not need to confirm the transaction through the main chain of Ethereum, but create a payment channel between the participants and complete it under the chain

however, lightning network is not separated from the main chain. Before establishing a payment channel, you need to use the assets on the main chain as collateral to generate a balance proof, which indicates that you can transfer the corresponding balance. In the case that both parties of the transaction hold the balance certificate, both parties can make unlimited number of transfers under the chain through the payment channel

only when the off chain transaction is completed and the assets need to be transferred back to the chain, the balance change information of the main chain account will be registered on the Ethereum main chain, and no matter how many transactions occur ring this period, there will be no record on the main chain

another real benefit of lightning network is that it can save the cost of miners for you. At present, when we trade on the main chain of Ethereum, we need to consume gas and pay for miners. Once we move the transaction to the lower chain, we can save this part of the cost

the above is the problem of insufficient scalability of Ethereum, as well as the two main solutions: fragmentation technology and lightning network

Second, there are loopholes in Ethereum's smart contract and the infamous Dao event

Ethereum's smart contract is very powerful, but there are loopholes in any code. The biggest controversy of Ethereum's smart contract lies in the so-called loopholes, that is, security issues. According to relevant research, 34200 (about 3%) of the nearly 1 million smart contracts based on Ethereum contain security vulnerabilities, which will allow hackers to steal eth, freeze assets or delete contracts, such as the infamous Dao incident

before introcing the Dao event, let's first introce what Dao is. Dao is the abbreviation of decentralized

autonomous organization, which can be understood as decentralized autonomous organization. From the perspective of Ethereum, Dao is a kind of contract or a combination of contracts on the blockchain, which is used to replace the government's review and complex intermediate proceres, so as to achieve an efficient and decentralized trust system. Therefore, Dao is not a specific organization, that is to say, there can be many Dao, all kinds of Dao

(2) the infamous Dao event

however, when we talk about Dao now, we basically refer to the Dao event, that is, the infamous hacker attack event we just mentioned. As we know, the English word "the" refers to "the Dao event". The Dao event

refers to "the Dao event", because we just said that Dao is not a specific organization, there can be many Dao, all kinds of Dao

in 2016, slock.it, a German company focusing on "smart locks", launched the Dao project on Ethereum in order to realize decentralized physical exchange (such as apartments and ships). Since April 30, 2016, the financing window has been open for 28 days

unexpectedly, this Dao project is very popular. It raised more than US $100 million in just half a month. By the end of the whole financing period, it raised a total of US $150 million. Therefore, it has become the largest crowdfunding project in history. However, it didn't last long. In June, hackers took advantage of the loopholes in the smart contract to successfully transfer more than 3.6 million Ethernet coins and put them into a Dao sub organization, which has the same structure as the Dao. At that time, the price of Ethernet currency fell directly from more than $20 to less than $13

this event shows that there are loopholes in smart contracts, and once the loopholes are exploited by hackers, the consequences will be very serious. This is why many people criticize Ethereum and say that its smart contract is not smart

to solve this problem, many foreign companies begin to provide code audit services in order to solve the vulnerability problem of smart contract. From a technical point of view, some teams are currently testing smart contracts. Most of these teams are led by professors from Harvard, Stanford and Yale, and some of them have obtained investment from leading institutions

in addition to the problems of insufficient expansibility and loopholes in smart contracts, the controversy over Ethereum lies in the POS consensus mechanism it pursues, that is, the proof of equity mechanism. Under the proof of equity mechanism, if anyone holds more money and holds it for a longer time, he will get more "rights" (interests) and have the opportunity to get bookkeeping power, Bookkeeping can also be rewarded. In this way, it is easy to create the oligarchic advantage of "the stronger the stronger"

Ethereum is an open source public blockchain platform with smart contract function. It provides decentralized virtual machine (Ethereum virtual machine) to process point-to-point contract through its special cryptocurrency ether (also known as "Ethereum")

blockchain is called ether, and the code is eth. It can be traded in many foreign exchange markets of cryptocurrency, and it is also the medium used to pay transaction fees and computing services on Ethereum

the concept of Ethereum was first proposed by vitalik buterin, a programmer, from 2013 to 2014, inspired by bitcoin, with the general meaning of "next generation cryptocurrency and decentralized application platform", and began to develop through ICO crowdfunding in 2014. As of February 2018, Ethernet is the second highest cryptocurrency in market value, second only to bitcoin

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Ethereum platform has no characteristics and value. Like programming languages, it's up to entrepreneurs and developers to decide what to use. However, it is clear that some application types benefit more from the functions of Ethereum than others. Ethereum is especially suitable for those applications that automatically interact directly between points or promote group coordination activities across networks

for example, coordinate the application of point-to-point market, or the automation of complex financial contracts. Bitcoin enables indivials to exchange money without the help of financial institutions, banks or governments. The impact of Ethereum may be more profound

in theory, any complex financial activities or transactions can be automatically and reliably carried out on Ethereum with coding. In addition to financial applications, any application scenario with high requirements for trust, security and persistence, such as asset registration, voting, management and Internet of things, will be affected by Ethereum platform on a large scale

During Iwasaki's lifetime, the Meiji government once purchased a steamboat for Mitsubishi company and provided supplementary funds to help the struggling Mitsubishi company. However, the Meiji Government prohibited Mitsubishi from developing any business other than shipping. The only exception is that the Meiji government also allowed Mitsubishi to develop maritime related businesses, such as coal mine development, which can be used for maritime transportation
mitaro has paid attention to Gao coal mine in Kyushu for a long time. The high island coal mine was first mined by the British, Gulliver. Gulefei is a famous "God of death", he is the director of Nagasaki agency of Jiading Madison company. In 1873, in order to avoid the manipulation of foreign capital, the Japanese government changed the mining instry to government-owned. It was later sold to Kojiro goto in September 1874. Houteng xiangerlang did not change his loose management attitude, and his debts became more and more. Finally, Fukuzawa Yukichi intervened and asked mitaro to buy Gao coal mine in March 1881. The mine later became Mitsubishi's cash cow at the same time as Jigang mine. Mitaro is very enterprising and actively expands his business scope. In July of that year, the meeting of promoters for the establishment of marine insurance companies was held in Tokyo. This was originally a kind of company set up by the former princes and civil servants to raise funds for Quanlu bonds (bonds issued in 1876 to compensate the salaries of the Chinese, gentry and other hereditary nobles). The general agent of the company was shizawa Rongyi. Seize's calculation is that Mitsubishi will be the company's biggest customer and must be wooed. He took the initiative to negotiate with mitaro. Mitaro had already felt the urgency of the marine insurance instry. Therefore, of the 600000 yen capital of Tokyo Marine Insurance Company, 110000 came from mitaro. Mitaro became the largest shareholder, but turned the marine insurance company into a company that he could control< In 1881, mitaro iwazaki founded Meiji Life Insurance Company, the first life insurance company in Japan. In addition, in order to better compete with the P.O. steamship company in the UK, mitaro, with the full support of his younger brother mitaro, started the Tokyo Osaka documentary finance business. In April 1880, Mitsubishi exchange, with a capital investment of 1 million yen, officially opened. Since then, mitaro has established Mitsubishi Bank on the basis of these companies
because the government has banned Mitsubishi from engaging in other businesses outside the shipping instry, mitaro has tried every means to set up and operate some promising companies in the name of subsidiary businesses of the shipping instry, which has laid the foundation for Mitsubishi to move towards enterprise alliance and "land kingdom" in various aspects. After the death of mitaro, mitaro's successors, in line with the spirit of Iwasaki, made Mitsubishi move step by step towards a large, organized and modernized enterprise alliance. Mitarao's first successor was his brother mitarao. After returning from studying in the United States, mitsuke immediately joined the Mitsubishi chamber of Commerce as the vice president to assist Mitsuro. In 1874, mitsuke married his eldest daughter, Zaomiao. In Mitsubishi's leadership, only mitarao has stayed abroad. Therefore, only mitarao can plan the company's strategy and strategy in a new way of thinking. Mitarao attaches great importance to him. When mitsuke became president, the Mitsubishi chamber of Commerce was in an extreme predicament. As mentioned earlier, mitsuke boldly decided to merge his shipping company (the main body of Mitsubishi chamber of Commerce) with the joint company to establish Japan Post shipping company, and skillfully transferred the control of the new company from the other party to the hands of Mitsubishi first generation
because the main body of Mitsubishi, namely the shipping company, has been separated, mitsuzuki is preparing to transform "Mitsubishi of the sea" into "Mitsubishi of the land" on the basis of the coal mining instry, copper mining instry and shipbuilding instry of the former subsidiary Mitsubishi. He changed the name of the original Mitsubishi company to Mitsubishi society. At the same time, because the address of the original company had been transferred to Japan Post shipping company, mizuke also moved the headquarters of the new company to hamamachi, Lingan island near yutanakawa, and then applied to the official for business registration again
mizuke made a rule for the new company Mitsubishi: the company's staff's advance and retreat and business execution, regardless of the size of the matter, are all decided by the president, and employees are not allowed to make their own decisions. This completely inherited the concept of "one enterprise" and the organization of "President dictatorship" in the "company regulations" formulated by mitaro. However, in the actual operation, mitsuke's practice is different from that of his brother mitaro. He is better at listening to the opinions and suggestions of his subordinates than mitaro. He is not so arbitrary as mitaro
the Gao coal mine purchased in the mitarao era is the pillar of Mitsubishi society. In 1889, mitsuke bought Xinru coal mine and LiuTian coal mine, then operated Zhufeng coal mine, and applied the new technology of coal mining and transportation to his coal mine business. In addition to coal mining, mitsuke is also committed to the operation of metal mining. He bought mining instries such as weiquze, Shengye, zou, Qifeng and miangu, and laid tunnels and rails for them. He used Balton water wheel, Hamilton mill, water jacket smelting furnace and other facilities. It is precisely because he boldly promoted various technological innovations and improved proctivity. Finally, the coal and copper mining instry will become the largest source of income for Mitsubishi in mizuke era
Mi Zhizhu was not satisfied. He used the income from mining to invest in shipbuilding. In 1884, the Japanese government rented the Nagasaki shipyard, which had been in deficit, to Mitsubishi. At that time, the Meiji government, which was partial to Mitsubishi (Mitsubishi's rival), rented Nagasaki shipyard to Mitsubishi, not to help Mitsubishi, but to send a burden to Mitsubishi to weaken the competitiveness between Mitsubishi and Mitsubishi< In June 1884, Mitsubishi decided to lease Nagasaki shipyard. Three years later, mitsuke applied to the government to stop the lease and buy the shipyard directly. He hoped to take shipbuilding instry as the core business of revitalizing Mitsubishi society
the Meiji government quickly approved the application of Mizuki, because the Meiji government has invested 1.13 million yen in Nagasaki shipyard, and there is no sign of turning from loss to profit. Now, Mitsubishi is willing to buy it for 450000 yen. Why not? Mizhu was not impulsive to buy the shipyard either. He skillfully negotiated with the government to obtain the transfer right of the shipyard by paying 459000 yen in five years, and then applied for the return of the shipyard with 10% interest per year in cash, that is, 910170 yen per year. In this way, Mitsubishi can find a big bargain. Mizuki made Nagasaki shipyard "the largest shipyard in the East". Kobe shipyard was opened in 1905. At that time, it was said that mitsuke "mastered the Japanese postal and shipping company with his right hand, set up a shipyard with his left hand, and absorbed the capital of the shipping instry. The skill is really amazing."
in addition to the mining and shipbuilding instries, the banking instry has also been the focus of mizuke. After the merger of Mitsubishi's shipping company and joint company, the Japanese government changed its previous policy towards Mitsubishi and allowed it to develop in the banking instry. At that time, the banks were all known as national banks. In fact, they were purely private banks, but they did not have the right to issue silver coins. Later, because of the change of conditions, the national bank can obtain huge benefits. As a result, a total of 151 banks sprang up to issue banknotes, causing great confusion. At that time, the 119th and 49th banks were on the verge of bankruptcy, so they asked for help. As the investors of the two banks were founded by a group of old samurai, mizuke, who was born in a declining Samurai family, was said to have deep sympathy for this and had a "chivalrous heart" to save people, so he took over the business. Of course, although he is bold, he is not careless. He predicted that the prospect of the banking instry is very good, and calculated the careful plan after taking over, and then began to take action. He took the commodities deposited in Mitsubishi Tokyo warehouse company as guarantee to carry out "commodity guarantee finance", which ensured the bank's profit
mitsuke later appointed his prudent and capable cousin, Liangping FengChuan, as the chairman of the bank. Not only was he very active in the financial circles, but most of the famous Japanese politicians at that time were his friends. At the same time, he also insisted on the policy of helping others, and dared to seek development cautiously in the face of difficulties and dangers. Therefore, even after 1895, the Bank of Mitsubishi was more stable than other banks and got rid of the trouble quickly
mining, shipbuilding and banking are the three pillars of Mitsubishi's revitalization. On this basis, mitsuzuki has continuously expanded its business to real estate, comprehensive business, railway, electric machinery, heavy instry, paper making, glass, beer, etc
in Marunouchi, in front of the imperial residence in Tokyo, Japan, there are many buildings of Mitsubishi society. The place used to be a training ground full of weeds. The Japanese government sold it to Mitsubishi in 1889. The land of 135000 square meters sold for 1.5 million yuan, so each square meter is worth about 11 yuan and 10 cents. At that time, the highest land price was Qu Ting, which was only 2.34 yuan per ping. Because the price is exorbitant and the land is sold in bulk, no one will pay attention to this land. However, when he was young, mitsuke, who had traveled abroad and seen many beautiful metropolises, had his own plans in mind. He bought the land quickly. Many people are either surprised or sneer at the decision of mitsuzuki: "what's the use of buying such a large piece of land?" Mi Zhizhu just gave a faint smile to these people, or casually replied: "no purpose, just want to grow bamboo and raise tigers." Having said that, he was not idle. Mitsuzuki started to build a modern office building in this area called "the origin of Mitsubishi". He abandoned the traditional wooden houses in Japan and replaced them with stone, brick and other western building materials. In terms of the folk customs at that time, it was a pioneering work for the first time. Later, the office street was named "one London". The beautiful red bricks used in the building not only attract people from Tokyo, but also visitors from all over the world. In addition, mizuke also invested in the new land of Haipu in Ji Bay of Gangshan, the forest planting of ganyeyinfan and the farmland of Niigata. He also partnered with others to buy a large plain in the Iwate mountain area, and named it after several people. Mizuke's attention to land became the foundation for the formation of Mitsubishi real estate. Mizuke is also interested in investing in railways. Most of the railways in Japan today were laid by civilians in the Meiji era. In addition to the Japanese railway developed in mitarao's time (today's northeast line in Japan), mitarato also invested in the construction of Shanyang Railway (Shanyang line) and Kyushu Railway (Kagoshima line and Nagasaki line). The railway instry can not only transport coal mines, but also be the main consumers of coal mines
mizuke pays special attention to improving the technology made in Japan. Under the guidance and support of mizuke, Nagasaki shipyard has made full efforts to manufacture the first turbine made in Japan. Due to the appearance of steam turbine made by Nagasaki shipyard, Mitsubishi internal combustion engine manufacturing instry and Mitsubishi Electric Instry soon separated from shipbuilding instry, and graally formed Mitsubishi Heavy Instry< As early as 1889, mizuke was optimistic about the development of paper instry. He first sponsored the Kobe paper mill company set up by the Washoe brothers, and later bought that company, which is the origin of Mitsubishi paper instry. Mizuke sent his third son, junmi, to London to study applied chemistry. After returning home, mizuke founded a glass instry,