Using Ethereum as an example
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
Of course, lightning network is not perfect. When using the lightning network, the assets on the main chain should be used as collateral; And this part of assets as collateral can not be used before the user completes the transaction under the chain. This also determines that lightning trading is only suitable for small transactionsthe 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
(1) what does Dao meanbefore 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"
Another problem is the chaos of ICO. ICO is a common way to raise funds for blockchain projects, which we can understand as pre-sale. The outbreak of ICO projects on Ethereum has caused illegal activities such as fund allocation and money fraud under the banner of ICO, which has caused security risks to social and financial stabilitywhat is Ethereum:
Ethereum is an innovation based on the application of technologies and concepts in bitcoin to computers. Ethereum itself imitates a lot of bitcoin technology to maintain the computer platform. Blockchain technology is one of them
Ethereum platform can safely run any program users want
advantages of Ethereum over other competitive currencies before Ethereum appeared, some digital currencies imitated bitcoin. However, these projects have their own shortcomings, they can only support one or several specific applications at the same time< However, the reason why Ethereum can surpass the limitations of these projects in the past is because of the core idea of Ethereum
what Ethereum wants to implement is a blockchain protocol with built-in programming language. Since it supports programming language, in theory, any blockchain application can be defined with this language, and then run on Ethereum's blockchain protocol as an application
The design of Ethereum is very flexible and adaptable
Ethereum target sets the advantages of blockchain technology, in order to add the advantages of blockchain, such as decentralization, openness and security, to almost all computing fields
blockchain applications of Ethereum
Ethereum has many blockchain applications, such as digital applications of gold and stocks, financial derivatives applications, DNS and digital authentication, etc
Ethereum has achieved more than 100 blockchain applications by many start-ups
Ethereum has also been closely watched by some financial institutions, banking consortia (such as R3), as well as large companies like Samsung, Deloitte, RWE and IBM. As a result, a number of blockchain applications such as simplified and automated financial transactions, merchant loyalty index tracking, and gift cards designed to achieve decentralization of electronic transactions have emerged
the relationship between Ethereum and blockchain:
Ethereum is a programmable blockchain
Ethereum does not give users a series of preset operations (such as bitcoin transaction), but allows users to create complex operations according to their own wishes
in this way, Ethereum can be used as a platform for various types of decentralized blockchain applications, including but not limited to cryptocurrency
like other blockchains, Ethereum also has a peer-to-peer network protocol. Ethereum blockchain database is maintained and updated by many nodes connected to the network. Each network node runs the Ethereum simulator and executes the same instructions. Therefore, people sometimes call Ethereum "world computer"
etc (Ethereum Classic) is a bifurcated currency that Ethereum hard bifurcates after 1920000 blocks, and its function is very similar to Ethereum. Etc adheres to the concept of decentralization and supports the consensus mechanism of blockchain guarantee. Etc firmly believes that once the blockchain starts to run, its development direction will not be controlled by any central team, but will be determined by the consensus of the people participating in the whole network and the consensus of the computing power of the whole network
the Ethereum blockchain hard branching in July 2016 aims to transfer the Dao funds stolen by hackers to an account controlled by investors, and let the old transaction records be forgotten by history. Most Ethereum developers are involved in the reversal, as are exchanges, startups and other members of the ecosystem. A few days later, the project returned to normal. But not everyone wants to forget the old record. As a result, a small number of miners continued to use the original blockchain as a protest. They described the hard fork as a capital withdrawal for the abandoned project of the Dao. So Ethereum classic (etc) was born
2. Detailed parameters
Chinese Name: Ethereum classic English Name: Ethereum classic English abbreviation: etc
developer: Ethereum Classic team core algorithm: ethash consensus proof: POW
release date: 2016 / 7 / 20 block time: About 15-17 seconds / block
total currency: fixed at 210 million, up to 230 million, Every 5 million blocks decelerate by 20%, and the first proction rection is expected to be in December 2017
main features: independent cryptocurrency
some countries have shown great interest in the blockchain technology of decentralized data management framework to store public data. For example, essentia is developing an e-government project with the Central Union of agricultural procers and forest owners in Finland, The project will apply blockchain technology to enable urban and rural residents in Finland to query various records, fully meet the needs of residents and employers, and improve the employment rate. In addition, the use of this technology can also improve the efficiency of government operation, so that residents can easily query ecation, public records, voting and other information
waste recycling
for example, an intelligent waste management system in China adopts the RFID technology of waltonchain company. Using this blockchain application of waltonchain, it can effectively monitor the waste level, so as to improve the management and operation efficiency and resource optimization
identity recognition
chug, a Swiss city known as "encryption Valley", has developed an identity authentication system with its partner uport by using blockchain technology, through which citizens can participate in online voting and proof of residence
border control
essentia has been in contact with the Dutch government, hoping to use its blockchain technology to establish a set of border inspection system for the Dutch government to check passengers between Amsterdam and London. At present, passengers of Eurostar high-speed rail between the two countries need to undergo border control checks at multiple locations. Essentia is working on a blockchain based solution that will securely store passenger data so that inspection records from the Netherlands can also be reviewed by UK Border agencies. Blockchain technology will ensure that the data has not been tampered with and is verifiable and accurate
health care
as we all know, medical records are very scattered and prone to errors. Inconsistent data processing process will make hospitals and clinics often forced to deal with some incorrect or incomplete patient records. For example, Medrec, a blockchain electronic medical record system developed by MIT, uses blockchain technology to promote data sharing. At the same time, it can also provide authentication and confidentiality services
enterprise management
as enterprise customers of Microsoft azure applications, they can make use of blockchain as a service (baas), which will enable enterprises to access smart contracts and blockchain applications in a secure hosting environment. According to media reports, Google is also developing a proprietary blockchain project to support its cloud based business. And alpha, Google's parent company, is developing a distributed accounting project that third parties will be able to use to store data related to Google's cloud services
medical data
medical centers that digitize patient records do not store data among multiple devices. They usually store data on centralized servers, which has become the main target of hackers. The wannacry attack on NHS hospital in the UK proves this. But in addition, even if the security risk is ignored, there is still the problem of fragmentation. At present, there are more than 50 different electronic medical record systems (EHR) operating in hospitals in different cities around the world, and there are usually dozens of different medical application systems in the same city. These independent systems can't perform interoperation, and the data of patients in each hospital can only be distributed in different data storage centers
in the case of patients' life and death, the lack of reliable medical data contrast and slow operation efficiency will be fatal. Essentia's application framework solves all these problems by using blockchain based system, which will store all clinical data of patients, and can access these data immediately regardless of geographical boundaries. In this system, the patient's medical record privacy can also be protected, and only the authorized medical personnel can access it in a specific period of time
Music Proction
one of the main advantages of blockchain technology is that it eliminates unnecessary middlemen or middlemen. The music instry is a typical example. In this instry, if artists are inefficient, they will get very low remuneration. At this time, a number of blockchain based projects have emerged to seek a fairer trading and business environment for music creators, such as artbit, a former gunshot rose drummer Matt Soren as director
carbon compensation
as a highly instrialized country, China's environmental change is huge. In March 2017, IBM and energy blockchain labs jointly launched the hyperledger fabric blockchain project to discover China's carbon assets, which not only creates a measurable and auditable system for tracking carbon emissions, but also provides a tradable market for companies seeking to offset energy consumption and stimulate green instrial practice
supply chain management
supply chain management is considered to be one of the better cases of applying blockchain, because it is very suitable for the express delivery of such goods from delivery to receipt or the whole process from manufacturer to store. IBM and Wal Mart have jointly launched a blockchain food safety alliance in China. The project is also jointly operated with Jingdong company, aiming to improve food delivery tracking and safety assurance, so as to make it easier to trace food safety issues
facts have proved that China is a mature experimental base for blockchain projects, and it is also the location of the world's first blockchain for agricultural procts (5.180, - 0.25, - 4.60%). Louis Dreyfus Co, a world-famous food trader, has established a blockchain technology project in cooperation with Dutch and French banks. Using this project technology, the transaction settlement is faster than traditional methods in the process of selling soybeans to China
diamond instry
De Beers Group, the world's most famous diamond company, has its own blockchain company and has started operation. Its purpose is to "establish a digital record for every diamond registered on the platform". Considering the origin of diamonds, the ethical standards of origin, and the risk of diamond quality, blockchain technology is a good choice, because every record of it is indelible, and it will ensure that the electronic data of each diamond is as permanent as itself
real estate transactions
currently, Ukraine is the first country to use blockchain technology to promote property transactions. Michael Arlington, the founder of techcrunch, a famous technology website and cryptocurrency player, remotely purchased and resold a real estate in Kiev through the smart contract of Ethereum blockchain. This transaction was completed by propy, a start-up company specializing in blockchain real estate transactions
fisheries
blockchain technology is now being used to support the development of sustainable fisheries. Illegal fishing is a common problem in this instry. The distributed ledger technology of blockchain provides a proof of the capture source, processing and sale mode. This "net to table" supply chain allows inspectors to determine whether the fish caught came from a human rights violation area or from a country affected by economic sanctions
art paintings
similar to diamond trading, the art instry relies on the provenance and authenticity of art works. Although the blockchain cannot identify whether a painting is an original or a fake, it can be used to prove the identity of the previous owner of the painting. In addition, blockchain technology is now also used as a means to obtain works of art. It can make tangible goods easily traded and exchanged anywhere in the world without physical transfer from a secure storage place
public facilities
in Freemantle, Australia, a project dedicated to distributed energy and water system management is using blockchain technology, and solar panels (3.340, - 0.06, - 1.76%) are being used in sunny areas to obtain electricity, which is then used to heat water and provide electricity, All these energy conversion and use information will be recorded in the blockchain data
in Chile, the National Energy Commission has started to use the blockchain technology as the verification of the country's energy use data, and some sensitive data will be stored in the blockchain. The application of this technology can be regarded as a means for the modernization and safe operation of power infrastructure in this South American country
LGBT rights
blockchain can help build a "pink economy" and help LGBT communities fight for their own rights without revealing people's identities. This is an extremely important issue, because crimes of discrimination against homosexual groups often occur, especially in countries notorious for human rights violations, Homosexuality is illegal, or at least not allowed
catastrophe bonds
catastrophe bonds may be the only hope for victims of earthquakes, tsunamis and other natural disasters. Blockchain allows fast and transparent reconciliation between the parties, and can ensure that the system can continue to operate normally even under unmanned operation. Now, blockchain has been successfully used in the settlement mechanism of catastrophe bonds
tourism
local institutions in Hawaii are studying how to use blockchain technology to improve the economy, such as opening bitcoin and other monetary payment means to facilitate tourists' transaction of local goods and services. In this way, the Hawaiian government hopes to attract tourists, especially those from Asia, to spend more money in the local area and improve the economic development of Hawaii
homeland security
in 2016, the US Department of Homeland Security (DHS) announced a project that will use blockchain technology as a means of secure storage and capture of data transmission. DHS uses Factom's blockchain technology to encrypt and store data captured by security cameras and other sensors. The application of this blockchain technology will greatly rece the risk of data leakage. At present, the project is still in progress
maritime transportation
it is self-evident that blockchain is used to record ship transportation data. At present, some local shipping projects have adopted distributed ledger technology. In the maritime logistics instry, blockchain technology can make the inevitable cumbersome management proceres in international trade more transparent and orderly. Maersk, one of the world's largest shippers, is a pioneer in the use of blockchain. Today, Yixing international shipping company Zim has also made follow-up use of blockchain technology.
First of all, we need to understand what is MLM:
MLM refers to the illegal behavior of organizers and development personnel to obtain wealth by calculating and paying remuneration to the developed personnel based on the number or performance of the personnel directly or indirectly developed, or requiring the developed personnel to pay certain fees to obtain the qualification to join. The essence of MLM is "Ponzi scheme", that is to say, the money of later comers is distributed to the income of former comers
However, the new type of MLM does not restrict personal freedom, does not accept ID cards and mobile phones, and does not take classes collectively. Instead, it uses capital operation as a banner to pull people to cheat money, drives luxury cars, wears gold and silver, and uses money to attract your relatives and friends to join in, and finally makes you lose all your moneythen judge whether the ether coin is a kind of MLM, whether you need membership fee, whether you need to ask your relatives and friends to join
extended materials:
Ethereum is an underlying technology platform on which developers can create distributed applications. With the application, there will be transactions. With a transaction, you need money to complete the transaction. In this way, money has value, and investors' investment has a return. If the transaction volume on the platform is larger and larger, the demand for money will be higher and higher, and the money will be more and more valuable
from the perspective of image, bitcoin creates a kind of digital gold, while Ethereum creates a country, and Ethereum is the credit currency of the country
after bitcoin, there are thousands of digital virtual currencies in the world, many of which are completely deceptive in the guise of "digital currency". Previously, Haikou Municipal Public Security cracked down on a pyramid selling organization called "Eurasian currency", which operated on the internet pyramid selling platform, making more than 40000 investors cheated, involving 4.06 billion yuan. The field of virtual currency has just started, so we need to be cautious
resources : Ethernet money network
compared with bitcoin, we can find that Ethereum is more difficult to develop a new encryption technology than bitcoin. This breakthrough has greatly reced the development cost and time for developers who apply blockchain technology. The emergence of Ethereum once again reiterated the need to split the center, as well as the feasibility and advantages of decentralized distributed applications, to the existing economic market, the financial sector a new direction of development and throw to the society a new entrepreneurial ideas and opportunities.
It does not belong to MLM
Ethereum is an open source public blockchain platform with smart contract function, which provides decentralized virtual machine (Ethereum virtual machine) to process point-to-point contract through its special cryptocurrency Ethereum
the concept of Ethereum was first proposed by vitalik buterin, a programmer, from 2013 to 2014, inspired by bitcoin, to the effect of "next generation cryptocurrency and decentralized application platform", and began to develop through crowdfunding in 2014. The market value of Ethernet currency is second only to bitcoin, and it is the second largest encrypted digital currency in the world
extended data
bitcoin has created the first decentralized cryptocurrency, and has fully tested the feasibility and security of blockchain technology in more than five years. In fact, bitcoin's blockchain is a set of distributed database. If a symbol bitcoin is added into it and a set of protocol is specified, the symbol can be transferred safely on the database without trusting a third party. The combination of these features perfectly constructs a currency transmission system bitcoin network
however, bitcoin is not perfect, and the scalability of the protocol is a deficiency. For example, there is only one symbol in the bitcoin Network - bitcoin, and users can't customize other symbols. These symbols can represent the company's stocks or debt certificates, which will lose some functions
In addition, a stack based scripting language is used in bitcoin protocol. Although this language has some flexibility to realize functions such as multi signature, it is not enough to build more advanced applications, such as decentralized exchanges. Ethereum is designed to solve the problem of insufficient scalability of bitcoin