Virtual curve currency details
public key system: corresponds to a public key and a private key, keeps the private key in the application and publishes the public key. When Party A transmits information to Party B, it can use Party A's private key to encrypt the information, and Party B can use Party A's public key to decrypt the information, so as to ensure that the third party cannot impersonate Party A to send the information; At the same time, when Party A transmits information to Party B, it is encrypted with Party B's public key and sent to Party B, and then Party B decrypts it with his own private key, so as to ensure that the third party cannot eavesdrop on the communication between the two people. RSA is the most common public key system, but the lliptic curve digital signature algorithm is used in bitcoin protocol. What's the difference between cash and bank account? Bitcoin is an electronic currency in BTC. In this article, it is also used to refer to the whole bitcoin system. Like opening an account in a bank, the corresponding concept in bitcoin is address. Everyone can have one or more bitcoin addresses, which are used to pay and collect money. Each address is a string that starts with 1. For example, I have two bitcoin accounts, and. A bitcoin account is uniquely determined by a pair of public key and private key. To save the account, you only need to save the private key file. Unlike bank accounts, banks keep all transaction records and maintain the book balance of each account, while bitcoin's transaction records are jointly maintained by the whole P2P network through a pre agreed protocol. How much money is in my account address? Although the current account balance can be seen by bitcoin software, unlike banks, there is no place to maintain the book balance of each address. It can only calculate the account balance in real time through all historical transactions. How do I pay? When I pay from address a to address B of the other party, the payment amount is e. at this time, both parties will announce the transaction information to each network node, telling address a to pay to address B, and the payment amount is e. In order to prevent the third party from forging the transaction information, the transaction information will be encrypted with the private key of address A. at this time, the network node receiving the transaction information can use the public key of address a to verify that the transaction information is indeed sent by address a. Of course, trading software will help us do these things, we just need to input the relevant parameters in the software. What will the network node do after receiving the transaction information? This is the most important part of the bitcoin system, which needs to be elaborated. For the sake of simplicity, only bitcoin protocol has been implemented. In the current version, each network node will save all transaction information synchronously. There are two kinds of transaction information in history, one is & quot; Verified & quot; The transaction information, that is, the verified transaction information, is stored in a series of "blocks". Each & quot; block" Is the previous & quot; bock" The ID of each block is the hash code of the hash code of the block and the new transaction information (see an actual block). The other category refers to those who also & quot; Unverified & quot; The transaction information just paid above belongs to this category. When a network node receives new unverified transaction information (possibly more than one), it can calculate the book balance of each address at that time because the node keeps all the transaction information in history, so it can calculate whether the transaction information is valid, that is, whether there is enough balance in the payment account. After eliminating the invalid transaction information, it first takes out the last & quot; block" Then, the unverified transaction information is combined with the ID, and a verification code is added to form a new "block". It needs a lot of calculation to build a new block, because it needs to calculate the verification code, so that the above combination becomes a block, that is, the first several bits of the hash code of the block are 1. At present, the first 13 bits need to be 1 (generally, the specific method is uncertain), which means that if the block is generated by enumeration method, the average number of enumerations is 16 ^ 13. Using CPU resources to generate a block is called "gold mining", because the proction of the block will get a certain reward, and the reward information has been included in the block. When a network node generates a new block, it will broadcast to other network nodes. However, this network block may not be accepted by the network, because it is possible that other network nodes have proced the block earlier. Only the earliest block or the block with the largest number of subsequent blocks is valid, and the remaining blocks are no longer used as the initial blocks of the next block. How does the other party confirm that the payment is successful? When the payment information is distributed to the network node, the network node begins to calculate whether the transaction is valid (that is, whether the account balance is enough to pay), and attempts to generate blocks containing the transaction information. When six blocks (one direct block and five subsequent blocks) contain the transaction information, the transaction information is considered "verified", so that the transaction is formally confirmed, and the other party can confirm the successful payment. A possible problem is that I will pay the balance of address a to address B, and at the same time pay to address C. If I only verify that the single comparison transaction is valid. At this point, my way of cheating is to generate six blocks including B to B and six blocks including C to C before the truth is revealed. Because I need a very long CPU time to generate a block, compared with the whole network, the probability of my cheating success is very small. What is the motivation of network nodes to proce blocks? As can be seen from the above description, in order to make the transaction information effective, the network node needs to generate 1 and 5 subsequent blocks to contain the transaction information, and such block generation is very CPU intensive. How to let other network nodes help to proce blocks as soon as possible? The answer is very simple. The agreement stipulates that BTC will be rewarded for the address where the block is proced, as well as the Commission promised by both parties. At present, the reward for procing a block is 50btc, which will be halved every four years in the future. For example, the reward will be 25btc from 2013 to 2016. Is the transaction anonymous? Yes, and No. All bitcoin transactions are visible. We can check all transaction records of each account, such as mine. But what's different from the banking monetary system is that everyone's account itself is anonymous, and everyone can open many accounts. In general, anonymity is not as good as it claims. But bitcoin has another advantage in doing black market trading: it can't be frozen. Even if the police trace a bitcoin address, there is nothing they can do unless they trace the computer used by the exchange based on the Internet address. How to ensure that bitcoin does not depreciate? Generally speaking, in the case of equivalent trading activities, the value of money is inversely proportional to the amount of money issued. Unlike the traditional money market, the central bank can determine the amount of money issued. Bitcoin does not have a central issuing institution. Only by procing blocks can we get a certain amount of BTC currency. Therefore, bitcoin's new amount of money depends on: 1. The speed of procing blocks: bitcoin's agreement stipulates that the difficulty of procing blocks is fixed at an average of 2016 every two weeks, about 10 minutes. Moore's law of doubling CPU speed every 18 months will not speed up the proction of block. 2. The number of rewards for block proction: at present, 50 BTC is awarded for each block proced, which is halved every four years. In 2013, 25 BTC is awarded, and in 2017, 12.5 BTC is awarded. Considering the above two factors, bitcoin's currency issuing speed is not controlled by any single node in the network. Its protocol makes the currency stock known in advance, and the maximum stock is only 21 million BTC
Yfi is the token of year.finance. Year.finance is an aggregator for mobile mining (hereinafter referred to as "yfi" for ease of reading). There are compound, AAVE, lend, curve and other ore pools in the market. Due to information asymmetry and other factors, there is a huge difference in the rate of return between these ore pools. Users can automatically access high-yield ore pools through yfi platform to maximize mining income
on July 17, 2020, yfi announced on twitter that its official website was officially launched to start liquidity mining. Yfi launched four ore pools in the first batch, and users can participate in mining by providing affordability in balaner, with the highest annual income of more than 700%. Due to the super high yield, yfi has attracted a large number of users to participate. In just a few days, the amount of locked positions exceeded 100 million US dollars
extended information:
yfi issued 30000 pieces in total, the team had no reservation, no private placement, no public offering, and all of them were proced by mining. In other words, yfi issued only a limited amount, and all yfi participants were in the same line. It is a completely decentralized cryptocurrency, which is very similar to bitcoin. Therefore, as soon as yfi went online, it encountered crazy speculation
on July 17, 2020, yfi liquidity mining price is only 3 US dollars; The next day, yfi soared to $400
on August 20, 2020, the price of yfi exceeded US $13000 for the first time, surpassing bitcoin and becoming the new "king of money"
term structure of interest rates refers to the relationship between yield and maturity of funds with different maturities at a certain point in time. The term structure of interest rate reflects the relationship between supply and demand of funds in different periods, reveals the overall level and change direction of market interest rate, and provides reference for investors to engage in bond investment and relevant government departments to strengthen bond management
term structure of interest rate refers to the relationship between spot interest rate and maturity at a certain time point. Because the yield to maturity of zero coupon bond is equal to the market spot interest rate of the same term, the term structure of interest rate at any time is a function of the level of interest rate and term. Therefore, the term structure of interest rate, that is, the relationship between the maturity yield of zero coupon bonds and the term, can be expressed by a curve, such as horizontal line, upward and downward sloping curve. There may even be more complex yield curves, that is, the bond yield curve is a combination of some or all of the above yield curves. The change of the yield curve essentially reflects the relationship between the maturity yield and the maturity of the bond, that is, the difference between the short-term interest rate and the long-term interest rate of the bond
yield curve is a chart showing the yields of a group of bonds or other financial instruments with the same currency and credit risks but different maturities. The vertical axis represents the yield, and the horizontal axis is the time to maturity. The rate of return refers to the rate of return on investment of indivial projects, and the interest rate is the general level of all investment returns. In most cases, the rate of return is equal to the interest rate, but there is often a deviation between the rate of return and the interest rate, which leads to the inflow or outflow of capital into a certain field or at a certain time, thus making the rate of return close to the interest rate. The trend of bond yield in the period may not be uniform, which may form three kinds of yield curves: upward, horizontal and downward
yield curve is a basic tool to analyze the trend of interest rate and market pricing, and also an important basis for investment. When treasury bonds are traded freely in the market, different maturities and corresponding yields form the "benchmark interest rate curve" of the bond market. Therefore, the market has a reasonable pricing basis. Other bonds and various financial assets are based on this curve, and the appropriate price is determined after considering the risk premium.
In 1942, the United States entered the Second World War. At the request of the Ministry of finance, the Fed formally undertakes the obligation to keep the interest rate of treasury bonds low. The Treasury needs low-cost money to raise money for the war. As a result, the Fed has to abandon its money stock target and focus on controlling interest rates. The Korean War broke out in 1950. The Treasury hopes that the Fed will continue to bear the responsibility of maintaining low interest rates, while the Fed hopes to control the inflationary pressure brought about by the war. On March 4, 1951, the Fed and the Treasury signed the Treasury Federal Reserve agreement, which ended the Fed's obligation to support the price of U.S. Treasury bonds and ensured the independence of the Federal Reserve in formulating and implementing monetary policy. Before the agreement, the United States had no independent monetary policy, and monetary policy was only a vassal of fiscal policy. In November 1958, W. Phillips published the relationship between unemployment and the rate of change of money wave rates in the United kings, 1861-1957 (economica, November 1958, pp. 283-299). Its direct meaning is that there is a substitution relationship between inflation and unemployment rate. The publication of this article marks the discovery of Phillips curve. In 1975, the United States began to test money growth targeting. The Fed announced target growth ranges for three major monetary aggregates: M1, M2 and M3. In fact, what the Fed can control in terms of deposits is only the base currency, so it is unrealistic to achieve these three different monetary aggregate targets at the same time. In fact, the Fed often fails to meet its goals announced in advance, and there are often large errors. Monetarists claim that the Fed announced three different monetary aggregate targets at the same time, indicating that it is not very serious about implementing fixed monetary growth rules. Paul Volcker became chairman of the fed in August 1979. Two months later, he convinced his colleagues on the Federal Open Market Committee (FOMC) to agree to cut inflation, convincing them that the Fed's operating proceres needed fundamental changes. The inflation rate was 9% in 1978 and 12% in 1979. The surge of inflation rate makes the Fed determined to deal with inflation. In October 1979, the Fed announced that it was committed to the slow growth of money supply and would be willing to default to larger and more frequent changes in short-term interest rates. This marks a significant change in the Fed's operating proceres. The Fed concentrates the intermediate target of monetary policy on M2 instead of short-term interest rates. After that, interest rates rose rapidly and the economy was in a slump. The Carter administration did not object to this. In March 1980, short-term interest rates exceeded 15%, and the Federal Reserve lost support from the Carter administration. Less than nine months after the presidential election, President Carter authorized the Federal Reserve to impose mandatory controls on credit, and continuously used the television media to strongly admonish consumers to curb the use of credit. Over the next three months, the economy has declined significantly. The Fed cut short-term interest rates by almost half in response to a drop in the money stock. The move is more like an attempt to reverse the recession in an election year than the interest rate consequences of the Fed's new policy of targeting monetary aggregates. After the rection of interest rates, the economy recovered. Very short term tight monetary policy and weak economic recovery are not enough to rece the inflation rate. In the early 1980s, ring the implementation of the monetary growth target system, the inflation rates of the United States, Germany, Britain and Canada all decreased significantly, but their output and unemployment rates also became very unstable, and the unemployment rates all increased significantly. In 1982, because of the unacceptability of the rising unemployment rate, the Fed announced that it would pay more attention to interest rate targeting than money growth targeting. In 1993, the Fed announced the complete abolition of the use of monetary growth target system. Before that, in the 1980s, other countries that adopted the monetary growth target system no longer implemented it (except Germany and Switzerland, but Germany also announced in 1987 that it would change the monetary growth target from the central bank to m3). The reason for Fed's explanation is that in the 1970s and 1980s, money demand changed frequently and was very unstable. At this time, if the money supply remains unchanged, it will cause drastic changes in interest rates, which is very harmful to the economy
the reason is very simple: with the increase of national income, the demand for money transactions and speculation will increase, and then the interest rate will be raised to maintain the balance of money supply and demand, which is shown in the graph as LM Curve moving upward.
is -- LM model, Is LM model is the core of Keynesian macroeconomics
1. If other factors remain unchanged, the demand for goods and its price will change in the opposite direction
(1) complementary goods if two kinds of goods can only be used together to satisfy people's desire, then the relationship between the two kinds of goods is complementary, and these two kinds of goods are called complementary goods. If other factors remain unchanged, in complementary goods, the demand quantity of one kind of goods and the price of another change in the opposite direction (2) substitute goods. If two kinds of goods can satisfy people's common desire, then the relationship between the two kinds of goods is the substitution relationship. These two kinds of goods are called substitute goods. If other factors remain unchanged, the demand quantity of one commodity changes in the same direction as the price of another commodity When other factors remain unchanged, the change of consumer income will also lead to the change of demand for a certain commodity. The demand of normal goods is positively correlated with income; The demand of inferior goods is negatively correlated with income If other factors remain unchanged, the demand for a commodity is positively correlated with the expected price of the commodity Consumer preference refers to people's liking for a certain commodity. The demand for a certain commodity is positively related to the degree of consumers' preference for the commodity According to previous studies, we can summarize the characteristics of aggregate demand curve as follows:1. Aggregate demand curve represents the level of GDP needed at a given price level
The two economic principles that determine and influence the aggregate demand curve are balance of payments and equality of money supply and demand 3. The aggregate demand curve is inclined to the lower right. The rise of price level means the decrease of real money balance, so the real interest rate will rise, which will rece the investment, GDP and net export 4. Aggregate demand depends on real money supply. In other words, the increase of nominal money will not change GDP, only change the price level Generally speaking, expansionary policies, such as increasing government expenditure, tax rection and increasing money supply, make the aggregate demand curve move to the right, and the confidence of consumers and investors also affects the aggregate demand curve (when the confidence increases, the ad curve moves to the right; when the confidence increases, the ad curve moves to the right; When confidence weakens, the ad curve moves to the leftIn some definated economy, the total number of goods of which doesn't change,the addition in money supply of course will bring up the price level, e to the addition of money supply, the RM curve will move rightside.So the consumption pattern will graally be changed into the consumption of luxuries and the total output of the economy will be brought up,but how up will the economy go up depends on the angel of the cross of the IS curve and RM curve