Wechat of virtual currency recommendation
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
virtual currency is still a chaotic instry, and MLM is very popular in China. However, there are also some applied digital currencies, such as the tokens of Euroland crowdfunding and crowdfunding projects.
you can also use the money in wechat. Direct to the bank card. And then take it out, so it's a solid coin
StarCraft is a star competition
what is blockchain
blockchain is a technical solution to maintain a reliable database collectively through centralization and distrust
generally speaking, blockchain technology refers to a way for the whole people to participate in bookkeeping. There is a database behind all the systems. You can think of the database as a big ledger. So it's very important who keeps this account book
so what's the difference between our current accounting method and blockchain
take the Internet giant companies as an example, wechat's account book is Tencent's account book, and Taobao's account book is Alibaba's account book
but in the blockchain system, everyone in the system can have the opportunity to participate in bookkeeping. If there is any data change in a certain period of time, everyone in the system can conct bookkeeping. The system will judge the person who has the fastest and best bookkeeping in this period, write the content of his records into the account book, and send the content of the account book to all other people in the system for backup. In this way, everyone in the system has a complete account book. This way, we call it blockchain technology
will not mastering blockchain be eliminated by the times
although blockchain is popular, for ordinary people, they don't need to panic and can't master this technology. In fact, it has nothing to do with us. After the implementation of blockchain development, we only need to be able to use related applications. Just like we don't need to know what is the underlying TCP / IP protocol of the Internet, we just need to enjoy the services provided by the Internet. Blockchain is more similar to the underlying technology such as TCP / IP, and will be extended to more and more instries in the future
how to apply blockchain
the most important thing of blockchain is to solve the problem of intermediary credit. In the past, it was difficult for two people who didn't know and trust each other to reach cooperation, and they had to rely on a third party. For example, in the past, there must be an institution such as a bank or Alipay.
therefore, blockchain can subvert many instries, making these instries without intermediary participation, efficient and transparent process, low cost and high data security. Therefore, if there is any demand in these three aspects, the instry will have the opportunity to use blockchain technology
what is bitcoin? Is bitcoin a blockchain
blockchain technology is the underlying technology of bitcoin. Through the blockchain technology, bitcoin is the first time for human beings to realize the mutual trust transfer behavior without the participation of any intermediary. And this system has been running autonomously and stably for many years, and there has been no problem
therefore, many people have noticed that the underlying technology may have a great mechanism, and it can be used not only in bitcoin, but also in many fields. Therefore, bitcoin technology is abstracted, which is called blockchain technology or distributed ledger technology. So from a certain point of view, bitcoin can be regarded as the first application of blockchain, and blockchain is more similar to the underlying technology such as TCP / IP, which will be extended to more and more instries in the future
what is "mining"
mining, in a narrow sense, is the "mining" in bitcoin. The operation of bitcoin adopts a mechanism called "proof of work (POW)". In order to find out who has more powerful computing power, the system will work out a mathematical problem every time. Only the computer that can solve the problem the fastest can carry out accounting. The computer that grabs the bookkeeping right will be rewarded with 25 bitcoins. This behavior is usually called "mining", and the bitcoin obtained is regarded as the reward for successful mining
broadly speaking, it is a process of bookkeeping reward, which can be used in any instry or digital currency
what is smart contract
smart contract is a kind of contract that uses computer language instead of legal language to record terms. Smart contracts can be executed automatically by a computing system. If blockchain is a database, smart contract is the application layer that can make blockchain technology applied to reality. In the traditional sense, the contract has no direct connection with the computer code to execute the content of the contract. In most cases, paper contracts are filed, while software executes contract terms written in computer code. The potential benefits of smart contracts include lower contract signing, enforcement and regulatory costs; Therefore, for many contracts related to low value transactions, this is a great rection in labor costs
Q: how to use smart contracts
if the central bank can issue legal currency through blockchain, it can also embed code into the behavior of issuing legal currency through smart contract technology, and this part of legal currency can be called "programmable currency". For example, if the Central Bank specifies that a certain part of the fund is issued to the agriculture related account, then it can write the corresponding proceres for this part of the fund, and specify that this part of the fund can only enter the agriculture related account, then this part of the fund can not be misappropriated to other accounts under any circumstances. If most currencies become "programmable currencies", then we can imagine that the financial environment they form will become "programmable finance"
what is digital currency
digital currency refers to the digitization of currency. Digital currency can be divided into two types: non cryptocurrency (e-gold, XRP) and cryptocurrency (bitcoin)
digital currency is often mistaken for virtual currency. But virtual currency refers to non real currency. For example, when you play "Three Kingdoms" (game) or "grand Voyage", you have money, and that money is virtual. Of course, the virtual money will also have its real value. For example, if you buy her / his account from another player, you can get all the virtual assets of that player, and then it will be much easier for you to continue playing
does a blockchain project need to have some kind of currency
A: No. Bitcoin itself is a payment system, so it needs a value measurement tool, so bitcoin must appear. In addition, in order to reward more people who are willing to contribute their computers to provide computing for the system, bitcoin is needed. In some private chain systems, special assets can be designed for transaction, and each node must participate