区块链技术为什么要发行虚拟币呢,区块链技术为什么要发行虚拟币交易

区块链技术是一种分布式记账技术，它可以记录所有的资产交易，比如数字货币、物联网设备、智能合约等。在这种技术的基础上，发行虚拟币可以解决许多问题，例如安全性、可扩展性、去中心化等。

首先，虚拟币的发行可以提供更高的安全性。由于虚拟币的交易都是在区块链上完成的，它们的安全性可以得到很大的保障，使得它们不易被篡改、恶意破坏。

其次，虚拟币的发行可以提供更高的可扩展性。由于虚拟币的交易在区块链上完成，它们可以通过增加节点来提高交易的吞吐量，使得虚拟币的交易更加便捷、快速。

最后，虚拟币的发行可以提供更高的去中心化。由于虚拟币的交易在区块链上完成，它们的交易不受任何中心机构的控制，使得虚拟币的交易更加安全、透明。

总之，虚拟币的发行可以为区块链技术带来许多好处，例如提高安全性、可扩展性、去中心化等。因此，区块链技术发行虚拟币是一个必要的过程，它可以有效地促进资产交易的安全、便捷、透明。

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⑴ When will blockchain technology explode? Can virtual currencies bring cross-class opportunities to ordinary people?

Virtual currencies are decentralized and not linked to anything. A product that is entirely supported by the consensus of the community. Take Bitcoin, for example. Because the community consensus finds it valuable, Bitcoin continues to rise until today. However, there are real and fake projects behind virtual currencies, and their values ​​vary. For ordinary people, choice often outweighs effort. Every year, there are people who achieve financial freedom because of virtual currencies, but losses are the ultimate destination for most people. It is very dangerous for ordinary people to participate in virtual currency transactions in an unregulated market that relies entirely on consensus. Don’t blindly think that you are the lucky one who will achieve cross-class status, because capital is always cruel.

Not all virtual currencies can be guided by decentralized blockchain technology. Most virtual currencies just pretend to be virtual currencies on the technical side of the blockchain. In fact, it confuses the concept and there is no new round of leek harvesting model that breaks away from centralization.

This involves several common sense things, what is a blockchain, what is a virtual currency, and what is decentralization.

1. So what is blockchain?

Blockchain originated from Bitcoin. Blockchain is a distributed shared ledger and database. It has the characteristics of decentralization, non-tampering, full traces, traceability, collective maintenance, openness and transparency. .

2. What is virtual currency?

Virtual currency refers to non-real currency. A string of network codes without any physical endorsement, mortgage, or acceptance. It is divided into two types, one is a centralized virtual currency, such as Q Coin; the other is a decentralized digital currency, such as Bitcoin.

3. What is centralization and what is decentralization?

The simplest description is that QQ coins can be issued unlimitedly by Tencent. You can produce as much as you want. The final right of interpretation lies with Tencent. This is called centralization; like Bitcoin, There is a fixed number. The fixed number of Bitcoins is an upper limit of 21 million. And among the 21 million Bitcoins spread around the world, whoever has them has a say. This is called decentralization.

Only by understanding these three questions can we know the relationship between blockchain technology and virtual currency. Currently, only Bitcoin has this digital cryptocurrency on the market, and it has a fixed amount. But the biggest advantage of this thing is not its circulation, but the addition of cash currencies recognized by various countries as a means of money laundering.

So what you see as the price of Bitcoin in the national market is only the conversion rate of currency conversion given to Bitcoin in a certain transaction, not the real value. Because virtual currency itself has no physical object as acceptance.

Not to mention the so-called digital currencies randomly issued on the market, which are actually the same as Q coins. Tencent said that 1 yuan can be exchanged for a Q coin, and the price of this Q coin is 1 yuan. Two days later, it said that 10 yuan can be exchanged for a Q coin, and this Q coin is 10 yuan. But are Q coins really worth the money? You can only buy a QQ show, which is clothing in the virtual world, also called skin.

According to notices and announcements issued by the People's Bank of China and other departments, virtual currency is not issued by a monetary authority, does not have legal and compulsory monetary attributes, is not a currency in the true sense, and does not have the same characteristics as currency. Equivalent legal status, it cannot and should not be used as currency for circulation in the market, and citizens’ investment and trading in virtual currencies are not protected by law.

Various virtual currencies in the international market pretend to be international currencies under blockchain technology. In fact, they are all flowers in the moon and water in the mirror.

When blinded, coupled with greedy human nature, ordinary people can cross the border and become complete paupers, and they may have to owe a lot of debt.

As the core underlying technology, blockchain’s decentralization, openness, autonomy, non-tamperable information, anonymity and other characteristics help to establish The full-scenario smart management system provides safe, efficient and convenient services for users, smart systems, smart systems, and smart systems to support the construction of smart cities.

The so-called decentralization of virtual currency is a complete lie. It is a fantasy utopia that is absolutely impossible to realize. Virtual currency is a complete money scam. To put it bluntly, the basis for the generation and transactions of various virtual currencies is the Internet and electricity, and the construction of communication networks and power generation facilities relies on the country as the center. Just imagine, losing the country as the center, in a country without laws, without In an environment where the Internet is short of electricity, poor, or even war-torn, how about using a hammer to mine? Virtual currencies and all their lackeys are enjoying the dividends brought by the country's stability, but at the same time they are trying to break away from the center of the country to achieve their own greedy goals of getting something for nothing. Careful analysis shows that the virtual currency ecosystem, from issuance to mining to participation in transactions, combines various typical characteristics of pyramid schemes, gambling and cults. The advocates of virtual currency are a group of outright criminals and should be tried by the law!

No. From the perspective of human history, external situations such as groups of people, tribes, countries, religions, the Internet, etc. all use the propaganda and banner of people's freedom and love, but what is the result? !

Technology has been used in many industries, especially in the financial industry. In the future, with the recognition of various countries, it will definitely change the distribution of classes

Blockchain technology, in fact, that is.

Two essential shortcomings have sealed its fate.

One is that the efficiency is too low.

One is that energy consumption is too high.

So it is impossible to explode.

Crossing classes? It’s already passed, there’s no chance anymore.

⑵ What is the relationship between digital currency and blockchain technology?

There is a certain connection between digital currency and blockchain. They are an organic combination. Blockchain is the lowest technology of digital currency, and of course it is also one of the most important technical means. Blockchain is the most widely used and most successful in the field of digital currency. Regarding the application of blockchain technology, digital currency is established on the basis of its technology, and digital currency can also be regarded as a part of blockchain technology.

Blockchain, as a powerful technical support for digital currency, can ensure that cryptocurrency exists in an encrypted form to a certain extent. The relationship between the two can be seen as inclusive. Blockchain technology, as the most basic technical application of digital currency, helps to issue digital currency.

⑶ Why is it said that virtual currency is the only meaning of the existence of blockchain?

Why is it said that virtual currency is the only meaning of existence of blockchain
Blockchain is already a world thing It is a well-known term, and some even assert that everything in human society in the future will be based on blockchain. But if you ask what kind of technology blockchain is, the explanations from various "experts" are vague: some pile up terms that are incomprehensible to ordinary people, some talk about its potential applications, and some simply call it the "Fourth Industrial Revolution"—— As for the nature of blockchain, everyone still doesn’t know much about it.
The reason for the evasiveness is not difficult to guess. In terms of function, blockchain is nothing more than a public database encrypted in a special way. This unsexy concept cannot be used for hype. Of course, the blockchain is so eye-catching, but its connotation and denotation cannot be as devoid of nutrients as its functions. To make it clear, we need to understand a lot of information beyond the technical ontology, the most important of which is the virtual currency represented by Bitcoin.
Pain Points of Blockchain
Five years ago, not many people in the world knew what blockchain was. As the underlying technology of Bitcoin, this system transmits data in the form of blocks and connects the data blocks into a chain by appending them at the end, hence the name blockchain. From a technical perspective, there are no significant barriers between blockchain and previously existing IT technologies, and there is no revolutionary progress; but from a value perspective, they are fundamentally different - all previous technologies aimed at Improve efficiency, and blockchain does the opposite.
Given that Bitcoin is the iconic existence of blockchain, we might as well take it as a sample.
Every transaction accounting in the Bitcoin system is verified by countless users across the entire network. Only after the verification is passed, the transaction can be established. The first user who successfully records the account can get a certain amount of Bitcoin reward. This information processing process is commonly known as “mining”. Currently, the number of active users of the Bitcoin system is approximately 5 million, and the processing volume in 2017 was approximately 3million transactions. What is the size of 30 million transactions? On November 11, 2017, Alipay completed 1.48 billion transactions, which is approximately 50 times the annual transaction volume of Bitcoin.
This gap does not indicate a big problem. After all, the number of Bitcoin users is far less than that of Alipay, and its application scenarios are far less than that of Alipay, so it is not surprising that the transaction volume is orders of magnitude different. What really illustrates the problem is the amount of electricity consumed to support these 30 million transactions: foreign media Digiconomist announced that the Bitcoin system consumed 30 billion kilowatt hours of electricity in 2017, accounting for 0.13% of global electricity consumption, exceeding that of dozens of countries. of national annual electricity consumption. In other words, to process a transaction, the Bitcoin system consumes an average of 1,000 kilowatt hours of electricity; based on my country's residential electricity prices, this is equivalent to an electricity bill of 3,000 yuan per active user. Such incredible power consumption means a huge computing power configuration, which is in sharp contrast to its small processing capabilities.
The inefficiency of "decentralization" is not only reflected in computing power, but also in data storage.
Continuing to take Bitcoin as an example, as we all know, Bitcoin (blockchain technology) requires users to store public ledgers in a distributed manner. The logic behind it is very strange: the concept of "decentralization" believes that the administrator of the central ledger will falsify, so the storage of the ledger must be public. At present, the size of the complete Bitcoin public ledger has exceeded 150GB, and is rapidly increasing at a rate of tens of GB per year - just to support 5 million users and 30 million transactions per year. If its processing capacity is one day comparable to that of Alipay, the size of the Bitcoin ledger will increase by more than 500TB per year. This is equivalent to backing up the data stored on the Alipay server on all users' personal computers. The absurdity is obvious.
To solve this problem, the Bitcoin system now allows users to store incomplete public ledgers, known as "light wallets," but their transaction verification still relies on the complete ledgers of others on the network. Let’s imagine that when the public ledger is so large that most people are unable to store it completely, wouldn’t the remaining complete user nodes become the central ledger again?
Extending the vision to blockchain applications beyond virtual currencies (if they exist), the public ledger will need to record not only purely digital transaction amounts, but also the insurance information of each vehicle, each If people's credit information and these multi-dimensional data are to be "decentralized" stored on each user's terminal, then what we will need is astronomical storage space. In the short term, this will be an impossible problem to solve.
From a philosophical perspective, the essence of science is doubt, and the essence of religion is belief. As a concept in the field of technology, how does blockchain make people ignore many paradoxes and become its believers? The answer is of course inseparable from Bitcoin, this modern miracle of wealth creation.
The philosophy of Bitcoin
I don’t know when, the big guys began to deliberately separate Bitcoin and blockchain as two concepts.The term Bitcoin is just one of the applications of blockchain.
The motivations are diverse.
Anyone with a little knowledge of economics knows that Bitcoin cannot become a common currency in a normal economy. It has deflationary attributes, ignores monetary policy, and is inconsistent with modern economic theory. The more important reason is that the credit currency it challenges is simply too powerful. Except for a few failed countries in the world, all issue currencies based on government credit. The reason why credit currency is also called legal currency is because most countries have clearly stipulated by law that their national currency is the general equivalent that "must be accepted" in domestic circulation. In this way, the state ensures that credit currency is not rejected and that the rights of currency holders are not infringed. In other words, credit currency is not issued out of thin air. It is backed by government credit and backed by state machinery.
The purpose of Bitcoin’s issuance mechanism (that is, mining) is to “decentralize” the government’s monetary centralization. Behind this is a questioning of the rationality of the government’s existence.
As mentioned before, the logical starting point of "decentralization" is distrust of centralized institutions. The fundamental reason why Bitcoin fundamentalists choose to use "machine consensus" instead of "system consensus" is that they believe that the government-led currency issuance system cannot reflect fairness and justice - inflation, wealth inequality - which Bitcoin is trying to solve. The problems all point to the establishment. From this perspective, Bitcoin’s inefficient consensus mechanism also has the philosophical meaning of “efficiency for fairness”.
If technological progress will eventually make the loss of efficiency negligible, does that mean that "untrustworthy" centralized institutions no longer need to exist?
This is a dangerous question, but fortunately we don’t have to answer it for the time being – because Bitcoin’s attempt to “fairness” has basically failed.
The original intention of the designers of Bitcoin was to hope that Bitcoin participants would have roughly equal opportunities to obtain Bitcoins at the same time. For this purpose, a rather sophisticated and ideal blockchain algorithm was designed, which is the so-called PoW (Proof of Work) mechanism. By exhaustively enumerating random number variables, the first user to obtain a specific required hash function value (Hash) will have the right to record the transaction in this round and receive the corresponding Bitcoin reward. Based on the PoW mechanism, the probability of each user obtaining Bitcoin is directly determined by the computing power he contributes. The more investment, the greater the return, which seems reasonable.
Of course, things are not that simple.
On the one hand, Bitcoin's PoW is extremely energy-consuming. The expected probability of obtaining a specific required hash value each time a random number is generated is 1/62^18 (less than one in a billion billion billion), so The entire device requires a massive amount of exhaustive calculations to determine the accounting rights. Bitcoin’s high operating costs are largely due to this “fair” incentive mechanism.
On the other hand, the designers of Bitcoin made a serious misjudgment of the distribution of computing power. He originally thought that users would just use the CPU to run the mining program.However, limited by the number and cost of CPU cores, it is unlikely that a single user can concentrate too much computing power. However, everyone already knows what happened later. From GPUs to mining machines to large mining pits, a system designed to be decentralized has become almost oligopolistic.
The reason why Bitcoin seriously deviates from its philosophy is actually not accidental.
Large-scale production has brought many benefits to the "mining giants": stronger power to negotiate electricity prices, higher utilization efficiency of fixed assets, lower comprehensive labor costs, and thinner R&D amortization costs. Even for virtual products like Bitcoin, the production process still complies with the simple economic law of diminishing marginal cost. This is the inevitability of centralization. From the perspective of natural science, a similar conclusion is also true: a scattered individual is the state with the highest entropy value, and high entropy means incompetence.
Some people believe that PoW has distorted the concept of Bitcoin, reduced efficiency, and induced competition in computing power. If it is abolished, the problem will be solved. So they designed new incentive mechanisms such as PoS and DPoS. In my humble opinion, these efforts will be fruitless, because on the seesaw of "efficiency" and "fairness", you cannot satisfy everyone, or even the majority of people.
To put it more mysteriously: any virtual currency incentive mechanism is an economic system - a "dead system" cannot guarantee the stable operation of a dynamic economic system, only "living people" can.
The Dilemma of Decurrency
Due to various problems with Bitcoin, knowledgeable people in the industry have realized that continuing to bind the blockchain and Bitcoin together will inevitably lead to losses for both parties. Cutting ties in the name of "technical innocence" has become a top priority. This is not only in line with the current situation, but also in line with people's wishes: Bitcoin's influence has been too far-reaching. If the blockchain is not liberated, the space for newcomers to get rich will be squeezed out.
However, is it really possible to de-monetize blockchain?
Many ordinary people who don’t know the truth, and even some well-known investors, feel that the “authentic, non-tamperable” blockchain has unlimited value based on the technology itself.
I would like to say that there is a huge misunderstanding.
For example, in inter-bank settlement, even if the blockchain system successfully completes the accounting operation, a rogue bank refuses to make external payments. Can the blockchain replace the law and ensure that the rights of the opponent bank are not infringed? Another example is product anti-counterfeiting. Even if the QR code is correct throughout the entire process, the seller immediately puts defective products in the box. Can the blockchain work its magic and allow customers to receive authentic products smoothly? In fact, the "real, non-tamperable" nature of blockchain can only act on virtual information at best, and its tentacles cannot reach the real world at all.
However, these concepts are now being abused, intentionally or unintentionally. To be responsible, most of the blockchain applications that claim to have great prospects are completely based on the literal meaning of "real and cannot be tampered with." The people who proposed these applications did not understand the blockchain technology itself. What they found were just some of the following. It’s just an application scenario where “authenticity” is a pain point——And such scenes are of course ubiquitous. However, in the end everyone will find that even if many problems such as inefficiency and redundant security are overcome, the imagined demand for blockchain will still not appear.
Because this is largely not a technical issue, but an economic issue.
The "decentralized" design of the blockchain means that the system operating costs will be distributed to each user, but the nature of rational people is never to share and contribute, but to free ride. Taking Bitcoin as an example, not to mention hardware investment such as mining machines, just the electricity bill alone, the average active user has to pay 3,000 yuan per year. If blockchain applications do not produce tangible individual benefits, there will be no spontaneous participants, and even if they reluctantly participate, their reliability will be questionable. Therefore, the commercial application of blockchain must not be decoupled from the incentive mechanism.
To put it more deeply, the consensus of the blockchain is not only the technical consensus of the public ledger, but also the consensus of the value medium of the blockchain. For example, in the Bitcoin system, if there is no incentive mechanism, or Bitcoin is worthless, then no one will provide computing power, no one will provide storage space, and no one will preach - Bitcoin itself is a system. Values, ideas and technology are just beautiful stories.
The various blockchain applications reported in the media now can be summed up in two types: either they are hype based on the theme and forcibly applied blockchain algorithms in the transactions of centralized institutions; or they are pure "prospects" without any Regardless of the method and difficulty of implementation. For some reason, these media have reached a wonderful tacit understanding in the process of advocating blockchain and never mention virtual currencies. This has seriously misled everyone, thinking that blockchain is just a pure network technology. In fact, if there is indeed a blockchain ecosystem worthy of the name, then the last picture in the white paper must be virtual currency.
Based on this, we might as well re-examine the relationship between virtual currency and blockchain.
There is a saying in the circle that "blockchain is the foundation and virtual currency is the utility." The authenticity of this statement is difficult to distinguish.
To make it clear, the essence of blockchain is a specific algorithm created by virtual currency to establish a "fair incentive mechanism". The so-called "blockchain is the basis, virtual currency is for use" is tantamount to buying a casket for a pearl. . We can conclude here that once the soul of virtual currency is lost, the blockchain will have no value.
This argument may be difficult to accept for a while, but there is nothing wrong with its logic.
The so-called "generating value" is nothing more than three criteria: creating demand, reducing costs, and reshaping fairness. From a cost perspective, blockchain has no advantages over centralization; from a fairness perspective, the grand Bitcoin social experiment has already been revealed. So the only thing that remains in suspense is whether the blockchain can "create demand."
At this time, people in the currency circle can jump out and say categorically, of course there is demand, look at this surging ICO!
ICO carnival
ICO, the full name is InitialCoinOffering, which is the initial coin offering. In shortIt is a crowdfunding financing behavior in which specific virtual currencies of early projects are priced in general virtual currencies such as Bitcoin and sold to the public. How old are the so-called "early projects"? It’s enough to form a team and write a white paper. If you have some free time, you can make a PPT by the way, which is quite diligent. As for due diligence and financial analysis, they are completely unnecessary because most projects do not have a penny of operating income.
The name "specific virtual currency" is a bit unprofessional. The popular name in the currency circle should be token, and the more elegant translation is "token". In the white paper, the project team will draw various pie charts to tell you how much “value” your home token will have in the future. But if you want to know what a token is, sorry, there is a fine tradition in the blockchain circle called "unclear".
For some meaningful reasons, most ICO legal documents (LegalDocuments) are in pure English, and the true definition of the token is actually hidden in them. Almost all ICOs have provisions similar to the following in their legal documents: "The token does not grant any rights other than the returns specified in the white paper, and will only take effect when the project is successful. Crowdfunding investors have no control over project development and management." The token does not mean that investors have any form of ownership of the project, nor can they obtain future income and intellectual property rights related to the project."
This jaw-dropping text, to put it bluntly, is: Although You pay, but you have nothing. ICO crowdfunding is not the crowdfunding we knew in the past. What investors spend money to buy is not shares, but chips. When the dealer stops playing, the chips will be lost in the air - not to mention that most dealers cannot play at all. stand up.
With no underlying assets, no subject credit, no business model, and no legal protection, can such a virtual currency be sold? The answer turned out to be yes.
All this may seem absurd, but the logic behind it is actually very simple: because many people have made money through ICO.
Building a team to write a white paper is the first step in the ICO industry chain. Next, you need to build a big boss’ platform and issue coins at overseas “exchanges.” Once the virtual currency is online, you also need to manipulate the currency price to attract more speculators. Finally, when you see the right time to cash out and leave the market, you have completed the whole journey. Some people have directly achieved financial freedom in this game; some have not eaten meat, but they have also drank soup.
Facing the miracle of making wealth with such a low threshold, anyone should be tempted.
However, if the project itself is not profitable, no matter how it is packaged and beautified, ICO is still a zero-sum game - if someone makes a lot of money, someone will definitely lose everything. This is like the pyramid scheme we are familiar with. Everyone knows that if they take the last shot, they will die, but they all feel that they will not catch the last shot.
What role does blockchain play in the ICO boom?
As we all know, decentralization, decreditation and fairness and justice are the concepts that blockchain flaunts. Let’s look back at ICO: If we wantTo issue coins online, you must pay a huge "listing fee" to a centralized exchange. How "decentralized" is this? Fraud is rampant among the project team, the currency circle media deliberately misleads, and trading accounts are frequently hacked. What kind of "de-creditification" is this? The big bankers wantonly drive up prices, make huge profits, and squeeze out leeks. How "fair and just" is this? In fact, apart from providing virtual coins and gimmicks, blockchain is nothing in the currency circle. What’s even more ironic is that many virtual coins issued by ICOs are not even based on blockchain technology.
So, ICO is not a demand created by blockchain, but a shame of blockchain.
The future of chain and currency
Now that we know that virtual currency is the only value of blockchain, we have a general idea of ​​the future analysis of blockchain.
Now that legal tender is fully electronic, virtual currencies based on blockchain technology do not have much practical value in normal social life. However, in special scenarios, virtual currency has an advantage that cannot be copied by electronic legal currency, and that is privacy.
Any transaction that uses a bank as a payment channel can be supervised. If the authorities are willing, they can know who you gave the money to, the background of the transaction, the time when it occurred, and everything. So before Bitcoin came along, the vast majority of shady transactions were done with cash. You've only seen gangster movies carrying a large box of cash to buy drugs, but you've never seen someone carrying a POS machine there.
The emergence of Bitcoin has revolutionized money laundering, drug trafficking and black market arms trading. With this completely anonymous currency, criminals no longer have to worry about boxes of cash or pay discounts for consecutive dollars—Bitcoin is portable gold, just as it was designed to be.
Therefore, it is impossible for Bitcoin and its alternatives to be completely eliminated, because the need to escape regulation will always exist.
As long as virtual currency does not die, the blockchain economy will definitely have room to survive, because the value represented by virtual currency must be realized in a way, and this way cannot always be legal tender.
I would like to add here that the recent compromise between blockchain and centralized ledgers, such as Raiden Network, is gradually coming to the fore. In principle, a central ledger can greatly improve processing efficiency and adapt to large-scale and high-frequency applications. However, if the main demand of core users of virtual currency is to escape supervision, then this function may not be popular. The result will be known soon.
Another question that everyone is concerned about is: Will the surging ICO lead to an explosion of virtual currencies? The answer is of course no.
Virtual currency is not legally protected, so its public acceptance largely determines its value and future. When accepting payment in legal currency, we assume that the legal currency we receive will also be accepted by others. Its face value will not produce any discount during the circulation process and has 100% liquidity. The situation is different in the case of virtual currency. Due to the lack of quantitative indicators of liquidity, we can only make a general judgment based on the public's acceptance of it.Make a decision whether to accept the payment of this kind of virtual currency. This method of judgment will create a powerful Matthew effect because the public's choices will quickly converge.
On the other hand, there is an upper limit to the types of currencies that the public can spontaneously accept. Take shared bicycles as an example. We will deposit deposits for Mobike, OFO, and if we are very generous, we will deposit deposits for Bluegogo. I would like to ask how many people have deposited deposits for more than 4 types of shared bicycles at the same time? Under normal circumstances, the public's upper limit for accepting homogeneous functions is only "three." In the case of currency, the first position of fiat currency cannot be shaken, the second is probably Bitcoin, and the third is Ethereum - so unfortunately, not surprisingly, all other virtual currencies will not grow.
Some people will say that this is a judgment based on the public chain. We also have private chains and alliance chains.
Here, we need to take a clear stand: the private chain is just a central ledger and has nothing to do with the blockchain concept. As for the alliance chain, there are more related misunderstandings. For example, many current alliance chain concepts do not include token components. This is the biggest misunderstanding. As analyzed before, without an incentive mechanism, high-frequency applications will become free-riding tools for low-frequency applications. In worse cases, even the medium for value transmission will be missing. In addition, if there are differences in the way token values ​​are redeemed between different applications, arbitrage within the alliance will be inevitable. In short, compared with the public chain, in addition to slightly improved privacy, the alliance chain only has many more problems. The gap in Token’s versatility means that it can only survive in the shadow of the public chain and rely on the value of the underlying assets.
To sum up, we have a basic understanding of the application scope of blockchain in the future: most naturally growing blockchain economies will exist based on Bitcoin and Ethereum. The natural growth mentioned here specifically refers to the distinction from pseudo-blockchains that are forcibly attached to centralized institutions. Whether it is inter-bank settlement, product anti-counterfeiting or any other scenario, if consensus and trust among participating entities already exist, then the so-called blockchain application is just a database at best, and it will not be an optimally designed database.
Last question: When will the blockchain craze subside?
This is a difficult question to answer. But there is a saying that goes well: You can fool everyone some of the time, and you can fool some of the people all of the time, but you cannot fool all of the people all of the time.

⑷ Why does our country want to issue digital currency?

The purpose of the central bank’s issuance of digital currency is to replace physical cash, reduce the issuance and circulation costs of traditional banknotes, and enhance the convenience of economic transactions. and transparency. The role of issuing digital currency:

1. Low transaction costs

Compared with traditional bank transfers and remittances, digital currency transactions do not require payment to a third party, and their transaction costs are higher Low, especially compared to the high fees paid to service providers across borders.

2. Fast transaction speed

The blockchain technology used in digital currencies is decentralized and does not require any similarClearinghouses are centralized institutions to process data. Transactions are processed faster.

3. High degree of anonymity

In addition to peer-to-peer transactions without middlemen involved, one advantage of digital currency over other electronic payment methods is that it supports remote peer-to-peer payments. It does not require any trusted third party as an intermediary. In the case of complete strangers, both parties can complete the transaction without any help.

Mutual trust and high anonymity can protect the privacy of traders, but at the same time it also creates convenience for cybercrime and is easily exploited by criminal activities such as money laundering.

(4) Why does blockchain technology issue virtual currencies? Extended reading :

Digital currency is a double-edged sword:

On the one hand, it relies on blockchain technology to achieve decentralization. In addition to digital currency, it can also be applied to other fields. This is one of the reasons why Bitcoin is so popular.

On the other hand, if digital currency is widely used as currency by the public, it will have a significant impact on the effectiveness of monetary policy, financial infrastructure, financial markets, financial stability, etc.

The impact on monetary policy

If digital currency is widely accepted and can play its role, it will weaken the effectiveness of monetary policy and bring difficulties to policy formulation. Since the issuer of digital currency is usually an unregulated third party, the currency is generated outside the banking system, and the issuance volume is entirely determined by the issuer's wishes, which will make the money supply unstable.

In addition, the authorities are unable to monitor the issuance and circulation of digital currencies, which will result in the inability to accurately judge economic operations. While policy formulation creates problems, it also weakens the effectiveness of policy transmission and implementation.

⑸ Why there is a virtual currency

Significance: Bitcoin was first proposed by Satoshi Nakamoto on November 1, 2008, and was officially born on January 3, 2009. The open source software designed and released based on Satoshi Nakamoto's ideas and the P2P network built on it. Bitcoin is a P2P form of virtual encrypted digital currency. Point-to-point transmission means a decentralized payment system.
The value of Bitcoin:
1. As a virtual currency, Bitcoin has a limited quantity, but it can be exchanged for the currencies of most countries. This is the current maximum value of Bitcoin. 2. Bitcoin can be used to recharge and purchase equipment in the game. In the virtual world, the value of Bitcoin is greater than real currency.
The significance of Bitcoin:
1. The designer’s original intention was to build a free, non-centered, and orderly world of currency transactions. The emergence of Bitcoin realized the designer’s idea.
2. The time used for Bitcoin calculations is infinite, but human life is limited, which maintains the long-term and eternal development of Bitcoin to a certain extent. 3. Cryptotechnology ensures the security of Bitcoin and is also well utilized and packaged.

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1. The principle of Bitcoin:
Unlike real currency, Bitcoin does not rely on the issuance of a specific monetary institution. It is generated through a large number of calculations based on a specific algorithm. Judging from the nature of Bitcoin, it is a special solution generated by some complex algorithms. Each special solution can solve the equation and is unique. After cracking it, it is equivalent to owning this special currency.

2. The definition of virtual currency is very simple, it refers to non-real currency.
Virtual currency has the following categories:
1. Game currency. Yes, you heard it right, currencies that can be traded in online games can also be called virtual currencies. However, the currency in stand-alone games cannot be called virtual currency because it cannot be connected to the Internet for market transactions with other players.
2. Website currency. Some websites launch currencies that can be used to purchase website value-added services. For example, Tencent’s Q coin.
3. Electronic wallet. WeChat payment, Alipay, etc. are commonly used by everyone.
4. Blockchain currency. The blockchains that everyone is more familiar with are Ethereum and FIL, which I often talk about.
3. Are all the above currencies legal?
The answer is that they are all legal currency. But don’t rush to draw conclusions yet. Although they are all legal currencies, they are still far from “legal tender”. Take blockchain currency as an example. The country has listed blockchain currency as legal property. On September 28, 2019, Hainan established a blockchain center. Block Center is led by Huobi Group. According to reports, digital currency is also the main driving force for my country's economic growth, and the country has also affirmed the technology of the block industry. The establishment of the block center is the first time that CCTV reports on the progress of virtual currencies.
Although there are currently many digital currencies that can be traded in the country, the vast majority of them are tokens used to collect money under the guise of blockchain. If you are interested in digital currency investment, you should try your best to invest in the top 20 currencies by market capitalization.

⑹ The virtual currency "Dogecoin" supported by Musk's article, does virtual currency have a future?

I think virtual currency has a future. Because many countries are very supportive of virtual currencies, and the development of blockchain must be supported by virtual currencies.

In fact, many people do not recognize virtual currencies. Indeed, there are many countries in the world that have clearly stated their attitude that they do not support virtual currencies. However, the hype about virtual currencies is still very serious nowadays. of. The price of Bitcoin has already seen huge fluctuations, and now the focus is on Dogecoin.

1. Virtual currency is the basis of blockchain technology

When it comes to blockchain technology, everyone is actually familiar with it. Blockchain technology has been recognized by many institutions, and many countries believe that blockchain technology Technology will become the key to future development and can effectively promote economic development. As the basis of blockchain technology, virtual currency will definitely be favored by more institutions in the future.

BlockChain technology will be supported by more countries in the future. Since blockchain technology can be recognized by more institutions, I think virtual currencies can also be accepted. Virtual currencies have temporarily experienced huge price fluctuations. In the long term, I think the hype for virtual currencies still exists in the market.

⑺ What is digital currency and why does the central bank issue digital currency

Digital currency is an alternative currency in the form of electronic currency, that is, a virtual currency based on a node network and digital encryption algorithm.
At this stage, the central bank’s digital currency design focuses on M0 replacement, mainly to solve two major problems in the practical application of cash and electronic payments: First, banknotes and coins are easy to be anonymously counterfeited, and may be used for money laundering and terrorist financing. The second is that electronic payment based on the existing bank account tightly coupled model cannot meet the needs of anonymous payment.
Digital currency has the following three characteristics:
1. Low transaction costs
Compared with traditional bank transfers, remittances and other methods, digital currency transactions do not require payment to a third party, and their transaction costs are lower , especially compared to cross-border payments that require high fees from payment service providers.
2. Fast transaction speed
The blockchain technology used in digital currency has the characteristics of decentralization. It does not require any centralized organization similar to a clearing center to process data, and transaction processing speed is faster.
3. High Anonymity
In addition to the fact that physical currency can realize point-to-point transactions without intermediary participation, one of the advantages of digital currency compared to other electronic payment methods is that it supports remote point-to-point payment. It does not require With any trusted third party acting as an intermediary, both parties can complete transactions without trusting each other without trusting each other. Therefore, it has higher anonymity and can protect the privacy of traders.
[Extended information]
BDC, the full name is Central bank digital currencies, translated as central bank digital currency.
The Bank of England, the Bank of England, gave this definition in its research report on CBDC: Central bank digital currency is an electronic form of central bank currency that can be used by households and businesses to make payments and store value.
The Chinese version of CBDC is described as a digital renminbi, which is issued by the People's Bank of China, operated by designated operating agencies and redeemed by the public. It is based on a broad account system and supports the loose coupling function of bank accounts, and is compatible with banknotes and coins. It is a controllable and anonymous payment instrument with value characteristics and legal liability.
What we call DC/EP is the Chinese version of central bank digital currency, which is translated as "digital currency and electronic payment tools".
The Center for International Settlements (BIS) and the Committee on Payments and Market Infrastructures (CPMI), two authoritative international organizations, jointly conducted two questionnaire surveys of more than 60 central banks around the world in 2018 and 2019. The contents of the questionnaire include the progress of central banks’ work on digital currencies, the motivations for researching digital currencies, and the development of digital currencies.The possibility of running digital currency. 70% of central banks have stated that they are participating in (or will participate in) digital currency research.

⑻ Bitcoin once again refreshed the record, what is the role of setting up virtual currency?

The value of virtual currency is that it is based on blockchain technology, has extremely high security, and is suitable as a A decentralized currency. After experiencing a period of sluggishness, the price of Bitcoin has recently rebounded again, reaching a price of US$40,000. This is the largest recovery in Bitcoin price this month. In fact, the Bitcoin market has experienced a surge since last year, and some analysts say that the main driving force for the increase is that large financial institutions have begun to enter the market and use Bitcoin as part of their asset allocation, including many well-known Investment companies and fund companies, and even conservative insurance companies, consider Bitcoin as an investment option.