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① Core logical issues that blockchain needs to pay attention to

Core logical issues that blockchain needs to pay attention to
Blockchain is decentralized, deintermediated, and peer-to-peer The transaction processing system is a distributed account system that is verified by the entire network, recorded by the entire network, irreversible, difficult to tamper with, traceable, and open and transparent. These are the two main contents of the current definition of blockchain. But if you follow the standards of decentralization, deintermediation, and peer-to-peer transactions, and use blockchain as many people say, it is basically not the case. Because there are almost no truly decentralized blockchain applications. Many people say that the blockchain will be a machine of trust and the Internet of value. The blockchain will recreate production relations, economic organizations, and operating models. It will subvert the legal currency system, subvert the double-entry accounting method, and even create a place where everyone can issue money. A new society in which everyone has his own currency, everyone’s own finance, and everyone’s self-organization. Is it this way?
Today I want to share with you how we view the blockchain in such a hot atmosphere, how to grasp its core logic and avoid major subversive mistakes.
This is mainly based on the Bitcoin blockchain.
The first is whether encrypted digital currencies such as Bitcoin can become real currencies, and whether this type of digital currency can subvert the legal currency system.
We know that currency has existed in human society for thousands of years and has continued to evolve, from the initial physical currency to regulated metal currency, to paper money under the metal standard, and then to credit currency without the metal standard. What are its logic and rules as it continues to evolve to today? This is what we need to accurately grasp.
In the evolution of currency, especially after the introduction of paper money, people gradually discovered that currency has more and more functions and its influence is growing, but its most important and core function is the measure of value.
To function as a value scale, the most basic requirement is that the currency value must be relatively stable. To achieve a relatively stable currency value, theoretically, a country's currency total must correspond to the scale of monetizable wealth that can be protected by law within the country's sovereignty. In other words, the total amount of money and the scale of wealth must correspond.
How to correspond? It is impossible to completely correspond to each one, so the concept of an intermediary target is introduced. There is a concept of a general consumer price index for the whole society, the so-called CPI concept. When a country's CPI changes, that is, the fluctuation of the inflation rate, is within our target range and within a controllable level, we consider the price or currency value to be relatively stable.
Here we are talking about relative stability, because the bigger a country is, the less likely it is that prices will be absolutely stable, and at the same time, fluctuations must be controlled within a certain range and not get out of control. When your inflation rate is controlled within a certain rising range, it means that the currency is devaluing to a certain extent. What are the benefits of currency devaluation? It can inhibit deposits, encourage investment and consumption, thereby playing the role of monetary policy and promoting economic development. Precisely because the monetary aggregate can be artificially controlled, and there is room for regulation, so monetary policy came out. Monetary policy, like fiscal policy, has become one of the two major policies for national macro-control. But there is a premise: currency depreciation or inflation cannot get out of control. Once out of control, the people at the bottom cannot survive, violent social turmoil will occur, and governments or dynasties will change. There are many such examples in history.
Today, we are also faced with many temptations in monetary policy, tempting people to overissue currency. It is precisely for this reason that some people have begun to say that your monetary system is wrong. If people can control it, there will be corruption and unfairness. Can we use technical means to form a monetary system that some people cannot interfere with? This also gave birth to encrypted digital currencies such as Bitcoin.
But we must know that the law of currency development is that currency must gradually separate from wealth and become a counterpart to wealth. In this way, we can use the total amount of currency to completely correspond to wealth, and at the same time, there will be certain controls. room. Therefore, something like gold, which has strong physical properties and is greatly restricted by its reserves and mining and processing, needs to be separated from currency and become the counterpart of currency. Of course, it may have a great store of value function. In this way, currency has developed to this day and has become what people call credit currency or currency guaranteed by national credit. I personally feel that this term is not necessarily accurate, because the debts of many countries' governments are getting larger and larger and will never be repaid, so it is a bit far-fetched to call it a credit currency. Strictly speaking, today's currency is legal currency or sovereign currency. It means that the total currency amount of a country must correspond to the scale of wealth that can be protected by law within the country's sovereignty. It is precisely because of this that everyone will find that today we can no longer use physical currency and use gold as currency. At the same time, let’s go back to the private issuance of currency, and the denationalization of currency is also not allowed. Today, many cryptocurrency enthusiasts cite a holy scripture, saying that Mr. Hayok said that currency should be denationalized. But Hayok's idea has not been implemented to this day, because it violates the trajectory and logic of currency development.
Let’s take a look at Bitcoin. Bitcoin uses very complex technology and rigorous mathematical operations, but its monetary system is highly imitated by gold, so we can see that its total amount is fixed, and it is reduced by half every four years, because gold reserves are fixed. , the easier it is to dig out first, and the later it is, the harder it is to dig out. Therefore, the new output is theoretically lower and lower, and one day it will be dug out. The same is true for Bitcoin, with a total of 21 million. The content contained in every ten minutes is set by the system. It will be automatically halved every four years, and it will basically end by 2140.
You may have seen that there are some problems with the current credit currency, but if you think about going back in time and designing a new currency system based on gold, it itself violates the logic and rules of currency development. From this perspective, it It cannot be a real currency. These things can only be a kind of online virtual assets, or tokens or business district coins used in a business district. It is not necessarily completely worthless. Could it be said that gold is separated from goods?Does the coin have no value? Still valuable, as long as you have real application scenarios.
Everyone will see things like Bitcoin. As long as it is in the Bitcoin circle that everyone recognizes, it also has a certain basis for circulation and use. Just like the current legal currency in China is RMB, it does not mean that there are no company meal tickets or shopping coupons in shopping malls.
Once it is determined that the currency belongs to the business district, its use within the business district must be strictly controlled and cannot be used outside the business district. Otherwise, it will challenge the application of legal currency. If it affects legal currency, it will definitely be subject to national sanctions. Supervision. As long as you get bigger and pose a threat to the legal currency system, it will definitely regulate you. Today you will see that this trend has already emerged, and countries are gradually beginning to strengthen the supervision of cryptocurrency. This is an issue we need to pay attention to.
Everyone knows that although Bitcoin imitates gold, its design is much stricter than gold, because it tells you how many coins it produces every ten minutes, and it cannot be adjusted manually. However, strictly limiting the output every ten minutes will cause a serious separation between the supply of money and economic development and changes in wealth, and then the value of the currency will be difficult to control at all. If Bitcoin is really like the one thousand US dollars in early 2017 to nearly 20,000 US dollars in November, some people say that it may be 100,000 US dollars or 200,000 US dollars in the future. If a Bitcoin is used as a currency, think about the fluctuations in the entire currency value. How big. Because if your stock price rises quickly, your stock price may drop significantly as well. More importantly, Bitcoin did not attract everyone's attention at the beginning. Many students played it in the dormitory. Because it was not valuable, the Bitcoin keys dug out in the early stage were lost and became death coins, and this could not be activated. About 17 million Bitcoins were mined today, of which 37.8 million were death coins. The original 21 million were very limited. If you remove another 37.8 million coins, the supply of this coin would be even greater. It’s limited. What's more, if it really has room for growth, many people will soon use it not as payment for coins, but as storage and collectibles, and the supply will be even more limited. So from these perspectives, people who are really engaged in currency will find that it is actually difficult for it to play the role of currency. It is more like a counterpart to currency, and it can be used as a store of value like gold.
Second, let’s see whether blockchain like Bitcoin can subvert the world and what role it can play.
Bitcoin places great emphasis on decentralization, deintermediation, and peer-to-peer. But how to achieve decentralization? There must be a need for computers in society to join in running together and maintaining rules together. Because if the host that the system runs on is a host from a certain company, it is very easy for you to change the rules of the system. How can you say it is decentralized? Therefore, Bitcoin must require computers in society to participate in its operation. If everyone wants to participate, the first premise is that the system must be open source, and the automatic download can run immediately. It does not require a lot of testing to run online. Otherwise, it will not be able to cope with the social and global franchise system.
The second rule must be built into the system. The so-called encoding is the rule.Everyone is maintaining this rule while running this system. In the future, without the consent of more than half of the participating nodes, even the person who maintained the code at the beginning will not have the right to change the rules of the system. But it is not easy to achieve this. It requires consensus and encouragement. The final result is that the more we pursue decentralization and intermediation, the more we pursue decentralization and the formation of a completely closed network system. What do you see today that can run on Bitcoin? There is only one thing, Bitcoin. And where did Bitcoin come from? It is a chain-generated asset that is mined and has nothing to do with the real world. Because of this, it can achieve any change from the initial coin production to the coin. Each account is monitored by the entire network, which is difficult to tamper with and can be traced. Precisely because each account can maintain its authenticity, we can do it without knowing who the person behind the account is. As long as we ensure that the account is genuine, we can do transactions.
As a result, someone deduced on this basis that using the blockchain, you can do transactions without knowing who the other party is. Is this really the case?
Bitcoin’s decentralized and peer-to-peer transactions have strict prerequisites. It must be in a closed network system from the beginning. The assets traded can only be chain assets, and it is impossible to send real wealth to it. How can this solve real problems when real wealth cannot be put into operation? Therefore, Bitcoin still needs to be converted into legal tender today to realize its value. If it cannot be converted into fiat currency, its value will be significantly reduced. More Bitcoin interpretation: www.yangfenzi.com/tag/bitebi
The problem is that the Bitcoin blockchain itself has no exchange function, only mining, currency production and internal point-to-point transfers. There is no exchange function. To exchange, you must get out of the Bitcoin circle and enter a plug-in trading system. So you will see that there are many digital currency exchanges today. Problems with the exchanges do not mean that there is a problem with the Bitcoin system. The Bitcoin system is still safe today, provided that it is a completely closed system that is not affected by outside influences.
There is another one, the rule of Bitcoin’s currency production is how many coins every ten minutes. It forgets that currency and finance are connected. Finance requires loans to earn interest or investment dividends. Let’s take a look at the rules for Bitcoin’s interest-earning currency production. Are there any foreign currency production rates for loan interest-earning and investment dividends? No, it must be exchanged for legal currency. Only through legal currency can the needs for loans and investments be realized. If the Bitcoin blockchain is strictly used, the financial functions will be greatly affected, which is what we need to see.
Because of this, our Bitcoin blockchain brings a problem, which is that everyone imagines it very well. It is a brand new thing, but it is a completely closed system and cannot actually solve our real problems.
Therefore, the designers of Ethereum said that this would not work, and that it would become an online game. Practical problems must be solved in this thing, so Ethereum added a smart contract, which canto do some personal work. However, the addition of smart contracts has broken the traditional isolation. Today, the security of Ethereum is weaker than that of Bitcoin.
At the same time, Bitcoin and Ethereum insist on network-wide verification and network-wide recording. When the volume increases, the storage space of the entire network will occupy a very large space, the efficiency is very poor, and the resources consumed are increasing. Today, some people are exploring whether further improvements can be made. For example, does it have to be verified and recorded across the entire network? Aren’t the existing banks just in two places and three centers, and haven’t there been any big problems? Can we select a certain number of core nodes here, such as 21 nodes or 31 nodes? EOS or something similar, the so-called blockchain 3.0, basically uses smaller nodes, and no longer records and stores the entire network at the same time.
This raises another question: Who will choose these core nodes? If one of your parties designates the core node, wouldn’t that mean there is no decentralization? So everyone is discussing whether we can compile a system that is decentralized when selecting nodes. It is still being discussed, and it is even further said that mining requires huge energy consumption. Is mining necessary? Similar to these aspects, blockchain is still being explored today.
So, at this point we can draw a conclusion that blockchain is still in its early stages of research and development. We may think that it has great room for development, but we should not easily say that it can subvert this and subvert this. That, at present, we can see that the real applications are very limited, and a lot of exploration is still needed.
It is from this perspective that I have been calling on everyone since last year to treat digital currencies and blockchain rationally. Judging from the current development stage and application scenarios, blockchain research and development will have two major branches: One branch will continue to focus on the development of the underlying technology, which is the research and development of the public chain, and continuously improve it. But you must know that the research and development of underlying technology and public chains requires a lot of long-term research and development, which is very difficult. We hope that someone will continue to follow this path to develop and make breakthroughs in a down-to-earth manner.
Another branch is application. This application should not think about a blockchain like Bitcoin, but focus on mining and coinage. I have been calling on everyone to find applications outside the paradigm of Bitcoin mining and coinage. What application are you looking for? Then stop pursuing decentralization and deintermediation. What you pursue is distributed processing of information, continuous encryption, traceability, non-tampering, etc. Prioritize these aspects to solve practical problems. From this aspect, we can see that there are many application scenarios, because this society is accelerating towards an information society.
First, we can look for other things that are not so closely related to our property or claims and debts. As you will see, BAT and others are now making online games. Whether it is raising cats or pets, it is an online application and does not involve real property or laws and regulations. The second is to do public welfare undertakings, such as donations. Money and goods go out in one direction and do not need to come back. There is no buying and selling relationship or loan relationship, but people care about whether this thing goes according to my wishes, so it canTraceable and traceable.
Going a step further, many of our administrative institutions now have a large number of documents, contracts, images and other things in government affairs. Can we help them push them to the chain and run them online to ensure that these things are authentic and legal? Yes, irreversible and can be checked at any time. This is all possible. Going one step further may be the future development towards the integration of so-called computer networking, information networking and value networking, that is, the integration of the physical Internet of Things. The so-called real solution to our practical problems may still take a while.
This is the communication I want to have with you. Blockchain is an integration of multiple technologies. Bitcoin is the first application, and it is also a very complete closed system so far. It is very safe, but it cannot solve practical problems. More and more people are discovering that the current Bitcoin blockchain or similar blockchains have an incompatible triangular relationship of "decentralization, high efficiency and security", so they must seek truth from facts and focus on solving real-world problems. , pay attention to the use of applications, and jump out of the paradigm of the Bitcoin blockchain. This is a basic point of view that I will share with you today for your reference.

② Re-understand the blockchain: Enlightenments brought by more than 1,550 application cases

Author: Ran Wei

(This article is excerpted from "2021 Global Area Blockchain Application Market Report")

When we talk about blockchain, anyone who knows something about blockchain can more or less express some of their own opinions on related topics. . For example: from the perspective of technical system, blockchain is a new application of computer technology such as distributed data storage, point-to-point transmission, consensus mechanism, encryption algorithm; from the perspective of functional attributes, blockchain is decentralized, non-tamperable, and full-process. Features such as leaving traces, traceability, collective maintenance, openness and transparency.

Looking back at the history of blockchain, there is no way around Bitcoin. On January 3, 2009, the Bitcoin genesis block with serial number 0 was born. A few days later, on January 9, 2009, Bitcoin block number 1 was born. When two blocks are connected, the blockchain is "born."

The inventor of Bitcoin, whose pseudonym is “Satoshi Nakamoto”, may find it difficult to imagine: In the past 12 years, with Bitcoin as the center, a huge “cryptocurrency family” has spread all over the world. The financial market set off a "big wave" that continues to this day. During this period, innovation and risks related to cryptocurrency are intertwined, progress and bubbles coexist, and pursuit and criticism coexist, and it drives government departments of various countries to continuously improve the monetary and financial systems, social governance and supervision systems.

At the same time, the blockchain that accompanies Bitcoin is also evolving rapidly, and has long gone beyond the scope of "Bitcoin's underlying technology" and has been applied to every corner of social and economic development.

So, what mechanism does blockchain work through?What are the advantages of using it compared to traditional technologies and models, and what is its application effect? In the "2021 Global Blockchain Application Market Report" jointly released by Capital Lab and Yuanwang Think Tank, we tried to provide a certain basis for the above issues through research on more than 1,550 application cases around the world in 2020 and the first quarter of 2021. Empirical answer. At the same time, based on the study of these cases, we can establish a new understanding of blockchain: blockchain is trust, blockchain is sharing, blockchain is transaction, blockchain is substitution, and blockchain is efficiency.

In the Bitcoin creation paper "Bitcoin: A Peer-to-Peer Electronic Currency System", "Satoshi Nakamoto" repeatedly emphasized that Bitcoin has the characteristics of not relying on a "trusted third party". That is the characteristic of “decentralization”.

On the other hand, the underlying technology of Bitcoin, the blockchain, is precisely designed for "trust." In other words, reshaping "trust" in the digital age is the most basic function of the blockchain, but this trust has been transformed from trust between people and legal entities to trust between machines and machines. Trust between blocks and between nodes. Interestingly, the subsequent “smart contract” function has further strengthened this trust through its integration with the blockchain.

Identity coding and authentication are the first steps to achieve the above-mentioned trust mechanism, and the distributed identity (Decentralized Identity, DID) system is the core of it. With DID applications, everyone from individuals to organizations to IoT devices, from physical items to virtual products, can be given digital "identities" and achieve trusted interactions. It is precisely because of this that blockchain-based certificate storage, empowerment, verification, circulation, and transactions can be realized, and only then can blockchain be implemented in various industries.

Application cases from around the world show that new trust mechanisms provide new rules and motivation for social and economic operations:

l China is comprehensively promoting blockchain electronic certificates Applications such as "one fish, one code", "one fruit, one code", "one tea, one code" and other applications are driving the global Anti-counterfeiting traceability of agricultural products and upgrading of food safety systems;

l Through the combination of blockchain, big data, and artificial intelligence, the credit "portrait" of an enterprise is more accurate and can be obtained faster and more accurately. Lower-cost financing services;

l Charitable charity organizations have put charity funds "on the chain" to form a more transparent and standardized charity tracking and management system;

l Relevant cities in China have launched a blockchain-based gas cylinder product traceability management system, and the credibility of the source of gas cylinder file information and the level of gas cylinder safety management have been greatly improved;

l Germany is establishing a digital registration system based on identity authentication for its distributed energy assets to promote the development and trading of renewable energy and cope with the arrival of the digital energy era...

Among the three types of blockchains (public chain, alliance chain, private chain), alliance chain has been the most widely used. In addition to considerations of technical performance, operational efficiency, operability, expected results, etc., this is mainly because all parties in the alliance already have a certain foundation of trust. This also shows from another perspective that in blockchain applications beyond cryptocurrencies such as Bitcoin, "multi-centralization" rather than complete "decentralization" is a more realistic option.

In addition, it is undeniable that unlike the proof-of-work mechanism that Bitcoin “mining” relies on, the blockchain cannot completely ensure the integrity of the on-chain data from the source in the actual application process. Authenticity. In other words, a certain alliance member or node may provide false data intentionally or unintentionally. However, with the help of blockchain's non-tampering, traceability, multi-party consensus and other characteristics, the alliance can identify counterfeiting behavior and impose corresponding punishments, such as "kicking" the counterfeiting members from the node. Therefore, in a sense, blockchain-based trust largely establishes alliance members’ awe for the authenticity of data and deters data fraud.

If "trust" is the foundation of blockchain applications, data sharing is the core of blockchain applications. Without data sharing, there will be no cooperation, and the practical application of blockchain will be impossible.

l The State Administration of Foreign Exchange's "Cross-border Financial Blockchain Service Platform" pilot has been fully launched, promoting foreign trade exports through information exchange between foreign exchange bureaus, taxation, banks and enterprise-related market entities. Business development;

l The "Insurance/Claims Alliance Chain" jointly established by 11 insurance companies in Taiwan has been put into operation, and each company has achieved "single application and common documents" on this platform;

l Blockchain platforms such as Contour and TradeLens are reshaping the global supply chain and providing impetus for the digital transformation of international trade through data collaboration among enterprises, financial institutions, shipping companies, terminals, customs and other institutions... .

l In China, through data collaboration, various government departments have realized "one data, one source, one source for multiple uses, one network, and full network operation";

l Through The "Judicial Chain" platform allows all types of electronic evidence to be seamlessly connected with judicial institutions such as notarization, arbitration, judicial appraisal, and courts, which improves the efficiency of the judicial system while reducing costs;

l Targeting grassroots nationwide The court's "cross-domain collaboration mechanism for trial auxiliary matters" can realize "cross-domain service and cross-domain evidence collection" between courts in different regions, effectively improving the efficiency of trial auxiliary matters and the quality and effectiveness of trials.Reduce judicial operation costs….

l China's "Guangdong-Hong Kong-Macao Greater Bay Area Combination Port" project was officially launched, which can support the interconnection and interoperability of trade parties among the five major customs jurisdictions of the Greater Bay Area and become the first connected port in the Greater Bay Area , customs, logistics, enterprise, finance and other trade processes, interconnected and shared blockchain network;

l Japan's KDDI Telecom, Hitachi, Kansai Electric Power, Sekisui Construction and other large enterprises have established blocks Chain Alliance NEXCHAIN ​​to form a cross-industry real estate information sharing and management model and promote cross-industry innovation;

l The French Renault Group completed the test of its blockchain project "XCEED" for zero Sharing compliance information between component suppliers and automakers and simplifying compliance certification….

Although the above application cases in finance, government affairs and various industries are only a few typical cases, they are enough to illustrate that: on the one hand, data sharing is an inherent requirement of blockchain applications. In terms of specific implementation, everything must start from breaking "data islands" and "information asymmetry"; on the other hand, the application practice of blockchain has in turn promoted cross-level, cross-department, cross-industry, cross-region, and cross- Data sharing and unprecedented cooperation across national borders.

It can also be seen from the above cases that based on the transparency, security, trustworthiness and other characteristics of the blockchain, data sharing allows cooperation that originally seemed impossible to be achieved, and more Open innovation results; data sharing can effectively improve the operating efficiency of business systems, financial systems and social governance systems; various organizations promote their own organizational changes and process changes while sharing and cooperating with external institutions.

Based on trust and sharing, "transaction" is the most intuitive and deepest manifestation of the value of blockchain applications. Currently, blockchain is opening a new chapter in the transformation of transaction models in various industries around the world.

From the perspective of functional architecture, blockchain-based transactions are by no means just a change in the transaction process. Instead, they integrate various unique functions of the blockchain. Integrated integration of blockchain applications such as logistics, payment/settlement, supply chain financing, insurance, and network security.

From the perspective of application form, blockchain-based transactions transcend the traditional concept of product or service transactions and represent the realization of the value of a wider range of data in circulation.

From the perspective of application scenarios, transactions based on blockchain involve the upgrading of the physical industry, the digital advancement of the financial industry, and the innovative application of the "token economy".

In the physical industry, take the application of agricultural blockchain as an example: on the one hand, supply chain traceability based on blockchain has become an important barrier to food safety; but on the other hand, for growers or For farmers, the supply chain traceability function is still far awayNot nearly enough. How to help them expand the sales of agricultural products and obtain more income as much as possible is the "hard truth" for blockchain technology to continue to promote agricultural development. In other industries, the same applies.

Against the above background, new trading platforms in the global physical industry continue to emerge:

l The Indian government uses blockchain platforms to help farmers in remote areas sell agricultural products to reduce the While eliminating intermediate fees, obtain higher income;

l The Swiss company Cerealia builds a blockchain-based agricultural product trading and financing platform to promote the export of agricultural products in emerging market countries around the world;

l The world's largest independent refined sugar producer, Al Khaleej Sugar Company of the United Arab Emirates, launched DigitalSugar.io, a blockchain-based sugar product trading platform, to realize spot-based international raw sugar trading;

l Ganzhou, Jiangxi Province, has launched an international timber electronic trading platform based on blockchain, which will manage the entire timber transaction process on the chain, and will provide the timber market with full industry chain services such as cloud warehouse supervision, logistics, finance, and insurance;
< br /> l Shandong Province launched the Shandong Internet Traditional Chinese Medicine Trading Platform, which will use blockchain and other technologies to achieve online integrated services of quality control, trading, payment, settlement and supervision;

l Suzhou Phase Weitang Town in the urban area has released a blockchain-based pearl online trading platform, which will store the core parameters and test reports of pearls on the chain, and will also add functions such as supply chain management, trade finance, smart contracts, payment settlement, and incentive mechanisms;

l Honeywell launched GoDirect Trade, an online trading platform for new and second-hand aircraft parts, providing a valuable reference for large manufacturers on how to apply blockchain to parts trading and circulation... ….

In the financial industry, blockchain is promoting the digital advancement of financial transaction business in aspects such as securities trading, asset securitization, trade financing, and cross-border settlement:

l The Australian National Stock Exchange has launched ClearPay, a digital securities trading platform based on distributed ledger technology, which can provide multi-currency, real-time DVP settlement on the same day and will replace the original exchange settlement system;

l Switzerland The company Finka has launched a related securitization token investment platform based on livestock from organic pastures in Bolivia to promote the development of the local livestock industry;

l The American company Securitize has established a Japanese real estate investment platform based on digital securities , aiming to revitalize idle real estate in rural Japan and enhance the vitality of the rural economy;

l Postal Savings Bank of China and China Construction Bank completed the first cross-blockchain platformForfaiting transactions, Hua Xia Bank Kunming Branch realized forfaiting resale business in the secondary market for the first time;

l Nanjing Iron and Steel completed blockchain-based transactions with Rio Tinto of Australia and Vale of Brazil respectively. Iron ore trading;

l Baosteel Co., Ltd. and Australia's Rio Tinto completed the first blockchain-based RMB cross-border settlement transaction...

Of course, while blockchain promotes the advancement of financial transaction business, dark sides such as hype, scams, money laundering, and cyber attacks related to blockchain and cryptocurrency continue to follow. How to continue to promote financial innovation while also carrying out efficient risk prevention and control and effectively cracking down on illegal crimes is an important issue that requires long-term response. From a global perspective, China has responded with clear attitudes, strict measures, and effective measures in this regard.

The transaction changes realized by the blockchain in the real industry and financial industry are only the initial stage of the blockchain changing the traditional transaction method. The "Token Economy" is the blockchain "transaction" A higher level of functionality.

Under the framework of the "token economy", from electronic certificates to skill certificates, from credit records to public welfare activity participation records, from social media tracks to carbon emission reduction actions, when various data become When an encrypted digital proof of rights is circulated and exchangeable, it is given the function of "token".

Regardless of the investment/speculation craze of "Non-Fungible Token (NFT)", we can already see many early applications of "token economy" around the world:

l The HotCity project supported by the Austrian government uses a crowdsourcing model combined with blockchain and gamification tokens to encourage residents to submit heating waste heat hotspots to meet urban heating needs more efficiently;< br />
l Ford establishes "Green Miles" for commercial and municipal fleets using hybrid vehicles to help improve urban air quality;

l Weibin District, Xinxiang City, Henan Province, in its In the blockchain industrial park project, tokens are issued based on the points system for merchants and enterprises to establish a new commercial service platform;

l Chengdu released a blockchain-based community governance product "Chain Community", Residents can earn "time bank" points on the platform through volunteer services and other activities, and exchange them for benefits and discounts provided by community merchants;

l Global non-profit organization "Mobile Open Blockchain Plan" The Electric Vehicle Charging Network Working Group (EVGI) launches a global standard system for decentralized vehicle charging technology, covering the Tokenized Carbon Credit (TCC) scenario;

l Blockchain Reward Platform MiL.k partners with a Korean retailer to provide blockchain-based points management services to its members. Members can convert existing points into local MLK tokens through the MiL.k platform, or exchange them into other third-party points...

As can be seen from the above cases and more, the "token economy" has several distinctive features:

The "token economy" gives assets to a wider range of data Attributes and tradable attributes, and through cross-domain and cross-platform mutual trust and circulation, can improve the operating efficiency of the entire social and economic system;

"Token economy" is a new value creation and The realization process does not necessarily use currency directly as the medium of exchange, but is more reflected in the exchange, mutual benefit and reallocation of various elements and resources;

"Token economy" is often combined with incentive mechanisms. At the same time, through incentives for "good people and good deeds", "good companies" and "good institutions", the social value system and social credit system will be effectively reshaped.

Generally speaking, the "token economy" will spawn new production factors, reshape production relations, and greatly liberate social productivity; the "token economy" represents the direction of the "information Internet" The evolution of the "Internet of Value" indicates the most exciting future of the digital economy; the "token economy" based on the blockchain has begun to take shape and has begun to bring changes to economic operations, social governance, and everyone's lifestyle. Continuously visible change. All types of institutions and individuals should be mentally and physically prepared for this change.

Like other new technologies, in the process of application and popularization, blockchain continues to produce substitution effects in terms of platforms, media, models, methods, etc.: physical documents are replaced by electronic documents, and credit records are replaced by electronic documents. Tokens are replaced, manual review is replaced by data verification, and the city management platform is replaced by the "city brain"...

Such substitutions have become the norm:

l Argentina’s central bank has begun a proof-of-concept for a new blockchain clearing system, which may replace the existing clearing system;< br />
l Korea Minting and Security Printing Corporation (KOMSCO) expanded its blockchain digital gift certificate business to replace paper gift certificates and achieved record revenue despite a sharp decline in the issuance of banknotes and coins. Improvement;

l Courts across China have begun to use blockchain electronic seals to replace traditional paper seals in the enforcement of real estate seizures;

l The Shanghai court system is using artificial intelligence , the adoption of new technologies such as blockchain, and explore the use of digital court records to replace manual court transcripts;

l The Japanese company SUSMED launched the "Clinical Data Monitoring System Demonstration Using Blockchain Technology" pilot, indicating thatThe necessary monitoring processes in clinical trials of drugs or medical equipment can be replaced by blockchain systems;

l Alipay and Wukong Car Rental have cooperated to launch a "face-swiping" car rental service, which uses blockchain technology and credit-free In the deposit mode, tourists can rent a car by simply "swiping their face" and return the vehicle through mobile phone operations;

l Under the new crown epidemic, local governments in China have intensively launched "non-profit" vehicles that combine blockchain technology. The "face-to-face, no contact, zero errand" style of government services has replaced the traditional offline service method and provided a strong guarantee for the smooth progress of remote bidding, "cloud" customs clearance, financial support, resumption of work and production, etc. during the epidemic... ….

In addition, we can also see that through the use of blockchain technology, various enterprise-level services are also realizing substitution and evolution: from paper contracts to electronic contracts, to program-based, Blockchain contracts that can automatically execute smart contracts. Blockchain is pushing contract signing into the era of "chain signing"; from offline human resources companies to online human resources platforms to the blockchain-based human resources market , global human resources services have experienced continuous changes from the 1.0 era to the 2.0 era, and then to the 3.0 era.

Generally speaking, when the blockchain "invades" various industries, it will "mercilessly" delete all unnecessary links and processes, all unnecessary manual operations, and accelerate the The era of paperless, unmanned and automated is coming.

In the process of our analysis of more than 1,550 blockchain application cases around the world, words like "improve", "accelerate", "shorten", "lower", "reduce", "save", " Words such as "save" appear frequently in front of our eyes. These words show that the improvement of efficiency is the common pursuit of all parties involved in blockchain applications and is also the most direct result of the substitution effect of blockchain.

Numerous application practices are contributing to this:

l Kenyan company Shamba Records provides blockchain traceability, transaction and financing services to farmers in the country, currently covering more than 6,000 Small farmers and helped them increase their income by at least 40%;

l TradeWaltz, a blockchain trading platform invested by NTT DATA, Mitsubishi and other companies, completed a trial run, and the results showed that the platform can reduce traditional 50% of the workload of the trade process;

l Walmart Canada has significantly reduced invoice disputes with carriers by 97% through the application of the DL Freight blockchain platform;

l The State Grid Corporation of China’s power transaction certificate traceability inquiry platform was put into operation, automating the entire authenticity review process for registered users and saving 99% of the trustworthy manual review time;

l COSCO Shipping Lines and Shandong Port Group Qingdao Port have cooperated to launch a blockchain paperless import and delivery model, which can save customers nearly 24 hours on average per container in picking up goods;

l Taizhou, Zhejiang The "Internet of Things + Blockchain" recycling system is used to solve the problem of marine pollution control. Compared with traditional treatment methods, this recycling system can save 94% of labor costs and 84% of operating costs...

In summary, through the joint action of trust mechanism, sharing mechanism and transaction mechanism, blockchain has formed an obvious substitution effect, improved the operational efficiency of finance, government affairs and various industries, and will Continue to create systemic change. This change is reshaping the relationship between people and machines, people and society, and people and the environment, and clearly points to three ultimate goals: efficiency, well-being, and environmental protection.

③ What is the concept of blockchain? Is blockchain a scam? The most complete explanation of blockchain

What is the concept of blockchain?

On October 25, 2019, the country advocated the development of blockchain. Overnight, the blockchain concept became popular.

However, many people are hearing about blockchain for the first time.

So, what is blockchain?

Let’s take a look at it from an academic perspective:

Blockchain is a new application model of computer technologies such as distributed data storage, point-to-point transmission, consensus mechanism, and encryption algorithms. Blockchain is essentially a decentralized database. As the underlying technology of Bitcoin, it is a series of data blocks generated using cryptographic methods. Each data block contains a batch of Bitcoin network transactions. Information, used to verify the validity of its information (anti-counterfeiting) and generate the next block.

In fact, blockchain is essentially a decentralized database.

Is blockchain the same as Bitcoin? Blockchain is not Bitcoin. The first application of blockchain is Bitcoin.

What are the characteristics of blockchain? Now let’s take a look at several characteristics of the blockchain:

1. Decentralization:

The most important feature of the blockchain is decentralization, and the blockchain system is different Based on a centralized database, it is not controlled by any person or entity. Through distributed storage, data is completely copied and distributed on multiple computers, and each node realizes information self-verification, transmission and management.

2. Non-tamperability:

The blockchain system also has the characteristics of non-tamperability. In the blockchain system, each node is the center and no information can be changed, not even the administrator can modify this information. The consensus mechanism of the blockchain has the characteristics of "the minority obeys the majority" and "everyone is equal".It is possible to forge a non-existent record only if more than 51% of the accounting nodes are used. This situation is basically impossible, thus eliminating the possibility of fraud.

3. Publicity:

In a blockchain system, all nodes in the network can easily access information. The foundation of blockchain technology is open source. In addition to private information being encrypted, blockchain data is open to everyone. Anyone can query blockchain data and develop related applications through public interfaces, so the entire system information is highly transparent. .

4. Independence:

Because the blockchain is decentralized, it can facilitate peer-to-peer transactions, so there is no need for a third party whether in transaction or exchange of funds. of approval.

Based on consensus specifications and protocols, the entire blockchain system does not rely on other third parties. All nodes can automatically and securely verify and exchange data within the system without any human intervention.

Let’s assume an environment: 6 people live in dormitory 188 of the university

There is a ledger in the dormitory for Xiao Li, who is good at calculation, to keep accounts.

In the beginning, when the dormitory sold paper boxes or bought some public items, Xiao Li would record them in the ledger. If Xiao Li wanted to enrich himself and made false accounts, there would be less money in the account books, but no one would know.

After all, there is already a general ledger room, who would have nothing to do to keep track of the ledgers?

However, one day, because Xiao Li took more, there were obvious errors in the account book. Now, he could no longer hide it, so Xiao Li had to admit his mistake and make up the money.

So, how to solve this problem?

If blockchain is used to solve the problem:

Everyone in the dormitory takes out a ledger, and every time a transaction occurs, everyone records it in their own ledger. , such problems will not arise, because everyone is keeping accounts and can see the transaction records and final results on the ledger.

Xiao Li can’t change, you can’t change, and neither can your lower bunk. No one can change it.

This is because the previous accounting model was a centralized accounting model, and the current accounting model is a decentralized accounting model, where everyone is the center and everyone is the accountant.

If someone wants to change it, it will obviously be ineffective if they only change the data on their own account book, unless they bribe three people.

So, is blockchain a scam?

With the emergence of the great benefits of blockchain, in a short period of time, the prices of blockchain-related assets have soared, and ordinary investors are becoming more and more interested in blockchain. And the lawless elements are alsoAiming at this. There are some criminals who wear the gorgeous cloak of "blockchain" and use the blockchain to commit fraud or issue digital currencies without permission, leading many people to think that the blockchain is a scam.

But in fact, it is not. Blockchain is just a technology. If it can be used well, it will benefit the public and promote the development of the industry.

In particular, the application of blockchain is very wide and can be applied to almost everything of value to human beings.

Medical field: For example, when you go to the hospital for medical treatment, you can directly check the previous medical treatment in your own database, which greatly saves medical resources and saves medical expenses for repeated examinations.

Food traceability: Do you know where the food on your table comes from? Which logistics team is transporting it? This information can be tracked using blockchain. It can provide us with a single source of truth.

Supply chain application: For example, when we buy a product on a certain product, it leaves the factory, goes to the distributor for logistics turnover, goes to the seller's store warehouse, and then reaches the consumer's hands. During these processes, if something goes wrong, only you will know about it, and others, especially consumers, will not.

Well, this is where I introduce you to the relevant knowledge about the concept of blockchain. I hope it can be helpful to you.

④ What is wrong with the following statement about blockchain evidence?

Blockchain is a temporary and irreversible generation of encrypted data superimposed in chronological order. What is wrong with the following statement about blockchain evidence is that blockchain is a temporary, irreversible generation of encrypted data superimposed in chronological order. Blockchain is a chain composed of blocks one after another. Each block stores certain information, and they are connected into a chain in the order of the time they were generated.

⑤ What is blockchain technology and how does it change business and financial models

Blockchain technology is a distributed ledger technology that allows Multiple participants work together on a decentralized network to maintain a secure, transparent and immutable record. Blockchain technology was originally designed for the digital currency Bitcoin, but is now widely used in many other fields.

The core features of blockchain technology include:

Decentralization: Blockchain has no central control agency, and data is distributed on various nodes in the network, which makes it decentralized. The centralization feature reduces the risk of single points of failure.

Transparency: Transaction records on the blockchain are public to all participants, and anyone can view these records. This helps increase trust and reduce the risk of fraud.

Immutable: Once a transaction is recorded on the blockchain, it cannot be easily modified or deleted. This guarantees data integrity and security.

Smart contracts: transactions on the blockchainYi can automatically execute and implement "smart contracts", that is, automatically perform corresponding operations when specific conditions are met. This helps simplify complex business processes and reduce costs.

Blockchain technology has had a profound impact on business and financial models, which is mainly reflected in the following aspects:

Reducing costs: Blockchain technology can reduce intermediary links and reduce costs. Transaction costs and operating costs. For example, by adopting blockchain for cross-border payments, remittance fees can be significantly reduced.

Improving efficiency: The automation and smart contract features of blockchain technology help improve the efficiency of business processes, reduce manual intervention, and reduce error rates.

Enhance trust: The transparency and non-tamperability of blockchain technology help to establish a reliable trust system, reduce the risk of fraud, and provide better protection for commercial activities.

Innovative business models: Blockchain technology has spawned many new business models, such as decentralized finance (DeFi), digital asset trading, supply chain finance, etc. These new business models have brought disruptive changes to existing industries.

In short, blockchain technology, as an emerging technical means, is gradually changing the landscape of business and finance. With the continuous development of technology and the in-depth promotion of applications, blockchain is expected to have a more extensive and far-reaching impact in the future

⑥ You have to know the operating principles and development of blockchain!

1. Why is there innovation in blockchain?
The starting point of the first generation of the Internet is the TCP/IP protocol, which implements a unified format for peer-to-peer transmission of information by all nodes on the network. Open code. However, the impact of such an uncomplicated innovation on mankind is epoch-making. It has programmed, agreed, and enforced the basic values ​​required by a unified global market: "freedom, equality, and fraternity." Then the STMP email protocol, HTTP domain name protocol, etc. were derived, achieving low-cost and high-efficiency global information transmission in a decentralized manner. As Alibaba Vice President Gao Hongbing said:
"The Internet is to eliminate the (information) supply chain that has very low value and high cost - it is open, interconnected, peer-to-peer, globalized, and decentralized."
We know: The essence of the market is also decentralized. It automatically executes the decentralized agreement of "equivalent exchange". Just as Nobel Prize winner Ronald Coase summed up: "The market economy is based on two On the basis of deep cognition: admitting ignorance and tolerating uncertainty." Adam Smith also described the market as: "the invisible hand"! Therefore, the market must require the low-cost flow of information decentralization, and the Internet has adapted to the global Under the general climate formed by the unified market, it turned out to be.
However, the first generation of Internet decentralized solved the problem of low-cost and efficient transmission of information, but it did not solve the problem of credit of information. Therefore, what the second-generation Internet must break through is: how to establish global credit in a decentralized manner so that value transfer can be carried out at low cost and with high efficiency.
So originalWhat are the problems with the centralized credit system? As we all know: centralized credit, such as the legal currencies of various countries, has different credit values ​​and incompatible clearing systems, which adds a lot of cost to global trade. The current global credit system centered on the US dollar has a "Triffin Paradox" in its mechanism (the essence is that a country's legal currency cannot simultaneously resolve the conflict between its own economic interests and global economic needs). Therefore, in 2009, the Governor of the Central Bank of China, Zhou Ogawa called for the creation of a super-sovereign storage currency. In the same year, Satoshi Nakamoto disclosed the first-generation blockchain source code-"Bitcoin" online.
2. How does the blockchain system operate?
First of all, Satoshi Nakamoto knew very well that establishing a credit system for payment must solve the problem of preventing "duplicate payments", that is, no counterfeit currency can be created. The centralized credit system relies on state machinery to prevent counterfeit currency. What about "Bitcoin"? Satoshi Nakamoto's great innovation is to "timestamp" every transaction. There is a block (block: equivalent to a network account book) every ten minutes, and all network transactions for these ten minutes are correctly timestamped. The question is who will cover it? Satoshi Nakamoto did not assume that everyone on the Internet is Lei Feng. He agreed with Adam Smith: people in the market are greedy. He asked the so-called "miners" to compete for the accounting rights of these ten-minute blocks. The rules of the competition were to correctly record the accounting and at the same time solve the SHA256 problem. Who can prove that their computer has the fastest computing power (the so-called PROOF OF WORK mechanism), he can compete for the legal accounting rights of these ten-minute blocks and get a reward of twenty-five bitcoins. This is the so-called "mining" process. It is actually a decentralized credit process that establishes a network-wide ledger - the blockchain. Therefore, the more essential function of miners is "bookkeepers"!
Satoshi Nakamoto is here In its Bitcoin white paper, the process of establishing this credit system is described in detail:
Step 1: In order for the entire network to recognize it as valid, each transaction must be broadcast to each node (node: that is, the miner);
The second step: Each miner node must correctly timestamp each transaction in these ten minutes and record it in that block;
The third step: Each miner node must Compete for the legal accounting rights of this ten-minute block by solving the SHA256 puzzle, and strive to get a reward of twenty-five bitcoins (fifty bitcoins every ten minutes for the first four years, decreasing by half every four years);< br>Step 4: If a miner node solves the SHA256 puzzle of these ten minutes, it will publish all the timestamped transactions recorded in its ten-minute blocks to the entire network, and they will be checked by other miner nodes in the entire network;< br>Step 5: Other miner nodes in the entire network check the correctness of the block accounting (because they are also stamping the accounting at the same time, but they have not competed for the legal block accounting rights, so there is no reward), there is no error Finally, they will compete for the next block after the legal block, thus forming a legal accounting block single chain, which is the general ledger of the Bitcoin payment system——Blockchain.
Generally speaking, each transaction must undergo six block confirmations, that is, six ten-minute accounting, before it can finally be recognized as a legal transaction on the blockchain. The following is the accounting format of Bitcoin:
So the so-called "Bitcoin" is such a billing system: it includes the owner electronically signing with the private key and paying to the next owner, and then the entire network's "miners" "Time stamp the account and form a blockchain.
3. What are the innovations in Bitcoin’s blockchain finance?
Similar to gold, trying to establish decentralized credit on the global Internet may allow value to flow across the entire network at high speed and at low rates (currently each transfer The transfer rate is one ten thousandth);
The total amount of currency is agreed upon by the cryptographic protocol;
Compared to gold, digital currency is infinitely divisible;
The value of currency can be based on a large number of P2P transactions ;
Full transparency in financial management (every transaction can be traced on the blockchain).
Bitcoin’s blockchain-wide accounting system has established a market value of US$10 billion, the highest on the global Internet. Therefore, Wu Xiaoling, dean of Tsinghua PBC School of Finance, pointed out: The blockchain experiment established distributed credit, which is an upgraded version of Internet TCP/IP, upgrading from information transmission to value transmission;
4. Bitcoin’s blocks What are the inherent flaws of the chain system?
Bitcoin’s blockchain system has had successes since it was open sourced on the Internet in 2009, but it also shows some inherent flaws that are difficult to overcome:
The total amount cannot be adjusted at any time As the market situation changes, it will inevitably rise and fall sharply;
Mining is high-carbon. Only less than 1% of miners can compete for the accounting rights of blocks of less than ten minutes, and more than 99% of other miners participating in the competition have the computing power. Waste;
The annual inflation of about 10% has greatly increased the cost of the Bitcoin financial ecology, and even threatened her survival;
As a decentralized self-organizing DAC system, the operating costs of the accounting and issuance functions are too high high.
As a global payment system, its efficiency is far from meeting the actual requirements of global trade. The Bitcoin network currently confirms a maximum of 7 transactions per second. In comparison, Visa's network system can process 10,000 transactions per second at the fastest, and Alipay's record is 80,000 transactions per second on Singles' Day in 2014!
5. Block The development of chain technology 2.0:
As the 2.0 upgrade and development of blockchain, it first focuses on solving the high-carbon mining of Bitcoin accounting:
When we discuss how to overcome the high carbon of Bitcoin mining and accounting Professor Liu Taoxiong from the Tsinghua Institute of Economics pointed out that mining competition relies on computing power. In the end, only one company competes for the legal accounting rights, and the other 99% of the miner nodes are mined for nothing, which is a waste of resources. It is obviously unreasonable. If The whole network transparently knows the legal accounting rights of the next block, and it is randomly generated in the entire network, which eliminates the high carbon cost of competitive accounting! After hearing this, we all praised Professor Liu for his brilliant idea, because the second generation is now more successful. Coin NXT has this mechanism. Their white paper is called "Transparent Forging", which is justThe probability of winning the accounting rights is directly proportional to the NXT token holdings in each miner node wallet. This is called the Proof of Stake mechanism (PROOF OF STOCK). Of course, this also triggered a debate about the unfairness of NXT’s distribution of tokens to early investment developers!
RIPPLE is a semi-decentralized blockchain solution that uses “trusted gateways” to conduct block operations. The credibility of chain accounting is based on the consensus ledger protocol that these gateways will not do evil at the same time.
The most ambitious attempt is Ethereum, which combines blockchain technology with Turing completeness, hoping to develop a basic platform that can support the construction of various blockchain systems in the future. The development of various credit currencies, digital assets, smart protocols and even financial derivatives. The system design is to unify blockchain accounting on the ETHERUM platform and be used by all developers. Maybe their official version will be released in the near future.
6. Possible applications of blockchain innovation in other fields:
Now, blockchain’s attempts to establish decentralized credit are no longer limited to the financial world, but have attracted attention from all fields of society, especially in At present, some of China's central credit institutions, such as the "Red Cross", are in a "collapse" situation. Blockchain can provide a new way of thinking and technical options for social management. The following are some new developments and related discussions we have learned about:
The combination of blockchain and the Internet of Things unifies digital assets and atomic assets, smooths the difference between consumer assets and cash assets, expands public credit, and accelerates value circulation; (IBM-Samsung)
Built on the blockchain Intellectual property protection system, accounting for the use of intellectual property across the entire network, and establishing a global advertising market;
Whether blockchain can provide technical support for the issuance of protocol-based cryptographic currencies by emerging economies along the Belt and Road;
Block Chain + cloud computing can develop into a decentralized self-media and community system;
Blockchain can build a decentralized equity crowdfunding system, allowing innovative projects to enter the circulation field in advance;
Blockchain can develop Develop a fully transparent financial management system;
Blockchain supports the establishment of a global decentralized corporate organization.
In short, in this era when credit has become a scarce resource, the technological innovation of blockchain, as a distributed credit model, provides new opportunities for finance, social management, talent evaluation and decentralized organization construction in the global market. All provide a broad development prospect.

⑦ How to ensure safe use of blockchain

One of the characteristics of blockchain projects (especially public chains) is open source. Open source code improves the credibility of the project and allows more people to participate. But the openness of source code also makes it easier for attackers to attack the blockchain system. There have been many hacker attacks in the past two years. Recently, the anonymous currency Verge (XVG) was attacked again. The attacker targeted the XVG token.A vulnerability in the code allowed malicious miners to add false timestamps to blocks and then quickly mine new blocks, earning nearly $1.75 million worth of digital currency in just a few hours. Although the attack was successfully stopped, no one can guarantee whether the attacker will attack again in the future.

Of course, blockchain developers can also take some measures

The first is to use professional code audit services,

The second is to understand safe coding standards, Nip problems in the bud.

Security of cryptographic algorithms

The development of quantum computers will bring major security threats to the cryptographic systems currently in use. Blockchain mainly relies on the elliptic curve public key encryption algorithm to generate digital signatures for secure transactions. Currently, the most commonly used ECDSA, RSA, DSA, etc. cannot withstand quantum attacks in theory, and there will be greater risks. More and more Researchers are beginning to focus on cryptographic algorithms that are resistant to quantum attacks.

Of course, in addition to changing the algorithm, there is another way to improve security:

Refer to Bitcoin’s handling of public key addresses to reduce the risk of public key leaks. Potential risks. As a user, especially a Bitcoin user, the balance after each transaction is stored in a new address to ensure that the public key of the address where Bitcoin funds are stored is not leaked.

Security of the consensus mechanism

The current consensus mechanisms include Proof of Work (PoW), Proof of Stake (PoS), and Delegated Proof of Stake (PoS). Proof of Stake (DPoS), Practical Byzantine Fault Tolerance (PBFT), etc.

PoW faces 51% attack problem. Since PoW relies on computing power, when an attacker has a computing power advantage, the probability of finding a new block will be greater than that of other nodes. At this time, it has the ability to undo transactions that have already occurred. It should be noted that even in this case, the attacker can only modify his own transactions and not the transactions of other users (the attacker does not have the private keys of other users).

In PoS, an attacker can only successfully attack when he holds more than 51% of the token amount, which is more difficult than 51% of the computing power in PoW.

In PBFT, the system is safe when the number of malicious nodes is less than 1/3 of the total nodes. In general, any consensus mechanism has its conditions for establishment. As an attacker, you also need to consider that once the attack is successful, the value of the system will be reduced to zero. At this time, the attacker has nothing to do except destroy it. Get other valuable rewards.

For designers of blockchain projects, they should understand the pros and cons of each consensus mechanism, so as to choose the appropriate consensus mechanism or according to the needs of the scenario., designing a new consensus mechanism.

Security of smart contracts

Smart contracts have the advantages of low running costs and low risks of human intervention. However, if there are problems with the design of smart contracts, it may cause greater consequences. loss. In June 2016, The DAO, Ethereum's most crowdfunded project, was attacked. Hackers obtained more than 3.5 million Ethereum coins, which later caused Ethereum to fork into ETH and ETC.

The measures proposed in this regard have two aspects:

The first is to conduct a security audit of smart contracts,

The second is to follow the principles of safe development of smart contracts.

The security development principles of smart contracts include: be prepared for possible errors and ensure that the code can correctly handle bugs and vulnerabilities; release smart contracts with caution, do functional testing and security testing, and fully consider boundaries; keep smart contracts concise; pay attention to blockchain threat intelligence and check for updates in a timely manner; be clear about the characteristics of the blockchain, such as calling external contracts with caution, etc.

Security of digital wallets

Digital wallets mainly have three security risks: First, design flaws. At the end of 2014, a serious random number problem (duplication of R values) caused users to lose hundreds of digital assets in a certain lottery. Second, digital wallets contain malicious code. Third, lost assets caused by loss or damage of computers and mobile phones.

There are four main countermeasures:

The first is to ensure the randomness of the private key;

The second is to verify the hash value before installing the software , ensure that the digital wallet software has not been tampered with;

The third is to use a cold wallet;

The fourth is to back up the private key.

⑧ Can blockchain technology be applied in the judicial field?

On October 13, the Supreme People’s Court answered a question at a press conference on the “Effectiveness of the People’s Court’s Smart Court Construction Work” And: At present, there are more than 2.6 billion certificates stored on the People's Court blockchain platform, and application scenarios such as electronic evidence, electronic delivery storage verification, and tamper-proofing have been implemented. At the same time, the Supreme People's Court focuses on promoting the breakthrough application of key technologies such as judicial blockchain evidence verification, smart contracts, and cross-chain collaboration, and using blockchain technology to improve judicial credibility and efficiency!
Yibaoquan uses the technical characteristics of blockchain such as "decentralization, distributed storage, effective anti-tampering, full traceability, and traceability" to create a judicial blockchain evidence storage system to help notaries, arbitration committees, The Forensic Laboratory realizes the storage and solidification of the entire chain of electronic evidence, making the evidence verifiable, the process traceable, and the results credible. It improves the efficiency of judicial services, reduces judicial costs, and helps judicial services develop towards intelligence.
Zhongzhengbao, a brand of Yibaoquan, can build a one-stop Internet notarization system for notary offices. It uses the underlying technology of blockchain to solidify the key data uploaded by users in the notary office system and put it on the chain as evidence, which can be checked online in real time. , avoid disputes arising from the data upload and storage process, improve the legal quality and efficiency of notarization business data storage, and apply online.It handles the deposit and notarization business of intellectual property rights, electronic contracts, etc., and issues notarization certificates and notarization custody letters online, effectively reducing the cost of notarizing electronic data deposits, facilitating the identification of electronic data evidence, and improving the litigation efficiency of notarized blockchain deposits.
E-Baoquan can help forensic laboratories to be included in the Alliance Blockchain "Preservation Chain Open Platform" and become one of the member nodes, using the blockchain to be "decentralized, non-tamperable, full-process traceable, traceable", etc. Features: Put case information, case handling step information, appraisal opinion information and other data information on the chain, provide technical support for evidence preservation, enhance the accuracy, authenticity and traceability of forensic appraisal data, and at the same time, Realize the confirmation and preservation of digital assets, issue judicial appraisal custody letters online, conduct notarization and appraisal of blockchain data online, and improve the credibility of electronic evidence.

⑨ What exactly is blockchain

On April 8, Wu Xiaoqiu, Vice President of Renmin University of China and Director of the Institute of Finance, spoke at the Boao Forum for Asia 2018 Annual Meeting media meeting He said that technology is penetrating finance at an unprecedented speed, China's financial industry is diversified, and new industries such as technology and finance are developing rapidly.

Supervision should be conducive to financial innovation

Wu Xiaoqiu pointed out that while China’s financial reform is advancing, it has also brought some confusion to financial supervision and requires in-depth think. The first is to shift from the risks of a single regulatory agency in the past to better managing market risks, so the financial structure needs to be adjusted and reformed.

According to the State Council’s institutional reform plan, China’s financial regulatory system has launched a “one bank and two conferences” structure. In this regard, Wu Xiaoqiu said that this is a pragmatic arrangement. The China Banking and Insurance Regulatory Commission will strengthen institutional supervision, and the China Securities Regulatory Commission will strengthen market supervision.