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『一』 Iac Ant Colony Communication is a pyramid scheme?

Whether it is a pyramid scheme depends on the behavior and its pattern.

1. Pay a certain fee as an entry fee, whether it is paying money or spending money to buy products as a condition for joining.

2. The most basic thing is that the income mainly comes from attracting people, rather than selling products.

3. It is considered a pyramid scheme to develop downlines of level 3 or above, and you can share the income of the downlines, and you can also share the income of the downlines, and the downlines of the downlines. If you are offline, you can also share the food... share it.

4. Eventually developed into a pyramid model.

5. Then establish a five-level and three-level system, so that the boss can exit with millions, tens, or billions.

『II』 Fraud is committed in the name of blockchain, and blockchain has become the "signature" of pyramid schemes.

Recently, under the name of blockchain, Cheating in the name of technology is on the rise. Some self-media and illegal coin issuance companies in the currency circle have become active again, using social software to promote tokens in an attempt to fish in troubled waters. Investing 100 yuan can earn 1 million. Have you ever seen this kind of profit return? What is talked about every night has been packaged into a "hen that lays golden eggs" because of the lofty concept of "blockchain". In real life, it has been exploited by criminals and succeeded repeatedly.

Blockchain has become the "signature" of MLM fraud

The popularity of blockchain technology has also led to some criminals who use the name of blockchain to commit MLM fraud. The line is back from the ashes. Guo Yuhang, chairman of the China Blockchain Application Research Center, told reporters that when he was conducting research in a province in central China recently, officials from the financial department of the province revealed that more than 40 illegal fund-raising cases under the banner of blockchain have been investigated and dealt with locally. The amount involved in one case was as high as more than 2 billion yuan.

Not long ago, a sports APP that claimed to be “developed based on blockchain technology” was investigated by relevant departments in Changsha City, Hunan Province. This software has been accused of being a "typical pyramid marketing model" and is the result of combining traditional MLM methods with new concepts such as "blockchain" and "big health".

Similar cases have occurred frequently this year. Fraud cases implemented in the name of blockchain have been uncovered in Suzhou, Yancheng and other places in Jiangsu Province. The police in Hengyang City, Hunan Province uncovered a fraud case in May this year. The gang used blockchain as a gimmick to issue worthless "air coins" and raised nearly 350 million yuan worth of Ethereum.

In the exposed cases of pyramid schemes and fund-raising fraud under the guise of blockchain, the characteristics of "pulling people's heads" are very obvious. They often take advantage of the mentality of the public who are not familiar with blockchain but have heard of Bitcoin’s “wealth-making myth”, and put a “fashionable” cloak on their illegal activities, promising low investment, high returns, and higher returns for offline development. Those who do not know the truth It’s easy to be fooled.

Industry experts said that although “Air Coin” may actually use blockchain technology, the purpose of issuance does not describePainting it too grandly, such as "human health" and "reconstructing business models", is almost impossible to achieve. Once investors are trapped and funds accumulate to a considerable amount, the project issuer will have a high probability of running away, and investors will lose their money. The resonance model that is popular in the currency circle in 2019 is a typical example. Typical projects with resonance models such as CXC and VDS have appeared in many places in my country, and many users have not recovered their own costs of funds invested. With the subsequent regulation, it is only a matter of time before these projects are liquidated.

With this phenomenon of bad money driving out good money, we have to look beyond the appearance to see the essence

“There cannot be an equal sign between blockchain and Bitcoin, obviously it is not the same. It is not the same as 'getting rich'." Many industry insiders emphasized to reporters that blockchain is an underlying technology, relying on which a number of digital currencies such as Bitcoin were born, but they cannot be confused together because of this. Discovering the truth requires penetrating the fog. In addition to increasing the popularization of blockchain knowledge so that the public can understand and identify pyramid schemes disguised as "blockchain", more importantly, supervision must also keep pace with the times. Although the supervision of digital currency speculation, spam issuance, and pyramid schemes has never been relaxed in recent years, traditional supervision methods currently face considerable difficulties due to the complexity of the blockchain concept and its legal blankness.

Experts pointed out that it is necessary to strengthen the application of regulatory technology. Most MLM projects in the name of blockchain will frequently spread and leave traces on the Internet. With the help of existing financial technology supervision methods, it is possible to detect and investigate in time.

Of course we can’t kill them all with one stick. We also need to learn how to distinguish the pros and cons of blockchain projects

There are good and bad in blockchain, and there are good and bad, so We must also be good at discovering high-quality projects and passing inferior projects. How to spot spam projects?

Significant characteristics of junk projects: For example, CXC, VDS, and the investigated Qubu Bao make money without losing money, attracting people to develop offline. Although many normal cryptocurrencies also need marketing and promotion, they also need publicity. The project has advantages and hopes to be known and used by more people, but publicity is publicity, and we will never promise to make a profit without losing any money, let alone promote it in a way that attracts people's hair to grow offline. But for empty shell MLM coins, the purpose is to make money, so we must paint you a beautiful money-making situation, and then directly or in disguised way, use the method of pulling people's hair to get offline to gather funds.

Of course, we must maintain high-quality projects, because in the early stages of an industry, high-quality projects can easily be inadvertently trampled by users with lower costs and unawareness, so we must maintain high-quality projects. , such as 2019 rookie SBO. Through the Star Leap Plan, SBO has created a stable ecosystem and built a complete closed-loop underlying infrastructure to contribute to the development of the digital economy and help the economy and society. The original SBO ecosystem has begun to be compatible with all DAPPs on the chain and is convenient for development.The developer transplants DPAA on other chains. At another investment level, SBO opens up the built-in trading function. Although SBO is not completely online now, based on this function, users can invest in SBO in advance, enjoy the blockchain dividends together, and explore future blockchain application models with SBO. There are already many users making money through SBO, so SBO has gathered very strong community forces to protect the development of SBO.

For the sake of users, SBO will also be delayed in listing on the exchange at this stage. With the tightening of national policies, there are many problems in the project's current listing on the exchange. One is the "selling pressure problem", and a large number of users have The market will lead to the collapse of the project, and the other is "exchanges absconding with funds." Many exchanges currently have problems. Under the heavy attack of the state, many exchanges have begun to swallow up user assets and transfer them overseas, so currently SBO cannot Listing on the exchange is a way to save the country. Usually from a long-term perspective, it protects the project value and user benefits.

In the beginning of the industry, keep your original intention

When the business model of blockchain applications is not yet mature, we must keep our eyes open, rationally invest in innovative projects with potential, and reject junk projects , while closely following national policies, jointly support the development of blockchain technology and the integration of life application scenarios, and jointly welcome the new era!

『三』Is blockchain a pyramid scheme? Is blockchain a disguised pyramid scheme?

Blockchain is a new technology and it is not a disguised pyramid scheme. It is just claimed by many pyramid schemes as " "Blockchain" actually does not have any technology, it is just a pyramid scheme in the name of "blockchain". The country has issued multiple announcements to crack down on this type of pyramid scheme. The following is Xinhuanet's report on blockchain MLM:

Blockchain is not equivalent to virtual currency, and there are also security risks. Behind the popularity, there are exaggerated hype with "ulterior motives". Only by removing the flashiness can the blockchain return to its true application value.

Invest 80,000 yuan and it will become 800,000 yuan in three months? Shenzhen police uncovered a huge fund-raising fraud case. Under the guise of blockchain concepts and 10 times earnings, thousands of investors have fallen deeply into it, with the amount involved reaching 307 million yuan. Under the "mysterious veil" of the blockchain, criminals have taken advantage of the opportunity to use their tricks, and the blockchain has become a "signature" for economic crimes such as fraud and pyramid schemes.

Why has the blockchain been repeatedly “misused” by illegal activities such as pyramid schemes and fraud? Apart from being “unclear”, what is the “function” of blockchain technology itself? Since the beginning of this year, with the increased supervision and the cooling of the currency speculation trend, new opportunities have been brought to the development of blockchain. How is the implementation of blockchain commercial "applications" now? Reporters from "Lookout" News Weekly recently conducted an investigation into this.

When the three-month "fund release period" promised by the trading platform expired and the staff started "kicking" people in the QQ group, Tang Haiyan, who lives in Bao'an District, Shenzhen, realized that she might have been cheated. .

Previously, Tang Haiyan was introduced by her classmates, invested 80,000 yuan to buy a virtual currency called "Puyin Coin". "The other party said that this currency is the most advanced blockchain technology at the moment, with Tibetan tea as collateral, and he also showed me a 'technical white paper'. I didn't understand blockchain, so I didn't read it carefully."

Although he doesn’t know much about blockchain or virtual currencies, Tang Haiyan is full of expectations for the high investment returns. She told reporters that the company that issued the "Common Silver Coin" would regularly split the virtual currency at a ratio of 1:10, which means that each split would increase the value of the "Common Silver Coin" in the hands of investors by 10 times. . As long as it is split once, the 80,000 yuan she invested is equivalent to buying "common silver coins" worth 800,000 yuan, and she can get huge profits by selling them on the trading platform.

According to the rules of the trading platform, the "common silver coins" just purchased cannot be traded immediately. They must be frozen on the platform for three months before the "release period" can begin. However, when three months passed, Tang Haiyan not only failed to double her assets, but also the 80,000 yuan frozen on the platform could no longer be used for transactions.

“Other investors began to question the authenticity of this investment in the QQ group. As a result, the company staff kicked these investors out one by one. I felt bad.” She said.

Facts also proved Tang Haiyan’s intuition. At the end of March 2018, Shenzhen police uncovered a huge fund-raising fraud case, with the amount of fraudulent funds reaching 307 million yuan. In this case, the Shenzhen Puyin Blockchain Group Co., Ltd. involved in the case used the "blockchain + Tibetan Tea" model to issue virtual currency and defraud public deposits. Tang Haiyan was one of thousands of victims. .

An investigation by the Shenzhen police found that the company claimed that investors could trade "common silver coins" on the virtual trading platform "Jubi.com" to earn the price difference

. In fact, the change in its buying and selling price was caused by the company using investors' investment funds to perform behind-the-scenes operations, and once raised the price of "common silver coins" from 0.5 yuan to 10 yuan, allowing investors to taste some sweetness. When a large number of investors entered the market, the company continued to cash out by maliciously manipulating the price trend of "Common Silver Coins", which eventually resulted in the "Common Silver Coins" in the hands of investors being worthless.

Since 2018, engaging in fraud and pyramid schemes under the banner of blockchain has become a commonly used "routine" in new criminal methods. In April 2018, Jinan police busted a pyramid scheme gang under the guise of "western development", "national poverty alleviation", "original stocks", "blockchain" and "e-commerce", arrested more than ten main suspects, and froze the funds involved in the case There were more than 100 accounts, and more than 300 million yuan of funds involved were seized.

Jinan police said that Huileyi e-commerce company designed fake virtual disks on the Internet and released so-called "treasure coins" and "precious coins" on the grounds that the country is vigorously developing the big data industry. and other virtual currencies.

They first gave away a certain amount of virtual currency to newly joined MLM personnel under the guise of giving away, with the price of each coin being tens of yuan, and then used artificial manipulation to convert the virtual currency intoThe value rises all the way to more than 100 yuan or even hundreds of yuan, attracting people who do not know the truth to join, and finally "cutting leeks" through the so-called "depreciation" periodic fluctuations of virtual currency, over and over again, and finally achieves the purpose of seeking illegal benefits.

In Xi'an, the local police also successfully cracked a huge online pyramid scheme under the banner of blockchain. According to the police, the criminal suspect Zheng paid a high salary to organize network platform administrators Zhang, Li and other 9 people. Since March 28, 2018, he has used collective pyramid schemes and online pyramid schemes as means to sell coins at a price of 3 yuan each. Sell ​​virtual "Datang Coins" on the "Consumption Era" online platform and control the appreciation rate;

At the same time, hold promotion meetings in multiple cities at home and abroad to attract members, and set up There are 28 levels of agents in charge. In just 18 days, the gang has developed more than 13,000 registered members. It has been found that the case involves 31 provinces, municipalities, and autonomous regions across the country, and the funds involved are as high as 86 million yuan.

The "Tencent 2017 MLM Situation Awareness White Paper" released by Tencent Security Joint Laboratory stated that in recent times, various overseas capital disks, virtual currencies, ICO (blockchain project initial public offering of tokens) Financing) projects emerge in an endless stream, which hide many risks such as illegal issuance, false projects, cross-border money laundering, fraud, pyramid schemes, etc., causing a large amount of funds to flow overseas. Once they collapse, run away, or lose contact, investors often have no way to complain and lose money. recover. For example, Baichuan Coin, Mark Coin, Beta Coin, Dark Coin, etc.

Reporters from "Lookout" News Weekly conducted interviews in Guangdong, Shandong, Shanghai and other places and learned that most people know that the concept of blockchain is very popular, but they are "uninformed" about the specific functions of blockchain. There are different opinions: some people think it is used for "investment and financial management" and "buying and selling currency", while others think it is "a major invention of the same magnitude as the steam engine". Some entrepreneurs are gearing up to seize this "once-in-a-lifetime opportunity to get rich."

Many people in the industry said that it is precisely because people have many misunderstandings about blockchain that criminals have the opportunity to fish in troubled waters and mislead investors.

First, blockchain is not equal to virtual currency. As of the end of last year, the number of domestic ICO participants and total transaction volume had doubled. A large number of digital currency exchanges have fled overseas, and the agency investment model has involved more ordinary people in high-risk investments.

Many industry self-media and famous speakers have formed interest alliances with issuers, digital exchanges, etc. to endorse the "Air Coin" project platform and create public opinion. In December last year, the People's Bank of China and nine other departments characterized ICOs as "suspected of illegal fund-raising, financial fraud, pyramid schemes and other illegal and criminal activities."

During the interview, many people told our reporter that the existence of tokens has built a set of equity mechanisms for the development of blockchain technology. This mechanism is indispensable for stimulating the prosperity of blockchain applications. of. “The market practice of the past five years has proven that blockchain applications without equity mechanisms are just like computers without Internet connections and market economies without currencies., the application scenarios and development speed are greatly reduced. " said an investor in Shanghai.

In fact, tokens represented by Bitcoin are only one of the earliest products to verify blockchain technology, and there is no equivalence between the two. Moreover, the existence of tokens has had an obvious negative effect on the development of blockchain.

Currently, more and more people in the industry are beginning to think about whether the development of blockchain must rely on the issuance of tokens. Realize incentives. Guo Dagang, secretary-general of the Beijing Internet Finance Industry Association, told this reporter that the so-called incentive mechanism is just a theoretical basis for project parties to issue tokens.

Second, the district Blockchain is not omnipotent, and there are risks to security. Blockchain is generally considered to be able to fulfill three functions:

First, the data stored on the blockchain cannot be tampered with or forged. It has high credibility and credibility; secondly, the entire transaction process is traceable, enabling accurate tracking of responsibilities; thirdly, smart contracts embedded in the blockchain can be automatically executed based on the contract, thereby improving work efficiency and reducing the risk of default. Commonly seen in the industry It is believed that blockchain has broad application prospects in finance, logistics, trade and other fields.

In fact, blockchain is not omnipotent, and its functions also have many limitations. It is generally believed that according to its Due to the characteristics of cryptography, if you want to tamper or forge on the blockchain, you theoretically need to control more than 51% of the nodes to achieve it. When there are enough nodes in the blockchain, this trust creation mechanism that is widely participated by the public will be difficult to tamper with. .

However, in reality, digital currency exchanges are frequently attacked and even stolen. On June 20, 2018, South Korea’s Bithumb Exchange announced on its official website that the exchange was attacked by hackers and value was stolen. 35 billion Korean won, approximately US$32 million in cryptocurrency.

Ji Xinhua, known as China’s first generation “hacker”, said that the blockchain will continue to face attacks and the process of uploading data to the chain is easy Information leakage occurred. Some people in the industry are also worried that once the super computing power of quantum computing is realized, it will also have a direct impact on the blockchain.

Thirdly, the popularity of the blockchain is not completely true. Data It shows that from the end of 2017 to the beginning of 2018, more than 300 self-media companies mainly focused on ICO projects appeared, becoming an abnormal phenomenon worth noting.

(3 ) Henan Police 1.3 billion IAC blockchain extended reading:

On August 24, 2018, the China Banking and Insurance Regulatory Commission website issued a risk warning to remind the public to guard against illegal fund-raising in the name of "virtual currency" and "blockchain" .

The original text is as follows:

"Risk Tips on Preventing Illegal Fund-raising in the Name of "Virtual Currency" and "Blockchain""

China Banking and Insurance Regulatory Commission, Central Government The Cyberspace Administration of China, the Ministry of Public Security, the People’s Bank of China, and the State Administration for Market Regulation remind:

Recently, some criminals have used the banners of “financial innovation” and “blockchain” toAbsorbing funds through the issuance of so-called "virtual currencies", "virtual assets", "digital assets" and other methods, infringing on the legitimate rights and interests of the public. Such activities are not really based on blockchain technology, but are actually hyping up the blockchain concept to conduct illegal fund-raising, pyramid schemes, and fraud. They mainly have the following characteristics:

1. Networking and cross-borderization are obvious. Relying on the Internet and chat tools for transactions, and using online payment tools to receive and disburse funds, risks have a wide scope and spread quickly. Some criminals rent overseas servers to build websites, essentially carry out activities for domestic residents, and remotely control illegal activities.

Some individuals claim in chat tool groups that they have obtained investment quotas for high-quality overseas blockchain projects and can invest on their behalf, which is most likely a fraudulent activity. Most of the funds for these illegal activities flow overseas, making supervision and tracking very difficult.

2. Strong deception, temptation and concealment. They use hot concepts to create hype and fabricate numerous "high-level" theories. Some even use celebrity V's "platform" propaganda, and use airdrops of "candy" as temptations, claiming that "currency values ​​only rise but not fall" and "the investment cycle is short. "High returns, low risks", which is highly deceptive.

In actual operation, criminals illegally make huge profits by manipulating the price trend of so-called virtual currencies behind the scenes and setting profit and withdrawal thresholds. In addition, some criminals also issue tokens in innovative forms such as ICO, IFO, and IEO, or conduct virtual currency speculation in the form of IMO under the banner of the sharing economy, which is highly concealed and deceptive.

3. There are various illegal risks. Through publicity, criminals use "static returns" (profits from currency appreciation) and "dynamic returns" (profits from offline development) as bait to attract the public to invest funds, and induce investors and development personnel to join in, constantly expanding the capital pool. , with characteristics of illegal fund-raising, pyramid schemes, fraud and other illegal activities.

Such activities use "financial innovation" as a gimmick, but are essentially a Ponzi scheme of "borrowing new and repaying old", making it difficult to maintain long-term capital operations. The general public is requested to view the blockchain rationally, do not blindly believe in promises made by the public, establish correct currency concepts and investment concepts, and effectively improve risk awareness; they can actively report to relevant departments any clues about illegal crimes discovered.

『四』Is the iac ant colony spread a scam?

A typical Ponzi scheme. Let me tell you how I feel. It is essentially a carefully packaged Ponzi scheme. Use the current hot blockchain to deceive the ignorant. All advertisements and platforms are all deceptive. The so-called dynamic income is to attract people to upgrade the level, which is divided into M1-M5. Those with higher levels earn a share of those with lower levels.
Static income, all transactions in it are conducted using a virtual object called "seed" as currency. There are two ways to obtain seeds. You can buy them from other members. The purchase uses a matching mechanism (is it similar to 3m?). After matching, you must send money to the other party within 24 hours. After confirmation, you will get a seed. (2000 yuan each), kindThe seeds begin to grow after they are planted. After a period of time, the seeds grow to 1. Several. After harvesting, you can sell or buy the so-called Aibo Financial Management, 1.6 times in 45 days (160%) and 2.2 times in 90 days (220%). ) Isn’t it very clear at this point? Ponzi, the inventor of the Ponzi scheme, only reached 50% in 45 days.
What is the concept? If you invest 100,000, it will be 220,000 in three months and 2 million in a year. Are you afraid? Where does the money come from? It comes from the members at the back. This game is crazy. There are several types of people involved in this game:
1 Speculators who knew it was a scam, took advantage of it and ran away, betting that they would not be the last to be harvested,
2 Ignorant people who were deceived by friends and relatives. The masses, the onlookers who give it a try to see if they can make money;
3 Blind followers who have been brainwashed by their superiors, fools who spend all their wealth to dream of getting rich.
These types of people intertwine into a terrible scam. Today is April 10th. It should still be in the early stages of this market, and it is not ruled out that you can make a profit by entering the game now. But you have to know that what you earn are bloody chips.

『五』What kind of platform is IAC? Where is its technology embodied? What are the recent blockchain and clown forms?

Hello, IAC It is an advertising communication ecosystem, which is characterized by ant colony communication, with fast communication speed, wide range, low cost and high efficiency. In the recently released Ether Clown game, each clown has 54 pairs of genetic codes, which are also divided into male and female. The generation of clowns will also occasionally occur due to genetic mutations in the paternal and maternal lines, resulting in some particularly rare appearances. It is a digital collectible, which is the most typical and important feature of every clown. Each clown can have children, work and earn money, and its value will gradually increase as time passes. Based on the blockchain, it can never be changed: all the clown's behavior will be recorded on Ethereum, and the owner can clearly query all the above data information of the clown through the verification of the third-party platform. This game truly allows players to have a smoother experience, and at the same time combines blockchain technology to ensure the interests of players.

『Lu』 Is ADC mining gone?

"ADC mining" is an online pyramid scheme, and the relevant suspects have been arrested by the police.

On August 29, 2018, the police in Jian'an District, Xuchang City, Henan Province destroyed a very large online MLM gang, namely Hangzhou I Am a Clown Network Technology Co., Ltd., which was suspected of "ADC mining" online MLM. The picture shows the scene when the police went to Jinhua, Zhejiang to seize the cash involved in the case.

What the police did not expect was that the criminal suspect bought a villa worth tens of millions of dollars specifically to hide illegal gains. The police seized as much as 1.3 billion yuan in cash at the scene.

Hangzhou I Am a Clown Network Technology Co., Ltd. first launched "IAC". Members join through the recommendation registration system, set a certain entry threshold, and form a fixed relationship based on the recommendation relationship. Upline and offline relationships, using virtual seeds as members’ transaction objects, to directlyOr the number of indirect development personnel is used as the basis for membership level promotion and remuneration calculation.

In June 2018, the IAC scam was exposed, and the IAC official team announced that it would transform ADC into a new mining model. ADC claimed to be a global advertising communication system, and mining was an operation developed by ADC based on blockchain technology. The system continues to use the new coat of virtual currency to come back online.

(6) Henan Police 1.3 billion IAC blockchain extended reading:

IAC is the abbreviation of "I AM CLOWN (I am a clown)", this is the claim A platform that helps every ordinary clown realize his dream of creating wealth is ultimately nothing more than a pyramid scheme to earn his own interests.

According to the "Regulations on Prohibition of Pyramid Selling" of the State Council, "The following behaviors are classified as pyramid schemes: the organizer or operator requires the persons being developed to pay fees through the development of personnel, or pays fees in disguised form by subscribing for goods, etc., to obtain membership. Or develop the qualifications of other personnel to join and seek illegal benefits."

The police remind everyone to invest carefully and pay attention to risks.

『撒』 What is the development history of blockchain technology?

Which came first, Bitcoin or blockchain? When Bitcoin was first born, there was no concept of "blockchain". People used bitcoin (lowercase b) to represent Bitcoin, and Bitcoin (capital B) to represent its underlying technology, which is what we now call blockchain technology. In 2015, after The Economist published its cover article "Blockchain Technology Reshaping the World," blockchain technology set off a financial technology craze around the world. Major financial institutions and banks around the world rushed to study blockchain technology. In 2016 alone, billions of dollars were invested in blockchain-related companies. In September 2017, the Chinese government website (www.gov.cn) published an article "my country's blockchain industry is expected to be at the forefront of the world", publicly supporting the development of blockchain technology and popularizing blockchain technology to 1.3 billion Chinese people . The application of blockchain in real economic fields such as finance, insurance, retail, and notarization has begun to accelerate.

『8』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 Based on two profound cognitive foundations: 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 is exactly what it needs to adapt to Under the general climate of the formation of a unified global 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 what are the problems with the original centralized credit system? As we all know: centralized credit, such as the legal currencies of various countries, has different credit values, and the clearing systems are also incompatible, 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);
Step 2: Each miner node must correctly timestamp each transaction in these ten minutes and record it in that block;
Step 3: Each miner node mustPoints 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, and reduce by half every four years) ;
Step 4: If a miner node solves the ten-minute SHA256 puzzle, it will publish all timestamped transactions recorded in its ten-minute block to the entire network, and will be verified by other miner nodes in the entire network. ;
Step 5: Other miner nodes in the entire network check the correctness of the block accounting (because they are also stamping the time stamp and accounting, but they have not competed for the legal block accounting rights, so there is no reward), If there are no errors, they will compete for the next block after the legal block, thus forming a single chain of legal accounting blocks, which is the general ledger of the Bitcoin payment system - the 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 up to 7 transactions per second. In contrast, Visa’s network system can handle 10,000 transactions per second at the fastest.Bao’s record is 80,000 transactions per second on Singles Day in 2014!
5. Development of Blockchain Technology 2.0:
As the 2.0 upgrade and development of blockchain, it first focuses on solving the mining problems of Bitcoin accounting. Carbon:
When we discussed how to overcome the high carbon cost of Bitcoin mining and accounting, Professor Liu Taoxiong from the Tsinghua Institute of Economics pointed out that mining competition relies on computing power, and in the end only one company competes for the legal accounting rights, and the others 99% of the miner nodes are digging for nothing, which is a waste of resources. It is obviously unreasonable. If the entire network transparently knows the legal accounting rights of the next block and randomly generates them in the entire network, it will avoid the high cost of competitive accounting. Carbon! After hearing this, we all praised Professor Liu for his brilliant idea, because the more successful second-generation currency NXT has this mechanism. Their white paper is called "Transparent Forging", but the probability of who gets the accounting rights is the same as each person's. The holding amount of NXT tokens in each miner node wallet is directly proportional. 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 A fully transparent financial management system;
Blockchain supportEstablish 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.