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Ⅰ What are the blockchain digital currencies?
Blockchain digital currency refers to cryptocurrency. The underlying technology is blockchain. There are many cryptocurrencies, some of which are relatively well-known. It's Bitcoin, right? The detailed digital currency can be learned in Crypto Finance mimacaijing.
II The relationship between digital currency and blockchain
1. Blockchain and digital currency complement each other and are inseparable. Blockchain is one of the means of digital currency circulation.
2. Blockchain is the theoretical basis of digital currency. Digital currency is established on the basis of blockchain technology. Blockchain has certain guarantees for the security of digital currency. At the same time, digital currency is a block chain. The most successful application of chain technology.
Extended information: 1. Digital currency is an unregulated, digital currency, usually issued and managed by developers, and accepted and used by members of specific virtual communities. The European Banking Authority defines virtual currency as: a digital representation of value that is not issued by a central bank or authority and is not linked to a legal currency, but which, because it is accepted by the public, can be used as a means of payment or can be transferred, stored or traded electronically. .
2. Digital currency can be considered as a virtual currency based on node network and digital encryption algorithm. The core characteristics of digital currency mainly reflect three aspects: ① Because it comes from certain open algorithms, digital currency has no issuing entity, so no person or institution can control its issuance; ② Since the number of algorithm solutions is determined, the digital currency The total amount of currency is fixed, which fundamentally eliminates the possibility of inflation caused by excessive issuance of virtual currency; ③ Since the transaction process requires the approval of each node in the network, the transaction process of digital currency is safe enough.
3. The blockchain shared value system was first imitated by many cryptocurrencies, and improvements were made in proof of work and algorithms, such as the use of proof of equity and SCrypt algorithms. Subsequently, the blockchain ecosystem continued to evolve around the world, with the emergence of initial coin offerings (ICO); the smart contract blockchain Ethereum; the asset tokenization sharing economy with “light ownership, heavy usage rights”; and blockchain countries. People are using this shared value system to develop decentralized computer programs in all walks of life and build decentralized autonomous organizations and decentralized autonomous communities around the world.
Ⅲ What is the relationship between blockchain and digital renminbi
Differences:
1. Blockchain and digital currency complement each other and are inseparable. Blockchain is digital One of the means of currency circulation.
2. Blockchain is the theoretical basis of digital currency. Digital currency is established on the basis of blockchain technology. Blockchain has certain guarantees for the security of digital currency. At the same time, digital currency is a block chain. The most successful application of chain technology.
Since the concept of "digital renminbi" was proposed, digital renminbi has often been compared to cryptocurrencies such as Bitcoin and Ethereum that use blockchain technology. So let’s first figure out what is digital renminbi?
Digital PeopleDigital RMB is a legal currency in digital form issued by the People's Bank of China. It is operated by designated operating agencies and redeemed by the public. It is based on a broad account system, supports the loose coupling function of bank accounts, and is equivalent to banknotes and coins. , has value characteristics and legal compensability, and supports controllable anonymity.
The concept of digital renminbi has two key points. One is that digital renminbi is a legal currency in digital form; the other is that it is equivalent to banknotes and coins. Digital renminbi is mainly positioned at M0, which is cash and currency in circulation. coin.
But in fact, the digital renminbi only draws on blockchain technology, but as a legal currency, the digital renminbi has centralized characteristics. Executives from major European central banks said that issuing central bank digital currencies does not actually require the use of blockchain technology. The core elements of the digital RMB system framework are "one currency, two databases, and three centers". The technologies used in the use process include NFC and distributed ledger technology.
02 What is blockchain technology?
From a broad perspective, blockchain technology actually uses fast-chain data structures to verify and store data, uses distributed node consensus algorithms to generate and update data, and uses cryptography to ensure data transmission and Access security, a new distributed infrastructure and computing method that uses smart contracts composed of automated script codes to program and operate data.
03 Digital RMB just draws on blockchain technology
Digital RMB has the same characteristics as blockchain technology, such as traceability and non-tamperability. As a legal currency issued by the state, the most important feature of the digital renminbi is the "centralized management model", and one of the core features of the blockchain is "decentralization".
Previously, many countries have issued digital currencies relying on blockchain technology, such as Uruguay, Iran, Senegal, etc., but none of them have become popular.
Executives of major European central banks stated in September 2020: If central banks around the world want to issue digital currencies, they do not actually need to use blockchain technology. Central banks provide central bank digital currencies. "Trust", so after the central bank intervenes, there is no need to use blockchain technology.
In the financial field, currently blockchain technology has received corresponding experimental and small-scale applications in digital currency, payment and settlement, digital bills, etc.
04 “One coin, two treasury, three centers”
As mentioned earlier, the core elements of the digital RMB system framework are “one currency, two treasury, three centers”. Here we will briefly explain “one coin, two treasury, three centers”. Two warehouses, three centers.” The “one currency” here actually refers to the central bank’s digital currency; the “two databases” refer to the digital currency issuance database (the database that stores the central bank’s digital currency issuance fund) and the digital currency bank database (the database where commercial banks store the central bank’s digital currency); The “three centers” refer to the certification center (responsible for identity information management), registration center (responsible for digital currency ownership registration) and big data issuance center (responsible for anti-money laundering,Analysis of payment behavior, etc.).
IV The relationship between blockchain and digital currency
1. Digital currency and blockchain are organically combined and closely connected. Blockchain is digital currency. The lowest level technology is also the most important technical means. The most successful practice of blockchain is innovation in the field of currency. As one of the technologies of digital currency, the use of digital currency also includes mobile payment, trusted and controllable cloud computing, cryptographic algorithms, etc. The popularity of Bitcoin has made people Understand the technical framework and broad application prospects of blockchain.
2. Blockchain is actually an emerging digital accounting book. This kind of accounting book has powerful functions and is equivalent to a cloud storage function. Because after each transaction for a certain period of time is completed, All transactions within this period are recorded and completely copied on all nodes. This is a "block". Therefore, there is almost no possibility of information being tampered with, unless there is a way to hack into almost all nodes. Blocks are connected end to end to form a blockchain.
3. The biggest feature of digital currency is that it is programmable. It is a computer program and a piece of code. Because it can be programmed, it is an intelligent currency. Because it is intelligent, settlement confirmation and clearing transactions are completed at the same time.
4. Everything has evolved from programmable currency to programmable finance, and from programmable finance to programmable economy. Xianhe
5. To sum up, digital currency is a form of encrypted currency. It is precisely because this digital currency needs to exist in an encrypted form. Therefore, digital currency needs to be distinguished. Supported by blockchain technology, blockchain technology is also the most advanced technology in the world. Many well-known companies in the world are studying this technology. The development prospects of this technology are unlimited.
IV What impact will blockchain have on currency?
On today’s Internet, one of the most commonly heard words is blockchain. Blockchain technology is now It has become a major trend on the Internet. Many Internet giants have begun to study blockchain and are making use of it. The most famous product in blockchain is Bitcoin. Our country does not recognize the value of things like Bitcoin, which means that Bitcoin is completely worthless in our country, so what impact it has on the currency is different, but it is different on the world. Blockchain products have a great impact on the world's currencies. Take Bitcoin, for example, which has skyrocketed many times in 2020, and its impact on currencies is also very large.
3. Blockchain products will cause changes in currency valueBlockchain products will become increasingly scarce due to their particularity. Blockchain products all over the world have The amount is limited and development is very difficult, so the value of blockchain products will continue to appreciate. The currency unit used to measure the value of blockchain products will continue to depreciate, ultimately affecting the value of the currency.Make an impact.
VI With so many blockchain currencies, what is the significance of mining?
The significance of Bitcoin mining - distributing initial Bitcoins
Bitcoin opponents accuse mining Mines waste a lot of resources doing meaningless coin tossing. Supporters give the example of gold mining, which also wastes a lot of resources doing meaningless digging holes. For the Bitcoin system, the greatest significance of this kind of mining that consumes a lot of resources is: fairly distributing the 21 million initial Bitcoins, just like consuming resources to mine gold, consuming resources to mine Bitcoins is the only fair way to distribute the initial Bitcoins currency way.
Bitcoin is a digital currency based on blockchain technology (ChainNova). The simple understanding of blockchain technology is an electronic currency ledger system implemented through point-to-point. It can pass The network records every Bitcoin transaction and is decentralized. No one can change it without authorization, so it has very stable security for its holders.
But the fairness of all these methods of distributing initial coins is far weaker than the model of burning money to obtain initial Bitcoins, and fairness is the core issue of a currency system. Therefore, although Bitcoin mining consumes A large amount of resources, but it is a reasonable economic behavior like consuming resources to mine gold mines.
Ⅶ What is a blockchain stablecoin and what are the main stablecoins?
In the blockchain world, a currency system that is mapped to the real world has been established. The currency in this system , we will call it stablecoins (StableCoins). A stablecoin is a cryptocurrency that is collateralized by the value of an underlying asset. By mortgaging assets, the value of the token is anchored and the value of the token becomes stable.
According to the issuance method, stablecoins are generally divided into four types:
1. Stablecoins issued with collateralized legal currency
USDT, USDC, and Tether (USDT) is a token issued by a financial institution and has a 1:1 right to exchange for the U.S. dollar. Tether (USDT) is launched by Tether, and USDC is issued by Circle and Coinbase. Both tokens claim to have a 100% reserve ratio as a reflection of the real-world U.S. dollar. They are currently the most widely used in the blockchain and are also the stablecoins with the largest market value.
2. Stablecoins minted with mortgaged digital assets
Dai is a decentralized over-collateralized stablecoin established by MAKER. It is minted by mortgaging some assets. Its mortgaged assets It is an asset that MAKER has determined can be mortgaged, such as ETH, BAT, etc., and if recognized by the main community, it can be mortgaged and minted to bring it out. Note that this is over-collateralization. For example, if we mortgage $150 of ETH into the Dai system, we can only obtain Dai worth $100.
How does it guaranteeDai is exchanged for USD 1:1? When Dai is lower than the mortgage line, liquidation will be triggered. For example, when ETH falls to 120 US dollars, the liquidation line will be triggered. At this time, the MAKER system will take ETH to the market for auction, and the Dai obtained from the auction will be used for destruction, so This maintains the dynamic balance of the entire system and maintains the stability of Dai as a dollar value.
pUSD is a USD-bound stablecoin issued by the Mixin project team using BTC as collateral. The principle is similar to Dai. Because the mortgage rate is 200% and the issuance is decentralized, the collateral is co-managed by multiple teams and multi-signatures, so the risk is lower than stablecoins issued by centralized companies.
3. Algorithmic Stablecoin 1.0
Ampleforth (AMPL) has no mortgage assets and no credit endorsement by the entity. It relies purely on algorithms to achieve fluctuations around the anchored price. AMPL-anchored The price is US dollars in 2019 and will rise and fall with the CPI. Within a certain range, when it is higher than the anchor price, it will trigger additional issuance and send new AMPL to all AMPL addresses. When it is lower than the threshold, , for example, when it is lower than 0.95, deflation will be triggered, and all AMPL addresses will be affected by deflation.
4. Algorithmic Stablecoins 2.0 and 3.0
Basis, an extension of AMPL, uses the rebase (can be understood as token supply rebalancing) mechanism and has the characteristics of separation of powers. , there are some mechanisms to solve the problem of AMPL death spiral.
Advantages of stablecoins:
First, it provides a deposit and withdrawal channel between legal currency and cryptocurrency, which is also the most important application scenario. Affected by policies, general exchanges do not support direct trading of cryptocurrencies with legal currency (RMB/USD, etc.). Currently, mainstream exchange legal currency transactions support the exchange of RMB and USDT. After users purchase USDT through RMB, they can use USDT to purchase other cryptocurrencies. currency.
The second is to combat the risk of falling traditional cryptocurrencies. As mentioned above, the birth of stablecoins stems from this, so it naturally has the advantage of stability. Since the currency price is stable, it can be applied It is no different from common legal currency in daily payment and transaction scenarios.
Third, unlike ordinary cryptocurrencies, stablecoins have a value basis because they have mortgage assets behind them.
Fourth, it can provide sufficient liquidity for the exchange. Compared with other mainstream markets, cryptocurrency is still a niche market. The birth of stablecoins helps attract large-scale capital entry.
Disadvantages of stablecoins:
Centralized issuance leads to opaqueness of mortgage assets, such as US, which is rumored to be in for a thunderstorm every dayDT. The decentralized issuance method of mortgage cryptocurrency also carries the risk of significant fluctuations in the price of collateral. Therefore, stablecoins still have a long way to go in the future.
Ⅷ What is blockchain and how to make money with blockchain
Blockchain is a new application of computer technology such as distributed data storage, point-to-point transmission, consensus mechanism, and encryption algorithm. model. The so-called consensus mechanism is a mathematical algorithm that establishes trust and obtains rights and interests between different nodes in the blockchain system.
How to make money in the blockchain:
1. Earn commissions through promotion.
The blockchain approach is to first register an exchange account, generate your own invitation link, and then promote it. If someone registers the exchange through your link and generates transactions, you will get a commission.
2. Coin speculation.
Speculating in currencies is like speculating in stocks. Coin speculation is a way to make money on the Blockchain with the lowest threshold.
3. Mining.
"Mining" in Bitcoin is the accounting process. This process requires grabbing, and if you grab the opportunity to bookkeeping rights, you will be rewarded, and the reward is Bitcoin. This behavior is "mining".
4. Develop wallet.
The wallet is the infrastructure of the blockchain, just like the "Alipay Zheng Xinque" or "WeChat Pay" of the blockchain.
Extended information:
1. Blockchain is an important concept of Bitcoin. It is essentially a decentralized database and serves as the bottom layer of Bitcoin. technology. Blockchain is a series of data blocks generated using cryptographic methods. Each data block contains information about a Bitcoin network transaction and is used to verify the validity of the information (anti-counterfeiting) and generate the next block. piece.
2. Blockchain was born from Satoshi Nakamoto’s Bitcoin. Since 2009, various Bitcoin-like digital currencies have appeared, all based on public blockchains.
3. On January 20, 2016, the Digital Currency Seminar of the People’s Bank of China announced that it had achieved phased results in digital currency research. The meeting affirmed the value of digital currency in reducing the issuance of traditional currency and stated that the central bank is exploring the issuance of digital currency. The expression of the People’s Bank of China’s Digital Currency Seminar has greatly enhanced the confidence of the digital currency industry. This is the first time that the five central bank ministries and commissions have expressed a clear attitude towards digital currencies since they issued a notice on preventing Bitcoin risks on December 5, 2013.
Blockchain - Network
Ⅸ Why can the digital currency generated by the blockchain have economic value
Blockchain is a new technology that most people cannot understand. This route is of great significance for discussion. Cryptocurrency has been recognized by some countries for a long time, so it generates value. In fact, it has existed and been traded for a long time. There are many people who accept the value, so people who don’t understand can Stay away. If you don't understand and object, you will only have more troubles.
The value lies in the United StatesThere is Bitcoin. If we don't issue a similar coin, we'll be cut off forever. It is also the only way to reduce the outflow of RMB.
Blockchain is a deeper science and technology in the era of Internet big data. It represents the top technical achievements of artificial intelligence and has a wide range of applications. It empowers and superimposes to create more widespread socio-economic value. .
The application of blockchain in payment scenarios is fast and simple, and its calculations in data science are precise and fast. Big data storage and retrieval application scenarios cover all aspects of society, politics, economy, culture, military, science and technology, etc. Manufacturing, including agriculture, has more practical and empowering prospects that can be converted into productivity and improve production efficiency. It is the forefront of digital economics in the era of big data.
The digital currency generated by the blockchain represents the generation process of the blockchain and is the representative of the blockchain. Different algorithms have different names and types of so-called digital currencies, such as parachains and tree-structured chains. It is now a time when all heroes are rising and falling, and there is a mixture of good and bad, and it is also a time when leadership, management and control, talent, and empowerment are moving in depth. stage of development.
The reason why the digital currency generated by the blockchain is valuable is the broader application scenarios of the blockchain. Digital currency is not a currency in nature. It does not have the basic functions of currency stability, payment, storage, and trade settlement. It does not have a sovereign country to prepare a document, and it has great risks and opportunities.
For the digital currency represented by the blockchain, decentralization has extremely positive meaning from a conceptual perspective. The desire for consensus, co-creation, co-construction, and sharing of communism is understandable. Let us try to see how far it can go. Wait!
If you would like to communicate, thank you!
ⅩWhy does the blockchain need to issue currency
We know that the country has always advocated a "coinless" blockchain. It means that the chain does not require coins, and it supports technology development but does not support the issuance of coins.
Of course, the currency here is what we often call TOKEN, which originally meant token (temporary) in computer identity authentication. With the popularity of blockchain and digital currency, people are more interested in TOKEN. The translations are diverse, including tokens, points, certificates, logos, indicators, and more.
The understanding of TOKEN in the market is mainly divided into two categories.
In the first category, 99% of people think TOKEN means token, because 99.9% of projects do the same. Establish a foundation, build a website, write a white paper, and then launch an ICO. Because most of the project is still in the conceptual stage, the TOKEN itself has no other meaning except transaction, so people call it a token, and it is implemented to some extent. The functions of money.
The second category, professionals and institutions are more willing to translate TOKEN into proof of equity.In other words, it is a pass. For example, a person's identity certificate, academic certificate, equity, bonds, points, bills, etc. are all authentic and cannot be tampered with due to the proof of equity. Every proof of stake becomes more secure and reliable through cryptographic protection.
So, blockchain is not just a technology, it is a new way of production and organization, and even a new way of thinking.
So, the question now is, do blockchain projects have to issue coins?
Answer: No coins are issued. Not all blockchain projects need to issue coins, and those that issue coins are not necessarily blockchain projects.
For example, in the alliance chain, there is no need to issue coins. For example, Tencent's Q coin is, in principle, a currency, but it is not a blockchain project.
So, there is no correlation between the two, but if it is a public chain, it needs to issue coins. why?
Let’s take Bitcoin as an example. As a public chain, the Bitcoin system must rely on the existence of coins. The public chain obtains the stability and non-tamperability of its system through nodes distributed around the world, and these properties are the basis for the survival of the public chain.
Just imagine, if the Bitcoin system is unstable or can be easily tampered with, Bitcoin will be worthless. These nodes are not set up by one or several companies, otherwise they will be equivalent to private chains or alliance chains. These nodes must be dynamically constructed by many participants. The existence of these nodes must require the existence of some kind of incentives, otherwise why would the builders of these nodes participate in your system. And this incentive must be integrated with the blockchain system and must be a currency.
So, why should it be a currency instead of a legal currency, such as RMB, as an incentive?
If RMB is used as an incentive, since RMB must be stored in a RMB account, and this account itself is centralized, it is too easy to be controlled. Think about why domestic Bitcoin exchanges are so afraid of the central government. I understand, I am afraid of being weaned. In addition, the RMB cannot chemically react with the smart contracts within the blockchain.
Electronic currency issued by the central bank cannot be used as the native currency and incentive of a certain blockchain system. Why?
If the central bank or a certain wealthy person wants to destroy a certain project, they only need to use enough electronic currency to build enough nodes and carry out 51% attacks. Therefore, use the electronic currency issued by the central bank as the native Coin and incentive blockchain systems are also not possible. Blockchain projects that use independent native coins and incentives do not have this worry.
Because if a person or organization wants to get enough nodes to carry out a 51% attack, then it must first obtain more than 50% of enough coins, and the number of coins on the market is certain. , so before he got enough coins, the skyrocketing price was unbearable for him.
So, public ownershipChain projects must have coins. Public chain projects without coins are like a castrated person.
And only by reasonably stimulating output through tokens can production relations be changed and the value of the blockchain be brought into play. Therefore, the project must have TOKEN. TOKEN can promote the development of the project faster. TOKEN solves the problems of incentives and consensus. Incentives solve the problem of autonomy. The economic ecosystem of positive autonomy plus the underlying technology of the blockchain is a perfect solution. combination.