E-money is a success
Blockchain is successful in the application of issuing electronic cryptocurrency. Bitcoin has been running for many years without central organization management, and there are no major problems. This is the result of a series of traditional information technologies, such as blockchain storage technology, mining based consensus mechanism, encryption technology, P2P technology and so on. It integrates the application of information technology, economics and game theory.
Reasons for the success of e-money
The success of some electronic currencies issued based on blockchain technology is due to the following points:
- We can see that this kind of currency is limited because of the guarantee of algorithm and no central organization can manipulate the amount of currency issued. Compared with the paper money of various countries endorsed by the regime, it will not be issued indiscriminately and cause inflation.
- It is also very convenient to use. You can transfer money to any person on the earth with public and private keys. There is no need for cross-border remittance institutions. Foreign exchange control has no effect on it.
- Because of decentralization, e-money does not depend on any government, so its stability exceeds that of government. Any government in the world can collapse, but e-money will not lose value with the collapse of government, because its value is not given by the government.
- The incentive mechanism of e-money is mainly to issue coins to the users who participate in the construction of the blockchain as a reward to encourage more people to participate in the construction. The more people are involved, the more thorough the decentralization is, and the less likely it is to be manipulated by individual interest groups, resulting in a virtuous circle.
- Any e-money in the initial stage is inseparable from the trust, pursuit and publicity of a small number of people. When more and more people feel that it is valuable, just like art, it is really valuable. Due to the incentive mechanism of issuing currency, more and more people participate in it in order to obtain wealth, which further makes it valuable.
Most scenes can’t solve the pain points
At present, the application of blockchain in various fields is often not described in detail, which exaggerates the role of blockchain and is suspected of being hot. Some don’t publish details, while others give the impression that they are using blockchain for the sake of using blockchain. Many applications of blockchain can not be implemented in practice and can not solve the real pain point dispute.
It is said that the insurance industry applies blockchain. Once the claim settlement program is triggered on the blockchain, it can improve the efficiency. However, this is not the real inefficiency of insurance claims. The real inefficiency of claims settlement lies in the determination of claim amount and fraud. Once these works are completed, the existing system can automatically perform the function of claim payment without blockchain.
It has been said that blockchain should be applied in vaccine production, detection and transportation to ensure vaccine safety. This is also a fake application. This can not prevent the vaccine testing supervisors from making false, and the false data entering the blockchain makes the blockchain data lose its value. If fake data enters the blockchain, it is more confusing.
It is said that the smart contract is to describe the contract with a program to ensure no ambiguity and automatic execution. If all the property items involved in the contract are online, and the relevant departments provide docking, it should be reasonable. But most contracts involve the transfer of off-line goods, and unless there is a particularly simple contract, which contract can be described clearly by procedures?
Cross border payment
A company named circle, which provides cross-border payment services, takes advantage of the fast cross-border characteristics of bitcoin. The currency of one country is changed into bitcoin, and then bitcoin is converted into local currency in another country to realize fast cross-border payment. No service charge. It’s fast. The biggest problem with this approach is regulatory compliance.
It’s said that the details of cross-border payment are not published in the cross-border gold chain. It is speculated that ant financial services, the Hong Kong Monetary Authority, Standard Chartered Bank, the payee and the HKMA of the payee have jointly established an alliance chain. Each process produces a block, and the synchronization block takes about 1 second, so the whole remittance process is completed in 6 seconds. Ant financial services and the payee should have sufficient reserves in Standard Chartered Bank. The block chain data is transparent and can not be tampered with to improve the speed of remittance. But it seems to be possible with traditional technology, and faster.
Security of blockchain
Blockchain security refers to that once the data is generated, it is difficult to tamper with it. It is only security at this point. Transactions can be attacked as well as the rest of the payment. It is often said that bitcoin exchange has been attacked and lost a lot of money. On the contrary, the stock exchanges, futures exchanges and banks built with traditional technology have not heard much of being attacked.
What scenarios are applicable to blockchain
The application of blockchain should be closely combined with specific business scenarios. When the business scenario is due to the lack of trust and the information should be transparent and opaque, resulting in the cumbersome intermediate process, the application of blockchain may improve the efficiency. However, if the information is originally more private, or even if information is shared, there is still one step in the business process. What should be done still needs to be done. At that time, the application of blockchain will only make the system slower. If the scenario requires high real-time payment, the blockchain is naturally not suitable.
DSEP and Libra
Both the people’s Bank of China’s DSEP and Facebook’s Libra claim to have adopted blockchain technology without giving details. Speculation should be that the idea of blockchain has been used locally, but it is still a traditional system in the overall situation. The existing blockchain system can not reach the payment speed of these two monetary systems.
Why national strategy
Now the country should take blockchain as an important breakthrough in independent innovation of core technology, clarify the main direction of attack, increase investment, strive to conquer a number of key core technologies, and accelerate the development of blockchain technology and industrial innovation.
There are many interpretations of the national strategic policy from all walks of life, and RMB internationalization may be the ultimate goal. In a word, the RMB should also rub against the heat of the blockchain to achieve its own goal.
To discuss whether a thing has a future, we should first define it clearly. At present, there is no clear standard on what elements a system must contain to be called a blockchain. Even the standard is not clear. Then anyone can say that I used blockchain. Some people say that the essence of bitcoin is mining. Without mining, it does not count as blockchain. According to this standard, it can not be applied.
Many ideas of blockchain are good inspiration. In the future, some people may think of the application of these ideas in a certain field, which is the innovation advocated by the state. But it’s better not to call it blockchain. Nakamoto himself certainly doesn’t know what blockchain is. Other people just apply some technologies to make an electronic currency system, and have not invented anything new called “blockchain”.
At this stage, industries still avoid using blockchain technology in inappropriate scenarios in response to the call of the state. Instead of raising labor productivity, it wastes resources and energy.