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In recent years, the concepts related to blockchain have become very popular and attracted many people to join the industry. What are these people really engaged in the blockchain industry doing?
Generally speaking, the “blockchain industry” is a general term, which includes three pillar industries: the coin circle, the mining circle and the chain circle. At the present stage, the coin circle is the best, followed by the mining circle and the chain circle.
The currency circle mainly focuses on the issue, payment and securities of digital currency (also known as virtual currency and cryptocurrency).
The earliest and most successful digital currency is bitcoin (BTC). The white paper and software of bitcoin published by Satoshi Nakamoto from 2008 to 2009 symbolize the birth of bitcoin. After that, there are three main ways to issue digital currency: bifurcate, self research and token
1. In common currencies, BCH, LTC, DCR, dash, Zec, etc. are derived from BTC, mainly in terms of performance, privacy, encryption algorithm, etc.
2. Eth and EOS are relatively successful self research projects. Instead of being satisfied with issuing a new coin, they try to build a public platform to support the development of smart contracts and decentralized applications.
3. Token issuance mainly relies on the ability of the public platform mentioned above to issue new currencies in a very fast and simple way. These new currencies are usually innovated or integrated at the business level. Token opens the door to a new world of digital currency issuance. Project crowdfunding (i-c-o), stable currency (usdt, etc.), platform currency, i-e-o, etc. are staged in turn, which can be described as It’s a mixture of flowers and dragons.
Payment is the basic function of currency. In order to make digital currency faster and more convenient for transaction and circulation, many excellent products have been born, such as online or offline wallet supporting many currencies, settlement system supporting point-to-point or guaranteed transaction, platform supporting mutual exchange between digital currency and legal order currency, etc.
With the emergence of exchanges, digital currency has a strong security attribute. Common exchanges usually support OTC (C2C) trading, currency trading, contract trading and other functions, providing investors with 7×24 hours of real-time online digital currency trading services. More and more investors participate in the transaction, and investment services such as quantification, fund, loan and so on are also derived. With several rounds of bull market, digital currency is recognized, accepted and invested by more and more people. Compared with the payment function, the function of securities is much more powerful.
With the development of technology and the intensification of competition, the cloud computing service of mining machinery, mine, mine pool and the integration of the first three has become the main business model of the mining circle.
In a popular sense, mining is a process of generating new digital currency by computer. Early digital currencies, especially bitcoin, which has the largest market value, usually use proof of work (POW) mechanism to ensure the normal operation of decentralized network, and give digital currency rewards to participants. With the increase of the value of digital currency and the increasing competition in mining, the computing power needed to produce new coins is also increasing: the earliest bitcoin can mine through the CPU of personal computer, then the GPU with stronger computing power replaces the CPU, and then the special mining machine, especially the ASIC (application specific integrated circuit) mining machine becomes the leading role. The most important thing in the development of ASIC mining machine is the research and development of special high-performance chip, which represents the most cutting-edge technical ability; the second is the stability and energy efficiency ratio of mining machine. Mining machinery production is usually through the factory, but a strong supply chain, logistics management, marketing, after-sales service and other capabilities are essential.
The mine is a place for centralized deployment of mining machines. The most ideal mine is built according to the standard of data center, but it can hardly be achieved due to cost considerations. The most basic mine construction needs cheap and stable power supply, safe and spacious site, professional operation and maintenance team and other conditions. At the same time, it needs to be equipped with rack and cabinet, temperature regulation, noise isolation and other facilities. As the most important resource, cheap and stable power is usually owned by a few people (companies), who usually resell resources or build mines, self mining and provide mining machine hosting services.
The emergence of the mine pool is also due to the increasing difficulty of mining. Even if you have a most advanced ASIC miner, the probability of directly digging money is very low. The mine pool can combine many mining machines to form a huge computing power pool and increase the probability of obtaining mining rewards. The main principle is to split the same mining task and send it to the miner connected to the mine pool, and receive the calculation results submitted by the verification miner. If the miner meets the mining requirements, it will be submitted to the chain for reward. At the same time, the calculation power of different miners will be counted, and the reward will be allocated according to the calculation power.
Because of the high professional and entry threshold of mining machinery, mining pool, and mining pool, only large-scale and well funded teams and institutions can participate in mining. By integrating high-quality resources of mining machinery, mining field, and mining pool, cloud computing power can directly deliver the specified size of computing power and package it into simple and easy-to-use mining services for ordinary users to purchase, greatly reducing the cost of ordinary users The cost of funds, time, resources and energy for each household to participate in mining.
Blockchain is born out of the underlying implementation of bitcoin. In a narrow sense, blockchain is a kind of chain data structure composed of data blocks connected in sequence according to the time sequence, and it is a technology of decentralized ledger that can not be tampered with and forged by cryptography.
Blockchain is the carrier technology of digital currency. At the same time, after more than ten years of development, people have gradually realized that the advantages and characteristics of blockchain technology can be applied to a broader field, so some people have devoted themselves to the research, development and promotion of blockchain technology. There are three main parts: chain building, DAPP development and blockchain +.
The popularity of blockchain technology has led to the development of many blockchains. Carrier chains of digital currencies such as BTC, BCH, Eth and EOS are usually published on the public network, maintained by the open source community, and can be used by anyone. They can be called public chains. The application-oriented chain, which is developed by commercial companies such as Facebook, Baidu and Tencent, is usually called private chain.
DAPP refers to the decentralized application developed through smart contract and other technologies on the blockchain. Most of the applications on the public chain are for ordinary users, such as electronic pets, gambling games, decentralized exchanges, light games, etc. Blockchain + is more commercial applications developed by commercial companies based on private chain combined with a certain business field, such as integral system, copyright certification, decentralized storage, bank securities, etc.
With the development of blockchain technology, it is believed that more and more excellent chain and chain based applications will be born.
Risk tip: all digital currencies mentioned in this paper are not investment suggestions.
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