No topic has been like digital currency, so that the opinions of governments and mainstream financial circles have such a large confrontational difference.
Buffett said, "You can't determine the price of Bitcoin, because this asset can't create value... From this perspective, it's a bubble."
JPMorgan Dimon, CEO of JPMorgan Chase, said, "If you are stupid enough to invest in Bitcoin, you will pay a price one day." But soon he changed his mind and said: "The blockchain technology is real. ”
Through these contradictory discourses, it can be observed that although the user base of digital currency is only 20 million, the transaction volume is only one in 100,000 of the volume of foreign exchange transactions. However, the impact of digital currency on society has surpassed everyone's ability to judge.
People are not much. Digital currency was born in the code farming circle and chain circle, and grew up in the currency circle (2012). In 2017, it deeply influenced the Internet circle and the VC circle, and was doing things to subvert the financial circle.
People from different backgrounds gather on a topic, and the resulting views and controversies inevitably represent different academic backgrounds, interest groups, and inherent biases:
The code farming circle and the chain circle respect the supremacy of technology, the spirit of freedom and geek, they found a spiritual home in the Austrian school;
The currency circle believes that virtual currency is a value-added asset;
The financial circle believes that digital currency without a credit endorsement is a scam. The deflationary currency model that cannot be issued will certainly not succeed;
Some VC circles believe that blockchain is the next generation Internet technology, All in blockchain. Another part of the VC circle believes that the vast majority of digital currencies are fraudsters;
In the past six months, the ICO market at home and abroad has experienced multiple roller coasters. The main cause of the rise and fall of the market is the policy changes of governments. It was thought that cutting the legal and digital currency payment channels would eliminate digital currency, but did not expect that in the world of complete digital currency, the scale of digital currency transactions will grow more rapidly.
Since the formulation of policies represents the game of interest groups in most cases, this paper mainly discusses blockchain and digital currency from a technical and academic perspective:
For a long time, the most popular words in the digital currency circle are bitcoin and blockchain, which represent the currency circle and chain. Let us first review the history:
In 2013 and 2014, Bitcoin was hit by multiple governments, forcing startups and related technology practitioners to debitcoin the blockchain. Many Bitcoin companies have changed their name to blockchain companies.
Since then, some companies and organizations have changed their minds and focused on the underlying technology of Bitcoin, blockchain technology. They compared the blockchain technology to a new type of database, designed the private chain and the alliance chain, and gradually formed a chain, representing the company mainly IBM, R3, Hyperledger. The remaining groups that believe in Bitcoin have formed a currency circle.
Before 2017, there was only a chain and a currency circle in the Bitcoin world. The chain circle is like the smugglers of the gangs, high-end talents, only technical theory, contempt for the speculation and monopoly of the currency circle; while the people of the currency contempt for the poverty of the chain.
However, at the end of 2015, the launch of Ethereum laid the groundwork for the integration of the two circles. Because it was a little effort to release your own Token through Ethereum. Previously, issuing your own token on the Bitcoin blockchain required deep procedural knowledge.
To put it in a metaphor, if it is necessary to be familiar with assembly language when issuing Tokens in the Bitcoin blockchain, then issuing Tokens in Ethereum is as simple as clicking a mouse with a Windows system.
The reduction in the issuance threshold has caused ICO's prosperity since 2017. Chain companies that endured years of poverty have issued their own tokens, which has led to the integration of the chain and the currency circle, and has caused the entry of the Internet circle, the VC circle and the mainstream financial circle.
There are too many scammers and too much bubble. At present, the ICO Token is spammed and is regarded by many as a beast. But for many years, the author himself has been thinking about a question, is that blockchain technology can be logically self-consistent if it is out of Bitcoin?
It should be noted that although Nakamoto's papers have created bitcoin and blockchain at the same time, the concept of digital currency and block is in the academic field. As early as the 1980s, Stuart Harber and Wei Dai and other scholars invented it. The main inventive contribution of Bitcoin is the integration of a consensus mechanism for PoW workload proofing and timestamp blocks.
In human society, the consensus mechanism of human beings lies in the fact that the total amount of gold on the earth is certain, and gold is very difficult to forge. The combination of human nature's selfishness and comparative economic theory has created the development of human division of labor and market economy. Money and market economy are the greatest inventions of mankind.
In the digital currency world, if multiple stakeholders lacking mutual trust need to work together and reach a consensus, they must have a certain consensus mechanism, and the consensus mechanism must be generated by the internal network rather than the external independent authorization.
It is conceivable that in the digital world, the simplest example of coordinating the division of labor among multiple subjects is to learn the market economy of the human society, use money to coordinate interests, and promote division of labor. Without the digital world of Token, just like a market economy without money, division of labor will become impossible. Just as the development of the chain has formed a private chain and a coalition chain since 2014, the use of the blockchain has been greatly limited.
There are currently three consensus mechanisms for the mainstream of blockchain:
Proof of PoW workload. That is to decode the mining, everyone divides the currency, the competition is the computing power, which is also a consensus mechanism to ensure that the Bitcoin system has been safe;
Proof of PoS rights. Based on the currency age mechanism, the problem of energy waste proved by workload is solved. Equivalent to the responsibility of maintaining the stability of the maintenance system to the major shareholders;
DPoS authorized equity certificate. The rights of all users are concentrated in the hands of a few people through a voting mechanism. That is, these trustees are responsible for maintaining the operation of the monetary system, similar to the decision of the board of directors in the real world.
But no matter which kind of consensus mechanism, you can't do without Token when you look carefully. In order to encourage all nodes to participate together and maintain the safe operation of the blockchain system, an equity mechanism is needed as compensation and incentive for participants. That is, through the means of economic balance, to prevent tampering with the contents of the general ledger. Token has become an inevitable mechanism for issuing incentives.
So in summary, ICO does have a bubble, but Token is probably an indispensable part of blockchain technology. In the final analysis, reaching a consensus is a price! A blockchain application without a Token is incomplete, and it really becomes a decentralized distributed database, and the scenarios used will be greatly limited.
Figure quoted from howmuch.net
But is it reasonable for everyone to be able to issue money? Just as the rapid development of the ICO boom in 2017, there have been many air currency companies, which are companies that issue money for money.
There is no doubt that the government has the responsibility to protect the unidentified people from deception. Compared to the Ponzi scheme of high-interest financial management, the ICO's fraudulent nature in high-tech outerwear has not changed.
However, in this regard, all ICOs are scams, and the argument that the blockchain must be tokenized is not the correct path. The author's suggestion is that the exchange channel for Token and French currency should be cut off. The use of Token should be limited to the economic system designed by the issuing company.
In this example a more efficient scenario:
The supply chain of a Fortune 500 company will affect tens of thousands of companies. Traditional supply chain financing, this large enterprise can only endorse credit to its first-tier suppliers, and credit cannot be radiated to secondary or multi-level suppliers;
But if the company issues its own token on the blockchain and allows the token to circulate within its multi-level supplier system, the authenticity of the token can be verified through the blockchain, and Token transactions can be automated through the blockchain. Any financial company can check the transactions on the blockchain and evaluate the order status of the suppliers at any level to make credits.
Although the centralized database establishes a digital voucher system to accomplish all of the above tasks, the centralized system needs to be certified by the participating multi-level suppliers one by one, so that it must bear the corresponding legal responsibility, and the large enterprises lack economic power and are not willing to provide this central node. service. Moreover, it is difficult for a centralized system to prove that its data is true to third-party financial companies.
The author believes that the Token is issued with several conditions:
Assets must be digitizable;
Token must be confined to the design of the economic system, not connected to the legal currency or the legal currency channel must be a government-approved financial institution;
Participants must be decentralized and lack mutual trust, but need to work together to accomplish a task;
The consensus mechanism must be open, transparent and verifiable;
For risk isolation, the Token economy must be confined to the issuer's economic system;
In short, the core of the Token system design is the design of the token economy system, and the core of the token economy design is the consensus mechanism. The consensus of human society is the recognition of the value of labor. Corresponding to the PoW of the Bitcoin blockchain, designing an economic system is extremely complicated. Many economists who have contributed to the design of the economic system have won the Nobel Prize.
Therefore, I hope that entrepreneurs should not be eager for quick success, learn more and absorb cross-domain knowledge and conduct cross-professional collaboration. It is difficult to use cryptography to solve the game problem in currency issuance without cryptography; it is easy for code farmers who do not understand economics to move toward idealism. I hope that entrepreneurs can combine the real scene and patiently design an effective Token economic system.