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Read an article to understand what blockchain technology is!

Time : 16/11/2021 Author : nmr86o Click : + -
        Blockchain upgrades the current Internet to version 2.0, realizing the first upgrade in the three-step process of "information internet - value Internet - order Internet"; It will even reconstruct the online and offline value credit system of society, and promote the formation of the value measurement of human society in the information civilization era through value sharing. What is the black technology that will have the greatest impact on mankind in the next decade? Don Tapscott, the "father of the digital economy", believes that it is not a robot, not big data, or even artificial intelligence, but a blockchain. It may trigger the fourth industrial revolution, or redefine the Internet and even human society!. Decentralization: since the blockchain relies on all nodes to jointly maintain the system and ensure the authenticity of information transmission, it is based on distributed storage data, and there is no centralized management by a certain center, so the attack and tampering of a certain node will not affect the healthy operation of the entire network.
 
        De Trust: the establishment of connection between any two nodes does not need to trust each other's identity, and the data exchange between the two nodes does not need to be based on mutual trust. Since all nodes in the network can act as "supervisors", there is no need to worry about fraud. Anonymization: both parties of data exchange can be anonymous. Nodes in the network can exchange data without knowing each other's identity and personal information. Safe and reliable: since the activities of any node are supervised by the whole network, and the database adopts distributed storage, for hackers, first, it is impossible to camouflage and conduct fraud activities; second, it is impossible to control the network only by attacking a certain node.
 
        In the traditional currency transaction mode, the bank management account adopts centralized management. The bank establishes a central database, and the bank manages the bank account information of each person and the balance in the account. For example, if a wants to transfer a sum of money to B, it needs to be verified and reconciled by Bank o, and then modify the accounts of a and B to transfer the money to B. The bitcoin trading mode based on the blockchain technology excludes the role of the bank as the central database. Each bitcoin user's computer is a node, and each node can store data. The nodes are connected to form a huge network. For example: a broadcasts to surrounding nodes: I want to transfer a bitcoin to B.
 
        Then a sends the bitcoin information to the surrounding node for verification, and the surrounding node confirms the legitimacy of a holding the bitcoin. When a certain number of nodes pass the verification, the transaction is established. The surrounding nodes record the transaction and confirm that the new owner of bitcoin is B. The surrounding nodes broadcast to other nodes in the network until all nodes record the transaction. The design mechanism of the blockchain is that only the longest chain is effective. If a bad node wants to tamper with the content of the blockchain, it cannot change a single block, and can only strive to generate new fake blocks. This requires confrontation with all other nodes in the whole network. Therefore, if this node has more than 50% of the computing power of the whole network, it can control the blockchain. The professional term is called computing power attack.
 
        At present, the bitcoin system has been spread all over the world, and it is difficult to attack it. Even if someone can do it, the cost will be greater than the value obtained. This puts an end to the attack from the perspective of economics. As the bitcoin network becomes larger and larger, its value will become higher and higher, but its computing power will also become higher and higher, thus maintaining this balance. In fact, blockchain is a decentralized accounting system. Generally speaking, for the bookkeeping system, the bookkeeping behavior and data storage are centralized. Decentralized bookkeeping is equivalent to storing the books in different places and being bookkept by different people. Therefore, how to solve the problem of bookkeeping consistency is the key.
 
        The special feature of blockchain technology is that it ingeniously solves this problem by means of competitive bookkeeping (mathematical problem solving). When a node calculates a mathematical problem, it can quickly verify it with other nodes. When enough nodes acknowledge the result, the system will confirm it. This not only avoids the need for a centralized authority to make judgment, but also prevents the manipulation of malicious nodes. Now we can finally answer our question, how will blockchain change the world? After reading this, have you found that if we accept the blockchain based digital currency, we actually do not need banks? In fact, you won't hear of any bitcoin banks.
 
        The substitution function of blockchain for banks is similar to that of Alipay for banks. We deposit money in banks for three reasons: interest, security and more convenient payment. Alipay has these functions, while blockchain has the latter two. However, the income from wealth management can replace the interest income. Both Alipay and the bank are centralized accounting systems. When we pay in non cash, we need an authoritative accounting institution to prove to the merchants that there is money in our account and help us transfer the money to the merchants. The authority of the bank as a bookkeeping institution comes from the endorsement of the state regulation, and we believe that Alipay is due to Alibaba's credit and technical ability.
 
        However, the existence of such a bookkeeping intermediary has generated huge costs. Think about how many offline outlets and service personnel there are in the bank. In addition, each bank has its own it bookkeeping system. When users pay and transfer money, transactions will be formed between banks and recorded by two banks, which involves reconciliation and settlement. Domestic transactions are OK, because the central bank acts as an authority to carry out inter-bank clearing. However, international transactions do not have an authority as an intermediary, and the clearing systems and processes of different countries are very different, which makes the transactions very troublesome. The solution of the blockchain is decentralized. All transactions are publicly recorded on the blockchain, which saves the trouble of reconciliation. Transnational transactions do not need to wait until the bank settlement on the same day, but can be recorded in real time.
 
        At present, the cost of international clearing is about US $26 per transaction. If the blockchain is applied, the annual cost saved by this item alone will be tens or even tens of billions of US dollars. Furthermore, the whole financial system is a trust system. Originally, this system was built through national endorsement and financial supervision. The emergence of blockchain solved the trust problem by means of technology, thus proposing a set of alternative solutions with lower cost for the existing financial system. For another example, we need to pay service fees for trading stocks in the exchange to cover the costs of the exchange and the operation of the securities system. However, if the blockchain can record all stock transactions, theoretically we no longer need an exchange.
 
        According to the daily transaction volume of a shares of 200 billion yuan and the average transaction cost of 0.05%, the daily cost of China's stock trading alone will be saved by 100 million yuan. When the cost structure of an industry changes, drastic changes often occur. From this perspective, blockchain will reshape the financial industry. The annual output value of the global financial industry is several trillion dollars. The application of any subdivision will be a huge market. Not only that, the trusted accounting system created by the blockchain has many other applications, such as recording copyright and transactions in film and television, music, publishing and other industries; Recording the issuance of digital assets; Record the medical history and medical conditions to facilitate doctors to understand the patient's condition; Record the production of each link of the supply chain, so as to realize the traceability of the supply chain and prevent the production of fake goods.
 
        Blockchain shows us a world in which all assets will be digitized. On a valuable Internet, the transfer of assets will be as fast, convenient and cheap as the transfer of information today. I wonder if you still think I'm describing a future world when I write here?.
 
        
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