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Where will the web, 30 lead the software industry?

Time : 17/09/2021 Author : 6sdm7q Click : + -
        Like many technological breakthroughs, the central idea behind the blockchain is actually very simple, but it is covered by the decoration and noise around it. The core of the blockchain is a purely technical counterintuitive idea: information becomes more secure after being broadcast. The concept of blockchain is based on the Nakamoto white paper. The new method proposed in the white paper can avoid the double consumption problem of digital currency. The encrypted signature of the transaction block is widely released, so that the record of someone having something can be realized and tampering can be prevented. On this basis, the higher-level application field is Web 3.0, which includes various applications with broad prospects and absurd applications.
        The feasibility of the core concept of blockchain has been proved by digital currency. At present, digital currency still has great uncertainty, but the market value of cryptocurrency based on blockchain technology hovers around us $2 trillion. We can confidently say that blockchain is an important development for the financial industry. Is there any other effective use case for blockchain besides finance? Is decentralized finance really decentralized? How stable is the blockchain? What impact will blockchain have on the software industry and the whole world?. The criticism of cryptocurrency is both positive and negative. First, cryptocurrency is a pyramid plan, and the underlying assets have no value.
        There is some truth in the pyramid theory, but the same is true for the stocks on the exchange: buy low and sell high, trying to capture undervalued new assets. Another criticism is completely irrelevant: the purpose of cryptocurrency is to become a currency. In fact, the value of cryptocurrency lies in tracking value. So far, bitcoin and other currencies have successfully demonstrated their value. Various higher-level applications based on the blockchain have been proposed and implemented. From the clearest statement in the Ethereum white paper, you may find what may happen. The basic idea of the Ethereum white paper is to build a Turing complete machine based on the public blockchain. Based on this idea, we can imagine a globally distributed, publicly visible but secure virtual machine.
        Its vision is a single, decentralized computing power warehouse, in which everyone can participate, contribute to or consume. Many practical situations affect this vision. Perhaps the most fundamental is the so-called gas cost, or transaction cost. Applications running in the blockchain are usually called smart contracts, and smart contracts will be charged for running their logic. Charging is the way the network pays for itself. For many applications, these costs may be very high compared to doing the same thing with traditional solutions, even for doing some intrinsic things, such as transferring Ethereum between wallets. The cost is related to the scalability of the network: as the demand for computing increases, its price also rises.
        Scalability is part of the "three difficulties" of the blockchain. The term "three difficulties" was created by vitalin biturek, founder of Ethereum. The idea of "three dilemmas" is a useful framework that can help understand the development direction of blockchain. Many criticisms can be seen as involving the "three dilemmas". In short, the three dilemmas are to coordinate the three ideal goals of decentralization, scalability and security with a blockchain network. This is similar to the cap theorem in distributed database design: every ideal goal tends to mean a compromise to other ideal goals. No perfect solution can help you achieve the three ideal goals perfectly; You have to strike a balance and try your best to provide every service.
        Blockchain has not yet taken a real place in enterprises, partly because it is cheaper and easier to understand to build cloud services with traditional methods. But there is another more important problem. So far, the embodiment of blockchain is aimed at the public domain, and it is closely related to concepts such as money. Enterprises also tend to participate in the public sphere, but in terms of its nature, it is centralized control. The decentralization of the blockchain is not compatible with the traditional enterprise model. How can this change? One possibility is to creatively use cryptocurrency in the business model. Another possibility is that large companies or countries will create blockchains that everyone can participate in.
        The last possibility is that the three dilemmas have been fully improved to make distributed applications a viable alternative to traditional solutions. Take a look at the basic attention token (BAT) in creatively incorporating cryptocurrencies into the business model. Bat is part of the solution proposed to address the shortcomings of digital advertising. Bat is used as an exchange medium between users and advertisers in brave browser. Blockchain is used in this area because of its secure and anonymous nature. Central bank digital currency (or cdbc) is one of the possibilities to create a public private blockchain hybrid. The basic idea here is that central banks such as the Federal Reserve will adopt cryptocurrency as legal tender and promote it. In fact, it will become the digital legal tender of this country.
        There are many actions involving this idea. El Salvador has taken measures to launch the official currency of bitcoin (BTC), which may be a more radical move than adopting cdbc. If a major economy adopts cdbc, this will indicate a great change. In the chain business other than currency, the most exposed business should be NFT. NFT essentially applies blockchain verification transactions to assets. The basic idea is that non replicable tokens represent asset ownership. Although asset ownership so far mainly refers to digital art, this idea may be used in real estate and so on. More strangely, NFT can be used for voting.
        (some blockchain communities have used NFT for governance.). Another potential area where blockchain may gradually become the mainstream is games and related meta universe concepts. Is it possible for us to see a global participatory alternative reality based on blockchain? Maybe not. But there have been attempts to combine games with the idea of using blockchain rewards or in-game ownership. With the improvement of the dilemma, the blockchain will be more suitable for typical business use cases, and the public blockchain will become more powerful. We will see the significant impact of blockchain on software and society. Instead of viewing blockchain as a radical new tool, similar to cloud infrastructure entering the industry and changing the industry, we can view blockchain as different paradigms. The two paradigms will merge with each other, or collide with each other like a drifting continent.
        The specific details of the impact of the collision (such as where valleys and mountains will be formed) are difficult to predict, but on a large scale, we can say that the geography will be changed. The potential strengths of the blockchain (such as security and decentralized data) will replace the existing ones. For example, the auth0 research laboratory's research () is very thoughtful. They are exploring applications where identity and security on the chain may play a role. For example, can a wallet replace a password? If you can, the current authentication method will look a bit medieval by comparison. Identity and access management (IAM) is an area where Web3 may subvert traditional patterns.
        To break new ground in the constructive collision between traditional mode and blockchain, the best guide must be an open mind and verification spirit. Some blind paths do not lead to success, but there are also some use cases that seem obvious in hindsight. We must carefully find out the use cases of the latter case, and at the same time maintain sufficient vigilance against the former case.
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