Many friends are asking, what is the essence of blockchain? Why is he so valuable, why must he be valuable, and will be even more valuable in the future?
1. Do not trust the Internet and social experiments
The essence of the blockchain is actually a social assumption, a network structure assumption, assuming that everyone is a bad person, everyone does not trust, everyone has nothing to say, and everyone is for their own interests. Under assumptions, he is valuable.
Just imagine, if there is no trust, it will be difficult for nodes to conduct transactions, and value will not flow. If you want to do business with others, aren’t you afraid that he will lie to you? What should you do? If you don’t drink two meals, drink until the dark, don’t see what kind of car he drives, and don’t set up a capital verification threshold, do you dare to do something?
So you turn to banks, intermediaries, and third-party supervision, which is the form of our current society. In a sense, the blockchain can reflect our reality to a certain extent.
The method of blockchain to solve the above problems is to establish a peer-to-peer distributed network, relying on cryptography technology, mathematical formulas, and the public consensus mechanism of the entire network to compete for the right to generate blocks and record information.
Through the smart contract, through the code executed at the same time, it is guaranteed that one hand will pay and one hand will be delivered. No one can break this rule.
Once you announce the result to the whole network, all nodes will save your transaction records with others at the same time. If it is remembered by everyone, it cannot be tampered with, and then the next record will be made immediately. In this way, the entire record will become a large ledger, and each data packet will be linked. This is the blockchain. Think about it, where is its value?
Second, the value of Bitcoin and Ethereum
Why the value of Ethereum and Bitcoin is so high now, they have experienced many challenges. Still worth a lot, and getting higher.
The very important reason is that there are many nodes in Bitcoin and Ethereum. These nodes go through a consensus mechanism. Consistency has been achieved in the entire network. There are too many nodes and too many accounting copies. The network is relatively safe and cannot be tampered with.
Now there are many centralized projects, or near-centralized projects, their speed is much faster than Ethereum. In theory, they should quickly beat Ethereum, but the actual situation is not like this, Ethereum is still it, Bitcoins are still Bitcoins and they are still the most valuable.
The dao organization of the blockchain is fundamentally different from the traditional large enterprises. There is no monopoly in their network, no one person has the final say, there is no opaque black box, or the individual has the final say.
Everyone only needs to abide by the rules, not a certain person. Even if Satoshi Nakamoto himself appears, it is impossible to change the rules, and it is impossible to rule the entire network. You can also choose not to trust him. This is their value.
Third, interconnection and wealth flow
Nowadays, blockchain projects emerge in endlessly, and they are found on various tracks, but they all face a common problem, that is, they cannot communicate with each other, and their security cannot be guaranteed, just like isolated castles.
In the future, through cross-chain technology and information connection, value will flow throughout the network, and the blockchain will become a large network.
At the policy level, there will also be various underlying designs. From the bottom digital stable currency, legal currency, stable currency, just like our digital renminbi. Build the initial infrastructure.
Then, our various existing information, assets, and credits will be migrated to the network. Such as real estate, such as cars, such as our identity information, such as our medical information. For example, our credit records, justice, laws, etc., will be migrated to the blockchain.
In the past, building this kind of trust required a huge price. For example, a central organization would consume a lot of resources, and there would be slack and corruption. Now, we only rely on one set of codes. A rule can complete the construction of this mechanism.
Only by adhering to such a system, people can conduct transactions and carry out various activities on the blockchain network. Our physical assets, credit assets, and virtual assets can all be placed on the entire blockchain.
At this time, the transaction scale of the entire market and the relationship between people will become more pure. Due to the larger transaction scale, clearer and more detailed division of labor, and more transparent rules, without the black box, our wealth will also reach a new level.
In my opinion, this is the most essential source of value of the blockchain.
