Babbitt Column | Encrypted World: The Pirates of Dream Space in the Matrix of Digital Money

Those who are familiar with "The Matrix" and "Pirates of the Dream" must be impressed by the "double world" and "multi-layered dreams" in the film. Similar subtle ideas will shake the reality, dreams and subconsciousness in tandem. In-depth, sympathetic, so that the viewers screamed.

This "multi-layered space" is an excellent reference for understanding the complex and delicate relationship between the legal currency system and digital currency.

Modern currency is distinguished by two important "totems" – the "fundamental currency" that relies on cash vs. the virtualized "digital currency . "

"French currency": issued by the National Central Bank, with unlimited legal liability, in the form of banknotes and coins (ie cash).
"Digital currency": Issued by a bank or private institution, all in the form of non-physical currency.

They represent two dimensions: sovereignty and individuality, public and private, scarcity and mobility, discipline and flexibility. Just like " Matrix" and "Zion" in "The Matrix", we can build multiple levels of space in the "matrix" of digital currency and create a " chaotic domain" outside the system – encryption world.

For most people, the French currency is the "real world," and the various digital currencies act as "virtual worlds" (or dreams) superimposed on them. To enter each level of dreams, you must use the auxiliary tools to return to the reality from the dream to "synchronize" multiple parallel time and space "chain exit" or "telephone booth" in the matrix.

When people deposit paper money at the bank counter and become a series of numbers, they walk into "a layer of dreams . " If the bank card balance is transferred to WeChat or Alipay, it will sink into the "two-layer dream" . Unlike cash, which requires face-to-face delivery, digital currencies can flow freely relative to each other and are no longer constrained by space. However, in order to exchange cash, you must quit one by one, withdraw it to your bank account, and cash out with a cash machine. The two-layered dream is also an area that most people can enter and exit.

This was originally a complex "dream-dream" structure, but it was only on the "edge" of human consciousness, and it also sprouted a world without structure and without "dream master ." This network grows rapidly after a bitcoin "implantation" without a specific physical form, extending a place of freedom.

It is not a simple operation for ordinary people to sneak into a deeper world. Existing channels are often not applicable, but special "sedatives" are used .

The "sedative" not only allows the participants to be in another time and space, but also is independent of the constraints of the real world.

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In the story of digital currency, "stable currency" is responsible for this function. The virtual currency exchange facilitates the trading of traditional funds and encrypted assets by stabilizing the bridge of coins, and allows those who want to contact the encrypted world to travel freely in their "three-level dream" "offshore" ports.

Unlike the first two layers, there is a price to pay for this dream. Because it is impossible to return directly to the world of legal currency here, it is necessary to coordinate the time of multiple layers of dreams, and withdraw from the chain, otherwise you can only stay at the exchange or fall into the chaotic domain of cryptocurrency.

Synchronize time in "Pirates of the Dream". For legal and cryptocurrencies, Synchronizer is the interweaving of exchange rate and parity . The exchange rate is the price at which the stable currency anchors the legal currency and the local legal currency. The parity (Par) refers to the price of the same currency at all levels. In other words, although the stable currency is the same as the US dollar, in the actual market, there will be a premium and a discount due to different conditions at the level of the company. Only when the exchange rate and the price are the same (eg. X national currency = 1 USDT = 1 USD sink = X national currency ), can we be perfectly hedged.

Layer crossing is not the only way to enter the world of encryption. As a powerful and expensive "dream machine" , the "mine machine" can directly connect to the "real world" and "encrypted world" .

Unlike the "real world", there is no "dream master" in the "chaotic" encrypted world. It is in a "collective unconsciousness" and relatively unstructured and disorderly. What constitutes this world is the concept shared by human beings, such as the pursuit of decentralization, the protection of privacy, and the struggle against central monopoly.

Here, any participant can break the laws of physics, create buildings and even recreate "multi-layer space" (lightning network, side chain, cross-chain). Not only is "space", but the "time" in the encrypted world is not bound by the real world. Of course, all this is not without trade-offs. Disordered markets, limited resources, diminishing security, fragmented information, and easily lost self are the shortcomings of the world.

However, for those who have been in the world of encryption for a long time, "dreams" have become a reality.

In their view, the world of legal currency is the foundation without ignorance and ignorance. The "currency standard" is a new yardstick for measuring value.

This is back to the topic that humans have been exploring for a long time : What is the "totem" (anchor) of money?

"Anchor" is not an asset or power itself, but an "eternal" concept. The power of this idea is enough to drive Neo to choose a red pill, Cobb walks out of the heart of his deceased wife, and the central bank is out of the bondage of gold.

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The currency entity itself may be just an imperfect substitute for the recording, storage and retrieval of high quality information. With the decentralization of information storage and access, "reality" will have to merge with the "encrypted world" under the iceberg.