The Consensus Art of Blockchain: The Core Value of Money is Currency Consensus

A few days ago, the World Wide Web posted a blog post on Weibo, as shown in the following figure:

The Taiwanese media feared that the world’s richest man, Guo Taiming, asked his wife, who is 24 years younger than himself, and Guo Taiming responded: “I saw the truth, goodness and beauty in Zeng Xinying’s body, and the most important thing is that I can’t smell the money on her. ".

Therefore, the underground commentary is one-sided, and it is believed that the wealthy people like Guo Taiming are overestimating their charms. There is no lack of ridicule that the wife of Guo Taiming is smelling the money of Guo Taiming. In our opinion, money can buy anything. This is the consensus of money. The core value of money is the currency consensus.

Transfer consensus

The most widely spread word of money is that money is not omnipotent, but there is no money but it is impossible. According to Yadan Smith's explanation of the four aspects of money, we can get a glimpse of it:

First, it is used to purchase natural products for use and consumption by the society every year;

Second, it is used in the manufacture and preparation of natural products to make them suitable for current use and consumption;

Third, it is used to transport natural products or to manufacture names, and to transport them from ample places to scarce places;

Fourth, the natural product is divided into smaller parts to meet the temporary needs of the needs.

The above four are four kinds of usages of specific capital in production. Then the use of money is not only the use of industrial expansion and commodity consumption, but also an important exchange medium for human desires.

Money is basically referred to as currency in modern society. There are many currencies, credit currency, storage currency and value-added currency. From banknotes to collectibles to bitcoin, it basically belongs to them.

Money in real life, you can buy any house price tag, which even promotes the prosperity of the tertiary industry. Some people think that money can't buy love, the dirty mismatch of money and the sacred love are bound to Together, in fact, money is an indispensable part of the comparison of love and marriage.

A person will not love you for a lifetime because of your value, but because you have money to spend the rest of your life. Because of what I am, I am dying, and the consensus of money is eternal.

Under the consensus of money, we can abandon the needs of other parties. The lowest level of humanity in the sense of security, once people lose their sense of security, everything will have no meaning, that is, the collapse of consensus, the collapse of consensus in marriage. Will divorce; Bitcoin’s consensus collapses and will fork. A mechanism based on consensus is crucial.

The society is a product of a consensus. Civilized behavior is based on morality. Obeying laws and regulations is based on law. Money and goods are based on monetary consensus. Otherwise, the world will be chaotic.

Trade consensus

The fundamental reason for the increasing frequency of trade frictions in recent years is that various economic developments have continued to decline, and foreign trade has become a vent. The United States believes that the Sino-US trade deficit is too large, and the Chinese are constantly robbing Americans of job opportunities. Suddenly raising tariffs on China, the long-running Sino-US friction is not only in China and the United States, but Japan also faces the same dilemma.

According to statistics released by the Japanese Ministry of Finance recently, due to high energy prices and negative trade friction effects, Japan’s trade deficit in 2012 was 1.2 trillion yen (1 US dollar is equivalent to 110 yen), the first time since 2015. Annual trade deficit.

Data show that in 2018, Japan’s total exports were 81.49 trillion yen, a year-on-year increase of 4.1%, an increase for two consecutive years. Driven by the expansion of imports of crude oil and liquefied natural gas, Japan’s total imports were 82.69 trillion, an increase of 9.7% year-on-year.

Japan's import and export are not as expected. The Japanese government is optimistic that the Japanese economy will be centered on domestic demand in 2019 and continue to be on the recovery track. The economic growth rate is expected to reach 1.3%. However, experts generally believe that the Japanese economy still faces many risks this year. According to market research, the growth rate of Japan's economy in 2019 is only 0.7%.

German government officially released the latest economic data showing that the German economy grew by 1.5% in 2018, a significant decline from the 2.2% growth rate in 2017, which is the lowest annual growth rate since the European debt crisis. Analysts attributed the economic weakness to factors such as the tight trade situation.

The International Monetary Fund said that the escalation of trade tensions and the deterioration of the financial situation are the main risks facing the global economy. Increases in trade uncertainty can further damage investment and undermine the global supply chain.

Unequal trade agreements are bound to trigger a rebound. The most important point in seeking cooperation is cooperation and win-win. If there is no win-win situation, there is no need for cooperation.

On the side, we can see that the global economic environment is sluggish, GDP growth is slowing down, and the currency is constantly over-representing. The sequelae of the United States’ previous monetary easing policy can be seen. Money is no longer worth the money, asset value is skyrocketing, led by bitcoin and real estate. The increase in assets in the last decade is staggering.

Whether it is physical assets or virtual assets is the value of consensus in nature, and trade is the consensus is cooperation, the United States is troubled, and finally China and the United States still have to return to the negotiating table. The most important thing in the currency consensus is to balance and balance the interests of all parties to maintain the operation of trade, which is like the balance of the CORE party and the mining tyrant in the cryptocurrency. It is an interdependent relationship. The withdrawal of either party is the most deadly blow to the other party. The CORE core code submission guarantees the continuous improvement of Bitcoin technology. Mine mining is crucial to the operation of Bitcoin. Withdrawal, technological progress will have no meaning.

Algorithm consensus

The consensus of blockchain technology comes from the consensus of the algorithm. In addition to allowing people to bypass the central node and return to peer-to-peer direct communication, people can exchange value through the blockchain platform.

The core of value is that everyone agrees on whether there is value and value. However, in the past networks, because each network node has time delays, different computing powers, and different behaviors, it is difficult to reach a consensus on a common value. The blockchain solution is to combine economic behavior with random mathematical algorithms to make the network agree, for example, by calculating the hash function and voting for consensus.

Thus, a new consensus mechanism has been formed on the entire blockchain.

Why is the consensus mechanism itself of great value? We can get a relatively convincing explanation from the author of the late blockchain investment field, Professor Zhang Shouyi.

He introduced a concept of physics called entropy increase. The physical world is always moving toward disorder, while the life world is the opposite, always moving in order, that is, reducing entropy, but at the same time the entropy of the whole system is still increasing.

In the consensus mechanism, the greater the difference of opinions, the greater the entropy. A consensus is to reduce entropy and form an orderly state. The algorithm of the blockchain, although it seems to be wasting the energy of the surrounding world, "in fact, it has gained a more valuable wealth, that is, consensus."

In this sense, the blockchain consensus system is a bit like a living system. That is, the order is moving toward itself, the entropy is decreasing, but the entropy of the surrounding system is getting bigger.

The era of blockchain is our belief in architecture on a mathematical algorithm, and we believe in mathematics. The replacement of the centralized platform will be the blockchain. In the blockchain, people use the open source voting model to define the rules of the game in the community with transparent algorithms.

Blockchain technology will also promote the development of artificial intelligence. The reason is: artificial intelligence technology inevitably requires a lot of data. However, there is currently not enough incentives for everyone to provide data. With the blockchain, data can be valued, and a large data market will emerge, with all parties having the incentive to provide data.

The development of artificial intelligence requires data feeding. What data can be used as feed for artificial intelligence? The answer is obvious, valuable data, such as the value of Bitcoin's transaction records, the transfer value of Bitcoin, and the construction of a reliable, consensus database under the support of effective algorithms.

All of the above scenarios are realized by relying on the blockchain consensus. It is not a one-off event. Whether Bitcoin is used as a medium for currency swaps or a consensus on trade friction, the agreement reached under the unified consensus is only It is a truly valuable consensus, not a simple database.