Bystack Worldview (1): Three dimensions of assets

Teacher Xiao Feng defines assets as three states of existence: solid state, which represents the determination of assets and can be transferred as a whole. Liquid, representing the securitization of assets, can be cut and subdivided. Gaseous, which represents the asset chain, so that assets can be permeated throughout the space, no longer subject to the constraints of the container (asset platform), everyone, institutions, organizations can manage their assets through private keys.

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This is a very vivid metaphor, and the naming of the side chain Vapor of Bystack [1] is also inspired by this. But the three-stage theory seems to only consider the evolution of assets, and does not define asset types. For the definition of assets, there is no unified norm in the industry. Like the rise of agreements such as Ethereum ERC20, they are different for different asset types, but the definitions overlap and chaos. For example, ERC721 and ERC875 can achieve non-replaceable replacement. Assets that are unique in property rights are on the chain, but there are subtle differences between their definitions. There is a need in the industry for a standard asset type definition that is common to all blockchain asset agreements.

So, how does Bystack define asset classes? How do we distinguish between upper-chain assets and non-wind-up assets (traditional assets), and what is the difference between the upper-chain assets? What dimensions should assets have?

Daosheng 1: Trustworthiness

When we take out a hundred yuan from the bank, it is actually equivalent to the bank issuing you a 100 yuan IOU (I owe you), which is the basis. We trust that the bank will accept the 100 yuan. In the past, the 100 yuan corresponds to the gold worth 100 yuan. Now there is no physical assets behind the 100 yuan, but there is a hidden credit guarantee from the state agency. Rather than trusting us, we trust countries and banks.

When we shop from Taobao, or click on the credit evaluation. If you get rave reviews, Crown Store, we will be happy to place an order. Rather than saying that we believe in the credit of the store, we believe that we believe Taobao's credit evaluation system.

But this kind of trust is actually unreliable. The legal currency may depreciate and the credit may be brushed out. The idea of ​​blockchain believes that the trust that requires third-party endorsement is actually not reliable, so Nakamoto has thought of implementing a non-trustless electronic payment system in a decentralized way. So we get the definition of trustworthiness, and all assets or transactions that do not require endorsement by third-party trusted institutions are trustworthy . It sounds a bit sloppy, but it is so.

Trust has three layers of connotation:

1. Self-certification . Blockchain addresses (accounts) are based on asymmetric cryptography (ECDSA), and everyone can prove their identity with their own private key without facing the common dilemma of "proving my mom is my mother." Therefore, a person can easily lend to a bank with a chain of assets, and the bank can easily verify the identity of the person and the assets on the chain through message signing. Therefore, the identity and assets on the chain are self-certifying.

2, special properties . Once the blockchain address (account) is generated, it is owned for life and is not transferable. Taobao's store-based credit is actually unreliable because the account can be traded and the identity information can be modified and transferred. But the blockchain private key is not transferable, because the private key is reproducible information, not atomic assets, and the blockchain account, identity, and credit have absolute specificity. Credit based on private key (person) is closer to the essence of credit than credit based on store or platform.

3. Unidirectionality . Also known as transaction irreversibility, data can not be modified, non-downtime. In addition to ensuring the security of transactions, the one-way transaction also brings an unexpected convenience due to the thermodynamic arrow. The blockchain records the currency of each transaction. The credit evaluation model based on the currency destruction is more traditional than the traditional cumulative credit evaluation model. The natural advantage of anti-brush credit.

The definition of the strongest trust is of course the intersection of the above three points, but in fact some of the assets on the chain named blockchain and real distributed ledgers do not have transactional unidirectionality, but the first two attributes are satisfied. of. Technically, self-certification and specificity are derived from elliptic curve function encryption (ECDSA), and unidirectionality comes from workload proof (PoW) and hash (SHA256). Hash itself is a one-way function (calculation is difficult, verification is easy), especially when this calculation is carried out in a competitive manner, due to the incentive effect of the new currency, it is unimaginable to calculate the cost, economically Think of the chain trading as one-way. Since Bystack is the main chain PoW and side chain DPoS+BBFT architecture, it is necessary to pay attention to distinguishing the trustworthiness of assets on Bystack. According to strong definition, the assets on the main chain have narrow trustworthiness, and the assets on the side chain have generalized trustworthiness. . When the same asset moves from the sidechain to the main chain, trustworthiness is strengthened, and we call this process a transition.

Trustworthiness is like a knife that divides the assets on the chain and the assets on the chain, but after the assets are on the chain? We need new dimensions.

Lifetime 2: Interchangeability (Fungibility) [2]

When I was a child, I had a day of whim. TV often reported those who robbed the bank. In fact, the bank directly announced on TV that the banknotes that were stolen were invalid. Banknotes are numbered, especially for bank money, many of which are serial numbers. When I confided this question to my father, he denied it on the spot, but unfortunately I did not remember the reason he gave.

Of course, every adult now knows that this program is not operational. Although the banknotes are numbered, the currency is not numbered. Every dollar in the bank is of equal meaning. In the current popular terms, it is interchangeable. . The banknote is not interchangeable in terms of its physical properties, but from the nature of its use, it is interchangeable. The banknote does not affect its value due to its material, new and old, and its number. The value is only related to the denomination. This is why my whimsical childhood whimsy didn't hold. But what about assets or currencies after they are chained? We know that all BUTXO assets are not interchangeable, that is, if the person who robs the bank is stealing UTXO-based legal currency, then my childhood plan has become feasible. In fact, similar things happen now. When a hacker steals coins from the exchange, it is almost impossible to use before the currency is mixed. Because it will be discovered once it is used, it will be frozen, just like the banknotes are declared numbered. invalid.

Interchangeability has a very deep physics connotation, which may stem from parity conservation, which, in turn, may stem from symmetry breaking. In fact, everything in reality is not interchangeable and is a competitive resource, so people say that there are no two identical leaves under the sun. On the contrary, everything on the Internet is interchangeable and is a non-competitive resource. Everything can be copied. So why are UTMO-based chain assets not interchangeable? Isn't blockchain a technology of the Internet? This is attributed to the greatness of Nakamoto. It is precisely because he combined the workload proof mechanism with the UTXO technology that the first time on the Internet to achieve non-replicable assets, bitcoin, makes the atom in reality Asset-winding becomes possible, of course, this is essentially a simulation process, and the cost of simulation is information entropy (energy consumption). Use one of the most intuitive examples to clarify that the payment on the chain is different from the nature of Alipay's third-party payment. The payment on the chain is the same as the experience of receiving a dollar from the reality. You don't worry that this money will come from you. The pocket disappeared out of nowhere. But the third-party payment is not the same. This dollar is completely possible to disappear because of the database rollback, because the latter is just a kind of accounting method for the database. It is not really a dollar to stay in your pocket.

Two students three: Severability

This is the most intuitive property, the first blockchain asset, bitcoin is typically separable. Someone once asked this question: The total amount of bitcoin is only 21 million. How can it adapt to the growth of the real economy? The skeptics obviously ignore the severability of Bitcoin. In theory, Bitcoin can be divided indefinitely. In fact, the experience of using 0.000001BTC is no different from using a dollar. In fact, the emergence of money is also due to the severability. In the 7th century BC, the Lydians used lentils to pay for the goods, which can accurately measure the value of goods. King Krisas is amazingly rich because of the coinage industry, and therefore owns The saying "rich as Krisas".

The severability of assets on the chain has a huge potential impact, and this impact is currently not widely known. For example, the existence of money is not necessary. Because any asset is the same as the currency in terms of severability, for example, in the following BUTXO transaction, the existence of currency is not needed, but the transaction actually takes place. Since the existence of money is not necessary, the words exchange rate and price will disappear, or the connotation will change. In the following transaction, there is no exchange rate or price, but an atomic exchange of barter (asset assets). When the Bystack team once designed the business points wallet, one member blurted out and said: How do we set or agree on the exchange rate of different points? When he just finished speaking, he realized the absurdity of this inertial thinking. In the BUTXO wallet, there is no such thing as the exchange rate or price in the traditional sense.

Figure 2 Transaction swap

The divisible opposite is inseparable. In some research articles, the typical indivisible assets are mentioned. Take the ether cat as an example. This cannot be said to be a mistake, but the ether cat is not a typical indivisible asset because it ignores uniqueness. There is no equal sign between indivisibility and uniqueness, such as cats (classes), which are indivisible assets, but not unique. Uniqueness (n = 1) is a subset of indivisibility (n = N). Therefore, the best example is that cats are an inseparable asset, XX cats are the only assets, and XX cats are a subset of cats.

Three things: the category of assets

If you follow general trustworthiness, you can assume that all assets on the chain are trustworthy. Then, when we fine-tune the assets on the chain, we no longer need to consider the dimension of trustworthiness. Then we can divide the four-quadrant map according to the separability and interchangeability to define four asset classes.

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1, bit assets (BAP-01) , can be divided, interchangeable. Corresponding to real assets such as Token and real assets such as currency, points, stocks (shares with the same shares), equivalent to the Ethereum ERC-20 agreement.

2, atomic assets (BAP-02) , can be divided, not interchangeable. Real assets such as Bytom's native asset BTM or other stocks issued through BAP-02 (different shares) are equivalent to non-homologous cryptocurrency agreements such as Bitcoin.

3. Quark assets (BAP-03) are indivisible and not interchangeable. It is suitable for virtual assets such as game props and game pets, real estate assets such as real estate, collectibles, commodities, and security codes.

4. Quantum assets (BAP-04) , indivisible and interchangeable. It can be applied to virtual assets such as red envelopes, as well as voucher-like real assets such as coupons, tickets, and QR codes.

By clarifying the dimensions of assets, we can also combine with other concepts that are currently popular. For example, the three-stage theory of assets mentioned above actually considers the two dimensions of asset separability and trustworthiness (but not unidirectional). Because of severability, asset securitization is possible because of trustworthiness. People can manage assets through private keys and are no longer subject to trusted third parties. The competitive resources and non-replicable resources that people often say are in fact the synonymous repetition of non-interchangeable assets. Countability is actually another way of severability. The two concepts of homogeneous assets and non-homogeneous assets in the industry actually consider the dimension of interchangeability. According to the four quadrants of this paper, homogeneous assets include bit assets and quantum assets, and non-homogeneous assets include atoms. Assets and quark assets.

In summary, trustworthiness is like the first knife cut, dividing assets into chain assets and chain assets. Interchangeability is like cutting a second knife, dividing assets into homogeneous assets and non-homogenous assets. Severability is like the third knife cut, dividing homogeneous assets into bit assets and quantum assets, and dividing non-homogeneous assets into atomic assets and quark assets.

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The beginning of the species must begin. When we define the attributes of assets, it means that the curtain of future asset-winding has quietly started.

1. " Beststack: The world's first major multi-side architecture BUTXO model BaaS platform " ↵

2. Interchangeability: When an asset or commodity is paid or settled, a certain part or quantity may be replaced by another equivalent part or quantity.