Where is the value of BYSTACK? This is a frequently encountered problem, and I can talk for a long time about performance, architecture, and protocols. But this article is more ambitious. I want to look at BYSTACK from another angle, that is, how to better understand the world value cycle. The structure of this paper is very simple, extending from familiar scenes to strange scenes.
The first part deconstructs the traditional business world;
The second part describes the value loop of the Bitcoin blockchain;
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The third part describes the value loop in the BYSTACK world.
First, a rough classification in the business world
(1) Production and sales
Without being constrained by the "supply and demand" of Western economics and the "production and consumption" of Marx's economics, entrepreneurs can divide the behavior of the business world into two: one is production and the other is sales. "Production" means that products and services must be manufactured. Whether it is production of tangible physical assets or invisible soft services, the process of production is the process of creating value. "Sales" is the process of selling the things that are produced to customers. The process of sales is the process of transferring value. Value creation and value transfer make our world more and more abundant.
For example, in agriculture, producers are farmers. Farmers work hard to grow agricultural products. The sellers are agricultural product distributors. They sell products through various channels, such as supermarkets, stores, and online stores. In the financial industry, producers are financial product managers who perform due diligence on asset targets, package and design financial products, and then hand them over to managers and sales teams, such as licensed fund sales companies as sellers. Products are sold through exchanges, bank counters, P2P, etc.
(2) "Technology and Industry" and "Trade Technology"
Which is more important for production and sales? This usually represents the positioning of a business and individual's profit model.
For company organization, production and sales are very important. We have seen that Huawei has a lot of leadership in the manufacturing field. Huawei is also full of wolves in sales. They dare to sell in the most remote areas of Africa, dare to go to the war in the Middle East, where there is a market, where are they? The figure. When it comes to Huawei, I can't help but think of "Lenovo". Lenovo starts with "trade and industry technology" and focuses on sales (trade). Although Lenovo has achieved a lot of achievements, it is clearly with Huawei in 2019. Judge.
However, there are only a handful of people who can clench their fists like Huawei. The ability of most companies to produce and sell is uneven. In the initial stage of a company, there are various resource endowment restrictions, so that it is necessary to have a breakthrough to break through. When it grows big enough and faces the choice of temptation and opportunity cost, it is the moment to test entrepreneurship.
(3) "Atomic Bomb" and "Tea Egg"
For individuals, production and sales must be at least one line. I talked with my friends about career planning. He said that he wants to invest more than ten years into the tea industry, because only a dozen or twenty years can produce results. I asked him if the ten years you mentioned were invested in the production or sale of tea, because production and sales are actually two skill trees. The ability required by the two is not the same, if you want to understand tea. Production, you have to study the history of tea, the cultivation of varieties, the influence of soil, wind and rain, etc. If you want to understand the sales of tea, you must understand the appeals of consumers, develop and accumulate their own old customers, and become more sophisticated in the commercial division of labor. In the era, we personally cultivate the "skills tree" to be biased to maximize efficiency.
Referring to the "skills tree", I would like to mention more interesting aspects of traditional education, that is, traditional education is very biased towards production, and learning physics, chemistry, mathematics and other disciplines are all teaching you how to create value. But there are very few disciplines that teach you how to sell (transfer value), and the ability to sell (transfer value) is difficult to learn in the classroom and must be practised into business practice. Therefore, we have seen many poor students in traditional education, but they are able to show their strengths in society. The high probability is because they have a stronger ability to transmit value in the business society, and to transfer value and create value. The skill tree is different. Of course, this extends another very interesting reflection. The production value and the value of the value are more profitable, that is, which of the production and sales to make money? This problem is a matter of opinion. Different industries and different fields are different in different times. There is helplessness in "making atomic bombs better than selling tea eggs", and there are also "sweet wines that are not afraid of the alleys."
Second, the value cycle in the bitcoin blockchain
Bitcoin itself creates value and transmits value by itself. Bitcoin is the creator of the self and the seller of the self.
(1) Bitcoin itself creates value. The source of the value of Bitcoin can be said to be different. Some people say that the value of Bitcoin comes from a large number of uses and transactions. Some people say that the value of Bitcoin comes from consensus. Some people say that Bitcoin is a substitute for gold or some countries. . But what is certain is that Bitcoin does not anchor any assets in reality. There is only one sentence in the founding block that ridicules the current politics. Chancellor on brink of second bailout for banks, the British Chancellor of the Exchequer once again stood in the rescue banking crisis. The edge", in a nutshell, Bitcoin itself achieves value creation from 0 to 1. Not only that, Bitcoin also expands the traditional currency function, textbooks will tell us that “money has value scale, circulation means, payment means and other functions”, but Bitcoin has a function more than traditional currency, called the function of creating money. . The Bitcoin system has the function of creating new currencies. People can get new bitcoin through competitive accounting (mining), and Bitcoin creates bitcoin by itself.
(2) Bitcoin itself transmits value. In a narrow sense, the traditional currency is just a physical medium. It may be a piece of paper or a coin. If you want to complete the transfer function, you need the help of financial institutions such as banks. But Bitcoin itself is a string of code that can be easily programmed to achieve its own value transfer. Broadly speaking, all the roles involved in the Bitcoin system, whether miners, Bitcoin users, Bitcoin developers and maintainers, Bitcoin evangelists, are transmitting the value of Bitcoin in a variety of ways and are passing on The logic of self-consistency in realizing its own interests in value. We have to admire Nakamoto again, not only for the innovative combination of technology, but also for the strong control of social mechanisms.
Third, the value cycle in the BYSTACK world
BYSTACK is a complex system than the Bitcoin blockchain, mainly introducing the extremely complex factors of real-world assets. The BYSTACK value loop is divided into two layers. The first layer is value creation: the asset is wound up. The second layer is value transfer: screening out valuable assets.
(1) Value creation: carrying assets on the chain and maintaining asset entropy
Different from bitcoin value from 0 to 1, the value in BYSTACK is from 1 to N. First, the initial value is not created out of thin air. The value of BYSTACK is derived from the anchoring of assets in the chain to the assets under the chain. And the anchoring of the side chain assets to the main chain assets. These two anchors guarantee how the real world recycles value. BYSTACK will support this value cycle more efficiently. Real-world producers and sellers can find mappings in the BYDSTACK world. In fact, this is the asset. The winding process.
The assets inside BYSTACK, in addition to BTM used as transaction fees and main chain block rewards, are native assets, and most assets are assets that need to be combined with the real world. On how to map and combine assets, it is only a conceptual mention in Ma's series of articles on “asset-winding”, but in BYSTACK we provide practical tools for asset-winding, making assets more orderly and more compliant. Running on the chain. For example, if an enterprise wants to chain its own points, it can easily create assets on the main chain and manage, distribute and distribute its own assets on the side chain.
Entropy is a very interesting concept. Changyi often uses entropy to explain the role of POW in blockchain. Asset entropy is an interesting concept proposed by the author combining "physical entropy" and "information entropy". Because assets have the dual attributes of physics and information, assets are first of all a physical carrier (that is, a financial derivative can still trace the source of its assets), assets have information attributes, only physics with certain information cognition A carrier can be called an asset. In general, in the process of increasing physical entropy, more information entropy is needed to stipulate assets, otherwise the assets will become unpredictable and lose value. Similarly, in the case of a decrease in physical entropy, the required information entropy will be less. Further, if the physical entropy and information entropy of the asset are taken as the vertical and horizontal axes, respectively, only the extreme case is considered. In the case of extremely large physical entropy and minimal information entropy, the asset will be chaotic and people will reduce it. Trust, the ultimate asset will die. On the contrary, in the case of extremely small physical entropy and huge information entropy, the asset is highly certain, but people will inevitably feel that this asset is too cumbersome and professional, and only has the research value of cultural relics.
In the process of combining assets with blockchain, physical entropy is getting bigger, more flow and combination possibilities, but the existence of BYSTACK makes the process of physical entropy increase controllable, and at the same time increase The UTXO, asset classification and other information make the information entropy increase simultaneously, so that the assets can be kept orderly and stable.
* Entropy: The earliest originated from the description of thermodynamics. The second law of thermodynamics believes that isolated systems always have a tendency to change from high order to low order. This is the principle of entropy increase. Later, Shannon proposed "information entropy". The concept used to describe the degree of uncertainty in information.
(2) Value circulation: screening out value
Adam Smith has a classic exposition of "division of labor" in "The Wealth of Nations". One worker can make at most 20 needles per day, but after a reasonable division of labor (the process is divided into 18 processes, each person only completes a certain One process), on average, each person can make 4,800 pins, and the division of labor greatly liberates productivity, which is the biggest driving force in the industrial age. But in the era of digital economy, we are not relying more on human hands, relying more on human brain intelligence. It is difficult for us to divide a mental activity. When we write this article, it is difficult for us to make a People study traditional markets, one studies bitcoin, and one person studies BYSTACK. All work must be given through a person's intelligence and inductively present innovative insights.
How innovators are so lonely.
In the calculation of blockchain, it is also true. More computing power brings more power, but the random operation of each node's computing power needs to be constant, so the individual intelligence output efficiency Did not improve.
But what is valuable is that the blockchain efficiently screens out lonely innovators.
In the construction of BYSTACK, we strive to create a blockchain system that can filter out innovators. At the application level, we emphasize that the market is spontaneous. Whether it is a decentralized trading venue or a semi-centralized matching mechanism, the ecological entities involved in BYSTACK only need to pay attention to their own work, and do not need to consider too. Multi-blockchain factors, as long as they create value, we can screen out. The explanation for this part may be too abstract. The author has mentioned the specific case of points in "Stars and Points," and the issuer of the points can only use good value to consider the value of their own points. A loop that forms a positive gain.
Just as the Windows Windows operating system gives people a visual sense of the computer for the first time, the blockchain needs some "window media" for large-scale commercial landing. BYSTACK is different from the previous block such as public chain, alliance chain or BAAS platform. A new chain architecture for the landing scene, which is characterized by the easy-calling and market-oriented spontaneous deployment properties of the landing application. We hope that everyone can see more value loops in the world through this “window”. .