The Internet is developing like this, blockchain?

What is the vast majority of interactions in human society based on? The answer is the transaction.

The basis of the transaction is – credit.

Blockchain, the kind of owner, can participate in bookkeeping, and the book-book technology that cannot be tampered with touches the essence of our human social transactions–credit and confirmation.

It allows credit strangers and credits to break through space, time and power constraints among strangers around the world. These two are the basis for value exchange in human society.

From trading to the market to society, there will be tremendous changes due to the development of the blockchain.

To think about the development of blockchain, we can make a comparison with the development of the Internet to see if it is inspiring:

The core of Internet development is the transformation of information dissemination. The initial application started from the portal. Like Yahoo, Sohu, Netease, and Sina, these websites have had a huge impact on traditional newspapers, magazines, televisions and other information media, and then information. The delivery of the multi-dimensional, multi-point information interaction, such as facebook, youtube, Twitter, and so on.

So, to figure out its trajectory, the Internet world has two paths:

First, due to its technical characteristics, it must begin to infiltrate from the industry with the closest information.

Second, from static to multidimensional \ dynamic interaction.

The development of affairs is common, and it corresponds to the blockchain, and it will or may follow this pattern:

First, due to the technical nature of the blockchain, it must begin to infiltrate from industries with the closest credit links, such as the financial sector.

The second is the change from static to multi-dimensional \ dynamic, but also through the most primitive human needs.

For example, the essence of the financial sector is credit intermediation, so this area may be the best entry point. From the edge of the financial sector, there is a niche market that traditional giants cannot or are not interested in.

Take MakerDAO as an example, it can help users to obtain stable currency for other financial activities. In the period of rising currency price, senior players can use the mortgage method to amplify the income. In the down period, it can convert the dai into legal currency for turnover. Recently, Staking is also on fire. Looking at the latest statistical report, the Staking project will have a market value of 54 billion U.S. dollars next year. It is characterized by currency, whether it is in the market up and down cycle, for long-term holders, this is a A model for obtaining more tokens is undoubtedly the most humane measure. The business involved in these keywords can only be completed by the corresponding financial institutions.

Speaking of the niche market, at least P2P in China, which is almost demonized, should be able to try it.

All of the above can be considered static, as to what is dynamic?

It should still be based on the original needs of human nature, derived from the static business, but the difference between the blockchain and the original Internet may have two points: First, it may be the "bootstrap" feature of the blockchain, which It is a very important factor in why blockchains are so different from traditional Internet.

Second, its demand may be buried in the higher dimensions of the original needs, and the blockchain is naturally adapted. For example, you can see all kinds of explorations, strangers, flops, and after reading. Burning knows that the needs of a pick-up girl are deeply excavated by various dimensions of the human brain.

In other words, the areas in which future blockchains will break out may be those that were not accessible to the prior art, but there are some parts of value in the human brain, and these abstract values ​​partially form new business paradigms through blockchains, Its irreversibility will lead to the imitation of the old paradigm, which will lead to chaining in a wider range of blocks.

At the current stage, the limitations of the existing blockchain and real life integration are as follows:

1. Technical level

The solution is incomplete, the biggest flaw in the storage (file, database), if a dapp data is still stored in the central database, this is nonsense.

I talked with filcloud founder Zhang Yong. He feels that this piece has always been the soft underbelly of blockchain development. Although it is based on new consensus, data structure, algorithm and so on, it is still based on large-scale commercial requirements. Still far away, IPFS is a good choice, but the extension of Filecoin's main network as an incentive layer has made this infrastructure not widely applicable, and other storage projects are not climate-friendly. Zhang Yong said that many technical teams have done a lot of preparations around IPFS, so it should be that after the filecoin goes online, this technical solution will have an explosive growth, and the blockchain can accept the challenge with a complete solution.

2. Price fluctuations

Because many projects are air projects (not the meaning of deception), they are greatly influenced by the market and emotions. Too much volatility is not conducive to the use of tokens to participate in the physical field of the transfer. After all, social development has not yet reached the stage of the currency standard, which affects the very important factors that restrict the circulation of transactions.

As you can see, many merchants are willing to accept various tokens in the bull market, but this phenomenon is rare in the bear market. The reason is here.

So now there are a lot of stable coins. Its historical mission is to build a ladder between the US dollars in the mind and the euro and the token, making it easier to accept and use.

Put another sentence, the STO that was very hot some time ago, now seems to be dying, but in reality it is undercurrent. It anchors the physical assets behind it. It has both "value" and investment attributes. It is the only way for the blockchain to enter the entity. The road should now be a period of stagnation and may erupt in the near future.

3. Institutional friction

The biggest credit subject in human society is the state. The financial system is the blood circulation of a national economy, and it is a key part of the whole body.

No powerful country will welcome this challenge, so it can be seen from history that the US and Russia's medium-sized countries will rubbing btc at a time. The various shocks brought by digital currencies are absolutely not for powerful countries. Easy to get recognized.

The recent Facebook libra incident, the US House Financial Services Committee open letter said, "Facebook users account for a quarter of the global population, which will lead to serious privacy, transactions, national security and monetary policy issues. Libra and Calibra have very few goals, roles, potential uses and safety information, revealing the large-scale risks that exist and the lack of regulatory issues. If products and services are not properly regulated, they may jeopardize US and global financial stability. , causing systemic risks." In the future, the major parliaments will issue their own digital legal coins for the purpose of recapture and domestication, but how to say that this process must be based on the widespread acceptance and use of blockchain technology by the public.

And any new technology in the process of landing, application, evolution, must be accompanied by a bubble, look at the Internet, can not be similar.

Therefore, all countries are very cautious and even resistant to the application of technology involving financial credit. The various frictions generated in the middle will far exceed our expectations.

On the whole, the blockchain is a super-burning technology that best represents the future, and smart brains all over the world are studying this field. You go to see all kinds of technology bulls, Nobel Prize winners, professors of various Ivy League universities are studying the blockchain, Wall Street's sense of smell is the most sensitive, that is, this big guy of Bakkt is going to enter the test this month. Stage because they all understand its future.

Some people say that the blockchain will not stir up any splashes. It is like that people also thought that the carriage would not be replaced by a car, and the electric light could not replace the oil lamp. The new world is always open only to the prepared mind.

Author: Big Stone