Cai Weide: Retired Internet, Newly Constructed Interlinkage Network

On March 27, 2020, the China Mobile Association Interlink Network Branch jointly released the "Interlink Network White Paper" jointly with 30 associations, scientific and technological institutions, universities and enterprises. Some media reported that this is a new window for blockchain after Bitcoin and Ethereum, which is the blockchain independence day. The Internet has the following characteristics:

• The inter-chain network supports compliant financial markets. In the design, the supervision mechanism is placed in the underlying system to maintain the security, fairness, compliance, reliability, and privacy of the financial market. The payment system and financial market established by the Bitcoin and Ethereum systems are independent of the compliance market and do not accept the supervision of the world government.

• Inter-chain network is a new network infrastructure based on blockchain. The infrastructure of Bitcoin and Ethereum is now the Internet.

• The inter-chain network establishes a supervision mechanism on the underlying system. Bitcoin uses the P2P protocol to evade supervision. Governments in various countries have no way to directly supervise, but indirectly supervise the inability of Bitcoin to operate on the Internet.

• The Internet is based on new financial technologies and regulatory technologies that protect privacy, maintain financial stability, and ensure the orderly development of the digital economy and financial markets. The Bitcoin system has established a set of fintech and financial markets that evade regulation.

• The inter-chain network helps social governance based on integrity, safety, and privacy protection. The Internet adopts a laissez-faire approach, and the openness of information without restrictions is tantamount to acquiesce in fraudulent behavior, so that the Internet is full of falsehoods.

• The Internet is a brand new architecture. The Internet is a brand new technology, developing new systems to adapt to new regulations (such as the EU's GDPR), carrying out scientific and technological innovation on a brand-new structure, and will not be bound by old agreements, becoming an important breakthrough in China's core technology. The underlying technology of the Internet has a history of 46 years. The technology is old and the market structure is passively changed to adapt to the characteristics of the old technology.

• The inter-chain network is converged and integrated. The interlinkage network breaks the limitations of traditional systems, redesigns a fusion and integration architecture, including the integration of the underlying system and application systems, and the integration of multiple disciplines, etc., to establish a new direction for the scientific and technological community and academia. Although Bitcoin and Ethereum are technologically innovative, the system architecture is still traditional.

After the release of the "White Paper on Interlinkage Network" on March 27, everyone raised some questions. We selected some of the questions with higher voices and made an answer and discussion here.

Question one: The current blockchain systems are all running on the Internet, and they are also advancing and developing. What are the uncomfortable obstacles that need to rebuild a new network system from the hardware to the underlying communication protocol?

As long as anyone has your Internet address, they can contact you. Traditional systems, including databases and operating systems, do not put security first, so that the Internet is used by those who are interested.

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Internet insecurity caused disputes and illegal activities

The Internet has become a fraud paradise

Under this circumstance, people find that the Internet is a fraudulent "paradise". Some domestic data indicate that in the Internet business, fraud incidents account for 60% -90% of the business, which is very amazing. 90% represents 10 incidents and 9 of them are fraudulent, 67% represents 3 of the 2 business is fake, which means that many things on the Internet are fake, there are frauds everywhere, "pseudomania", even Many problems are encountered in doing business.

With the blockchain system, the blockchain system can be responsible for our trust issues. That's right, the blockchain system can indeed be responsible for our trust issues, but there is still much work to be done.

The security system is not easy to implement, so that the Internet is top-heavy

The blockchain system is secure, but the Internet below is insecure, so to build a secure system, a lot of work needs to be done on it, with various encryption and consensus mechanisms. So now the Internet is a top-heavy architecture, the following is a lightweight, the above is very heavy, a lot of encryption, consensus, such a system architecture is unstable, like a high-rise building, the bottom is very light, The top is very heavy, and one day it will overwhelm the bottom. In order to deal with the pseudo-world, it is necessary to chain the world. Once the chain is full, the workload of many of the encryption and consensus mechanisms above is too large and heavy. Every system has to redo the security mechanism, which is an unwise design.

Public chain evasion supervision will also produce underground economy

The third problem is also a problem that many governments and countries are very concerned about, that is, the P2P network protocol. The P2P network protocol was developed by Americans a long time ago. The developers believe that with this mechanism, no government can regulate it. Therefore, the P2P network used by Bitcoin, the P2P network used by Ethereum, and the P2P network used by many public chains, if the P2P network protocol is used, there is no way to supervise. As long as there are several servers in the world willing to open, this system can do transactions on the network. Therefore, there are two markets, one is the compliance market and the other is the gray market (also the underground market).

The underground economy is one fifth of the compliant economy

The United States said in November 2019 that the world gray market is one-fifth of the compliant market, so the underground market still has a considerable share and needs regulation. This is publicly stated by the United States, how to manage it? Because the public chain uses a P2P network, unless the entire network system can be turned off (but this is not possible). But if it can't be turned off, it can only be regulated indirectly, for example, controlling bank accounts to reduce the chances of interoperability between the gray economy and the compliant market, or regulating the exchange. Both Bitcoin and Ethereum can only be regulated indirectly.

The Bank of England started the digital pound plan in 2015, which put it bluntly to bring back the regulatory power. So looking at the British Digital Pound Sterling program, all proposed digital pound systems are designed for regulation.

Managing the underground economy is important

We saw one thing. The Internet has become a fraud center today. It is very difficult to set up a security mechanism. Now two kinds of markets have emerged. How should this kind of thing be managed? How to do it?

The Internet is the solution to these problems. The inter-chain network is a value network. In the future, digital fiat currency will also include digital assets, real estate, digital stocks, and digital bonds. All the things above will give priority to security and privacy protection, and can supervise these digital financial transactions to maintain this new economy. System fairness, compliance and reliability.

Inter-chain network builds trust and digital economy

Inter-chain network prioritizes security and privacy protection

The whole idea is different from the previous Internet. This is a consensus among many people in recent years. George Gilder, a prophet in the United States, began writing in 2018. It is almost the same as what I wrote about the blockchain Chinese dream. At the same time, he believes that the Internet should be changed now, and a secure Internet is needed. He also started from the blockchain and did not use the term "internet." The safety of the Internet is the first priority. Without our consent, you cannot casually check my information and information, and you cannot contact me. Unlike the Internet, as long as there is an address, you can contact. The search engine on the Internet can not disclose information without user consent. In addition, online fraud is very difficult to do. It is actually tracked with digital signatures, so that the entire network amount system becomes safe.

When we have these security mechanisms, it will be easier for us to rebuild a security system on it, much easier than the current network. The blockchain system is very complicated now, because we have no way to trust the following system. The following system is clear and open and can be easily attacked. This poses a very large risk. If the following is solid, the above system is safe. It is simplified, development is fast, and there is no need to repeat it.

The original idea of ​​the Internet is that the following network and system are simple (but not secure), and if security is needed, build a complex system on it to reinforce it. The interconnection network is just the opposite, strengthening the network and the underlying system, and quickly establishing security applications on it. The Internet allows a few people to have a security system, and most users can only tolerate a network without privacy; the inter-chain network allows each user of the public to enjoy privacy protection and have a safe and reliable network.

The Internet can manage the compliant economy and the underground economy

The inter-chain network helps to supervise. Just now I talked about the P2P network. Many countries, including China, once wanted to shut down the Bitcoin and other systems, but later discovered that they could not be shut down. On the Internet now, there is no way to shut down such a system. However, these systems can be shut down or directly supervised if an inter-chain network is used.

A basic idea of ​​the interlink network is to replace even the operating system and the network. Because the operating system can control the applications running on it, the replaced operating system can control these systems that evade supervision, or delete these applications, or cut off the information exchanged when these systems communicate.

GDPR will force technological reform

The GDPR launched by the European Union a while ago was to protect privacy, fined Google several times, and each time was a huge amount. The EU punishes Google not by administrative punishment but by legislative punishment. Legislation is to change the law. After the law is fixed, the government can change it, but the law will always exist. This brings an important piece of information. The need to protect privacy in the EU will not change, nor will it be deleted or diminished. So now we have two options:

• Abandonment: is to abandon the European market, or willing to accept huge amounts of compensation every year;
• Redesign the system. Following GDPR, we redesigned the system to protect privacy.

We have taken the second approach and changed the system to comply with current laws.

This is a very big opportunity, because there are new laws in front of us, we either choose to give up, or start to change the system in the face of reality.

Safety is more important than speed

Nowadays, the speed of many systems is no longer a problem. Some people say that the speed of the network is still a problem. That is because we still insist on using the protocol 46 years ago. Any Internet technology has fallen behind in only three years, and everyone may not be able to bear it. Not to mention the old technology 46 years ago? When we continue to use this protocol, security, privacy, and performance are all problems. If we want to change it, the entire system architecture needs to be changed. This is an opportunity.

According to these new requirements, when we design the network in the future, we will design a different architecture from the current network. Our design of the operating system is different from the previous operating system, and our design of the database is different from the traditional database. These changes will allow us to open up a new horizon and new markets.

The new underlying protocol can also improve network communication speed

The current network protocol is the technology 46 years ago, and many mechanisms are no longer suitable for the current high-speed network. Modifying the underlying communication protocol can better improve the network throughput and utilization rate, and effectively improve the execution speed of the blockchain consensus protocol .

 

Question 2: What is the difference between the Internet and the current Internet? Specifically, what conveniences will user behavior, economic development, and social governance have in the inter-chain network?

Interlinking network reassures users

From the perspective of user industry experience, users will feel more at ease. Because users are online now, users do not know who is on the opposite side of the network. Some comics describe that the other end of the network may be a robot, or a cat, or a scammer that appears under a pseudonym. If it is an inter-chain network, this thing cannot happen, it is a real-name system, and everyone comes in with a digital signature, because you have more confidence in these.

Inter-chain network brings economic explosion

The Internet promotes economic development. This is the economic theory proposed by the Massachusetts Institute of Technology in 2012. The theoretical idea they put forward is very simple: there are too many social frauds now, and some Internet businesses are 60% to 90%. Fraud or false behavior, how many people are victimized, and what you buy online can be stinky, old, and bad. Everyone should have experienced this experience. If this kind of fraud can be prevented and eliminated, there will be an economic outbreak.

On the cross-chain network, people do not need to know each other to make transactions. I digitally sign each other to see the past history on the Internet, and this is all credible data recorded on the blockchain. In this case, all economic activities will erupt, financial markets will change, and digital fiat currencies, payments, banks, and exchanges will change.

The world financial system can be replaced by blockchain

In September 2019 to the UK, the British are talking about blockchain changing the world's financial world. In the past, many people were also talking about blockchain changing the world, but this time the way to change the world's finances is not the same as before. Now the blockchain system is used in the compliant financial market (previously using Bitcoin in the underground economic market) Now, it is believed that all compliant financial systems can be implemented using blockchain (previously established an underground economic system based on Bitcoin). This is amazing information. When these compliance systems are replaced, humanity enters a new era of digital economy.

The Internet can govern digital tokens

Then there is the issue of governance, such as Bitcoin and Ethereum systems fleeing regulation. Whatever the government can't delete now, what should we do? Experts are not allowed to delete experts. However, if there is an interconnection network, it can be uprooted and control the application on the operating system (and Bitcoin is an application running on the operating system). For the first time, humans can uproot these digital token systems in a country, which will be a completely new situation for supervision. It couldn't be done before, but the inter-chain network can.

The watershed between the Internet and the Internet

The Internet has sovereignty and rule of law

The Guiyang Municipal Government proposed “Blockchain has sovereignty” around 2015, which means that the inter-chain network is also sovereign, which is different from traditional technology, which has no concept of sovereignty. Once the Internet has the concept of sovereignty, it is equivalent to the infrastructure of a country. This is like the national currency, national laws, and national land. It is the basic element that defines a country. The inter-link network not only has sovereignty, but also an important mechanism for maintaining the country's rule of law. The inter-link network can support the operations of courts, procuratorates, notaries, and lawyers, and maintain the important concept of ruling the country by law.

 

Question three: In the early stage of Internet development, there was a strong push from the military to promote business behavior after generating commercial value; Bitcoin and Ethereum initially had an incentive mechanism to promote, so how should the inter-chain network be promoted, and where is its driving force?

I will talk about the three driving forces here, why do you want to engage in the Internet today?

1. Technology Power

The first is the power of science and technology. Today, if we engage in an interconnected network, it is the next generation of the Internet, or a value network. This is the national infrastructure, just like the highway. China used to have no highways, high-speed rails, and airports, but now it is everywhere. This is China's infrastructure. But the network is also China's infrastructure, but now the network is unsafe and unreliable. If we have a safe and reliable network infrastructure, this will drive economic development. This infrastructure must be led by new technologies, including new applications, new sandboxes, new databases, new operating systems, new network systems, and new chips.

Operating system designed for supervision changes traditional systems

The new operating system is mentioned in the white paper, why is this system proposed? Because traditionally, database and operating system are two different fields. However, when developing the inter-chain network, it was found that if you want to supervise transactions, you need to manage the account well, but the account is a kind of data, and the account information needs to be stored in the database. But how to manage the database? Where to put the account database? If placed on the application layer, this application can be copied everywhere (for example, the whole network accounting like Bitcoin), plus the P2P communication protocol, which becomes a mechanism to evade supervision. But if it is placed in the operating system, it is completely different. This account system is processed by hardware in the operating system, it is difficult to evade supervision, and every transaction information will be recorded. But this has led to a completely new system concept, the "Operation Database" system (ODBS).

(Operating system + database) = "operating database" system to track account transactions

This is very different from the configuration of the traditional financial system, because the traditional operating system is not responsible for supervision, only responsible for services and resources to upper-level applications. This has caused digital token systems like Bitcoin to evade supervision and establish an underground economic system, and it is difficult to stop such systems from continuing to operate. In the end, only indirect methods can be adopted for supervision. However, on the Internet server, this system cannot run, and it can also prevent Bitcoin communication information on the network protocol.

When there is such an ODBS, the operations related to the transaction can be supervised. When the bitcoin system comes, ODBS will say sorry, we do not accept this application. This fundamentally broke the mechanism of Bitcoin Ethereum to evade supervision. This is a mechanism previously not available on the Internet.

When we designed ODBS, we broke the 60-year traditional computer concept. Traditionally, the operating system is the operating system, and the database is the database. Each one does its own thing. Now because of the security mechanism, it needs to be supervised and privacy needs to be protected. The database is put into the operating system, and the system architecture changes.

The new structure of the inter-chain network reorganizes the industry ecology

The future computer architecture will be different from the traditional one. In history, new technology has been introduced in computers every few years, but the operating system is still the operating system. Now, for privacy and supervision, the system architecture and functions are different. Now is the Spring and Autumn Period, and various schools can come out. This is an era of ideological outbreak, which will lead the fusion research and development of the computer industry, financial industry, and law.

But after we have an inter-chain network, the industry will reorganize due to different technologies. This idea is not reflected in the "White Paper on Interchain Network" because the development of the industry is not entirely dependent on technology and is not easy to predict. However, science and technology can predict that when we have an interconnected network, the entire system, security, and regulatory mechanisms will be reformed.

Bank of England proposes three smart contract architectures

For example, last month the Bank of England proposed three smart contract architectures. Two of the three new architectures existed originally, but one was a new architecture. The Bank of England is a unit of British monetary policy and a supervisory unit. It has actually proposed a new computer architecture.

The era of thought explosion needs innovation

Including blockchain, smart contracts, operating systems, databases, networks, they all have their traditional architecture and ideas, but this may all change in the future. Today is an era of explosion of ideas.

2. The inter-chain network brings economic power

The inter-chain network will generate huge economic benefits. In January 2015, the Wall Street Journal said that blockchain is the first reform of the bookkeeping method in 500 years. More than 520 years ago, the double-entry bookkeeping method emerged, resulting in the stock market, accounting, auditing, and bond markets, which became an important foundation for the Western economy. Now there is a blockchain, and now the inter-chain network will change the economic system and the way of financial transactions.

Financial systems can be refactored by blockchain

In September 2019, I participated in the Sibos conference (the world ’s largest financial services industry conference) in London, and discussed with Fnality (this is a company that works closely with the Bank of England). Off. This is a financial reform that the market rarely encounters. Their white paper writer "Blockchain train has left the station."

The U.S. responded strongly in November 2019

In November 2019, the United States believed that blockchain technology affected national security. The United States proposed the need to develop related technologies and strengthen supervision of the underground economy.

China began to value in October 2019

Blockchain is an important breakthrough for independent innovation of China's core technology. What is "core technology independent" innovation? It is definitely not a pseudo-chain, and the pseudo-chain will not be a breakthrough in China's core technology independence. Independent innovation of core technology is not foreign open source. Some people say that they design a chain, but the chain they make is not necessarily innovative, and may be similar to foreign ideas. Innovation is the development of different architectures and different algorithms.

Internet Innovation

The "Internet White Paper" mentions new protocols, new systems, new architectures, new operating models, new supervision methods, and industrial ecology. Many countries including the United States, the United Kingdom, and China have no way to directly supervise these public chains, and all adopt indirect supervision methods. But if there is an inter-chain network, you can directly supervise and govern.

Some people say that the Internet is very good now and there is no need to change it. But 30 years later, we still do not change, what will happen?

Many years ago, many people said that China does not have an Internet, and China uses the US Internet. The government said that we need to have a Chinese Internet, but after more than a decade, we are still using the US Internet, and there is no change. In terms of our progress on the Internet, in English, mostly incremental changes are minor improvements. The network speed has become faster, but the network architecture has not changed much. The current Internet protocol is still similar to the previous Internet protocol. These updates are not subversive.

3. National core technology independent innovation breakthrough motivation

In the second half of 2019 (June to November) the world experienced three brainstorms.

• The first time Facebook published a white paper on June 18, many people called me that night, very anxious, and some even cried. Even the domestic US banks are anxious. The International Monetary Fund issued a report before the incident, which believed that the incident would definitely cause a major shock to the business. This incident finally happened, and commercial banks began to worry that the prediction on the report would be established.

• On August 23, the Governor of the Bank of England gave a speech at the Federal Reserve. After the speech, everyone did not react but felt strange. But after quieting down, I thought it was a big deal. This information is much more serious than what happened on June 18. Here it is talked about that synthetic hegemony digital currency will replace the US dollar as the world's reserve currency. The United States (and the European Central Bank) have also held many consecutive meetings because of this matter (many minutes are public information), and officially responded in November.

• On October 24, China issued a blockchain instruction, which was a storm in China.

Let's see what advantages we have in 2020.

Time, place, people and

At the time, Facebook, the Bank of England's speech at the Fed, the domestic mentioned that blockchain should become an important breakthrough, this is an important opportunity for us. Now is the best time. The European GDPR, which appeared a few years ago, has been implemented. It is clear that if the technology companies do not change, the EU fines huge amounts every year, and finally has to withdraw from the EU market. These future laws have been clearly written on the wall and you can know that English is handwriting is on the wall.

Geographically, China has talked about developing its own Internet for more than 10 years, but it still uses foreign Internet. If you do not start a new technology, it will be the same after 30 years, and still use the foreign Internet. It's just that the Internet is faster and has a better experience, but the structure hasn't changed, it can't meet the needs of GDPR, nor can it meet the needs of digital finance, nor can it solve the network fraud incident. Continue to follow the current route, social costs are high.

Next is Renhe. Blockchain technology is an important technological breakthrough for a country. Breakthroughs require real evidence. Can we use XX open source chain as a breakthrough in Chinese technology? Many units have expressed that they want to innovate and are willing to work together to co-operate. This is the opportunity for harmony, and industry-university-research cooperation is also in the instructions.

If there is a new technology, the timing is right, but there is no way to develop without new technology. This time there is new technology. This new technology is blockchain and related technologies.

Give up or embrace reform?

For example, there is an automobile company in the United States that has made a very good car and has made major innovations in industrial history because of the development of assembly line production methods. The company's president thinks that this car will not need to be changed in the future, and our company will always only sell this car in the future.

What kind of car is that? This is a Ford T model. This car is actually very well designed. Based on the technical evaluation 100 years ago, it is a very good car. At that time, the president of Ford thought that the car would still be used 100 years later. Now that this car has a history of 100 years, who would drive such a car on the road today?

At that time, because of the world war and lack of resources, Ford said that the car will only be black in the future. After more than 20 years of selling, the new president of Ford said that the company will close the door if it sells the same car again. This T model is finally out of the market.

This gives us a very important revelation that there is no unbroken banquet in the world. The product of yesterday ’s perfect innovation may be the product that is lagging behind and needs to be replaced today. Is this very similar to our current Internet? The Internet is a perfect and great innovation in the past, and now it has become a place of fraud and insecurity? Are we continuing the old path of the original Internet today (such as increasing speed, applications, and regions), or are we creating a new route (a new network that focuses on security, privacy protection, regulation, and financial services)? This is the issue we have to decide today.

Question 4: After the establishment of the inter-chain network, what is the relationship with the current Internet?

It is interoperable and compatible. The inter-chain network is slowly established day by day. It is not the same as Rome. The Internet has more than 50 years of development history (started in 1960). The inter-chain network should have 30 years of development. Whether or not there will be 30 developments is not necessarily, but we know that there will be new technologies and there must be huge change. In the future, selling a server will be a secure server, not a server that is not secure enough now. In the future, the network will be a secure network, and the current server and network will be gradually replaced.

Digital fiat currency, EU GDPR, and digital currency supervision will force the entire network system to change in design. Are we waiting to lag behind, or are we taking the initiative to change?

Question 5: After the establishment of the inter-chain network, should the current blockchain system be rebuilt in the new system, how to avoid waste?

After the establishment of the inter-chain network, the establishment of the blockchain system in the future is a matter of minutes. Most blockchain services can be provided by the inter-chain network, so the blockchain system will be simplified. The future blockchain system will not be a single chain system, but will be a complex chain network architecture. When we design like this, we will save a lot of money, because with the infrastructure, we can take the blockchain highway. Think about the ratio of taking the expressway to the small road. From one place to another, the expressway can save a lot of time and money, which will produce a very large economic force. When the inter-chain network infrastructure appears, many blockchain systems can be run on it. Many jobs do not need to be repeated. Financial transactions are safe, government operations are safe, and legal affairs are safe. This will also generate huge economic power.

In the past 2017 and 2019, many blockchain systems have been proposed abroad, thousands of chains, and even tens of thousands of chains (if the empty chain is also counted as a chain, there are tens of thousands of chains). But so far only a few chains have survived, why? Blockchain is not so easy to do, but why is it so difficult to do? Part of the reason is that the underlying infrastructure is not secure enough now, and most of the security mechanisms need to be carried out in the blockchain system. When the chain is full, so many chains are doing the same thing, this is too much waste! If there is an interlinkage network, such repeated operations are no longer necessary.

Question 6: Why did you propose the White Paper of Interlink Network at this time?

The concept of the inter-chain network was introduced in 2017. The term used at that time was called "block chain inter-chain network", because the name was considered too long and was changed to the inter-chain network. In 2019, we published more than ten articles discussing the architecture of the Internet. Our blockchain has been developed for several years and has been running steadily for 10 months.

In 2019, we also completed a high-speed network protocol MEF. The results of the protocol are consistent with our original vision. The performance of the high-speed network protocol is much better than the current protocol, and it is integrated with the current protocol, but the characteristics are different. For example, our protocol will not degrade performance due to distance. This is a feature of the 46-year old protocol, but it is not a feature that a normal network should have. For this flaw, the entire network industry structure has changed to adapt to this feature. But once this feature no longer exists, the industry will change.

We also started operating system experiments early this year, and many blockchain operations can be performed inside the operating system. When we made the first prototype, we knew that our original concept was feasible.

In order to supervise financial transactions, we propose the concept of ODBS (Operation Database System), which is to put the database into the operating system. This concept was actually proposed in the blockchain China Dream in 2018. This year I finally found the team to do experiments, and confirmed that the ideas proposed at that time were feasible.

At the same time, I also found that some foreign people (such as George Gilder) also expressed similar but different views, which are consistent in philosophy but different in system design. And they haven't released their system details yet, and we started to change at the bottom of the network protocol and operating system.

Seven: How many researchers are needed for the Internet?

The answer is many. This is now inestimable. This plan includes network, operating system, database, software engineering, applications, sandbox, financial technology, regulatory technology, legal technology, and so many technologies. This is also related to financial transactions, to banks, and to fiat currencies. Such a large transformation of the entire system requires very large researchers.

It is impossible to predict how it will develop in the future, but we know that this is an opportunity and universities, research institutes, and enterprises are welcome to participate.

Because this is an opportunity for mankind and China, whoever does it first will formulate an inter-chain network, a next-generation operating system, a next-generation database, a next-generation digital fiat currency, a next-generation financial technology, a next-generation legal technology, and an international discourse Rights, formulate standards and "game rules".

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