In the face of regulation, should the blockchain embrace or escape?

"Teacher, I feel that the era of profiteering in this industry may be over." The soldier looked unhappy.

"Hey? Why do you say that?"

"I feel that we have to be supervised in the future. The situation that is several times in minutes and dozens of times in a few days may not be there anymore."

"You have to think so, the minute of Mario, a few dozen times a few days, there will be no more." I comforted him.

• Coinbase receives a large single, gray scale 2.7 billion knives encryption assets handed over to it
• The “first airdrop in the currency circle” project is suspected of being degenerate. Is it the founder who left or the community split?
• In the chaos of the world, bitcoin "three steps" or will create a new record high?

"But I still want to get rich overnight…"

"Wake up, Sao years!"

The blockchain industry has developed for 10 years, and after creating countless myths of riches, and after a lot of jumping off the tragedy, it finally ushered in two milestones :

1. The Libra Hearing of the US Congress and the subsequent Senate Banking Committee hearing on the blockchain.

2. The US Securities and Exchange Commission (SEC) plans to run Bitcoin and Ethereum nodes through contractors.

In the blockchain industry, this is much more significant than the 94 incident in 17 years.

 

01 Milestone: Regulatory

Let's make a brief introduction first—in case there are really readers who don't know these two (in fact, three) things.

1. Libra Hearing – Members of Congress are questioning Facebook and see :

• The lawmaker's distrust of Facebook outweighs the distrust of the blockchain technology itself.

• How to ensure anti-money laundering, anti-drug trafficking, counter-terrorism, how to avoid data and personal privacy being used indiscriminately.

• Libra is afraid that it will be difficult to continue the project in a short while.

2. Senate Banking Committee Blockchain Hearing

 

• Worried about whether cryptocurrencies can really help those without a bank account.

• The encryption company is “escaped” from the United States (a Senate spoke: “As a country, if we don’t lead the technology, other countries will do the same.”)

• Facebook's Libra digital currency is still a topic that cannot be avoided.

3. SEC plans to run Bitcoin and Ethereum nodes

 

• The US Securities and Exchange Commission (SEC) plans to operate a Bitcoin node and an Ethereum node through a contractor, and the SEC may also seek to operate nodes in the blockchains such as BCH, XLM, ZEC, EOS, NEO, and XRP.

• The SEC specifically states that all blockchain data (hash rate, mining difficulty and rewards, number of transactions, cryptocurrency, block size, etc.) should be obtained from the managed node instead of providing this data as ancillary material.

• The US SEC will look for a data company to outsource its monitoring and compliance investigations on the blockchain.

The sequence of events occurs is 1-2-3 and the intervals are very close. Although the hearing is mostly questionable, but the clock is back for 2 years, do you dare to imagine that the US Congress will do a "hearing" to the blockchain industry? In particular, do you dare to imagine that the SEC will run a Bitcoin and Ether Square full node? Many local blockchain industry KOLs (Key Opinion Leaders) have said that "I did not expect that I will see this day."

This means that bitcoin or blockchain has finally entered the line of sight of “top-level authorities”, and the words “compliance” and “regulation” must be inevitable.

 

Now the blockchain industry, especially in the discussion of the WeChat group, you can feel the two atmospheres, one is to embrace supervision, and the other is to escape supervision. There are many reasons, some are positions that determine speech, others are for their own ideals and even beliefs, and some people do not care about their own high hangs, or people are clouds. But no matter what, you should have your own independent thinking.

 

02 Those who support, what are they thinking?

 

1. Philosophically – blockchain always has to go out of the dark, facing the light

 

The general public knows that the blockchain is because of bitcoin; the general public knows bitcoin because of the tens of thousands of exaggerated increases in bitcoin ; and the tens of thousands of exaggerated increases in bitcoin is because of the Dark Net’s Silk Road. .

 

From $0.00025 in 2010 to $31 in 2011, it took more than a year, and more than $200 million in transactions on the Silk Road were through Bitcoin.

Although it seems that Bitcoin seems to have gone out of that dark history and headed for the mainstream crowd, in the darknet, Bitcoin is still the number one "universal currency", and Bitcoin is still a foot in the light. Only feet are in the dark.

 

You know in your heart that there is no blockchain without bitcoin. Bitcoin does not break out of the darkness in a day, and it is difficult for the blockchain to move toward complete light.

From this point of view, regardless of whether CSW is Nakamoto, at least one idea, he and Satoshi Cong are highly consistent, that is, attitude towards compliance and supervision. CSW has published countless articles and blogs in the past two years, saying that Bitcoin is a currency that walks in the sun and actively welcomes the state to regulate it.

Looking back at history, WikiLeaks announced support for bitcoin donations in 2011. At that time, the community cheered. The long-lost Nakamoto was posting a warning in the forum. This is not a good news. He has always been unconventional and used relatively fierce words. Implied that Assange does not accept bitcoin donations. A week later, Nakamoto was completely "disappeared" in the world.

2. Application – Want to block the chain into thousands of households, compliance and supervision is almost inevitable

 

Since 17 years ago, people who have heard of Bitcoin are indeed a lot more. The people who own it are just a little more. People who don't know the blockchain still don't know the blockchain.

In addition to trading platform software and wallets, most people's computers or mobile phones do not seem to have installed any real "blockchain DApp". This should be the sentence, “ Technology is always overestimated in the short term, but it is underestimated in the long run. ” Blockchain, the technology known as “changing human production relations”, has indeed been in the past two or three years. Overrated, at least so far, in addition to Bitcoin, we have not seen any blockchain projects that have a material impact on our lives.

To have a "significant impact" on human life, we must enter thousands of households, but we must enter thousands of households, no matter from which angle, financial, game, content distribution, traceability… Compliance, or the possibility of not accepting supervision.

The previous vernacular blockchain was asked in the book " V God intends to let Ethereum marry BCH, and is planning to enhance privacy, ETH side chain and anonymous currency will tremble ", if it is engraved in the future Ethereum, or built on IPFS Decentralized video platform, some people are willing to upload terrorism and child pornography. Is there any effective way to stop or filter these things? If the so-called "public chain" is completely unable to cope with such a scene, how can you expect them to change our lives?

Do you have any good methods to see this article today?

3. Personal interests – maybe it’s hard to have a hundredfold increase in the number of times, and slowly move towards the securities and stock markets.

 

Everyone who enters the world of blockchain has different identities and roles. There are project parties, media, trading platforms, institutions… But the largest number of people, and the vast majority of people can participate in the blockchain, there is only one, that is, investment.

This circle has born countless myths of riches, bitcoin "the richest man" Li teacher, coin An Zhao Changpeng, mermaid… let many people who enter this circle for the first time tide, and think that the next rich will be their own .

 

In addition, in this industry for a long time, I feel that the stock market is too boring, only a few hours of trading time per day, weekend breaks, and limit of daily limit, which is like blockchain industry, 24X7 all year round, no daily limit The down limit, the spot is several times a day, the futures are divided into "rich or zero", 1CO, 1EO, 1DO, lock, dividend, repo, destruction and other gameplay emerges endlessly…

The super bear market of 2018 has made many people see the facts. Many myths of riches are just survivors. Many investors who don’t know about the bankruptcy can only silently swallow the bitter water and even jump from the top of the building… In 2018, too much air currency Zero, too many generations to run, too many projects are bankrupt, too many trading platforms are closed…

Perhaps, after embracing the supervision, there will not be so many new projects to divert funds, there will be no more than a hundred times the birth of a thousand times, and there will be no more legends of these overnight riches. But again, there will not be so many unscrupulous air coins and project parties, there will be no fear of returning to zero overnight, and there will be no more tragedies of squandering their wives. This circle will become more and more like the traditional stock and securities markets. For some people, the damage will be, and for more people, it will be protection.

03 Those who oppose, what are they thinking?

1. Philosophy – the inviolability of human private property

 

Those who oppose supervision have a "Utopia" in their hearts. They believe in liberalism, many of them have the spirit of password punk.

 

There was a special fire circulating on the Internet at the time:

"We need to be grateful that Nakamoto has invented bitcoin. For the first time in human history, the private property has been sacred and inviolable. In the protection of private property, it is no longer necessary to rely on armed forces and laws, only the private key. At hand."

Even based on this, another question has been deduced. "The application of public-key cryptography in digital currency has greatly changed the social contract that has bound human society for thousands of years: individuals need the state to protect property, and the state needs individual It continues to exist to provide funding. One cannot help but ask, if protecting property is a major function of a country, will its role and power be significantly weakened in the world of digital currency?"

In a philosophical sense, liberalism and cryptographic punk have a longing for Utopia and a spirit of rebellion. Such people, in the eyes of many people, are heroic.

Therefore, compliance and supervision are scornful or even dismissive for them. After all, the word "decentralization" is inherently contradictory to compliance regulation. Otherwise, the BT download that prevailed in the past will not gradually decline.

However, there is a question here: If the private key you copied on paper happens to be seen by your neighbor, he claims that the bitcoin in your wallet is his, then what should you do? Will you appeal to traditional regulators, such as the police or the courts, to deal with this?

2. Application – subvert the company's organizational form, without supervision, in the form of DAO

 

In 2018, the currency reform, chain reform, and the pass-through economy were once popular, and the discussion of the three-point sleepless blockchain group spread throughout the industry. In these discussions, the biggest transformation of the blockchain to our current human production relationship is to subvert the company's organizational form.

Meng Yan said in "My Blockchain First Principles":

"Today, we have a new means based on economic incentives, which is a trustworthy value based on value Internet, a carrier of consensus – it can carry out network-wide, large-scale human collaboration, which is formerly human The society has not experienced and seen things. If we build a new model based on the certificate, it may mean that the company system that is familiar to everyone and has been popular for nearly five hundred years will be transformed, even subverted. disintegration.

Because blockchain, especially the public chain technology is not helping companies solve problems. The blockchain is a deconstruction and subversion of the traditional corporate system and even the traditional corporate thinking. It is unlikely that the current corporate collaboration model will be well applied in the blockchain. ”

If this principle is true, then the current so-called "compliance" and "regulation" may no longer apply. After all, the vast majority of regulations and regulations are actually more about current companies and companies than individuals. When the company is no longer in this form, where is the object of supervision?

3. Personal interests – personal privacy, anonymous transactions, money laundering, tax evasion

 

Facebook's 50 million user information leaks are still vivid, and many of these traditional Internet industry's Dragon Warriors have turned into dragons.

The blockchain brings new hopes and controls the private key, not only controlling personal property, but also controlling personal data under the protection of cryptography. By then, "Your data, your privacy is up to you," is no longer just an empty talk, and once the regulatory intervention, this sentence may be a discount.

Moreover, where there is light, there is darkness. The current blockchain world, anonymous transaction money laundering and other services are still rampant. Even ordinary investors will have tax evasion. You should know that in Western countries, investment income such as stocks must pay a lot of tax, while cryptocurrency investments such as Bitcoin can easily avoid supervision and put the proceeds into the bag. This is why this year the US Internal Revenue Service has focused on taxation of cryptocurrencies as a key concern. I believe that no matter what kind of mentality, it is difficult to really welcome the arrival of supervision.

For those who master or make rules, such as trading platforms, institutions, project parties, etc., supervision is also what they do not want to see. After all, the more the rules are missing, the wilderness, for these "head players" "The more favorable it is, as a vested interest, how many people will like the rules and regulations that are against themselves?

04 two views

 

Two points for your reference: I still prefer the blockchain industry to compliance and regulation, and believe that this is the general trend.

 

1. From Rousseau's social contract theory: state power is obtained by citizens who have transferred all their "natural rights." In his famous book Social Contract Theory, he wrote: "Any state power is premised on the transfer of public power (rights) and public recognition." Will the blockchain break the transfer of this right? If not, then this foundation is still unbreakable, and compliance and supervision are inevitable.

2. Since civilization, the mainstream of this world has had a government from beginning to end, and it has laws. Forcing against two things that may never disappear, the end result is that they disappear. Liberalism or password punk may be popular for a while, but in the end it is not the long-term. Embracing supervision is a long-term solution, although it sounds like this is not so "blockchain"…

Message Mining No. 293: Do you support or oppose the regulation? why? Feel free to share your opinion in the message area.

Author: Five fireball leader

Source: vernacular blockchain

We will continue to update Blocking; if you have any questions or suggestions, please contact us!