Can Bitcoin and Blockchain Be Separated

The revised title does reflect the views of many people who want to distinguish virtual currencies such as bitcoin from blockchain technology. In fact, this is a long debated issue. Is bitcoin and blockchain, the "currency" representing economy and the "chain" referring to technology separable or inseparable?

To discuss this issue, you can go back to Nakamoto's paper bitcoin: point-to-point e-cash system and the context of his technological invention. The bitcoin invented by Nakamoto is not the first and certainly not the last thing to try to create value in digital space. According to the statistics of Jimmy Clark in the article "the long road to bitcoin", there are hundreds of similar systems, among which PayPal is well-known and still in actual use in the world. Of course, for the current Chinese, we are more familiar with the Internet payment, such as Alipay and WeChat wallet. As for the design method of currency and other things representing value in the digital world, paypal and others actually use credit. When we pay, what we pay is actually credit, which is recorded and confirmed by them.

However, there is another unsuccessful attempt in the technology circle, that is, trying to use the idea of cash to create something so that people can use it like cash in the digital world. Predecessors have made many explorations, but none of them succeeded until Nakamoto invented bitcoin, a "cash" - bitcoin. It is worth mentioning that David JOM first put forward a complete and feasible idea more than 30 years ago. In 1983, he first proposed to use encryption technology to create a kind of cash in digital space, and in 1989 he founded a company to realize his idea commercially. Bitcoin can be regarded as a wonderful improvement on JOM's original idea. Now we will not recognize it as a circulating currency equivalent to cash in the real world, but it technically realizes something logically similar to cash.

When referring to the "cash" of bitcoin, I put quotation marks on the word cash, because if we go back to 2007, Nakamoto does not want to invent something equivalent to cash in the real world or change the status quo, but to solve a technical problem and build a game. To create such a toy, Nakamoto has to solve many problems, including two. In Jimmy Clark's words, the first is how to "issue money out of thin air" and the second is "record all information in the account book". First, although it is only a toy, it is still necessary to choose an effective mechanism. The mechanism chosen by Nakamoto is that a certain amount of mathematical calculation can be carried out to generate new "cash". What people say now, such as "mining" and "decentralization" known by the public, or professional "computing power" and "workload proof" (POW), are related to this mechanism. Second, the ledger is now known as the "blockchain". The foundation of the blockchain is a large distributed, open, interconnected and tamper proof ledger. Nakamoto has made several very important changes to the technologies and mechanisms related to blockchain. His design truly invented "blockchain" and made it the basis of a series of innovations.

In the history of Internet development, there are many such toys. Tim Bonas Lee invented the world wide web (WWW), Linus invented the operating system Linux, Mark Anderson developed the m osaic browser (he later developed the Netscape browser), and even Larry Page and Sergey Brin first developed Google. By analogy, I mean that no matter what people think of bitcoin at present, whether it is regarded as currency, commodity or asset, one of its important attributes is a technical toy. In fact, for quite a long time before the price of bitcoin soared, it was a toy. Technicians liked to tamper with and modify toys. There were also cases where someone exchanged 10000 bitcoins for a pizza. After a technology is invented, what practical use it can eventually find and how much impact it can have on the world are other things.

As can be seen from the above discussion, Nakamoto created a wonderful toy in the process of solving problems: he created a basic technology, namely blockchain (ledger), and an application, namely bitcoin ("cash"). More specifically, the things invented by Nakamoto include three layers: the bottom layer is the technical blockchain (account book); In the middle is the bitcoin protocol based on blockchain; At the top is the application, the "cash" of bitcoin. Ledgers have both technical and economic meanings. The economic meaning of ledgers will be discussed in detail later.

Next, people in different fields further agitated the toy and gradually wanted to make the potential toy practical. People first created a variety of coins similar to bitcoin, and then many people tried to separate coins from chains. Later, the team represented by Ethereum tried to create blockchain 2.0 system and turn it into a "next-generation smart contract and decentralized application platform". Now more organizations are trying to develop a new generation of systems, claiming 3.0 and 4.0. Interestingly, Ethereum has not actually become a new generation of operating system that can run applications. Issuing tokens that meet its erc20 standard has become the core application scenario of its smart contract. In this way, there are many more application tokens all over the world, which is the scene of virtual currency from mid-2017 to now.

Anyway, at this time, bitcoin and blockchain technology as a whole have developed to a new stage. It no longer only has the function of issuing "cash" like toys, but also has the function of issuing tokens / tokens. The emergence of pass has opened up the economic possibility and application prospect of blockchain, and the two wings of blockchain, technology and economy, have gradually taken shape. Although it is difficult to predict how the last two will develop, the "currency" representing economy and the "chain" representing technology, economy and technology are intertwined. In a sense, it is a bit like saying at the beginning of the development of the Internet that the Internet is only used to transmit information and should not develop e-commerce. At present, the high price of bitcoin and other virtual currencies and the speculation around them may not be expected by everyone. The chaos of virtual currency speculation should indeed be standardized, but only emphasizing technology, its development may fall into a misunderstanding. Blockchain technology and blockchain economy are intertwined and inseparable.

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Analysis on the Development of Blockchain and Cryptocurrency in Latin American Market
In December 2019, nervos sponsored the labitconf event held in Uruguay, Montevideo. Nervos Latin American community partner Lalo Garza participated in the event and introduced the current market and community development in Latin America.The event gathered speakers from all over the world, and also attracted hundreds of Latin Americans and people from all over the world to participate and communicate together.In this activity, people talked about topics including education, technology and culture. The Uruguayan government encourages local communities to make disruptive innovations using blockchain and encryption technology. In his speech, Andreas antonopoulos, an advocate and expert of bitcoin, discussed the importance of maintaining an open mind and constantly improving from mistakes. Thanks to bitcoin as a strong foundation for learning and creating new opportunities, we see that LATAM Web3 ecosystem is growing.There were many panel discussion sessions in the event: a group composed of Latin American exchanges expressed their views on the theme of "how to deal with the Latin American crisis"; The team composed of KOL, who studies international cryptocurrency, shared their views on how bitcoin has had a profound impact and change on Latin American communities, especially in areas where they once or are still living in difficult economic and political situations; Some interesting group discussions focused on "how to monetize their own data", "the importance of regional adoption of stable currency and defi" and how to develop cryptocurrency into a decentralized tool for many Latin American countries to deal with inflation.Near the nervos project booth, we met many community partners from different backgrounds. Most of them are developing in the defi ecosystem. They have experienced Web3 developers and novices who have just started to build DAPP.Some developers who have heard of nervos are very excited when they learn that we are improving the development documents and will hold workshops to help them develop on CKB. Many developers are very interested in the nervos grants program and say they will apply for grants. Some miners familiar with the POW and utxo models of bitcoin expressed great interest in running nervos nodes. The design features of economic models such as nervos Dao, token economics and multi asset value storage have also attracted many investors.The nervos booth attracted many enthusiasts, designers and community builders from Chile, Colombia, Argentina and Venezuela. They were very interested in nervos's working methods, goals for the next year and how community partners should contribute to the project.We very much hope to provide suitable resources or development tools for everyone who is interested in the nervos project or wants to join the nervos community.We firmly believe that in order to develop the financial or political system, we need two elements: a new way to organize data flow and the values of a self-sustaining community based on a constructive culture of open access and no trust. Latin America is where these ideas prevail - most people here can understand why the centralized system is fragile and almost failed, and most of them have experienced the impact of the centralized system.In addition, the level of education in Latin America is high enough to interact with abstract and emerging technologies, so that we can build new relationships and turn them into alternative and feasible systems.Seeing the continuous growth of these activities in Latin America, we know that the application of blockchain and encryption technology is taking place, and changes are most needed in these regions.That said, for those who start to study the "rabbit hole" of blockchain and those who want to know more so that they can choose the right tools according to their own needs, a lot of educational work is needed. Nervos network will focus on education in these ways and will continue to build and develop communities in Latin America.
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