How does the blockchain achieve transactions between 7 billion people around the world?

0 34

Get real time updates directly on you device, subscribe now.

We need to trust each other to collaborate and trade, that is, to do business. We have relied on various agencies to record information, conduct accounting and transfer, and cooperate under their organisation, such as banks, notary certification bodies, securities clearing property registration centre, and various e-commerce websites. 

These organisations are highly efficient, but we also pay a lot of money to ensure their trust. External costs, such as the splendid buildings of major banks and intermediaries, inherent costs, such as the establishment of a lot of complex laws, systems and processes within the organisation to ensure accurate accounting. 

These measures reduce efficiency from another point of view, and this is also a cost, and this “book” is not completely accurate because of various vulnerabilities such as corruption and lack of concentration of power. Organisations and institutions also have borders and borders in terms of accounting and transfer.

Blockchain Development

There is now a new way of accounting that changes this centralised approach to a distributed accounting approach. This method is called a blockchain. The literal meaning is a chain that links together a block of data generated using cryptography. 

A pile of data forms a block, each data block contains information that encrypts the previous block, and then ensures that the blocks are connected in chronological order, forming an irreversible chain, so called a block Chain (Blockchain).

Then, this chained data structure is jointly maintained by a publicly-recognised rule (consensus mechanism) to form a distributed ledger, which is the technical essence of the blockchain. 

Because this is an organisation that has no central node, decentralised, the system issues digital currency or Token to encourage multi-party accounting, and digital currency and Token can carry out any point-to-point global transfer.

The distributed and Non-Tamperable nature of blockchain technology fundamentally changes the way trust is created, breaks trust in a central node, distributes trust to many nodes, and transfers trust in people and institutions to technology and mathematics.

Trust, that is, to establish trust at a lower cost and more efficiently through the principles of mathematics and cryptography. At this level, the blockchain is the trust machine.

With the rapid development of computer and Internet technologies, our assets are showing a digital trend. 

The money we have in a bank or payment company is essentially a string of numbers. We don’t need to use physical currency more and more, but only authorise some organisations to modify this number.

More and more other important assets are also being digitised, such as our securities bond registration, real estate vehicle registration, points game equipment and so on. And the variety of data that we humans produce will be the most important asset in the digital world of the future.

Because of the open and transparent, non-tamperable and trustworthy nature of blockchains, blockchain technology makes it easy to achieve more reliable and lower-cost proof of existence for any digital asset or valuable thing than existing centralised systems. , registration and peer-to-peer delivery, as well as automatic processing in computer programs, ie smart contracts. 

This computer program is also distributed. In the past, lawyers, courts, public security organs, police and even the military were required to protect the contract performance of a cost-effective and inefficient judicial system. In the world of blockchain, only a piece of code is required. Efficient and automatic execution in distributed trusted networks.

In this new way of collaboration, we no longer need mediation, but based on the blockchain trust network, determine the attribution of value and carry out global point-to-point delivery of value (please note that it is not a copy), which also means The arrival of the value Internet can also be called the asset highway.

More than 7 billion people in the world, people and the trillions of machines connected to the Internet of Things, and machines and machines can exchange value across national borders and across organizations at very low cost. 

For example, in the future, people or machines located in any part of the world can contribute to the payment of small amounts of money, speed, high frequency and extremes by making contributions, such as calculating a problem, renting idle memory, detecting certain data, etc.

At a low cost, billions of cross-border payments that are not affected by third-party organizations become a reality, surpassing all current commercial, financial, and payment systems, reaching more than 7 billion people and trillions of machines worldwide.

The era of doing business between the two will lead to a variety of interesting new economic phenomena and patterns that have never been seen before. 

For example, if you create a song or write an article, put it on this network, protect your copyright and income rights, set up a smart fee contract, and then let 7 billion people around the world listen or watch. 1 cent, the payment method of digital currency or Token will arrive immediately. 

Or, for example, a machine gets a particularly useful piece of information, put this information data on the network, hundreds of millions of machines connected to the Internet of the same type in the world to download this data to update themselves for better work. And reward the machine that discovered and uploaded the data in digital currency or Token.

At one time, the advent of the information Internet era brought information transmission costs closer to zero, which has profoundly changed the economic structure of society and the lives of everyone. 

When the cost of global value transfer approaches zero and is extremely efficient in the future, the economic structure and social structure of the entire world will undergo tremendous changes.

Get real time updates directly on you device, subscribe now.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. AcceptRead More