Translation: blockchain makes value transactions more conve

In October 2014, the British Library's seminar on the future of Bitcoin enabled the creation of the underlying technology block chain of Bitcoin, prompting attention and facilitating entrepreneurship in related fields. Just two years, the block chain's market share has reached 210.1 million US dollars.

Technically, the block chain is the integration of P2P networking (peer-to-peer network), asymmetric encryption, distributed database technology integration solutions. As a result of the advantages of a variety of technology, the block chain with a weak center, to the intermediary, a high degree of autonomy, not tampering and other characteristics, value of the Internet era of value transactions more convenient.

From the business application point of view, the block chain is a distributed shared account system. Unlike traditional centralized accounting systems, such as the central clearing house, the block chain creates trust and develops credit through distributed ownership management, collective autonomy, openness, transparency, irreversibility and traceability, allowing the value exchange process In the friction coefficient to achieve zero marginal cost. According to McKinsey and Oliver Consulting estimates, the block chain room infrastructure construction costs are only 1% of the current centralized data center, operating costs of only 3% -5%. The use of block-chain technology for cross-border payment and settlement, not only can shorten the settlement cycle, and annual savings of $ 10 billion -200 billion in costs.

In addition, the use of peer-to-peer networking, asymmetric encryption, and the Mikel tree (which can break down each chunk into chunks of data in a tree structure) makes it possible to spread, distribute and motivate block-chain networks Mechanisms are different from the information Internet. In the process of network transmission of information, information can be replicated numerous times. However, the uniqueness of value exchange requires that bilateral consumption, or even multilateral consumption, does not occur. Therefore, the block chain as an effective supplement to the central book system, and gradually evolved into one of the preferred value-switching network.

At present, financial institutions such as Goldman Sachs, EtherCentre, Reibo, R3CEV are not only committed to the study of digital encryption currency landing, more intelligent contract, record preservation and artificial intelligence architecture and other high-level application development. Governments have also joined the block chain investment and R & D camp. The Korean government recently announced that it will invest 2.6 billion US dollars in research and development of digital currency block chain applications.

Although the market for block chain technology, the degree of love can be seen, but the block chain there are still two shortcomings, need to be dialectical. First, the block chain system encryption algorithm is the product of the late 1990s, based on the US National Security Agency's security hash algorithm, the urgent need to integrate the current zero-knowledge proof, full-state encryption and other leading edge encryption technology.

Second, the performance of the block chain itself is reflected in the contradiction between throughput and storage bandwidth. The processing power of the 3-7 pen-per-second network of Bitcoin chains can not meet the payment and settlement requirements of the entire financial system. Recently, block chain start-up Safe Cash Payment announced that it has achieved 25,000 transactions per second, but the transaction speed upgrade is still dependent on changing the block size to achieve. Therefore, the block chain of rapid popularization and development, the average consumer to participate in the block chain application, you must first download the application service provider to provide the chain chain wallet, and the current 80GB of storage needs is the average consumer can not afford .

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Summary:
It can be said that the block chain is like the birth of the first generation of information in 1968 the Internet in general, with unlimited possibilities. With the rise of the programmable digital economy, the research on technology application such as data encryption, storage and throughput can be effectively promoted. At the same time, it is necessary to formulate appropriate regulatory laws and technical standards to realize the sustainable development of the block chain in the whole society.