Block chain and COINS “cure”, no high and low

(compile: fore the hope)

cloud network hunting note: recently, in the virtual electronic currency area reflected to a debate over who COINS and chain blocks better, both sides, however, have their reason. Quarrel but insiders’ hot, many outsiders can’t understand, this article will stand in the perspective of the currency of the debate.

“the real killer app is block chain, rather than the currency.”

many far-sighted capable technical personnel expressed to me, but I think the idea is wrong.

the first time I heard “block chain is good, the currency is bad” this idea is wrong in Sam Altman (YC President) to attend a Econtalk podcast, at that time I was impressed by the idea.

when the podcast is subject to the currency, Altman said: “I think about the most interesting part of the currency is the chain block.” And he in order to more clearly express the idea, he tried to belittle the COINS and throws the chain block. I remember he said: “I did not too much of the currency, I will keep some COINS is in order to prevent it from rising I can profit, but I think this is reality.”

then, podcasts began to explore Altman to express meaning, Econtalk host Russ Roberts said: “the only thing I know about block chain is puts glorious greatly because of its existence makes the COINS.”

however, the idea of Russ wrong. I didn’t mean to pick his fault, after all, his area of expertise is not economics or cryptography software. Altman, however, does not correct Russ for COINS and chain blocks of the relationship between error, Altman, after all, work is related to these things, and he was in the public occasions expressed own view.

in fact, the truth is the currency to block chain turns into a “magic”, rather than before. Let’s to analyze reason analysis.

first of all, we want to reach a consensus: specifically, than as a currency, block chain mechanism as a kind of consensus, we can keep the decentralized nature, they both are undoubtedly will be a revolutionary impact on social development. However, once the decentralized distracted, whether it is a loophole in the agreement, or caused by mining centralized, and all of the above two advantages will cease to exist. They will and electronic money, entity notes, very easy to abuse by monopoly.

in order to guarantee the absolute decentralization, Satoshi COINS, was designed to consider the incentive network participants spend resources to trading resources transmission, validation, and stored in the process of the key is to ensure that will give them some economic returns.

the next step is to indicate the use which has economic value as a means of payment. Maybe Satoshi considered to send everyone in new blocks of mining with a cat picture write a thank you card, may be something universal market value (such as gold). And since this project is implemented on the Internet, so he can use the ious instead of bullion, or in the form of trust.

look, this is decentralized. We just modified the electronic money, now we tied himself up again.

in browsing a circle used to motivate the existing value of the object, after we found Satoshi doesn’t use any existing value object, the value of the used as incentive object is created by the network itself and complete exist in the network.

considering this consensus tool motivation must be implemented in the network, so it must be in the form of pure information, because can only transmit pure information via the Internet. And one of the obvious solution is to use represent some private key currency, when we put these keys and two kinds of economy of scarce resources and the Merkle Tree, a little guidance, HsahCash can achieve such a solution, and guess what is this? This is the COINS!

clear said block chain and its potential currency cannot be separated. Currency to block chain to provide the resources required for operation, while the block chain for individuals with the consensus of monetary mechanism. No matter use what kind of tricks, cannot be separated between the two.

so what does this mean for COINS? For the whole block chain technology and what it means?

not only does this mean that if the currency does not profit, block chain won’t be able to profit, also means that if the currency price hovering, may also lead to the incentive mechanism of fragile. If this situation happened, then the currency would like we know of the 80 s and 90 s electronic games, finally to the corner of the Internet, and by 2030, tide people will use another currency to buy COINS (this is quite a sarcasm).

if the currency, and wins this could mean that it will replace the dollar as the most important storage unit (which belongs to the digital era of money, rather than the exchange of currency, currency exchange is one of its main function. I estimate that 99% of people will want to why money is valuable.)

caused confusion in the discussion of another reason is that many people mistake understanding of the nature of money. Hold the idea that people will think you can at the same time, the existence of the stable chain multiple blocks, each block competition between chain ensures that can provide the most reliable and feature-rich consensus tool, actual situation but it is not possible.

like monetary standard system, block chain also experienced a network effect. Any resources by digging into block chain can’t into other block chain. And using multiple block chain, would like to use money, may experience Highlander effect: when the fragile security block chain mining fail, the other block chain will absorb the losers resources and potential demand for money.

let’s take a look at what is a merged mining. For those who are not familiar with, the merged mining essentially means that allow a digger can be used in each hash to try a nonce (hunting cloud network editor note: nonce value is only effective in the short term the only string), and if the synthetic value exceeds the set by the degree of difficulty, multiple block chain will accept it as an effective hash used in new blocks.

, for example, the domain name currency used a single version of the process. It allows any change again a digger in the currency area area can also create a new domain area, but not the opposite.

I admit that I have not yet fully understand, but so far my understanding is that, assuming that most through a network acceptance and deployment of the BJP) if the currency does not allow two-way combined mining, the currency block chain between the two-way combined mining is difficult to achieve.

and Blockstream company is thoughtful, their team has raised the change COINS preliminary scheme. There is no doubt that they have the ability to have ambition, but the team has been missing out on something. Recently, John Weriwether hope Blockstream team to be able to read his article and to seek his help.

Blockstream advocated the concept of side chain side chain, they think the side chain side chain to compete with each other and cooperation can be independent block chain, they have also created a variety of sandbox experiment to innovation. If you don’t like COINS, now that you can “burn” some COINS in exchange for A certain number of side chain side chain A currency, and then pray A side chain side chains is Sam Altman always dream of that kind of block chain.

when I read about side chain side chain of white paper, my mind jumped out of the first idea is that if the block chain corresponding to the royal family, then Blockstream do belong to the “coup”. Before trying to put it, anything can allow the currency and the function of competitive currency will only make the currency more powerful.

about side chain can promote to produce a dynamic ecological system, innovative electronic currency at best misleading, at worst is cheating. But so far, I have not seen any COINS core developers and team dig policymakers was charged with fraud. If the situation changes, of course, we won’t see such a scene.

about side chain it is very interesting, it is in real life, with miners mining equipment comparison pay attention to what they said block chain, because they are the gains from the assets and is not ready-made COINS, but those will be excavated from currency (assuming the locking time is not an important factor). So if side chain A currency without A value, and Sha – 256 ASICs is still valid, then the digger can be moved to the new block chain, digger, after all, the currency is not loyalty.

all the digger is no longer possible, of course, were engaged in this industry. If Cryptocurrency 2.0 replaced the COINS, and all COINS lost value, I believe that now the COINS such electronic money are extremely confident will soon disappear. And once Cryptocurrency 2.0 replaced the COINS, then quickly Cryptocurrency will instead of 2.0, 3.0 cycles.

once before an electronic currency was stuck, so new encryption monetary life cycle will be greatly reduced, until completely die, because, after all, a rational person won’t continue to hold the currency. You need to remember is, by definition, encryption money is distributed and rely on the consensus. When the legal tender of bankruptcy, they can depend on the dominant power in the government to issue, but encryption currency, there is no such privilege.

all in all, the currency is based on the work proof mechanism of the pioneers in the currency of the chain block encryption. For it, the competition means a way out, but for other currencies to overhaul its existing encryption it will be a very difficult challenge, whether it is a very similar Litecoins, theoretical Paycoins and Dogecoins Ethereums or lack of market.

according to the design, the currency without destroying its monetary value can get corresponding to adapt and improve. Once found that run block chain can benefit more methods, the currency of the core developers will be executed this method, and the digger corresponding deployment will quickly, because they don’t die helplessly looking at COINS and the other a block chain to replace the currency.

work can prove that the concept of block chain pop is not yet clear, but if it is able to win, must be because there is a potential currency as the backing, and now, I don’t think there is any other currencies besides COINS to win this competition.

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