What is a blockchain? How will blockchain technology affect our lives?

There is a technology that will subvert the traditional financial model. There is a technology that will affect the coming decades. It's called the blockchain.

â–¼ What is a blockchain?

Blockchain is a distributed data system in which nodes participate. Its characteristics are decentralized, unchangeable, unforgeable, and also understandable as Ledger.

The essence of a blockchain consists of a string of data blocks using cryptographic methods. Each block contains the hash of the previous block, starting from the Genesis block and joining the current area. Blocks form blockchains. Each block is guaranteed to be generated in chronological order after the previous block, otherwise the hash value of the previous block is unknown.

Blockchain technology is the most disruptive technology innovation since the invention of the Internet. It relied on clever and mathematically distributed algorithms to enable participants to participate in the Internet without establishing a trust relationship and without the intervention of any third-party center. A consensus has been reached to solve the problem of reliable transmission of trust and value at a very low cost.

How will blockchain technology affect our lives?

01 machine trust

Once, "proving my mother is my mother" is a problem, but using blockchain technology is not a problem. In the past, our birth certificates, real estate certificates, and marriage certificates all required a central node, such as a national government, to be recognized. If you go abroad, it is very troublesome because you lack the global central node to prove it.

The indispensable modification of blockchain technology has fundamentally changed the way of centralizing credit creation. Through mathematical principles instead of centralized credit institutions, credit can be established at low cost. All of our certificates can be notarized on the blockchain and can be trusted globally. Naturally, it is easy to prove that "My mother is my mother." Although people are fickle, the machine will not lie, and the blockchain is expected to lead us from an age of personal trust and institutional trust to machine trust.

02 smart contract

Blockchain smart contracts are smart contracts whose terms are recorded in the computer language rather than the legal language. When a pre-programmed condition is triggered, smart contracts execute the corresponding contract terms. Smart contracts can replace all paper contracts. More importantly, they can perfectly connect the physical world with the virtual world.

For example, to truly achieve a shared economy with “separation of ownership and use rights,” blockchain technology is the optimal solution: to register the identity of the renter and the identity of the car on the blockchain ledger, then It's as convenient as driving downstairs to open your own car. The lessor of the vehicle can confirm the identity of the renter in seconds on the blockchain. With the smart contract, everything is done automatically. There is no difference between using a car and using a car. Now.

03 value transmission

Human beings are in a historic movement from the physical world to the virtual world, and human wealth will gradually shift to the Internet. This is an indisputable fact. The traditional Internet is not created to convey value. The essence of information transmission on the Internet is information copying.

In reality, monetary circulation depends on the centralized organization to endorse and maintain operations, such as WeChat Payment, Alipay, and UnionPay. But which company can exist for more than 1000 years now? Therefore, there are many problems in achieving value transfer through a centralized approach. The blockchain is the first network that can realize value transfer. In the future, humans will transition from the information internet to the value internet through the blockchain.

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