How do you view virtual currency and blockchain?

Blockchain, in simple terms, is a set of encrypted distributed accounting technology. "

Encryption is a mathematical concept, distribution is a network concept, and accounting technology is a financial concept.

Generally speaking, it is difficult for ordinary people to understand blockchain because this concept involves three complex disciplines, but you don't actually need to remember this definition, you just need to remember the centralized accounting technology.

The so-called centralized accounting is the accounting method currently adopted by the financial industry. For example, if you have 10,000 yuan in a bank, this 10,000 is stored in the form of data in the bank's centralized database. In order to prevent accidents, the bank may back up the database in a very safe place. If you want to transfer 100 yuan to Zhang San, the bank only needs to add 100 yuan to Zhang San's account and subtract 100 yuan from your account, and the entire transfer process is completed.

Why blockchain is better

The advantage of centralized accounting is efficiency and convenience. After receiving your transfer instruction, the bank's settlement system can complete this operation within milliseconds. However, centralized accounting also has many disadvantages:
The first is that the bank has an extreme event: it is attacked by hackers or the system has serious bugs, and it is directly completely The bottom of the bank is destroyed or tampered with, and even the backup database is destroyed. The possibility of this happening seems small now, but the probability still exists. In this case, all your wealth in the bank will be instantly cleared, and society will fall into chaos.

Second, credit collapse: The centralized accounting method relies on centralized credit. Once this credit has problems, such as the bank stealing and privately tampering with customer bank data, this has happened many times. The bank privately steals customer funds in violation of regulations, and then the bank begins to shirk responsibility and says that it is the personal behavior of bank employees and the bank is not responsible. Although it is likely that most of the funds can be recovered through prosecution, this process makes customers miserable; in addition, if the credit supporting this center collapses, the current centralized credit is behind the country. What if the credit of this country collapses? Your money in the bank is just a pile of waste paper, such as Zimbabwe back then.

Although the probability of the above two extreme situations is very low, it is still possible, and the emergence of blockchain perfectly solves the above-mentioned centralized pain points, because the accounting method of blockchain is "distributed accounting technology."

Continuing to use the above example, if you have 10,000 yuan and need to transfer 100 yuan to Zhang San, then this transfer will not be recorded in the centralized database, but will be broadcast to all nodes in the entire network, and they will Every transfer is recorded in its own ledger, that is, every node participating in this system has a ledger recording the transaction.

If someone wants to tamper with this data at this time, they must convince more than 51% of the nodes in the entire network to help you tamper with it at the same time. As long as there are enough participating nodes, the possibility of this happening is almost zero.

Why is it important?

There are many extremists on the Internet. Even people in the currency circle such as Liang Xi and other lunatics do not actually recognize the blockchain. They have one purpose in the field, and that is to make money.
In fact, this kind of people, especially as a KOL, are extremely harmful in the currency circle. They will mislead many people and turn many novices into gamblers when they enter the market.
Since there is no value, why should I hold it for a long time? Only valuable things are worth holding for a long time.
The biggest advantage of blockchain is to change the underlying organizational form of human society, slowly transforming from the current centralization to decentralization.
Talents can truly become self-aware people.
Come on, currency circle people, #虚拟货币 #区块链开发 #去中心化

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