Totoro TOC Blockchain Academy - The difference between investing in traditional internet and blockchain
Introduction: The emergence of the blockchain is not blindly following the trend, but must first understand the difference between traditional Internet and blockchain. What is the development and application of blockchain?
The difference between investment in traditional internet and blockchain
Just like the articles I shared at the beginning, previous seniors and teachers should have said that what is the blockchain of the protocol layer and what is the blockchain of the application layer. I don't have much to say about this one. In the blockchain field, the most valuable are some very low-level things.
Taking the Internet as an example, the value of all Internet companies combined cannot be compared with the Internet itself. However, as an investor, you cannot vote for the Internet itself. You can only invest in Internet companies. So without a solution, you have to invest in the company itself, not the internet. But the emergence of the blockchain gives everyone the opportunity to invest in the foundation itself.
There are many different directions here, and agreements can be made in different directions. But which direction of the agreement is the greatest value in the future?
This is the focus of our discussion today.
As a programmer, I must admit that the application of blockchain is now completely immature, and now the largest application of blockchain is gambling besides issuing coins. In addition to these two, there are not many applications with substantial value. In fact, it's good to understand that if you make a decision that requires a thousand people to agree, the speed with which he makes decisions is far slower than if only one person agrees!
By the same token, using blockchain as a data store now, the price he has to pay is much higher than that of an ordinary cloud drive or ordinary hard disk.
A little thought about artificial intelligence, decentralized exchanges, quantum computers
However, I noticed that there are a lot of blockchain concepts that often appear, which are today's keywords. Artificial intelligence AI, decentralized exchanges, quantum computers, I focus on my opinion.
- About artificial intelligence
What is the concept of artificial intelligence? AI is just a technology that combines data storage with performance. Without data, it can't learn, it's inefficient, and it's very slow. It requires a lot of calculations and a lot of data. However, the two most important cores above the blockchain are actually not well represented.
Our view is that blockchain is a technology that exchanges value. If the concept he proposes has nothing to do with the value exchange, the blockchain cannot effectively solve the problem. The blockchain is not the best medium for storing data, nor is it for efficiency. Why do I say this? Speak a very simple example. One of the core ideas of blockchain is decentralization. There is an inherent contradiction between decentralization and efficiency. The more decentralized that thing is, the lower its theoretical efficiency is. However, judging from the relationship between the costs of the two parties, the law is the highest cost, not the cost that cannot be tampered with.
There is a very simple example, you do not need to give a lot of cloud storage services now. However, you have to send a little bit of information above the blockchain and you are starting to pay for it.
The above is our view on artificial intelligence combined with blockchain. In fact, we think this concept is not so useful in the blockchain.
- About decentralized exchanges
The second thing I often hear was a decentralized exchange. In fact, the virtual exchange is a platform for value exchange. All exchanges are very particular about a concept, that is, efficiency. Everyone says that how many transactions can be processed each day are representative of a powerful exchange? As I said earlier, efficiency is decentralized and there is an antagonistic relationship. I don't mean to go to a centralised exchange and cannot do a great job, but to say that if the same resources are used to decentralize the exchange, there must be no centralised exchange.
For example, if I give a hundred dollars, processing transactions in a decentralized exchange can basically handle 1,000 transactions per day. But again, I put a hundred dollars into a centralized exchange. It may handle 10 million transactions. This is the concept I want to put forward.
Of course, decentralized exchanges also have a lot of benefits they say, such as security and privacy, but as security technology advances, this concern becomes less and less, and the probability of attacking hackers is either As people pay more and more attention, I believe that in the near future, there will be some exchanges that buy insurance. If your money is blacked out, there will be a third party to compensate.
Instead of decentralizing the centralised exchange and letting it become slower and more expensive, it is more reasonable to buy insurance.
There is a very interesting concept in the blockchain. This is because even if we want to think of technology, we can't figure it out. That's because many people can't tamper with the blockchain, that is, the concept that can't be changed arbitrarily. The data above the blockchain equals and trusts the data. In fact, this is unreasonable.
For example, many blockchain projects say that food traceability and putting food information on the blockchain means that the information is trustworthy. You can eat that food safely. I can't figure it out.
A very simple example, if I raise an apple and then this apple has a lot of pesticides, but I didn't record it on the blockchain, then when you eat it, you won't write on that blockchain. Without pesticides, apples become pesticide-free and the ones you eat are still unsafe foods. What the blockchain can do is only an act of ultimate responsibility, making the cost of lying a little higher.
However, in terms of lying costs, the law is the highest cost, not the highest cost that cannot be tampered with!
3, on the quantum computer
Then we talk about the third keyword, quantum computer. There are mainly two kinds of blockchain projects in quantum computers. One is to perform quantum computation through the blockchain, and the other is to use new technologies to make quantum computers more effective and more efficient for cryptocurrencies.
Quantum computers are a hardware technology. Without a blockchain, you can build a quantum computer. But the second is very reasonable. According to the calculations of many computer experts, quantum computers will have enough power to crack the current mainstream encryption technology in the next 10 to 20 years, and your wallet will become unsafe. So the second, with a new encryption technology, to ensure that the blockchain can run safely after the popularity of quantum computers, this value is still very large.
Our current mainstream encryption technology is actually an encryption technique for elliptic curve cryptography, used in various blockchains. After the quantum computer comes out, blockchains encrypted with this method can all be cracked, and basically your wallet has no meaning.
It means that he can get your private key through your public key and everything becomes insecure. There are a number of encryption technologies available on the market for quantum computers. It is expected that many types of blockchain projects will come out in the future.
The
We now have a misunderstanding of the efficiency of the blockchain!
We all emphasize the blockchain technology and how many transactions can be processed every second. Actually, in the blockchain, as I said just now, it is not born for efficiency, but how many transactions can be processed each second, it must meet the minimum requirements, but it has passed this most satisfying level. Even worse, the significance is not great. Make an analogy. A restaurant can not be too dirty, otherwise you will not eat! But the most important thing in the restaurant is that its food is delicious. If its food is hard to eat, your restaurant is no longer clean!
Summary: The difference between investing in the traditional Internet and blockchain, on artificial intelligence, decentralized exchanges, and quantum computers.