Wan zichangwen, former vice president of Bank of China: where are the eight pain points of blockchain redemption?

 Wan zichangwen, former vice president of Bank of China: where are the eight pain points of blockchain redemption?

Since 2017, the concept of blockchain, which has spread all over the society and the world, is still heating up, attracting people and social funds to rush in; boosting the price of bitcoin and similar network cryptocurrency (such as Ethernet, litecoin, etc.) to a large extent, creating many myths of overnight wealth. The view that digital currency and blockchain will subvert the tradition and profoundly change the world is constantly rising. Blockchain entrepreneurship and development seem to be coming, but they are more and more concentrated in coinage and speculation, more and more trapped in the bitcoin blockchain thinking and paradigm of mining and coinage.

Although the Chinese government explicitly suspended the ICO on September 4, 2017, it also stopped the transaction between RMB and digital currency. However, driven by the upsurge abroad, the upsurge of domestic digital currency and blockchain has been set off again, with more enthusiasm. Some people exclaim one day in the currency circle, one year in the world, or even one day in the blockchain, ten years in the Internet. All kinds of companies with the word blockchain are springing up, showing an increasingly frightening state of irrational prosperity, which needs to be rectified.

In my opinion, blockchain has eight pain points, where is its redemption?

Perplexity of bitcoin blockchain

Unconsciously, the perfect bitcoin blockchain system is divorced from reality and closed. This is the fundamental problem of bitcoin blockchain.

The original intention of bitcoin design is to get rid of the traditional payment and clearing and related social operation system, and build a new point-to-point direct transaction and clearing system. Among them, the implicit design concept is: the participation of different computers in the world (breaking the national boundary), forming an equal, no center (anarchy) and intermediary self-organized network world. This network world is different from the real world composed of sovereign independent countries and national governance systems for a long time. Therefore, the laws or rules of any country will not be applied, but new network rules will be formed, and the rules will be built into the network system, which will be jointly maintained and modified by the computers participating in the operation, and the network system will be regarded as God by God rather than human or The organization is responsible for the implementation of the rules to ensure the fairness in the implementation of the rules. It is no longer applicable to the legal (sovereign) currency of any country, to prevent the artificial control of currency delivery, but to imitate gold, use hash calculation and encryption technology, etc., to generate a new encrypted digital currency through mining, its total amount is set, and the quantity of delivery in each stage is completely controlled by the system automatically. On the basis that all people log in to bitcoin network system, every acquisition of bitcoin will be confirmed by the whole network and distributed records (which can fully guarantee the authenticity), the transfer of bitcoin assets can completely realize point-to-point direct without any intermediary participation.

It can be seen that the establishment of bitcoin network system is not simply to use advanced technology to solve practical problems in the real world, but to have a strong antisocial, committed to get rid of the ideological tendency of the existing social system mechanism (world outlook, values, Philosophy), and even to form a religious belief and organization system (this may also be that the inventor of bitcoin is unwilling to publish himself Identity, and the important reason for using the pseudonym zhongbencong, and through the production and appreciation of virtual currency, a set of attractive incentive mechanism is formed to further enhance peoples superstition and worship of the Internet world and value system, such as special currency, and strive to enhance its attraction and influence. Many participants firmly believe or strongly advocate that blockchain will rebuild the production relationship, organization form and operation mode of human society; digital currencies such as bitcoin will subvert and replace the existing legal currency system.

But in fact, just because bitcoin system pursues perfection too much and devotes itself to get rid of the existing world operation system, it falls into a utopian thinking which is divorced from reality and self closed. The more perfect it pursues, the more closed it gets, the more difficult it is to solve the practical problems in the real world, and on the contrary, it will lose its practical value and become a kind of online game, so it is hard to have much reality. International value, let alone can change the world and subvert the legal currency system.

From the perspective of the closed system of bitcoin blockchain itself, it does realize decentralization, trust and intermediary within its system (community), and it can freely transfer bitcoin assets from point to point, which seems to form a good society with full democracy, rule of law, equality and freedom, no falsification, no taxes and improper fees, no corruption, etc., forming the so-called so-called good society. The Internet of trust, the Internet of value, the Internet of order. But the key problem is that this beautiful bitcoin blockchain system can not exist independently from the real world. If bitcoin cannot be exchanged with the legal currency in the real world, it is difficult to realize its value. To realize the value of bitcoin blockchain, we must connect with the real world, and make bitcoin blockchain system become an intermediary link or transition stage of social wealth transfer represented by legal currency. This also needs to solve the problem of its connection with the real world. Among them, bitcoin and other digital currency network trading platform become its important infrastructure (external connection system) and key link.

In the case that bitcoin must be exchanged with legal currency, and network transaction platform and other auxiliary links must be added to play a greater role, the characteristics of bitcoin blockchain, such as decentralization and disintermediation, may cause serious problems. In the context of the real world, if the transfer of its monetary assets is operated through the bitcoin blockchain system, it actually increases the intermediary link rather than the intermediary link. Moreover, because the bitcoin system is highly anonymous and deliberately evades supervision, it is difficult to fully meet the requirements of anti money laundering, anti-terrorism transmission and other aspects. On the contrary, many new and serious problems may arise. Bitcoin and blockchain are hard to believe.

Those invisible pain points

The so-called decentralizing and democratic equality and freedom tags of bitcoin blockchain cant stand scrutiny; the truth is that if it overemphasizes decentralizing, it will affect efficiency; including bitcoin, it cant become a real currency yet; ICO style fund-raising will not help the development of blockchain... But these pain points cannot be seen when people are passionate about blockchain as they believe:

First, bitcoin blockchain is difficult to build a decentralized, democratic and equal society.

Bitcoin blockchain system envisions a world of equality and democracy for all participants, but in fact, there is a situation in which the core team of coding maintenance and the main forces involved in mining and operation play a greater role than that of equality and democracy. Affected by the computing power of computers, the mining and acquisition of bitcoin are not equal opportunities for everyone as advertised. As a result of competition, the opportunities for mining and acquiring bitcoin are more and more concentrated on a few powerful mining pools or nodes, and more people participate in mining as much as they can, consuming resources, but they are not necessarily able to obtain bitcoin. This makes bitcoin more owned by a few people, and will enhance its voice or influence on the adjustment of network rules.

Secondly, bitcoin blockchain de trust and de intermediary point-to-point transactions have strict conditions.

Within the bitcoin system, the two parties to the transaction can conduct direct transactions without providing identity information and obtaining sufficient authority (users can change accounts for each transaction, that is, each transaction occurs, the original account can be cleared and the balance transferred to the new account to be re opened), forming the so-called trusted Internet, value Internet and orderly Internet u201dBut this implies an important premise, that is, all people participate in the same bitcoin blockchain network platform, and only bitcoin can run on the platform, not other assets or values other than bitcoin.

As bitcoin is an endogenous asset of the network system, it is verified and distributed by the network system from its source, so it is difficult to fake or tamper with the records. Therefore, its transfer does not need to know the real identity of its holder, only to ensure that the transferor does have enough bitcoin to transfer point-to-point by the network system.

However, it is not worth boasting. In todays society, as long as both sides of the transaction open accounts in the same bank or third-party payment institution, and make use of the existing network communication technology, the bank or third-party payment institution can also realize point-to-point timely transfer and clearing. Moreover, in the case of centralized operation, there is no network broadcast, multi-layer verification, distributed bookkeeping and other complex like bitcoin. The speed or efficiency of miscellaneous process is much higher than that of bitcoin system.

Third, bitcoin blockchain is only a closed system of bitcoin generation and remittance, with limited practical functions.

In fact, it is difficult to push the real world assets or values to this system. Even if it can be pushed up, without a set of very strict offline verification system to ensure the legitimacy, authenticity and accuracy of the pushed assets, once there is something false pushed to the bitcoin blockchain system, its operation system can not escape the result of misrepresentation.

If it is strictly limited in the bitcoin blockchain system, based on the rules of bitcoin generation, it can not even solve the interest or dividend that should be generated by the bitcoin loan or investment, which will seriously affect the development and function of finance.

To play the function of bitcoin system, we must convert bitcoin into legal currency, and take bitcoin system as an over link or a new intermediary link of real world fund transfer. This requires bitcoin system to connect with the real world. From the perspective of the real world environment, the result is not to disintermediate, but to increase the intermediary!

Fourthly, bitcoin online trading platform is not an internal part of bitcoin system, and it is not decentralized.

In order to use and realize the value of bitcoin, it must be converted into legal currency; the so-called bitcoin can be directly used for shopping or withdrawal at ATM, in fact, it needs to be converted into legal currency online for transfer consumption or withdrawal of legal currency cash.

With the expansion of the demand for the exchange of bitcoin and other network digital currencies and legal currencies, a special network digital currency trading platform has emerged to provide professional services for the exchange of digital currencies, especially for those who are not willing to participate in mining, but are willing to participate in the hype of bitcoin and other digital currencies. This greatly facilitates the exchange and transfer of bitcoin and other digital currencies and legal currencies, and provides strong support for the realization of bitcoins value, the promotion of its price and the expansion of its influence.

However, this special platform for exchange or transaction with legal currency is only an external system of bitcoin blockchain system, not an internal organization part of the system. Therefore, although bitcoin and other digital currency trading platforms have been attacked by hackers, stolen, or even closed, or the platform operators have run, it does not affect the safe operation of bitcoin blockchain system itself. Moreover, although the bitcoin blockchain system is decentralized, the operation and management of the digital currency trading platform is centralized, not fully constrained and protected by the bitcoin blockchain system. So far, it has not been effectively supervised by financial supervision. There are potential risks in the operation of the trading platform and the assets it stores. Therefore, the regulatory authorities must start from the supervision of legal currency and strengthen the exchange link between legal currency and network digital currency, especially the supervision of the business legality and compliance of the network trading platform.

Fifthly, bitcoin blockchain system overemphasizes decentralization, which affects its efficiency, cost and supervision.

In order to realize decentralizing of bitcoin blockchain system, a large number of external computers need to be connected and run together (which is the basic condition for decentralizing operation). In this way, the more computer nodes are added, the more difficult it is for bitcoin mining and transfer to require the whole network broadcast, verification, distributed processing, etc., and its mining process needs to consume more and more Energy can even cause environmental pollution. The processing procedures of the legal currency external trading platform are cumbersome and costly (bitcoin is traded on the cionbase exchange in the United States at a rate of 1.49%). The exchange has become an important driving force and beneficiary of the digital currency boom), and the efficiency is very low (when the bitcoin wallet is first installed, it will take a lot of time to download historical transaction data blocks, and it takes about six consecutive blocks to confirm a bitcoin transaction, often several days).

Whats more, if we join bitcoin system as an intermediate link to completely resist or evade national supervision, the circulation of legal currency may be completely out of control, resulting in extremely serious problems. In fact, bitcoin has also been favored by terrorists, drug traffickers, Internet hackers, financial scammers, etc., and is often used to evade regulatory funds or asset transfers.

Sixthly, if we pursue too much decentralization and full democratic freedom, we will actually be divorced from the realization.

Human beings are the most social animals on the earth. Living in groups or in groups can not only form a greater joint force to resist natural enemies and overcome difficulties, but also help to increase opportunities for reproduction, enhance learning and communication, promote the development of skills and brains, promote rapid human evolution, and develop into the master of the world in a relatively short time. In this process, there must be contradiction and unity between individual interests and public interests in human society. Only when the public interests are maximized can individual interests be fundamentally guaranteed; to maintain a good relationship between individuals and organizations, good rules that can be accepted by most people must be formed, and there must be a mechanism to supervise the implementation of rules and punish violations of rules. Therefore, the formation of a central and hierarchical social organization, rather than full equality and democratic freedom, may be an inevitable choice in the long-term practice process. Although people have constantly imagined to build a Utopian society in which all people are equal and distributed according to their needs, and even tried to run into communism, it is difficult to succeed. In todays world, which is still based on the sovereignty independence and autonomy of each country, and there is a wide gap between countries, it is also unrealistic to imagine the establishment of a decentralized, anarchic network world and super sovereign world currency, completely free from the constraints of the national laws in the real world.

Bitcoin is not a currency

Bitcoin is hard to be a real currency. This is actually the seventh pain point of blockchain.

First of all, bitcoins highly imitative design of gold is not in line with the law of money development.

Bitcoin is designed to imitate gold, with a limited total amount, and it is more and more difficult to mine. The output is gradually reduced in stages, in order to eliminate the possibility of excessive human investment and create a huge imagination space for bitcoin appreciation. But this design idea is just the wrong choice, ignoring the fundamental reason why gold will withdraw from the monetary stage.

As the measure of value, medium of exchange and means of value storage of commodity exchange, money needs to have value support and maintain relatively stable value (currency value). However, gold, as a natural material, is very easy to deviate from the actual level of economic and social development and its demand for money due to the influence of natural reserves, mining and processing capacity, resulting in serious inflation or deflation. Moreover, when it presents the trend of appreciation, it is also easy to collect more and win the appreciation income, which seriously affects its use as goods. As a result, it is replaced by a credit monetary system that can be more easily adjusted and controlled flexibly, keep the total amount of money basically adapted to the level of economic and social development, and keep the value of money basically stable (inflation rate controlled at an appropriate level). It has been amply proved that gold can no longer be a currency.

Therefore, the idea of highly imitating gold to design monetary system is a kind of retrogression in itself, which cannot be established.

Secondly, as a kind of natural material (precious metal), gold itself is of real value, such as being able to create gold ornaments, still having industrial use, etc. But bitcoin is just a string of encrypted numbers or numbers generated by the network system. It is not a natural substance. Once it leaves the bitcoin system, it has no value and will be like the air.

Some people say that todays currency is actually a pure credit currency, the core of which is trust. As long as people believe that it accepts it, it can become a currency. Bitcoin blockchain is used to create credit, not real wealth. It has created a consensus among many people that it can become a currency as long as everyone believes it.

This view makes many people believe that it is true and widely spread. However, this view only sees the appearance of money, but does not see the essence and internal logic of money at all. Even in todays credit monetary system, its not just anyone or institution. Anything created casually can make people trust and accept it as currency. When monetary authorities put money in, they usually still need a certain scale of monetary reserves (such as gold or foreign exchange, as the direct value support), and try to control the scale of monetary multiplier and derivative currency within a certain range. At the same time, there should be national sovereignty and legal protection to make money become the value expression of national wealth that can be monetized, so as to maintain the relative stability of currency value. The reason why money becomes legal currency or sovereign currency is that money is endorsed by the social wealth that can be controlled within the scope of national sovereignty. Without national sovereignty and legal protection, it is difficult for money to obtain the corresponding social wealth that it relies on, and it is also difficult to prove its value (because of this, Hayeks idea that money is not nationalized and can be private Free distribution and full competition are hard to achieve.

Bitcoin does not have any value reserves, or wealth that can be owned or controlled by its network world, so it can not become a real currency, only a kind of network business district currency or token.

Third, bitcoin is an open-source system, which can be downloaded free of charge. In the process of bitcoins rising temperature, it is easy to generate a lot of Shanzhai or bifurcated coins (according to statistics, by the end of 2017, there are more than 1300 online digital coins in the world. Some people think that, in fact, there are more, some are not called coin, but token, which is translated into General Certificate, but their essence is the same. In this way, numerous blockchain network communities (far more than the number of countries) will be differentiated in the network world. If they can not connect with each other and maintain the unity of rules, it will inevitably cause chaos in the network world and seriously affect the reputation and cross chain communication of network digital currency.

It is said that some people are trying to issue bitcoin physical cash, such as bitcoin coins or paper money, in order to make it easier to use bitcoin offline. This is even more against bitcoin as a network digital currency and de center of its own logic and difficult to achieve.

I.c.o. thats off course

Obviously, there are more problems in network digital currency ICO, and the development of blockchain is like drinking poison to quench thirst. It is the eighth pain point of blockchain.

With the rise of blockchain, bitcoin, Ethernet and other network digital coins and the price rise, many blockchain start-ups and their corresponding counterfeit or forked coins have also been born. Due to their new concept and short time, these blockchain start-ups are difficult to achieve the regulatory conditions of IPO. Therefore, driven by some capital operators involved in speculation, they have emerged a focus on the initial issuance of network digital currency and the raising of hot network digital currency (mainly bitcoin, etheric currency, rather than legal currency, so as to avoid the risk of illegal fund-raising). ICO funding method to be characterized.

Once ICO was launched, it further expanded the demand for bitcoin, Ethernet and other hot digital currencies, and raised their prices. The sharp rise in the prices of bitcoin, Ethernet, etc. has also made people who raise digital currency through ICO suddenly become rich overnight, thus attracting more people and capital to flow into the field of blockchain and digital currency, making many people believe that ICO is the end of major financial innovation in the Internet world, or even Internet financial innovation.

However, due to the lack of effective supervision by the regulatory authorities, there are many elements in the actual operation of ICO, such as secret box operation, internal hype, false propaganda and malicious pyramid selling. For example, the total amount of money determined by some ICO projects has no basis and rules at all, which is completely determined by brain bag; some announce how many coins will be publicly issued, but in fact only a few will be issued.u201c In order to prevent too many issues, it is difficult to stir up the price; there are many ICO projects monopolized by a few investors, and after that, they try their best to stir up the price, maliciously manipulate the market, and withdraw after taking the opportunity to cash in profits, leaving the risk to the receiver (commonly known as cutting leeks).

Many young people, encouraged by some digital currency speculators, have blindly believed in blockchain and digital currency, or extremely adored and pursued the sudden wealth. They have invested in blockchain development and ICO operation. They are often excited about the success of ICO and the sudden wealth. They live in the illusion that the prices of bitcoin and etheric currency will only skyrocket but not fall. They have no idea at all. After the completion of the ICO, the responsibilities that should be undertaken by oneself are not considered at all. If the blockchain project is hard to land and produce actual value, or the price of bitcoin and etheric currency raised falls sharply, and cannot be converted into enough legal currency to meet the capital requirements of its entrepreneurship, how should I face the investors and how to lose credit in the future if the blockchain entrepreneurship fails? Based on the society.

Many investors also have the same blind faith in blockchain and digital currency and the illusion that digital currency will only rise but not fall in price. They are keen on the speculation and speculation of digital currency and do not consider the feasibility of the invested projects at all (many ICO projects can only be invested by white book with limited text and fuzzy information), and how to supervise the project team and project process after investment , how to protect the rights and interests of investors. Or know that it has a great risk, but more willing to participate in it, form MLM organization, and jointly deceive and deceive more people and funds into it, in order to become the person who reaps the profits of leek, rather than the person who is damaged by the cut leek. Especially for some speculators of bitcoin and etheric currency, by promoting the ICO of other projects, expanding the demand for bitcoin and etheric currency and raising their prices, they can benefit from the premium of bitcoin and etheric currency and hedge the risk of investment in ICO projects. The hotter the development of ICO, the richer the income. Therefore, these bitcoin and etheric money speculators have become the most important driving force of ICO, constantly creating myths about blockchain and digital currency.

Whats more, many countries are particularly keen to explore and issue the so-called sovereign crypto digital currency. For example, the Venezuelan government introduced petro, which is compatible with the Ethereum erc20 standard, and has the typical characteristics of ICO. Petro began to pre sell on February 20, 2018, and it is said that it raised $735 million in pre purchase orders on the first day. But it also reflects the blind pursuit of cryptocurrency, which is a great risk.

It can be seen that the emergence of ICO has a great impact. It seems to provide a new financing way and channel for blockchain entrepreneurship. In fact, the focus is to use it to hype digital currency and raise funds for the public (rather than private placement), but it is seriously lack of necessary rules and regulations, which is likely to cause very serious financial and social problems, and even lead the development of blockchain astray. This is especially obvious in China. Therefore, the Chinese government is also the first in the world to take severe action. On September 4, 2017, the ICO in mainland China was stopped in an all-round way, which is wise and decisive, and effectively curbed the rapid expansion of the situation.

This severe measure will naturally cause strong opposition from stakeholders, especially when no similar action has been taken abroad, some countries are still encouraging digital currency speculation, and even famous futures exchanges in the United States are actively promoting bitcoin futures trading and striving to launch bitcoin ETF, which is under great pressure. Therefore, some people strongly appeal that this move will deprive China of great opportunities or advantages in the field of blockchain and digital currency, and will make serious historical mistakes, which should be corrected as soon as possible. But as it turns out, its all deception and even intimidation. Now the worlds ICO projects have begun to expose a lot of problems, which has made more and more countries, including the United States, and even countries such as Japan, which have always been supportive, begin to strengthen the supervision of digital currency and ICO.

In any case, such public fund-raising activities must be strictly regulated to crack down on fraud. It is also necessary to stop completely before there are no appropriate regulatory rules. Otherwise, the development of ICO may lead the development of blockchain into a wrong or dead road and cause serious social instability.


To sum up, the development of blockchain can achieve self salvation only if it jumps out of the thinking and paradigm of bitcoin blockchain.

Bitcoin is the earliest and most successful landing project of blockchain, but it is also a major innovation from a technical point of view. Therefore, although there are many different opinions about blockchain, they basically take bitcoin blockchain as the paradigm consciously or unconsciously, and all kinds of blockchain application development unconsciously fall into the completely closed mode of bitcoin blockchain. As a result, apart from the growing prosperity of currency circle, the real blockchain application is still difficult to see success. Case studies have severely constrained the healthy development of blockchain.

It must be clear that bitcoin is only a result of blockchain application, bitcoin is not equal to blockchain.

Blockchain is the integration of multiple technologies. Bitcoin is just a form of integration of multiple technologies in blockchain, and it can also have multiple combinations of different technologies. Therefore, the development of blockchain must jump out of the thinking and stereotype of bitcoin blockchain, do not pursue idealization too much, turn to be down-to-earth and realistic, pay attention to using relevant technologies to solve practical problems in the real world, and constantly improve and perfect in practice, give full play to the positive role of blockchain.

First of all, decentralizing is just a feature of bitcoin blockchain, which does not mean that all blockchains must be decentralised.

The core of blockchain is the partition block and distributed storage of data, but there is a tight link relationship and encryption protection between the blocks, and forms multiple backups and cross validation, so as to ensure the security of data and prevent fraud or tampering. To go to the center, and therefore need to attract a large number of external computers to join, forming a computer public chain to run together, not necessarily the necessary content of the blockchain. The blockchain can also be centralized and operated independently on the private computer group, or attract certain qualified participants to join in, forming a semi centralized franchise chain operation system jointly operated by the computer group of the franchisee.

Secondly, bitcoin and other network systems have endogenous currency, which is not inseparable from the blockchain.

If we dont pursue decentralizing, we dont need incentive mechanisms like bitcoin, which can change the focus of blockchain operation: from focusing on mining to generate digital cryptocurrency, as well as the transfer authentication and record of this digital asset, we will give up the legitimacy, authenticity and accuracy of the asset, as well as the authenticity and accuracy of the identities of both parties to the transaction. The verification of virtual assets has formed a closed network environment completely divorced from the real world, which has been transformed into strengthening the verification of the legitimacy, authenticity, accuracy of assets and the authenticity and accuracy of the identity of both parties to the transaction, instead of requiring the development and operation of the systems endogenous digital currency (virtual assets), and then integrating the blockchain into the real world to truly solve the real worlds practical problems. And fully meet the requirements of national laws and regulations to avoid becoming an instrument and accomplice for illegal transactions and terrorist transmission.

We must see that the Internet can only solve the transfer of information, including peoples information, things information, monetary information (text, data, image, etc.), but not the transfer of physical objects, including money, cash and physical objects. Therefore, the real solution to the transfer of physical assets in the real world requires the cooperation of the Internet of things. It is not easy to rely on the blockchain Internet to solve all kinds of physical objects, including tracking, anti-counterfeiting, quality assurance, etc. in the process of transferring or transporting all kinds of physical documents and files. Therefore, do not hope that blockchain technology is omnipotent. It has been proved that, in the case of imperfect personal credit system and legal environment, it is unrealistic to imagine that P2P lending and equity crowdfunding can be developed through the Internet, and the idea of subverting traditional finance is unrealistic. Similarly, it is believed that blockchain can realize direct point-to-point transactions between people, thus forming a self-organized, de entrepreneurial programmable digital economy, etc. With blockchain, ICO may become the end of Internet financial deepening. Relying on blockchain and other Internet technologies to completely subvert and rebuild the world is not without exaggeration or even hoax.

Third, the central bank digital currency can not imitate the network cryptocurrency system such as bitcoin or Ethernet.

Under the situation of bitcoin, etheric currency and other network cryptocurrency, including the Bank of England and the peoples Bank of China, the central banks of many countries have also announced to launch the digital currency dominated by the central bank (legal digital currency), but what exactly is the digital currency dominated by the central bank? It is the use of blockchain under the existing legal currency system. The digital currency realized by new technologies, such as bitcoin, Ethernet and other network encryption digital currency, forms another new monetary system, but it has been unclear. Because of this, the action of the central bank has stimulated the enthusiasm of the society to compare the network encryption digital currency such as special currency and Ethernet currency. Many people firmly believe that the reason why the central bank is eager to launch its own leading digital currency is that the emerging network encryption digital currency has posed a serious threat to the traditional legal currency, indicating the emerging digital currency. With strong impact and value potential, we must seize rare historical opportunities or outlets, and actively invest in bitcoin, Ethernet and other network digital currencies.

In fact, some central banks believe that bitcoin, Ethernet and other network digital currencies may represent the development direction of the network world. We must follow the trend, seize the opportunity of digital currency, form influence in the network world, fight for the right to speak, and imitate bitcoin and Ethernet to start to invest resources to design our own digital currency. However, the biggest characteristic of network digital currency such as bitcoin and Ethernet is decentralization, which has fundamental conflict with the centralized digital currency dominated by the Central Bank of a country, and it is difficult to coordinate. Moreover, even if the central bank can imitate bitcoin, ether and other currencies to design a new monetary system different from the legal currency, this monetary system is difficult to completely replace the existing legal currency system overnight or even in a short time, which means that a country will have to parallel two monetary systems in a long time, which will make the monetary authorities face great challenges and risks. If you are not careful, it may lead to the chaos of the monetary system and the violent turbulence of financial operation, which is very dangerous. Therefore, after several years of demonstration and attempt, some central banks announced to stop the research of digital currency. The peoples Bank of China has gradually made it clear that the digital currency dominated by the peoples Bank of China is not the new network cryptocurrency like bitcoin and etheric currency. On the whole, it still makes full use of various technologies including blockchain under the existing legal currency and its operation system (including commercial banks) to further improve the digitalization of legal currency, mainly to replace monetary cash (M0). No mining is required.

It can be seen that the development of the blockchain needs to jump out of the thinking and paradigm of the bitcoin blockchain because it is completely constrained by the bitcoin blockchain paradigm and has little value and development space. It seems that the perfect mining and Minting blockchain is not perfect. Stop fooling yourself.

(function() {(window. Slotbydup = window. Slotbydup| []). Push ({ID: 6374560, container: ssp_, size: 300250, display: inlay fix, async: true});))); (source of this paper: economic observation network responsibility editor: Li Chao