Why Pay Attention to Blockchain (Why Blockchain is a Revolution)

Why Pay Attention to Blockchain? Editor’s Note: This article is from HiveEcon (ID: HiveEcon), authored by Yuan Shang, authorized and reproduced by Odaily Star Daily.

In the world of blockchain, no one can stop us from moving towards the future! When we talk about digital technology, we cannot separate it from trust in data, the need for data value, and how to achieve more trustworthy data exchanges through this information. Why should we pay attention to blockchain? Let’s start from the following aspects:

1. The digital transformation of governments and enterprises will change people’s lifestyles;

2. Enterprises must have their own business models;

3. Big data and artificial intelligence are important development trends;

4. The financial industry needs to develop new economic forms and business models. So how should we view this industry now?

The first point is to consider the various problems currently existing in society. For example, current issues such as network security and user privacy. However, all of these are due to the complexity of technology. It is very difficult to apply such imperfect technology to our daily lives, and many times there are problems, such as transaction delays caused by smart contracts. Blockchain can solve these flaws and create a more convenient use case for us. The second point is the most critical factor – the decentralized nature of blockchain itself. It not only allows everyone to communicate and interact conveniently but also reduces costs. In addition, blockchain provides a better incentive mechanism. The third element is the “distributed ledger.” The consensus algorithm of blockchain was proposed by David Chaum, a core developer of Bitcoin, and was granted the first cryptocurrency invention patent by the United States Patent and Trademark Office; The fourth innovation is the introduction of hash functions (Hashgraph).

The emergence of blockchain has broken the information island status quo of traditional Internet platforms. However, as new technologies gradually begin to be widely accepted by the public, more and more industries are starting to pay attention to this field. For example, using blockchain in the field of food traceability can help solve the pain points in food safety. In addition to supply chain management, blockchain has many other application directions. First, by using blockchain, the quantity of counterfeit goods can be reduced by establishing methods to track product quality. Secondly, with the help of open-source software, it is possible to better track the source, production process, and storage methods of products. Finally, by adopting a multi-party participation approach, the security and reliable operation of the entire process can be ensured, and all operation records can be publicly and transparently recorded on the blockchain. This can also guarantee consumer rights. Therefore, the birth of blockchain has made it one of the core devices of the next generation, following the steam engine.

Why is Blockchain Considered a Revolution

Editor’s Note: This article is from HiveEcon (ID: HiveEcon), authored by Yuan Shang, authorized and reproduced by Odaily Star Daily.

Blockchain is a disruptive technology that not only has a profound impact in the field of digital currency but also has far-reaching implications for the entire society! Today, we will introduce the value of this technology, its impact, and the future it brings through a simple example. What is Bitcoin? Why is Bitcoin considered a new and promising technology? From an economic perspective, Bitcoin is essentially a cryptographic distributed ledger system that aims to allow everyone to access this decentralized database and perform bookkeeping operations on it. Unlike traditional computer networks, Bitcoin is controlled by a single miner. If someone wants to participate in these new transactions, they need to pay a certain fee to other users to prevent hacking or deception. If people do not want to trust any third-party institutions, they can transfer the money or even mine new blocks without purchasing their own hardware devices to ensure security. So what exactly is Bitcoin? Let’s talk about Bitcoin first. Bitcoin has been around for 12 years, returning to the 14th century, and has a history of nearly 200 years since gold. Although Bitcoin has not yet become a complete asset class, it has led to significant innovations and innovations. But as one of the oldest cryptocurrencies in the world, Bitcoin has been in its early stages due to its peer-to-peer electronic cash system without centralized entities. However, with Bitcoin becoming more and more popular, it has become the most popular payment method in the world and is growing continuously. Bitcoin was originally introduced as a cryptocurrency at the end of 2017. At that time, it was pegged to fiat currencies and later developed its own price discovery mechanism, making it almost a global financial investment product. At the beginning of 2020, the price of Bitcoin was about $3 per coin and later rose to nearly $50,000. After BTC reached its peak at the end of 2017, the decline once exceeded 50%, but in the first quarter of 2018, it reached 40 cents, which was only slightly higher than the level of the whole year of 2019. Since 2019, Bitcoin has fallen more than 40%. The development speed of Bitcoin is astounding, and it has surpassed traditional finance to become the world’s largest cryptocurrency. In addition, there are many things worth noting, such as how new concepts and emerging things like DeFi will change our lives? How will Bitcoin bring changes? Let’s take a look at events that have occurred in the past 20 years:

1. The U.S. government began implementing “stimulus plans”

2. Facebook announced the establishment of the Libra Association

3. 5G communication company Intel announced its 1 billion servers with a data capacity of 25GB. This storage space is mainly used in various places in the United States and will be used for commercial applications. Additionally,