What Environment is Suitable for Blockchain (What kind of blockchain is good)

What environment is suitable for blockchain?Editor’s note: This article is from the HiveEcon (ID: HiveEcon), written by Yuanshang, and authorized by Odaily Planet Daily for reprint.

The birth of blockchain is an exciting event. It has changed the attitude and behavior of humans towards the financial industry and various industries. There are already thousands of projects in different industries being developed and starting to use blockchain technology. In our opinion, this may include some areas worth paying attention to: data storage, digital asset management, supply chain, payment, etc. These types of products can help companies solve many problems, such as inability to track corporate financial reports, transaction failures, and even funding security issues. However, due to the relatively short maturity period of blockchain technology, it is difficult to determine which application scenarios are suitable for blockchain.For those who consider cryptocurrency as a means of value storage and want to use it for investment, Bitcoin and other cryptocurrencies are not necessarily good investment choices – because they do not rely on a single technology or conceptual framework like anything else, but are adopted as tools. However, when considering whether cryptocurrencies such as Bitcoin meet certain criteria, it is necessary to understand its operation mode and uses in order to better understand the risks and returns of the project. Why use Bitcoin for cross-border trade? In fact, Bitcoin is one of the largest cross-border remittance networks in the world, and this system can not only transfer value worldwide but also achieve international settlement through the Internet. However, this situation has also confused many government agencies: if they want to enter the cryptographic space, they must first establish their own business processes to convert fiat currency into legal currency in order to make it a medium of circulation. Although Bitcoin has the characteristic of anonymity, in many cases, people still consider Bitcoin to be better than gold. “If you want to withdraw your money from the exchange, I know the bank will let you withdraw your deposit.” Although most people are skeptical about this, many people also say, “I have never bought Bitcoin.” In fact, Bitcoin is indeed a “safe haven” strategy, especially when you try to convert it into US dollars.For example, some people say, “You may find that the price of Bitcoin is too high to some extent, so I won’t buy it.” That’s why in the traditional market, people tend to view Bitcoin as an alternative to gold, just like in the stock market in recent years, investors usually wait for more returns. However, there is a great development direction in the cryptocurrency market, which is to introduce blockchain into the entire financial system, that is, application based on smart contracts, such as autonomous driving cars, real estate, and securitized token issuance. Over time, more and more listed companies are trying to use blockchain technology, including Facebook, Amazon, Google, Microsoft, and Alibaba. In addition, in terms of financial services, some large technology platforms are also exploring the launch of blockchain products.In traditional economies, people often prefer traditional financial infrastructure and business structures, such as credit cards and online retailers.

What kind of blockchain is good

Blockchain is one of the fastest-growing technology fields in the current Internet development. Its appearance has changed the way people store information. But it also brings new challenges: what problems will we encounter when we talk about blockchain technology? How do we judge which project is suitable for ourselves?The answer is which kind of blockchain is good? Below, I will discuss it from different angles. What is a distributed ledger? Blockchain is a kind of cryptographic database system developed by a group of computer scientists and software experts, created with its unique algorithm design. This decentralized and decentralized data structure allows anyone to access the data without relying on central institutions to maintain the network. Transactions and information of all parties involved can be securely recorded without the intervention of a third party, while ensuring privacy. However, due to the complex technical features, it is difficult to apply it on a large scale in various industries, so it is difficult to achieve complete decentralization. If you want to solve the many pain points of the existing blockchain system, the simplest solution is to use a distributed ledger or cryptocurrency for accounting and payment operations, or you can use smart contracts to manage and verify the entire billing process without coding.Why use a distributed ledger system? Because this means that everyone’s identity can be identified and authenticated through the publicly available and tamper-resistant electronic vouchers on the blockchain. This provides a trusted network infrastructure for digital assets, ensuring the reliability and integrity of authenticity. This mechanism allows everyone to participate and participate, thereby increasing the cost of trust, which is called “decentralization.” That is, users can establish trust relationships before having a bank account, being unable to obtain deposits or credit card payments. Of course, the blockchain is not omnipotent, but it can achieve this.Why must a distributed ledger system be used? Because blockchain does not rely on a single person to operate its own node, so it is the only underlying platform with an independent chain. Only verified users can have all the rights represented by the node, and this process does not involve the problem of personal information leakage, such as Bitcoin. However, blockchain is not necessarily just a string of code, they are valuable, immutable, and even chaotic.Why do people attribute the shortcomings of the distributed ledger system to blockchain technology itself? In fact, many people do not understand this. Technically speaking, blockchain is a brand new concept, and its main purpose is to reduce costs.The development of blockchain technology began with the “Blockchain White Paper” on January 12, 2008. Satoshi Nakamoto created an open peer-to-peer global database, which can not only handle all data requests but also provide citizens of the world. As time goes by, each transfer is quickly confirmed, greatly improving the security of public keys.