Why is Blockchain considered a trend (Is Blockchain a major trend)?

Why is Blockchain considered a trend? This article is summarized from Lianneican (ID:lianican) and written by Lianneican Jun. Authorized repost from Planet Daily.

In the past year, the cryptocurrency field has undergone earth-shattering changes. From Bitcoin to Ethereum, and then to DeFi, NFT, and other emerging tracks, explosive growth has occurred. The reason behind this is that these new products and technologies are bringing huge changes to the entire industry. It also brings new challenges for those who want to learn more about the related knowledge.

Although the most talked-about topics in recent weeks are “Bitcoin,” “Ethereum,” and “Ethereum Classic,” the question of “What is Blockchain?” has been asked many times And more and more companies and institutions are beginning to pay attention to this topic, including Microsoft, which has also started to address this concept. So, what is Blockchain exactly? Let’s take a look at the current market issues related to “Blockchain,” “Smart Contracts,” “Consensus Mechanisms,” and other vocabulary. Many of them are built on the Ethereum protocol, so it can be said that it is currently the most popular term. As mentioned in the article a few days ago: “If Bitcoin is considered a store of value, it is actually a form of digital asset—a commodity or service that can be tracked in global transactions, such as real estate, etc.” However, there are some things in the market today that nobody knows exactly. Bitcoin is not the only digital tool that can be publicly issued and circulated in the world. “If someone wants to store your wealth on a meaningful network or on a platform and use its tokens for transactions, they need to buy a large amount of Bitcoin as collateral.” But Bitcoin is not the first to become a true form of currency. Instead, it provides a means of hedging against inflation, making this situation very common. Therefore, the reason why Bitcoin is popular is mainly because of its decentralized nature and its unchangeable characteristics, which allows users to obtain more stable return rates through their own data—. At the same time, it can provide more privacy functions similar to other legal payment methods… In summary, although Blockchain itself is a powerful underlying infrastructure, it cannot fully support the needs of large-scale application scenarios. Therefore, it still faces many challenges: first, it is not only a computer science foundation but also must have a certain complexity and adaptability to support the operation of a wide range of applications; second, it is a disruptive innovation that may only be It is intended to change the existing economic system, and it may cause major social changes. “With the development of Blockchain, many companies are looking for ways to achieve their goals, such as transferring funds to individuals instead of business entities by utilizing Blockchain to establish trust, ultimately leading to a dilemma in the world economy. In fact, at an event held on October 1, 2018, Jay Clayton, chairman of the U.S. Securities and Exchange Commission, expressed optimism about cryptocurrencies. According to a report released by the association,

Is Blockchain a major trend?

Editor’s Note:This article comes from Plain Language Blockchain (ID:hellobtc), written by a tree, and authorized reprint from Odaily Planet Daily.

At the beginning of this year, the price of Bitcoin was hovering above 10,000 US dollars, but now it has been almost 2 years since there has been no movement in the mobile Internet. So I think this rally may not have started yet. After all, although the current price has not fallen below $30,000, it has only increased by less than five times.

In fact, many people are not unfamiliar with this question. For example, what is everyone’s favorite word? It is “value”. In this case, “value” refers to the price of exchanging one asset for another. We all know that if something can change the world and people’s way of life, its value is what it can bring. So why is there such a high overflowing effect? It’s because when you understand it as a concept, you will find that it is not the real value, but something that is widely recognized and applied in real life.

For example, if you think this is a currency theory, then you must study whether it truly has connotations and intrinsic meaning. Because these things actually have no intrinsic meaning or extension, but they need to be based on certain premises to realize their value, which is called value creation.

For example, the emergence of Bitcoin illustrates that it is a digital form of encrypted storage through consensus mechanisms, which allows anyone to create their own ledger to record the data they hold, and at the same time ensure the security and reliability of the data; Similarly, Bitcoin can also provide various services such as transaction settlement, payment, etc. Of course, many other application scenarios will also use this technology However, at present, Bitcoin has not seen any breakthroughs worth exploring, so I think the potential of this technology is also very great!

Here is a brief introduction to what Blockchain is and its future development trends. What is Blockchain technology? From a medium to long-term perspective, the greatest advantage of Blockchain lies in its distributed accounting capabilities, high throughput, and transparency. In addition, Blockchain also provides a set of smart contract systems and protocol layer solutions. How to use Blockchain to solve the innovation and development of trust issues? Firstly, we need to understand what Blockchain is and what Blockchain network is. This is a very big topic and a very important direction. We must understand the core logic behind the Blockchain network in order to form a complete network ecological chain. Secondly, we need to understand why there are so many projects emerging and they will continue to produce new products or product lines, which will bring about new industry changes and contribute to the entire industry. Thirdly, it is clear that Blockchain is not simply categorizing the inefficiency of existing systems as inefficient and unprocessable computing resources, let alone the fact that most of the current Blockchain functionality is user-led, meaning that it is not just Interaction between ordinary users. The fourth and most important point is that it can effectively reduce costs, reduce development and operational costs.