By Qi Haibiao, November 28, 2019
1.Making bits atomic
The essence of blockchain technology is to make bits atomic.
According to classical physics, the world is made up of particles which cannot appear out of thin air, and thus cannot be copied. Quantum physics, on the other hand, says that matter is fundamentally waves – information – which can be described by bits. Information can be copied without cost. In the macroscopic world, the properties of particles are described by bits, and the bit world is holographically projected into the atomic world. This is the modern internet, big data and Internet of Things (IoT).
Nakamato combined existing technologies to impart value to bits and invent Bitcoin. From a philosophical perspective, he gave atomic properties to bits. Whether or not it is possible to explain the wave-particle duality remains unknown. Information processed through blockchain is unique and cannot be replicated, allowing value to be communicated on the internet, assuring information and value, and upgrading the internet into a mutual trust network. Blockchain is not decentralized, but it puts the centralization on the bottom layer.
2.Transmitting value on the internet
The main value of blockchain technology is to allow value to be transmitted through the internet, as text messages.
In the real world, goods can be traded using Bitcoin. Cutting-edge business models have explored issuing personalized “Bitcoins,” called tokens, each bearing their own value. Any product or company will be able to use tokens to hold its value. Tokens are ultimately a measure of value, providing the conditions to eventually return to barter. Money is the product of the industrial era, and provided great value for that era. Precisely because of the importance of goods, the middle ages were the era of capital, but it later hindered economic growth. The era of the physical is coming to a close.
Economic activity does not require intermediation by currency. Before the invention of money, people used barter. One pig for two sheep can be expressed mathematically as 1 pig =2 sheep, 1 pig = ½ sheep. A ½ pig is inconvenient for trading (it is indivisible), the sheep may not yet be mature (borrowing is required), and the other party may not need a pig when I need a sheep (so locking is required). At that time, with no mutual trust network, currency was born as the medium of exchange. Necessity is the mother of invention. Now, in the post-industrial era, things can be described using numbers – tokens. No price units are necessary, and goods are no longer important. 1 pig =1 PORC (the pig token), 1 sheep = 1 OVIN (the token for sheep), and the digital asset displays as 1 PORC = n OVIN. The tokens are interchangeable at will, and their value is transmitted over the network of mutual trust.
3.Exchange between machines
Blockchain also provides the tools for machines to “do business” with each other.
As IPV6 gives every grain of sand an IP address, and 5G and IoT provide powerful connections, blockchain provides each machine with a token, as a “bank account” – everything necessary for machines to “do business,” including market regulation, resource allocation, and economy. The result is the era of the machine economy, resolving the overproduction of energy-saving and emissions reduction equipment in the industrial era. The coming of the smart economy will allow us to realize the dream of humanity to turn material resources into good account.
4.The relationship between carbon and silicon
The silicon-based economy is a compliment to the human economy. As the computing power of AI increases, silicon-based computation will turn weak AI into strong. The faster the iterations, the greater the challenge to social development. The economy fully integrating carbon-based humans and silicon-based machines will dismantle industrial-era companies. Most work will be replaced by silicon-based machines. Humans will go home to watch Blade Runner. A virtual economy satisfying our psychological and spiritual needs will become widespread, and only through maximal effort will humans be able to succeed.
Only humans, the highest carbon-based life form, have self-awareness, which is all that’s left to distinguish us from machines. Carbon is weaker than silicon, and invention of a machine economy will be necessary to meet the needs of subsistence.
At that point, as the sun falls on the age of humanity, we will only be able to sit back and enjoy the bright sky.
References
[1] Lin Zuoming, The Generalized Virtual Economy: An Economy Virtual Economy, People’s Publishing House (2010), 1st ed.
[2] Wang Dongyue, A Unified Theory of Evolution, CITIC Press Group (2015), 1st ed.
[3] Wu Jun, The Intelligent Era: How Big Data and the Intelligent Revolution Will Redefine the Future, CITIC Press Group (2016), 1st ed.
[4] Photon, The World and Me: The Secret in Front of Our Eyes, China Development Press (2017), 1st ed.
[5] Chen Yuan, Hu Huichao, Liu Yunru et al., Tokenomics, China Machine Press (2019), 1st ed.
