The Internet (decentralization of information) has subverted the world, but the blockchain (decentralization of credit) is about to subvert the Internet.
I. Overview
The essence of the blockchain is a shareable, trusted public ledger that everyone can check , but no single user can control it. Participants in the entire blockchain system work together to keep updating the general ledger, which can and can only be revised in accordance with strict rules and open protocols.
Almost all trade on the Internet requires the help of a reliable third-party credit institution to process electronic payment information. Such systems are still inherently subject to the "credit-based model". Blockchain technology is the basic technology for building the Bitcoin blockchain network and encrypted transmission of transaction information. It is based on cryptography rather than credit, so that any two parties who reach an agreement can pay directly without the participation of a third-party intermediary .
2. The origin of blockchain (from Bitcoin to blockchain)
Since 2014, the Blockchain technology behind Bitcoin has attracted everyone's attention, and has officially triggered a wave of innovation in Distributed Ledger technology.
People are beginning to realize that ledger-related technologies are critical to the management (including ownership and circulation) of assets (including tangible and intangible assets); and decentralized distributed ledger technology is crucial to the current open multidimensional business network is of great significance. Blockchain is a very promising and feasible technology to realize the decentralized ledger system.
At present, blockchain technology has separated from Bitcoin and has emerged in many fields including finance, trade, credit information, Internet of Things, and sharing economy. Now when people refer to the "blockchain", they often have no direct connection with the Bitcoin network, unless it is specifically pointed out that it is the "Bitcoin blockchain" that carries the Bitcoin transaction system.
3. Definition of Blockchain
From the perspective of data : blockchain is a reliable database collectively maintained through decentralization and trustlessness. Data is stored in a distributed manner, and it is almost impossible to be changed.
From a technical point of view: blockchain is not a single technology, but the result of the integration of multiple technologies, including encryption algorithms, P2P file transfers, time stamps, databases, etc.
1. Features of blockchain:
Decentralization: There is no centralized hardware or management organization in the entire network, and the damage or loss of any node will not affect the operation of the entire system. Therefore, it can also be considered that the blockchain system has excellent robustness.
De-trust: Data exchange between each node participating in the entire system does not require mutual trust. The operating rules of the entire system are open and transparent, and all data content is also open.
Reliable database: The entire system will allow each participating node to obtain a copy of the complete database through the form of sub-databases.
Open source: Since the operating rules of the entire system must be open and transparent.
2. Classification of blockchain:
Public blockchain: There is no official organization and management agency, no central server, and the participating nodes are free to access the network according to system rules and are not controlled, and work between nodes is based on a consensus mechanism. Nodes in the network can be accessed arbitrarily, data read and write permissions in the network are not restricted, and anyone can participate in the consensus process. Bitcoin is a typical public chain.
Private blockchain: established within an enterprise, the operating rules of the system are set according to the requirements of the enterprise, and the modification and reading permissions are limited to a few nodes, while still retaining the authenticity and partial decentralization of the blockchain . The nodes in the network are controlled by an organization, the write permission is limited to the organization, and the read permission is limited and open to the outside world.
Consortium blockchain: between the public chain and the private chain. Public nodes: nodes in the network can be accessed arbitrarily, authorized nodes: blockchains that must be authorized to access.
4. Re-interpretation of blockchain
The core idea of the blockchain is decentralization. When people do not know each other, point-to-point, and end-to-end, trust can be established through computer technology (blockchain technology), which saves a lot of costs and improves work efficiency. The characteristic of the blockchain is that it cannot be forged and the information is highly transparent. Blockchain will not only reshape currency markets, payment systems, financial services and every aspect of the economy, but will change every area of human life.
The decentralized nature of the blockchain and the fluidity of the entire network connect everyone together, and ownership and information processing can be realized without the participation of middlemen or identity information exchange centers; it provides a common technology and global solution The solution automatically realizes the allocation of physical resources and human resources, and liberates all kinds of coordination and confirmation that were done by manpower in the past. Perhaps in the future, all human activities can be coordinated through the blockchain.
5. Blockchain dynamics
International authoritative magazines "The Economist", "Harvard Business Weekly", "Forbes Magazine" and others have successively reported that blockchain technology will affect the world. The start-up company R3 has established a blockchain alliance with 42 top banks in the world, including JPMorgan Chase, Bank of America, HSBC, Citibank, Wells Fargo, Mitsubishi UFJ Financial Group, Barclays, Goldman Sachs, Deutsche Bank, etc.
6. Technical Architecture of Blockchain
Although various blockchains have different specific implementations, their overall architecture has commonalities. This white paper proposes a blockchain that can be divided into infrastructure, basic components, ledgers, consensus, smart contracts, interfaces, applications, and operation and maintenance. and System Administration 9-part Architecture.
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