This heated discussion is actually mainly caused by the bitcoin case. In fact, the relationship between the currency and the bit block chain should look like this: block chain is a foundational technology, it is a revolutionary technological breakthrough. Bitcoin block chain can be regarded as a social experiment in the real world. Bitcoin rise occurred in 2009, and now should have been almost a decade. In the process, it (bitcoin) has proven its (block chain) security and reliability, and due to the current currency speculation, many people have recognized the bitcoin block chain and at the bottom. Therefore, it is Bitcoin bubble to make everyone understand the block chain. Also at this point, about the block chain of many heated discussions took place.
In fact, block chain technology is a simple understanding of one protocol, or Internet Protocol. Compared with the previous network transport protocol on the Internet, network transport protocol is based on a network address, and in the block chain, network transport protocol is based on the accounts. Structurally, the Internet is a personal center; in the network structure, the block chain is individual to individual, that is to say, not every individual particularity. It is the kind of technology? This is characteristic of the so-called distributed books of the people of lively discussion. Briefly, a time block is the set of all transactions in the chain. Which wraps and packaging the block, then it is marked with a time stamp, and put it on the chain. This ensures that all the chain blocks are connected together.
Block chain is revolutionary trade mechanism
First, the block chain itself is based on transactions designed. Even technical term block chain is also in the application of the financial situation, the formation and expression of the concept of transactions, accounts and wallets. Therefore, this transaction is a natural mechanism. Trading in the financial sector is the most liquid and most active, and the transaction is financial lifeline, which is why it (block chain) was the first rise in this area.
This is also a revolution in trade mechanisms. How to ensure the credit block chain everyone, for each account and each node? It solves a problem. In other words, some transactions can now be used to take the agency to become peer transactions.
This is different P2P loans, P2P lending is quite popular recently. Although it is called P2P lending, but in fact there is still a platform. The platform has a lot of risk. Increase operating platform and leverage the platform will disrupt the real economy. However, if the platform is removed, and truly personal trading of the individual, it (will) actually dispersed. Assuming no manipulation, and manipulation of individual personal, then produce systemic risk in such a decentralized trading scheme is relatively difficult.
Unique block chain is that it is more revolutionary than the Internet. In contrast, the birth of the first banks, forming the first joint-stock company system of double-entry bookkeeping system and other financial breakthrough can be compared.
Why did you say that? It is the first time the personal property and personal values at low cost transaction and immediately translate into value. For example, if a person has some kind of future skills, he can provide some services. In the past, he first needs to find an intermediary, but now he can enter this chain, point to point, to provide services for all the others in the chain. This is a safe, reliable and effective, and transaction costs are low.
Block chain to open a new era of the financial industry
after the rise and rise of Bitcoin http://www.gendan5.com/digitalcurrency/btc.html block chain, especially the application of Bitcoin in the financial sector, began in the subprime crisis . At that time, there is a very prestigious contract called "credit default swaps." In fact, it can ensure that each bank or credit institution, and to play an active role in the economy. But with the (2008) financial crisis has exposed this credit default swap derivatives, (the US government) that this is the main reason for the financial crisis.
After the subprime mortgage crisis, the United States implemented a very strong banking supervision. Many financial innovations and many products need very strong regulation. Because of regulatory and liquidation process is very centralized, they (the regulatory requirements of financial products all transactions) set up a central clearing agency. All OTC products initially, but then need to be cleared through a very complex process, which greatly increased the transaction costs, liquidity in many markets disappear or greatly reduced.
Since the formation of this regulation, many financial institutions and financial professionals completely lost the previous post. Currently (after the crisis), some US venture capital investments will be invested in the application block chain, making some of the varieties of the past can not trade or transaction costs are relatively high, including loans, swaps or other commodity, can now trade online.
In fact, it is the cause of a revolutionary and disruptive technology not only because it brings peer transaction, but also because of this that the possibility of innovation in many application scenarios explosive growth.