there are two main problems with blockchain.
1 blockchain can't verify the authenticity of information outside the system. If the information uploaded to the blockchain itself is false, the anti-counterfeiting and anti-tampering of the blockchain is worthless. If you want to ensure the authenticity of the uploaded information, you still have to have an authority to check it. Since everyone believes the information uploaded by this authoritative organization, why should they be afraid that it will tamper with the information? What's the difference between using a blockchain or not?
2 In the blockchain world, the code is the law, and the system can run automatically. However, once interacting with the real world, the real world may not necessarily agree with the law of the code. For example, if a contract is signed on the blockchain, it will be automatically executed when it expires, and assets will be transferred. However, in reality, if there is an old lai, if the actual assets transfer is not carried out according to the contract on the blockchain, this contract will be a dead letter, and it will have to be executed by institutions such as courts in reality.
The first application of blockchain, Bitcoin, has such a great influence because it can just avoid the above two problems.
Bitcoin is completely self-contained. All information is generated inside the Bitcoin system, which is closed and verifiable. Bitcoin is not linked to any real assets, so it can be run automatically through the program conveniently.
because bitcoin is completely virtual and runs entirely by procedures and rules, it has no borders, is not subject to supervision and control, does not need remittance, circulates freely, cannot be frozen and confiscated, can be used by everyone, and will not depreciate excessively, which is its advantage over legal tender.
however, it is precisely because bitcoin runs automatically by dead rules and procedures that the supply of bitcoin is inflexible. If the private key is stolen, the property will be lost and cannot be recovered, which is also its shortcoming.
Similarly, using blockchain technology in reality, if the code is really the law and the private key proves everything, if the private key is stolen, it will inevitably lead to the loss of assets that cannot be recovered. For example, if the shares are mapped to the blockchain, is it difficult for a major shareholder to lose his private key and all his shares will be useless? This is also an unavoidable problem for the blockchain.
To sum up, the real killer application of blockchain is actually cryptocurrency. Engaging in a coin-free blockchain is not so subversive, and we must be careful to prevent some scammers from defrauding money and subsidies under the banner of blockchain.
# digital currency # # Bitcoin [Chaohua] #