Kevin Kelly predicted in his book "Out of Control: The Ultimate Destiny of Mankind" that future trends will lean to decentralization and a bottom-up management. Blockchain is making this a reality. 

When will it standardize?

Any new technology has a growth process from budding to explosive growth, to the bubble burst, and then stabilizing. In the past two years, the blockchain has been said to be “revolutional”. We believe that this is not a revolution, but a result of technology natural evolution.

 Bitcoin has always walked a dark path. It has its own pyramid scheme (incomplete), shady areas (the Silk Road), concealed product design (anonymity), and easily manipulated funds. It’s MLM characteristics, anarchy, and constant threat to subvert the central bank’s control over currency distribution rights have more than raised eyebrows in national regulatory authorities.

This account is called a"blockchain". It is essentially a decentralized database, the underlying technology in Bitcoin. It is the data block made by the data validation algorithm (sha256).

From rational point of view, blockchain and bitcoin are two sides of a coin; there is no way to separate them. However,both in the financial and technology circles, blockchain is highly popularized while Bitcoin is avoided like the plague. 

Blockchain is a subversive innovation infinancial technology, so why are Bitcoin attributes rejected? Best applicationsfor blockchain are constantly sought after, but no one is willing to talk aboutits natural killer application. What is the cause of such prejudice in theindustry?

So what exactly is Bitcoin? Vaguely speaking, Bitcoin is an Internet-based P2P cryptocurrency. P2P transmission means that it comes with a decentralized payment system, with the payment system as its core. This point is still not understood by many economists. It is often thought that Bitcoin is just simple digital currency. In reality, itspayment system is what’s valuable. This is what blockchain’s technical system derived from.

The Bitcoin network issues currency according to the open source agreement agreed by the whole network. According to the sha256 algorithm, the hash value is calculated by sheer force through the PoW mechanism, and the distributed database node formed by the nodes in the P2P network then confirms and records the transaction behavior. Bitcoin is then rewarded while the records are made to the fastest confirmer. That is the entire operating mechanism of Bitcoin. 

Idealism is innate to Bitcoin. Itsdevelopment direction has always been contrary to fundamentalism, such as thecentralization of computing power, payment delay, and community differentiation.In the end, Bitcoin is still a grand feat of a currency.

If we envision Bitcoin, gold and legal currencies into a system, then bitcoin is the "Maxwell demon". It manages to release pressure from the incurable legal currency system. Gold also has this function, but it is physical and Bitcoin has internet advantage.

Maxwell's demon is a thought experimentcreated by the physicist James Clerk Maxwell in 1867 in which he suggested howthe second law of thermodynamics might hypothetically be violated. In thethought experiment, a demon controls a small door between two chambers of gas.As individual gas molecules approach the door, the demon quickly opens andshuts the door so that only fast molecules are passed into one of the chambers,while only slow molecules are passed into the other. Because faster moleculesare hotter, the demon's behaviour causes one chamber to warm up and the otherto cool down, thereby decreasing entropy and violating the second law ofthermodynamics.


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