Block chain, intermediary and speculation


nnnTrail: a lot of people know that Bitco and block chain can solve many problems, to achieve intermediation, but almost no one thought why need to intervene, what is the benefit of his personal. Just blind pursuit of speculation. Often contrary to the original intention of these technologies, exaggerated the technical potential, rather than implemented.n
nnTranslation: Annie_Xun
nZack Korman is co-founder of Awesome Power Inc, a startup that uses smart meter feedback to use the data to find the cheapest home electricity plan. He is a programmer and holds a master’s degree in law and finance from Oxford University.n
nKorman Tucao current block chain technology speculation, calling it a solution to the problemn
nFirst of all, I would like to say that this article may not be perfect. Missed the inexplicable optimism, satirical too much pessimism. In any case, if I speak of the traditional wisdom of my approval, and with its insight, I will probably mention McKinsey (McKinsey).n
nMy idea is that the block chain will not change the global economy or completely change the enterprise structure, it will not end the intermediary. Because the block chain is a solution to the problem that does not exist.n
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nBitcoinn
nThe block chain starts in Bitcoin. The idea was that the existing payment system did not support online irreversible payments, meaning that small payments were not practical. Designing Bitcoin is the solution. You do not need to adopt my words, it’s just a quotation of white paper.n
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nThe block chain is the solution designed for this problem. The aim is to create a payment system that does not involve financial intermediaries to achieve irreversible transactions. In theory, it can reduce transaction costs and enable small transactions to be realized.n
nThis is not to say that trust and mediation are essentially bad and inefficient. Rather, trusted intermediaries can not really achieve irreversible transactions and low transaction fees that support small transactions. I think this may be right.n
nBut when I started to focus on this topic in 2013, everyone forgets its history, or at least does not care. As a payment system, Bitcoin should be better than credit cards because of lower transaction costs. If I ask the question, most people who participate in Bitcoin think that the worst is that the intermediary is absolutely unnecessary and can be said to be outdated and inefficient. As far as I think, no one really care about whether the intermediary has a practical effect.n
nAlthough the problem is as stupid, but this idea is lingering:n
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nBlock chains do not eliminate the role of intermediaries. Intermediaries have useful features, Bitcoin behind the idea is sometimes we may not need these features and costs. Remember, “irreversible transactions of irreversible services”. But that was a long time ago. Suddenly Bitcoin is a better way to shop online because you can save 2% of your transaction costs, but there is a risk that the seller will not ship. To know that this is in order to eliminate the trust of the payment system!n
nSummary of Bitcoin view, look now, Bitcoin can not even solve the original goal. Trading costs are too high, it is impossible to achieve a small transaction, confirm the transaction takes a long time. This is a good try, but I probably will not get anything from here.n
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nApplication of Block Chainn
nThis can not prove that the block chain is not the future of technology, but at least that we should remain skeptical. A block-chain application initiative should not just be a vague reference to trust and eliminate intermediaries, claiming to have been very good. What I need is the answer: why do I want to eliminate the intermediary? Why can not i trust a third party Eliminate the intermediary really can reduce the cost of it, if you can, the intermediary will disappear what?n
nAlmost every piece of the chain I used to see the application did not answer the above questions, of course, this is not surprising. I see some failed predictions again and again. I would like to introduce some of these, because I do not want to continue to treat such a blind block. The problem is not only a lack of description, but the problem is that the participants have hardly thought about them.n
nThe first common mistake is “thanks to the block chain to achieve it”. This occurs when a person thinks that only a block chain can achieve a creative time. However, in almost all cases, this means that the person can not think of an alternative approach to achieving the same idea. This reasoning can not be recognized by the technical field. It’s like someone says, “Thanks NoSQL, we can finally store the data.”n
nThis is an example from a reporter:n
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nSo your car will be able to automatically pay for some systems, like the ETC charging system, but if I do not pay, it will disrupt my car. So as long as the driving, you must always carry the ETC label. I do not think ETC tags will use block chains. Maybe they can use block chains, maybe more efficient, but I want to know why. I said, I need reason. Obviously failed to explain the characteristics of other programs and problems.n
nAnother example is the block chain slides that I have seen countless times about small business investments, and I can not understand why small business investments need block chains.n
nThe second common mistake is that pretending the centralization of traditional databases is not a feature. Such as Follow My Vote, Inc .:n
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nOf course the case of reversible payments is the need for centralization of rights. Examples more. As a co-founder of the start-up company, I was surprised that people do not intuitively realize that if I say “I can not fix this problem”, it will cause dissatisfaction with the company’s website users. People just want me to do what I should do.n
nWait until these people really understand that no one can repair the block chain vulnerability. One of the most ridiculous examples of the best is The DAO (The DAO is an investment tool for everyone, and everyone shouts “code is the law” until some people find out how to use the code to turn in millions of dollars and the victim wants to find an attack And brought it to justice).n
nThe last common mistake is that “all problems are technical problems”. The best example is the energy industry’s use of the block chain:n
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nThis may be an excellent and reasonable idea. I would like to know more. But I think it made a mistake “thanks to the block chain to achieve it.” Device communication does not require a block chain. More importantly, it assumes that the electricity market is hampered by backward technology. That is, if we can design a better system and deploy it, everyone will profit.n
nAt the same time, I tried to persuade Texas Power Company, the other was good, but the web server should not crash once a week. Obviously, the inefficiency of the market there are some deep-seated reasons. Some human factors and institutional factors are also dragged on, the new technology will not solve this problem. After all, is now 2017, the power industry technology is still the 2000’s.n
nBlock chains may be more suitable for the energy industry, but new economic changes may have many advisory and rule-making procedures. As long as human control, the situation is the same. You’d better plan it like this.n
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nNo problemn
nThe block chain tries to solve the problem that you do not know: Trust the intermediary problem. As a programmer, I never entered Stack Overflow, saying “I need to design a system like a database, but make sure nobody can control it, including myself.” No one has raised this problem. As a consumer, I never thought, “This product or service makes me dissatisfied is that it has a trusted intermediary.” These things will not appear in your mind.n
nThe reason for the need for these features, but the relevant application is indeed unusual. Zhong Ben Cong clearly explain the need for these features. Just open the block chain business people do not seem to need it. Elimination of intermediaries is the goal, and we may be so happy.n
nSo, believe me, the block chain is solved without the problem. Promotional block chains are those who change the rules of the game who do not seem to understand the problem they are trying to solve. Speculation will continue, but I hope that as soon as possible to see the block chain function of the limited.n

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