Tsinghua Financial Review: Utopia and questioned bitcoin
The founder of bitcoin said bitcoin is a kind of electronic currency to the center of the. But the issue is not bitcoin monetary authorities do not have the law, such as monetary compensation of the mandatory property, not the true meaning of money. Bitcoin faces many questions in the issue, the total amount of the issue, anonymity and reliability etc., bitcoin is also very difficult to meet the core conditions of monetary system. Bitcoin (Bitcoin) first by Nakamoto (SatoshiNakamoto, alias) in the January 3, 2009 issue of creation. In the words of classical literature Nakamoto bitcoin, electronic money is a decentralized. Go to the center is that anyone can issue and trading of bitcoins, but not by the specific institutions (such as government, central bank, bank or exchange control); electronic money refers to the form of digital signature chain (a Chain of Digital Signature), the chain record of the bitcoin to complete information on the last time from the transaction.
There is no doubt that the issue is not bitcoin monetary authorities do not have the law, such as monetary compensation of the mandatory property, not the true meaning of money. But as its supporters said, bitcoin has a certain degree of monetary property in the future may even replace the existing credit currency system, which requires not only the realization mechanism of bitcoin, but also requires a combination of monetary theory and monetary history review.
To the center is the core feature of bitcoin, which has two pillars in technology, namely P2P (Peer-to-Peer) architecture and password to prove (CryptographicProof) technology. P2P architecture means that all people are equal client, no central server, transaction confirmation and data preservation principle is carried out by all users of the whole network terminal, no body can control the issuance and trading of. The password that asymmetric encryption techniques commonly used in high security, which is based on the calculation of irreversible (Computationally Impractical to Reverse) the maths problem, for example proved Diophantine equation does not exist a unified solution (Diophantine Equation) of large numbers or difficult to optimization problem decomposition (Integer Factorization Problem), that is this kind of encryption method often can only take the brute force enumeration method, the solution is extremely difficult, but verification is very simple.
Go to the center of the implementation mechanism is the unification of trading and distribution, namely all clients by participating in the transaction confirmation and data preservation process can be obtained with a certain probability of new bitcoin, this kind of incentive mechanism to ensure the enthusiasm of users involved in the end. The specific process is as follows: a transaction report information to the whole network, the information including the recipient public key (Public Key), the previous trading information of the bitcoin (PreviousHash, analogous to the accounts) and payment of digital signature, which constitutes a password; any user can use the computing power to break the password problem (commonly known as Gold Mining, mining), the first successful break end users will prove the results announced to the entire network, the results once more than half of the node verification approval module (Block, analogous to the books) as the transaction information is recognized, thus completing the transaction confirmation and save data, eliminate the double pay (Double Spending) may be; thereafter, the payee can use the private key (Private Key) the possession and use of bitcoin, and the first successful break the client will get a certain number of bitcoins in return, the transaction costs (Transaction Fees) is a new bitcoin issue.
No central issue. Bitcoin holders often claim that access to much new coins in the calculation of capacity, while in the P2P architecture computing capacity is not a monopoly, which avoids the bitcoin issue of monopoly.
But it is faced with at least five questions: first, the mathematical research progress may promote password cracking techniques a fundamental breakthrough, breakthrough to obtain computing power monopoly, and monopoly new bitcoin issue and plunder of existing bitcoin. 第二，量子计算机等技术可能实现计算能力根本性突破，突破者就能够获得垄断性的计算能力。 By third, power attack, network attack or virus attacks may make the attacker computing power monopoly P2P network over a period of time. Fourth, computing ability through monopoly alliance may P2P network. As of the end of December 2013 fifth, has about 12 million 210 thousand bitcoins, accounting for its theoretical limit of 58%, some institutions and individuals may have been using its first mover advantage is established on existing bitcoin in monopoly, this also means that the bitcoin system in monopoly.
The total amount of co.. Bitcoin proponents often claim that bitcoin issued by the speed mathematical rules, with a half-life of 4 years and a maximum of 21 million, which avoids the bitcoin issue at random.
But the total bitcoin limited credibility is the existence of the problem. If the guarantee mechanism is the basis of legal or moral agreement, then there is the possible violation of agreement; if the guarantee mechanism is the basis of mathematical problem irreversible, compute monopoly formation force or alliance mode of computing power could destabilize the guarantee mechanism of monopoly password cracking techniques a fundamental breakthrough in fundamental computing ability breakthrough, attack formation.
Anonymous. Bitcoin proponents often claim that the bitcoin system does not require any additional information besides the bitcoin itself, which means that the absolute anonymity. But bitcoin anonymity is not absolute, relative to the traditional monetary system, bitcoin system of information security may be even worse. Bitcoin system using complete information network to record all the payment, if associated with a user and the public key is confirmed, it may cause a wide range of all payment information exposure; in other words, bitcoin does not require the user to provide true information, but the use of real information is the whole network of permanent records, and recognition disclosure is a high probability event.
Reliability. Bitcoin proponents often claim that the whole network to confirm and record each bitcoin to complete the last transaction information generated from this stop error, forgery, tampering and revocation may. But bitcoin reliability reliability is not the usual sense: in bitcoin framework, monopoly capacity can be forged, tampered and revoked all transactions, and forgery, tampering and revocation is reasonable, because this is the calculation of its ability to pay.
Bitcoin monetary system “”
From the perspective of monetary theory and monetary history, the continuous evolution of monetary system, the core of success is: at a relatively low cost, stable and safe, the legitimate exercise of transaction intermediary functions. Some institutional arrangements and technical conditions of the combination, only well meet the above conditions can become the core currency system.
Bitcoin is difficult to meet the above criteria: first, occupy a large amount of computing power will crack the password of bitcoin trading and distribution, resulting in a waste of resources. The marginal cost of current credit money creation is approximately zero. Second, bitcoin does not meet the stability, with similar competitors appear constantly, “pan bitcoin” total uncontrollable to maintain stable value. The current credit money managed by the central bank, to the credibility of the government is based on stable currency. Third, bitcoin does not meet the security, bitcoin system can only guarantee bitcoin payment to the payee check, payment of sufficient protection but lack of protection, wrong payment, lost or stolen key no remedies in the bitcoin system architecture. The current credit monetary system by the bank as an intermediary to ensure two-way payment, but also the legal means to provide a remedy. Fourth, bitcoin does not satisfy the legitimacy, the anonymity of the tracking financial transactions pose technical challenges to law enforcement, may lead to illegal trade prevails. The current credit monetary system comply with the strict anti money laundering provisions.