The new mode of administration block chain
With the expansion of the Greek debt crisis and capital controls to oppress the people’s throat, bitcoin has returned to the mainstream spotlight. ATM machine front lines reminiscent of Cyprus bank self-help, bitcoin seems to once again offer a safe haven.
Although many people are concerned about bitcoin price volatility and potential growth, it is only the first change in the money game technology. The core idea of the blockchain is to provide an alternative to the current oligarchic administration model, and now the oligarchy is oppression of the Greek people will.
Bitcoin in these six years, the public perception of the technology is advancing by leaps and bounds. Now, most know this breakthrough technology people know is a book block chain. However, this book is not simply to explain currency trading.
Its core is a let people without any intermediary agreement issued a trading platform. It provides a basis for consensus based on social contract. The most important is that it has a larger accounting function, existence of the social corruption tendency to check and balance of interests.
The white paper published in 2008, this technology Satoshi Nakamoto stressed that the anonymous creator invention is a way to solve the inherent weakness of credit based model. Roger Ver, “Jesus said bitcoin, bitcoin startups, angel investors, recently commented on the Greek financial crisis, points out the problems of the one-way contract management to create a real form of the present is:
The government did not make satisfactory rulers. The government was forced to control them, and agreed to a third party “”. Roger Ver, July 14, 2015
Bitcoin algorithm through self control, eliminate counterparty risk, reduce the traditional legal and regulatory tools, and that traditional financial instruments in some cases have shown inefficiency, such as HSBC money laundering and large banks printing money and market manipulation. The core of the invention is distributed through a credit, become operation proof mechanism of work.
Proof of work
The security expert and writer Andreas Antonopoulos consensus algorithm, block chain technology and bitcoin speech, described the work that is composed of a cryptographic hash function specific and dynamic adjustment and create economies of scale of the game theory of balance system.
The work that plays a crucial role in ensuring system security. Adam Back, the inventor of Hashcash, and made great contribution in the basic principle of bitcoin, emphasizing it is how to construct the “proof from work and consensus in the structural calculation of irreversibility”.
This means that no one can revoke a finished work. No one can work around it or false. The core of bitcoin ecosystem of miners must execute the hash operation, through the use of valuable resources, if they act according to the rules they obtain the corresponding value, if not, they will lose. In other words, are the direct costs of their own resources by miners, to show their work to explain.
This makes the block chain facing the anti impact and anti manipulation manipulation was improved. It also prevent hyperinflation, namely government intervene bring results through quantitative easing measures. When will it as a management model more, this model can explain to benefit from the people of good potential selfish attempt.
The wisdom of economic incentives
What is the organization system of the most important power, where the system of management responsibility from bitcoin is not a central planner?. In a sense, the anonymity of Satoshi reflects the essence of technology. In fact there is no fingerprints. The invention of this mathematics center is an important economic incentive, the incentive organization formed a discrete and spontaneous miner can not change the books.
In the built-in digital scarce the incentive structure is a kind of potential interest behind the current bitcoin network flow. It is based on a real and honest assessment of their rights.
History is full of when we are not considering our selfish tendencies but some unexpected event evidence. The atomic bomb, painful memory of the Holocaust and genocide of slavery to remind us of the inherent human cruelty and violence as well as our mass destruction.
Block chain creates incentives for the integrity of the work of participants, and then under the rules of equality.”
When their interests are not recognized, they quickly fled the consciousness. The low side to deny that human nature can easily prevail. They become a desire to drive people to the pursuit of power, create a fraud system, anti social forces, network attacks, occupation health economy, undermine the sovereignty and the will of the people.
Through the explanation of greedy and selfish motives and incentives to encourage good behavior in a transparent and open network, the blockchain encourage participants to work honestly, where everyone is equal.
In this way, the system can more effectively reduce the potential risk of damaging the human.
Bitcoin network through voluntary training management approval by everyone abide by the rules of the agreement to self-discipline prevail.
With the emergence of innovation is a new form of social responsibility. And the representative of the traditional governance model, check and balance system is through the third party exercise of different consensus models of bitcoin, the responsibility directly allocated to all network.
This eliminates the single fault, and provide better than the existing security system. Block chain transparency, who love without jobs and earn profits will do nothing to hide. There have been some creative measures by using this technology to enhance political accountability. The London mayor candidate George Galloway called the city? Using the block chain based on the bill to provide a completely transparent city public financial activities.
With Galloway to create the mayor chain project financial report came out, the city’s annual budget on the block chain to cultivate citizen collective audit.
Now the bitcoin protocol is a decentralized form of management for blueprint. This is a real invention, aninviolable. With the global legitimacy crisis deepened, banks tightening policy will continue, unable to pay the bank to save themselves, the hedge fund fluke.