How blockchain technology is disrupting the Internet

Blockchain technology has three obvious characteristics: openness, security and uniqueness.

Publicity means that the information stored in the blockchain is completely public to all participants. This is determined by the Peer to Peer storage method of the blockchain.

How blockchain technology is disrupting the Internet

In the blockchain network, each node can store a copy of the blockchain, and the unique performance of the blockchain guarantees that this copy is exactly the same between different nodes.

Security means that the information on the blockchain is stored through digital encryption technology, and only members who have the corresponding decryption information (private key) can interpret the information.

Although other members can see and verify the integrity and uniqueness of the information, they cannot obtain the private key itself.

Uniqueness means that the information stored on the blockchain is unchangeable. This includes uniqueness in space, that is, all nodes have only one information of the same version, and uniqueness in time, that is, historical data cannot be changed.

At the same time, the uniqueness of the blockchain also refers to the characteristic that the blockchain maintains the only chain during its operation.

Because if there are different chains, the blockchain will form a fork. The appearance of bifurcation will cause the blockchain to have copies in two different spatial dimensions, and this is exactly what must be avoided through the rules of consensus.

If we look back at the development history and network composition of Internet technology, and compare the current blockchain technology with the increasingly popular concept of value interconnection, we can find that blockchain technology may indeed become the TCP/ of the future value Internet. IP (Transmission Control Protocol/Internet Protocol).


Internet history

In 1968, the Advanced Research Projects Agency of the United States Department of Defense established a computer network called ARPANET (Advanced Research Projects Agency Network, also known as “Arpa” Network).

During the Cold War between the United States and the Soviet Union, the U.S. Department of Defense believed that if there was only one centralized military command center, the nation’s military command would be paralyzed if it was destroyed by the Soviet Union. Therefore, it was necessary to design a decentralized command system.

This decentralized command system will be composed of decentralized command points. When some of the command points are destroyed, other points can still work normally, and these decentralized points can be contacted through some form of communication network.

As of 1975, a large number of new networks appeared around the world. Because the initial communication protocol limits the number of nodes and user computers, it is particularly important to establish a standard specification (ie, communication protocol) that can ensure communication between computers.

On January 1, 1983, all hosts connected to ARPANET realized the conversion from NCP to TCP/IP.

In order to connect these networks, American Winton Cerf proposed an idea: use its own communication protocol within each network, and use TCP/IP when communicating with other networks.

This idea eventually led to the birth of the Internet and established TCP/IP’s unshakable position in network interconnection. TCP/IP-based networks promoted the development of the Internet.

The Internet has several important characteristics in its development.

1. Openness

New nodes can connect to the network as long as they accept the standard protocol.

2. Go to the center

The original intention of the Internet was to prevent the single-point center from being destroyed and adopt a multi-center system. With the addition of more local area networks and new networking technologies in the later period, the decentralized nature of the Internet becomes more and more obvious.

3. Local area network (diversity) + Internet (consistency, TCP/IP)

The Internet exhibits a certain diversity and can accommodate various technologies, protocols, and networks. At the same time, the Internet is consistent, and all major communications between networks can be resolved through standard TCP/IP.

4. Protocol layering

The source of the diversity and consistency of the Internet is the realization of protocol layering. Whether it is a five-layer network model or a seven-layer network model, the core idea is to expand the diversity required by the market based on specific applications while maintaining the consistency of the bottom layer.

5. From quantitative change to qualitative change

The development of the Internet is a process from quantitative change to qualitative change. When the number of connected nodes is relatively small, the number of applications on the network and the society’s attention to the network are relatively small, and the whole is in the stage of technology accumulation.

When the number of connected nodes reaches a certain number, there will be an explosion of applications, which is the so-called Internet revolution.


Opportunity for value sharing

Looking back at the history of the development of the Internet, we refocused on the blockchain and put the blockchain technology into the concept of creating value through exchange to discover opportunities in the formation of a value-sharing world.

In the development of human society, we have been pursuing more convenient and faster value exchange.

According to transaction methods, human society can be roughly divided into three stages: barter exchange, general equivalent (currency), and credit economy.

The Internet has radically changed the flow of information in the world. In the traditional model, every time a logistics and capital flow is transmitted, about three times the information flow is generated and transmitted.

After Internet access, more than 100 times the information flow can be delivered at the same time. The full communication of information has brought about the optimization of logistics and capital flow.

However, the Internet itself cannot solve the problem of trust. Even if the transmission of information and valuable vouchers can be realized efficiently, it still needs to introduce a third-party endorsement to solve the problem of mutual trust.

With the emergence of the blockchain, the trust problem in transactions was solved with technical means for the first time, and the endorsement of transactions was realized with technology for the first time. The combination of the Internet and blockchain can produce effects similar to the Internet and consensus protocols.

First, the Internet provides a ubiquitous Unicom network;

Secondly, the IT system of the provider of assets and value (such as the bank) and the company’s ERP system can be regarded as a kind of local area network based on value exchange;

The most important thing is that when the blockchain technology evolves into a consensus protocol based on TCP/IP, we can use the network to connect various local area networks to build a value that can exchange assets and value transactions around the world the Internet.


How to realize value interconnection

The core of value interconnection is to realize the interconnection and free transaction of assets.

To move the assets of the whole society to the Internet of Value, three problems must be solved first: a completely open platform, the safety of funds, and the pricing of assets.

Blockchain technology can just give a perfect solution-a decentralized network.

1. Business giants interconnect and even share data with their partners on the premise of ensuring their own data security;

2. Encryption technology is sufficient to ensure the reliability, convenience and security of asset storage and payment;

3. Fast verification can complete payment, confirmation and asset delivery faster and safer than traditional systems.

Joining such a value Internet will be easier and more convenient than traditional centralized systems to achieve interconnection.

To achieve interconnection in traditional centralized systems, they can only be connected system by system.

Although the progress of standardization and information service technology has made the process of opening up less painful, they have not brought revolutionary changes. The new idea is to put the data to be opened on the blockchain.

According to actual needs, this blockchain can be a private chain (shared within its own company), a consortium chain (shared within a group or among partners), or a public chain (shared by the whole society).

In the blockchain network, businesses can share their own resources. For example, goods or services, customer resources, means of payment, etc.

Ordinary users can also share their own resources in the network, such as idle assets and so on.

Although the resource side is strong and weak, there will be no absolute monopolist, let alone a situation where the strong takes all. This coincides with the sharing economy advocated by the government.

Blockchain uses its own technical advantages to ensure the open, transparent, and accurate information of the Value Internet Network, and protect the privacy and data security of participants.

Such a value interconnection platform based on the entire Internet includes a wide range of social resources and social information data in the future, laying a solid foundation for the coming of the era of socialized big data in the future, and making full technical preparations.

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