Blockchain, 5 things you need to know about blockchain

 

5 things you need to know about blockchain

Recently, I have frequently participated in events hosted by blockchain startups or media focused on blockchain.

I have seen many people being afraid to step into Blockchain. Either thinking it looks difficult or It looks suspicious.

So there are these 5 things you need to know about Blockchain before you step into this vast world.

1. Blockchain business...what is it...

[caption id="attachment_4552" align="aligncenter" width="335"] Blockchain[/caption]

 

In the past, only blockchain was emphasized, but now the following questions come and go.

“So, where does this startup apply blockchain?”

“We are using blockchain to culminate and record important transaction data. In this process, rewards (tokens) for your activities come out.”

“Does culling and recording data mean that the uncaught data is stored somewhere other than the blockchain?”

"Yes. We love AWS. We will streamline large amounts of data by recording it on a cloud server.”

Startups preparing for new tokens, or events introducing various projects, focus on ‘what will be a business’ rather than how important blockchain is.

So, while some data uses a database called blockchain, and an incentive structure is created with tokens from this, stories are emerging one after another that not all data is stored on the blockchain. I have a question here

2. How is it different from a centralized service?

[caption id="attachment_4553" align="aligncenter" width="326"] Centralized Service[/caption]

Furthermore, blockchain projects that apply some decentralized networks to already centralized services are also notable.

A place I've recently been interested in is a project called Gifto. It is said that it will be applied to Uplive, a streaming service that has already been centralized.

In Uplive, viewers often send virtual gifts to the broadcast host (streamer) in virtual currency (which is already being used in the service).

Gifto announced that it will utilize both of the existing centralized means as described above by adding decentralized tokens to the payment method.

Initially, they plan to diversify payment methods to provide incentives to use tokens by reinforcing emoticons and gift functions that can be purchased with tokens.

'Hmm. If so, will this also be included in the business of blockchain?’

'is not it. Is it just an entertainment company using blockchain?’

This kind of trouble arises. In fact, in an interview with Blotter, Andy Tian, ​​the CEO of Asia Innovation Group, said:

“Most people misunderstand decentralization. Decentralization is not a panacea to change the world.”

“If it is not a team that has succeeded in centralized business, it is also far from succeeding in decentralized business” (CEO Andy Tian, ​​who leads GiftoCoin)

3. Is Blockchain Necessary?

[caption id="attachment_4554" align="aligncenter" width="380"] Is it necessary?[/caption]

As a result, from a business point of view, it is natural to ask this question.

"Is blockchain really necessary?”

It is simply that if the existing centralized service is operated more transparently and fairly, a similar effect can be achieved without using a blockchain network.

It was a reminder of why Bitcoin was first introduced.

Satoshi became distrustful of centralized currency during the 2008 financial crisis.

It was an idea to combine cryptography and blockchain technology.

In fact, one of the essential changes in blockchain networks is the property of ‘resisting censorship by centralized intermediaries.'

But if the existing central authority works more transparently, more fairly, and more efficiently than blockchain, will the reaction to centralization be stronger?

The problem is that it's not easy.. Heh If it's not a point where you have to use the blockchain, there is a counterargument as to why you should use the blockchain for business.

4. What if the user does not understand?

[caption id="attachment_4555" align="aligncenter" width="371"] Confused[/caption]

On the contrary, users may be indifferent to the philosophy of blockchain and the governance of the platform that blockchain can change.

A more convenient service, a business that solves my needs as quickly as possible does not need to be a blockchain.

*Governance
It refers to a series of processes that give orders through authority or make decisions within the community.

“You must have complained when there was a third person in the middle, right?! By using blockchain, fees can be significantly reduced.”

People are surprisingly not interested in the small number of fees and many (!?)

Even if a reward is given, it may be difficult to move from what is familiar to unfamiliar governance.

If people are looking for a service that is more convenient for them and that can fit exactly what they want, and also costs less, then it will be a ‘blockchain business’.

In the process of continuing the investigation, I felt that it was not easy to convince users of the new value or governance that blockchain is changing.

But how about looking at it this way? When content data is recorded on the blockchain, the content is eventually ‘stuffed’.

This makes them resistant to censorship and achieves transparency, security, and credibility.

But what if someone maliciously uploads inappropriate content? What if child pornography, illegal pornography, and fake news are posted and deliberately distributed, and stuffed?

“There is also a consensus algorithm called DPoS, and it is possible to drive ‘dislike’ to the content or bring down the representative node who received harmful content through voting.”

So is that a blockchain business? Do you really need to use blockchain? The question goes round and round again with the first question.

5. What is ‘Blockchain Down Mind’?

[caption id="attachment_4582" align="aligncenter" width="345"] Blockchain Down Mind?[/caption]

Personally, these were the questions that kept running through my mind while I was doing my research.

From a business point of view, on the contrary, it seems “economically” better for existing centralized companies to borrow “some” of the blockchain.

On the other hand, I also heard strange expectations that a new type of platform called blockchain would distribute rewards in a completely different way than before and operate the ecosystem.

"Yes. Thanks to a system called blockchain, an ecosystem that does not need to be trusted have been created. The system itself contains all the records, so it is safe to follow the transparent rules.”

By the way! In fact, there are many different types of blockchain, and each one has a slightly different aspect.

You mentioned DPoS. To understand very very simply, when a lot of new data is originally created, it is bundled into a new block and connected to the existing chain.

The subject that collects and proves new data is the node. In Bitcoin, this role is called a miner. Participating as a witness of new data in the blockchain system

There is talk of electing some representatives and delegating to these people the right and duty to agree on a new block.

This is DPoS. On behalf of ecosystem participants, several delegates (witnesses) agree on new data and become evidence. If a specific delegator is doing poorly, using voting you easily eliminate them.

Doesn't this feel familiar? We face each other in the real world.

Voting, delegation, and indirect democracy. Blockchain is technically interesting, but also interesting because the spirit and governance it embodies are unique.

As DPoS comes up with a more human user, community-oriented consensus algorithm, the criticism continues.

Vitalik Buterin's criticism about DPoS!

[caption id="attachment_4583" align="aligncenter" width="365"] Ethereum[/caption]

For example, Vitalik Buterin, the creator of Ethereum, publicly criticized DPoS last summer.

Gi... Technical talk aside, from a governance point of view, Buterin said that DPoS is less representative of consensus due to ‘low turnout’.

One of the famous slogans of Ethereum is that ‘Code is law’. This is easily understandable.

The essential difference and competitiveness of blockchain are that even if it reduces human social consensus as much as possible, the system created through coding proves that consensus instead.

However, the way DPoS is, anyway, is the ‘social’ consensus of the human user community.

Include in the consensus algorithm within the system.

Ark is philosophically different.

My head hurts looking at these things.

The blockchain business is also unknown, and it is impossible to clearly assert what a blockchain-like mind is.

Conclusion?

[caption id="attachment_4585" align="aligncenter" width="324"] Blockchain conclusion?[/caption]

*to sum it up*

Is it okay to call a project that embraces a certain part of the blockchain a ‘blockchain business’?

Is Blockchain Necessary?

What if the user abuses it? or perhaps not convinced by it?

We are still actively discussing not only the blockchain business but also the blockchain-like philosophy...