Blockchain system should start from supply

Blockchain system design

A fundamental starting point for our system design is to focus on supply, from supply, and everything around promoting productivity. Please remember this point. This basic idea will be implemented in the system design of the meeting. Some of the following points may not be understood by you at the moment. Just think about it. We are based on supply and may understand it.

Some people may wonder why it is not the balance between demand and supply. This is the two basic concepts of economics.

We look back at history. From the history of economics, in 1776, Adam Smith had already proposed the supply curve; but after 100 years, by 1871, the Austrian school put forward on the basis of psychological analysis and subjective analysis. Demand curve; then in 1890, Marshall published "The Principles of Economics" to bring the two together. Then the two cross, then move, then game theory, then to behavioral economics. Therefore, from a historical perspective, the study of demand must be lagging behind supply.

At this stage, the blockchain is still in its infancy, and supply is scarce, so the research needs are of little significance. Just like Ford’s survey that year, “What kind of better transportation do you need?” Almost everyone’s answer is: “I want a faster horse”. No one knows that you need a car.

So, now, we are in the 1776 blockchain economy. At this stage, we focus only on the supply side and study how to stimulate and motivate productivity.

The second principle, a system that completely standardizes products and provides no bottlenecks, does not require a blockchain, and does not go to a blockchain for a blockchain.

Here are two meanings, one is a completely standardized product, such as a rag, socks, ah, this does not require blockchain, the basic production management can be; one is no bottleneck. If the supply has bottlenecks, such as socks, but 1000 pairs of limited edition socks, it can also be adjusted with the blockchain, we will see many examples later.

Next, let's discuss the two main problems in the system design, how to get through the certificate, and how to use the certificate. Don't tell me how to get the pass, buy the currency, use the pass, and switch to the legal currency. Then what about the blockchain, just go to the Macau casino. In fact, the gameplay under the blockchain system is very much, and it will make you stunned.

Let us first look at how the pass is generated:

Here we refer to the 0-3 level distribution system proposed by CSDN Meng Yan. Here we have a 0-2 distribution system. Level 0 distribution is mining, level 1 is market behavior, and level 2 is system macro regulation.

Level 0 allocation, which can be simply understood as mining, is to let the system generate incremental tokens. Workload proof, such as bitcoin mining, such as how many times you spend in this restaurant, how many articles written in the forum, is a general workload; loyalty proof, such as POS is a kind, you can get interest when you hold the currency The longer the coin is, the longer it is sold, the more interest is rewarded. The effect of the work proves that it depends on the result. It is not that you can write more articles in the forum, such as looking at the amount of forwarding, the amount of praise, the amount of comments. To decide how many token rewards you want to give; another is to provide external resources, no matter how much bandwidth you provide, storage, including the money you provide, is a possible way to get tokens.

Let's talk about level 1 allocation. It refers to the circulation of the market in this system, so that the token can be obtained.

For example, the production communication reward chain, this is different from the proof of work, or the reward model of work performance proof. You think this article is good, you can reward the author with token, but you are not giving it, you can forward it. If the next person feels good, reward the author and reward you, and pass it on like this. The authors of excellent products and content have received great rewards. The early communicators have taken on the role of the channel and have also achieved very good rewards.

Providing credit means that you provide credit and endorsement for the system. Whether it is guarantee, credit enhancement, or supervision, identification, especially when it comes to the chain of information under the chain, there should be rewards.

Provide circulation. We know that liquidity can have a premium.

Although channels are not the most important in the business system, they are also valuable, including circulation among users or cross-chain circulation. It is also important to provide circulation between suppliers and users, because we know that many times, although there are many rights to tokens, those who really want to use these rights may not have the time and ability to get tokens, in turn. Those who say they can mine are not necessarily interested in using tokens, so third parties are needed to connect suppliers and users.

Provide organization. Including organizations, maintaining systems, recording books, etc., should be rewarded.

Let's talk about level 2 allocation. Level 1 allocation is a market behavior, and level 2 allocation is a system's macro regulation.

Macro-control, the two main purposes, convergence and robustness.

Convergence is to suppress continuous one-way flow and eventually lead to system collapse. For example, the monopoly caused by the continuous increase in the concentration of tokens, the system can charge the rich more to narrow the gap between the rich and the poor; such as the pyramid scheme bubble, or Ponzi bubble, can charge for the short-term sharp rise in capital gains; The trampling, the resulting price falls, the system can set up a reserve token pool, and when this happens, repurchase to stabilize the market.

Robustness is to resist a vicious shock. For example, Oolong refers to, or the system crashes, or hacks. Here is a system designed, a problem with a certain application, a sub-chain, should not affect other parts, and second, the system should have an early warning mechanism, the fuse is exceeded when the threshold is exceeded; the system can use the reserve token pool to compensate the losses of the parties. When the reserve pool is not enough, the user can also issue tokens with similar bonds, which will be compensated according to a certain rate of return in the future. It is best not to take a forced fork.

The next question, do we need to set a ceiling for the supply of the certificate.

Bitcoin's 21 million caps have made many people feel that they have to set an upper limit, but we don't think we should deliberately set an upper limit, but should link the entire system's capacity supply.

For example, a painter, token should be linked to all the painter's paintings, the total amount of tokens is limited, such as Qianlong, which can be painted especially; but for example, a painter's alliance will continue to absorb the new painter's kind, supply It should be infinite, or else it would be unfair to the painter who joined the alliance.

Moreover, the token should be linked to the most important factors of supply. For example, your community is pursuing popularity and ultimately realizes by advertising. That can be done according to the workload. Users can get tokens if they browse more and send more texts. If your community is In pursuit of high-quality, in-depth original content, it must be given a token according to the effect of the work, the amount of praise for each user, and even the way of producing the incentive chain.

Next, let's see how the pass is used.

There may be many rights to pass the certificate in these five categories: credit, property, income, voting, and use rights. The first four people should understand that the right to use is similar to a hotel that has lived for a month and can get a free night of use.

These are low-level rights that can be achieved with traditional financial instruments or ordinary points. These can be done without blockchain. Of course you can also use it, but the improvement brought by the blockchain is not obvious.

Ok, the focus is coming, high-order rights. What is high-order, that is, combined, conditional rights, complexity and flexibility requirements, you can not use traditional financial tools or ordinary points to achieve, you must use smart contracts. We have listed seven kinds here.

First, it has the right to pay attention. This applies to all C-side user purchase decisions. If the B-side user does not necessarily apply. For example, now our forums and WeChat groups are full of advertisements. It is impossible to prevent them from happening. You can set up a mechanism in the future. You can send advertisements. First, take out the token and set how many people to look at, such as 100. After 100 readings, this advertisement post will disappear automatically.

For example, our current user data is randomly occupied by Internet companies. We want to give us a portrait of the user. We want to send us spam messages and spam messages. In the future, these data can not be given casually, the user can choose not to give, or if given, it is also necessary to use token, and after receiving 100 spam messages, the number will be invalid.

Second, the right to proof of credit applies to systems with fraud risks in all processes, especially those where rights and obligations do not occur simultaneously. This is not the same as the previous credit offer token. The credit is used to exchange the token. Here, the token is used to obtain the credit.

For example, many business activities require you to mortgage or guarantee, to prevent you from fraud, or to be responsible afterwards, you can now use token to achieve; then, for example, you want to initiate a process or activity, whether you want to buy a group Organize a party, start a crowdfunding, or even do a startup project, you need to take out the token first, otherwise, others have participated, paid time and resources, and finally you give up what to do, you have to let others I believe you. These tokens are not paid, as long as the project is going on, or the promoter, but the promoter needs to prove his sincerity and determination.

Third, praise and bad review rights, this applies to all industries that have quality differences or risk of integrity, such as e-commerce, or service industry. We are taking a taxi now. When the driver gets off the bus, the driver will tell you, give a five-star rating. Usually I will give it. Anyway, my praise is very cheap. Or sometimes we have a fight with the driver. I said that I have to complain to you and give you a bad. Comment, the driver will say, you give it, I look at you. The driver is not afraid, why, our bad reviews are also very cheap, a bad review can not control the driver's rice bowl

On the other hand, there are some bad people who will maliciously give bad reviews and then blackmail the merchants. Once this bad guy has more, it will greatly hinder the right of our good people to give bad reviews, but the system can't manage it. Like the previous six or six complaints against Jingdong, it was endorsed by his own reputation to finally let Jingdong apologize to admit mistakes. If it is our ordinary people, you have the right to give a bad review, why the business is afraid of you. After all, our praise and bad reviews are too cheap.

We need to design a mechanism, two kinds of tokens, praise tokens and bad reviews tokens. The more you use this system, the more tokens you have, and the difficulty in getting the tokens is much harder than the praise. You buy 10 things online, you can give praise to one at a time, but the 11th merchant is very patient with you to talk about your needs, help you find something you didn't know but wants, you can Give 10 purchases and replace them with a favorable token to him; you may never give a bad review to the business, but one day you will encounter an old fritter, and you will sell fakes and various reasons, destroy the evidence. You are on the bar with him. Well, you have bought 100 things in the past and replaced them with a bad review token.

Once there is a bad review token transferred to this address, everyone can see it later, it will prevent this unscrupulous business, he wants to transfer this bad review token out how to do? The system can be set up, you have to pay a high gas when you turn, you can't just turn it out, and everyone can see that you have turned a bad review token out. Such a system can really make praise and bad reviews work.

Fourth, time priority. This applies to systems with limited supply per unit time, and usually everyone has to wait for a first-come, first-served basis. But in fact, this is a resource for producers who can use this resource to realize it. There are also businesses that have tried it. For example, airlines have access to Gold members, but they are too few.

In the future, whether you are going to the restaurant to eat, to see the premiere of the power supply, or to buy a mobile phone or car with a burst of money, or to grab tickets for popular scenic spots during the holidays, old users can have time priority.

Fifth, price priority, this applies to the system of using cost rigidity and pricing flexibility. Everyone pays attention to this setting. If you buy a pancake for 5 yuan, you said that you used a token to make a 20% discount. Then the token is not a dollar. It is equivalent to the merchant making a promotional rebate. This does not necessarily require a token.

However, for example, the price of a gym or a barber shop, such as a software app or a game card, the cost of the business and the development cost are already there. The more people you use, the more you can spread his cost. He doesn't really know how to price users, so we can use tokens, you can use more tokens, and the discount is bigger. At this time, the business can figure out very clearly, in the end how to price, I am the most cost-effective.

Sixth, probability priority is the kind of system that is sparsely supplied and cannot be cut. For example, celebrities face to face, like Buffett's lunch opportunity is auctioned, whoever has more money, can eat with the stock god.

Old bus doesn't matter anyway, but as a normal star, or opinion leader, you engage in auctions. One is that the auction price is too low and it is difficult to see. One is that it hurts the fans and does not fully mobilize the fans. What is the correct style of play? You listen to idol classes or concerts, buy his books or hands, give him advice, call him, and get tokens. The more tokens you have, the higher the chances of being drawn and the idols. Into lunch.

Another example is travel in outer space. Until now, there are only 500 people crossing the Carmen line, that is, the boundary of the Earth space. I estimate that the physical fitness meets the requirements of at least several hundred thousand. So who is going up? Of course, you can also press the price, who has money and who goes up.

But selling it like this is also a failed business practice. There are many astronomy enthusiasts all over the world who will buy expensive telescopes and participate in various observation activities and lectures. Many of them also like to fly or parachute. These business activities can get tokens, and finally who has more tokens. Who is more likely to be drawn into outer space.

Seventh, the decision-making veto, this applies to the existence of a system that most obeys a few needs. Some people may be surprised, of course, the minority obeys the majority, and why it is reversed. Let me give you an example. You have never had any experience. There is a lot of information on your own network disk. There are many friends on the social platform. There are a lot of articles on the blog. The game has been upgraded to a very high level. Finally, the Internet company said that it is off. Off, the information says no, no, you have no way to change.

In the future, if you have a token, you can change it. As long as there is a certain amount of users who are not willing to shut down, then it is not relevant. If there is no centralized operation and maintenance, then the decentralized operation and maintenance method is used. For example, if the bus line is closed, there are often people on the Internet who discuss how many cars should be turned off. Some people say that this is done with tokens. Look at how many people sit in the back-end system every day. wrong.

The user should be allowed to vote with the token. He is an old user and has too many tokens to vote for the veto. There may be 100 people on the 1st car, but if it is closed, he can switch to the 3rd, 4th or other modes of transportation. He will not vote for the veto, but 10 people will take the 2nd car, although The number is small, but if the car is closed, he will have to change jobs. In this case, they must vote for the veto. If they want to turn off the 1st car, they can't turn off the 2nd car.

In the above, is there any way to solve the existing system? No.

Can these systems still work if they are out of smart contracts? No.

This is the value of the blockchain.

In the blockchain system, the certificate anchors the most important rights in the system, and this right needs to be implemented using smart contracts. Conversely, if the most important rights in a blockchain system can be used without smart contracts, this system can eliminate the need for blockchains. Again, don't block the block for the blockchain.

For anything to be on the chain, say a little more. Proof of the chain, identity chain, asset chain, data chain, business chain, these can be on the chain, but not equal to must be on. The future must be a mix of chains and chains, and important information and behaviors are on the chain.

For example, everyone knows that there is a mechanism for court trials to call out-of-court mediation. The priority of mediation outside the civil court is higher than that of the court. As long as the two are willing to mediate outside the court, the judge will not care, but the criminal lawsuit will not work. For example, someone killed someone, even if the family of the victim said that I did not pursue it, it was useless, and must file a public prosecution, so we made an analogy. The general problem is not so important, no need to go on the chain, the chain can be solved, and the important one is on the chain.

Differentiate a concept. We just said how to use so many passes. In fact, it can be divided into two types. One is to use rights, which is consumed every time you use it. It takes a while to use up. One is By holding an interest, you can enjoy the right as long as you prove that you have a token. Both of these will have different effects on the system. If the more equity is held, the user tends to 囤token, the market is less circulated, the token is easy to appreciate, but there may be too much bubble eventually collapsed; if more equity is used, the liquidity will become better, but it will be easy to depreciate. , causing users to lose confidence and leave the system.

Therefore, liquidity and value preservation need to be balanced. Ideally, there is sufficient liquidity in the market, and there is no expectation that the value of tokens will be greatly increased or depreciated.

One of them is that you can design a good ratio on the use of equity and holdings. One is to adjust the issuance of the pass, so that the issue and use match.

Finally, we will summarize the design principles of the blockchain business system.

We have already talked about many principles before, but the most important and most important one is this one. There will never be an ultimate form, and no one has a God perspective. What we can do is to continue trial and error iterations and constantly improve our system.

Therefore, it is best not to design the whole system as hard code, it should be more soft code, which is beneficial to the system update.

We have put together 10 principles, which we have already discussed before:

The design of the blockchain system should start from supply and everything should focus on promoting productivity.

Blockchains are not required for systems that are fully standardized and that supply no bottlenecks.

The system design of the certificate must be convergent to suppress one-way flow.

The system design of the certificate must be robust and resistant to malignant shocks.

The supply of the certificate should not deliberately set an upper limit, but rather link the capacity supply of the entire system.

All low-level rights can be implemented using traditional financial instruments or points, and blockchains can be used.

In the blockchain system, the pass is anchored to the most important rights in the system, and high-order rights need to be implemented using smart contracts.

The asset chain is not equal to all the information and behaviors in the ecology. It is bound to be mixed under the chain, and important information and behavior are on the chain.

It is necessary to design the proportion of the use rights and the rights and interests of the pass and match the speed of the issuance of the pass to find a balance between liquidity and hedging.

There is no ultimate form, no God's perspective, only continuous trial and error iteration.

Finally, there is another question. Does the general economics have to fall on the blockchain?

Actually not. In theory, the two can be separated.

But in fact, society has lost confidence in the credibility of any commercial company, even if it is like Facebook, it will make users suspect that it is illegally using user data; even if it is a drop, it will make users suspect that it not only does not give the old user rights but instead Big data is ripe. No commercial company can prove its innocence. Only the blockchain can provide the system cornerstone for the token to run.

Mechanism needs to be improved and improved

Of course, there are still many problems in the blockchain. It has been criticized by many people. The main problem is that there are some bad guys and speculators who don't want to do things well. They want to cut the leek and run.

I feel that there is nothing wrong with criticism. These problems must be solved. Otherwise, the blockchain will not develop or even survive. Everyone must have a sense of crisis, and the boat may really sink. But I also believe that the mechanism of the future blockchain will be further improved, so that the bad guys can’t do evil, let the good guys get rewards, and truly achieve a win-win situation.

With regard to the improvement of the mechanism of the blockchain, there will always be people who have opinions, and think that such changes will become centralized and so on. Including the blockchain industry, there are also some fundamentalists who believe that the bitcoin architecture in 2009 is the best and everything is not correct. But as I said before, decentralization is only a means, not an end. The goal is to achieve a win-win situation. All mechanisms that do not fully achieve a win-win situation are not enough blockchain.

When the stock market was initially negotiated with the phoenix tree, it was very basic. There were many people who cut the leeks. After several hundred years of continuous improvement, a lot of rules and constraints have been gradually improved.

Therefore, we need to further improve and improve the rules, such as the need for third-party custody of funds, such as management's limited sales mechanism, such as the DAICO model proposed by Vitalik, to minimize the risk of fraud and improve accountability.

Partial on-site question and answer

Q: What is the evaluation model of the blockchain project, and what are the three most important dimensions?

A: We have a Smart model. S (Strategy) sees that the space in the industry is not big enough. Is it necessary to use a blockchain? M is management. See how the project is promoted and executed, and the model and mechanism are well designed. A (activity) is to see how a user's activity in a community, R (Reliability) is to see how the team's credibility, T is technology (tevhnology), see if its technology is good.

Q: What are the technical bottlenecks of the blockchain now?

A: The main reason for the technical bottleneck is the impossible triangle, scalability, security and decentralization. These three can't be combined. Many times, like Ethereum, people are criticized for being too low. There are many people who are exploring new ways, either to a degree that either sacrifices decentralization or sacrifices security. This is the main bottleneck, nor is it a pure technical bottleneck, it is more of a bottleneck in system design.

Another important bottleneck is that the current wallet is still a bit complicated for ordinary users, and many people will not use it, resulting in a very small user scale, and many applications cannot be developed.

Q: What kind of scenes in the future, such as the game class may be closer to the winding, is itself a bit of data. In the future, many applications in various industries still have some distance from the national real economy, so-called two parallel worlds. Please share with you which industries are in this outlook and market combination, similar to games, and what else?

A: Yes, at this stage, the two may be faster. One is that it is a purely digital asset, does not involve offline, does not involve the identification of the authenticity of information, this may be relatively faster. The second one has a community, a star fan group, and a sports fan group. This group needs to be organized. It may be more convenient to organize it in a blockchain manner. The game has two pieces, some groups, and digital assets, so it will progress faster.

These are some of the quicker landings, not that other entities will not land, and those just take longer. Similar to the Internet, when the Internet was in the past, everyone thought that the Internet application could only be to write emails, chat QQ, and look at the portal. At that time, you said that the Internet can be used to call a car, can be used to ride a bicycle, can be called a takeaway, unimaginable, is needed A gradual process. Therefore, the blockchain needs to be matured step by step, and can be combined with entities in the future.

The specific industry attributes here are not so important. It is not that certain auto industries cannot be replaced, or that the medical industry cannot replace them. This difference is not so obvious, and it depends on the specific project situation. The specific items are anchored differently, and anchoring things can be affected by the chain.

Q: What are the current chain models and profit models of traditional enterprises if they are on the market? In what way to make money. How will it be profitable now? Is there any profit in the industry?

A: It is wrong to say that profit is traditional thinking and shareholding thinking, but we can discuss the return on investment. It is not difficult for traditional enterprises to carry out technology development on their own. Many IT companies can provide you with a complete set of systems, but whether they have any value in the future can be improved.

If there is no token, such as a super-book, then the whole system can guarantee that it cannot be modified. It is equivalent to adding a lock to the door and feels more reliable. It is not able to make money directly. If the return is invested, if the brand promotion is brought aside, The return on investment is zero, and the return on investment is to make everyone feel that this thing is more reliable.

If there is a Token, the value cannot be directly measured by profit, and it is definitely valuable. This way has a great effect on the entire ecosystem, you can mobilize the entire system. Let me give you an example. Netease Planet has neither fundraising nor trading. It can only buy pork with black diamonds. It is quite useful to buy Netease's carefully selected items. Many people who use Netease Planet listen to Netease every night. Music songs, etc., there are many tasks to complete, and how many rewards can be obtained after completing the task. NetEase Internet products are many. Many products have not been mobilized before. Now it is equivalent to stringing up products. This value is there, but this form of value is not necessarily reflected in profit. If it is simple, it can be understood as the channel value, but in fact the change is more than the channel value.

Q: In the social platform scenario, the token can encourage the production of high-quality content, but if there is false or malicious information, how to suppress it?

A: You can design a mechanism to mortgage the token each time you post a message. If it is reported and confirmed to be false or malicious, you will be disqualified from the token and confiscate the mortgage token.

In fact, many Internet platforms now have this mechanism for handling rumors and titles, but it is more difficult to perform without a token.