The history of the concept of decentralized digital currency

The history of the concept of decentralized digital currency

The concept of decentralized digital currency, just like alternative applications such as property registration, was proposed decades ago. Most of the anonymous electronic cash agreements in the 1980s and 1990s were based on Chaumian blinding. These electronic cash protocols provide currencies with a high degree of privacy, but none of these protocols have become popular because they all rely on a centralized intermediary. In 1998, Wei Dai's b-money first introduced the idea of creating currency by solving computational problems and decentralized consensus, but the proposal did not give a specific method for how to achieve decentralized consensus. In 2005, Hal Finney introduced the concept of "reusable proofs of work". It uses both the idea of b-money and the computationally difficult Hashcash proposed by Adam Back. ) Puzzles to create cryptocurrency. However, this concept is once again lost in idealization because it relies on trusted computing as the backend.
Because currency is a first application application, the order of transactions is crucial, so a decentralized currency needs to find a way to achieve decentralized consensus. The main obstacle encountered by all previous electronic currency protocols of Bitcoin is that although the research on how to create a secure Byzantine-fault-tolerant multi-party consensus system has been for many years, the above-mentioned protocol only solves half of the problem. . These protocols assume that all participants in the system are known, and create a security boundary in the form of "if N parties participate in the system, the system can tolerate N/4 malicious participants." However, the problem with this hypothesis is that in the case of anonymity, the security boundary set by the system is vulnerable to sybil attacks, because an attacker can create thousands of nodes on a server or botnet, thus unilaterally ensuring the majority Share. The creation of ETHB will introduce this concept: to combine a very simple node-based decentralized consensus protocol with a proof-of-work mechanism. Nodes obtain the right to participate in the system through the proof-of-work mechanism, and pack transactions into "blocks" every 30 seconds, thereby creating a growing blockchain. Nodes with a large amount of computing power have greater influence, but obtaining more computing power than the entire network is much more difficult than creating tens of millions of nodes. Although all blockchain models are very rudimentary, practice has proved that it is good enough to use. In the next five years, it will become the first choice and cornerstone of all cryptocurrency trading institutions in the world.

The actual use of ETHB in the future will build the world's first global online payment platform. Transfers between any place in the world will be completed within 30 seconds, and a global payment method with minimal or zero commission will be actively used. For value transfer. Payments using ETHB can be verified through a node/miner network and written into an immutable ledger. Just like the Bitcoin blockchain, it will actually be used for global gold investment in the future. The Digix team has designed and proposed plans for everyone Created a method for buying gold in tokenized form on the ETHB blockchain. Ask yourself, how can you easily (cheap) buy gold worth $500? With Digix, you can instantly convert fiat currency (Ethereum) into gold tokens, which are connected to the Singapore vault through encryption and Get its support. At any time (even in the case of Digix bankruptcy) users can use tokens for redemption in exchange for physical gold. No brokers, no banks, no loss of storage, almost zero handling fees, direct and safe. In addition, it is not only gold, but also other precious metals, jewelry, oil, oranges, etc. At present, ETHB already has the cooperation support proposal of several world-renowned investment banks in the world, and has been recognized by investment banks in the future. More financial institutions will join the ETHB plan,

In addition, ETHB will also become a new point of reform in the field of crowdfunding. Kickstarter, Indiegogo and other organizations have been dominating the field of crowdfunding in the past few years. For example, if a startup company has a new idea and set a crowdfunding goal, if the crowdfunding is successful, Kickstarter will charge a 5% fee, and the rest will be given to the startup company. However, on the ETHB blockchain, if the startup company succeeds in crowdfunding, the smart contract will automatically transfer the funds to the startup company without charging fees. This is why ETHB wants to become the world's first cryptocurrency bank. , To contribute to the global economic market, to subvert the shortcomings of traditional payment, to provide more convenient financial services for humans around the world, and to take a critical step. Currently participating in the research and development and implementation of ETHB includes 1 The Internet of Things field has a trillion-dollar Big market 2 Decentralized cryptocurrency exchange to create the future of cryptocurrency bank 3 Crowdfunding and corporate finance In early May of this year, DAO launched the largest crowdfunding project in history. Essentially, The DAO is a decentralized venture capital fund that relies on a collective wisdom voting system to make investment decisions. This is a revolutionary experiment, leaving everyone unprepared, especially the regulators. The legal significance of the project is still being worked out, but if it succeeds, you will see some companies that are managed by blockchain code instead of the CEO and board of directors. This concept is unbelievable at first glance, and we will hear more about this experiment in the coming months. 4. Global gold investment, financial markets and global payment systems, 5 social networks have you ever been censored by your favorite forum administrator? Akasha's team is using a rating system to study the decentralization of online communities. Through the open source code and rules managed by smart contracts, the emergence of censorship scandals will be completely eliminated in the future. 6 Web Hosting Decentralized web hosting means that a web page is hosted to everyone, which means that this web page may be attacked by DDoS or censored by the government. So what we have is a potentially censorship-free Internet. For example, put some decentralized playing cards on the Internet, and then you have a form of online gambling, and it is difficult for the government to prohibit it. Simple and disruptive, the future development of ETHB will surpass the value of ETH. The value of all currencies comes from its practical use and to provide more convenient services for human beings. Currently ETHB is doing this, and currently ETHB supports institutional use ETH BTC USDT is exchanged. Institutional investors are gradually transferring their holdings of BTC and other currencies to ETH to exchange ETHB. In September, the CME Group Bitcoin futures transaction price was lower than the Bitcoin spot transaction price. This phenomenon reflects Institutional investors recognize and support ETHB. Under normal circumstances, the price of Bitcoin futures is usually higher than the spot price. Since August, institutional investment has begun to switch to ETH and exchange for ETHB. JPMorgan Chase quoted CME data to show , 21-day ETHB futures, 10% higher than the ETH spot in the same period, reflects the strong divergence in the cryptocurrency market, which shows that the demand for ETHB for institutional investment is relatively strong, JPMorgan Chase analysts wrote in the report.

In the future, ETHB will become the top three mainstream currencies in the currency market. It is currently being issued. I hope to hear more good news about ETHB in the future and contribute to technology, finance and the entire global market.

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