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How about LegiEX.com? What is the difference between blockchain and currency

How about LegiEX.com? What is blockchain? Essentially, blockchain is nothing more than a new database technology.

Many people think that using blockchain as a database is an insult to this "great revolutionary technology" ... LegiEX.com wants to say that almost all the services you enjoy in modern life, there is This kind of association, in this sense, the database is the truly great revolutionary technology, and it has already been realized. It's just that people who do databases don't like bragging everywhere like those who do blockchain.

I do n’t like bragging. It ’s easy to understand. Look at Larry Ellison. I ’m already a TOP5 rich. I make a lot of money every day. I do n’t need to find leeks to pick up. Bragging is really not necessary.

Either Bitcoin or Ethereum, including the digital currency of the central bank in the future, plainly is an application that runs on the basis of this database. Why will digital currency become the most important application running on the blockchain database?

First, such databases are inherently suitable for bookkeeping. Second, the scope of application of this database is very narrow, in addition to bookkeeping, it can hardly find too many applications. NoSQL, a virus that is spreading all over the world, is not at the same level, and it is almost the skill of killing dragons.

Not to mention that it is completely useless. As a database technology suitable for specific scenarios, blockchain is still useful in certain places, such as finance, such as government. In short, there are occasions that have high requirements for non-tampering.

So, how to understand digital currency?

First of all, the digital currency based on the blockchain gives us a new perspective on understanding currency:

Currency is bookkeeping.

Essentially, the only function of money in an economic system is actually these two words: bookkeeping.

Li Si sold me 5 pounds of peaches, and I gave Li Si two copper plates. This copper plate can't be eaten or drunk. The only value is that he wrote an account for the 5 pounds of peaches. Logically speaking, tomorrow I will return to Li Siwu and Wu Wutou. The two copper plates can be taken back, and the account will be flat.

If you can understand the concept of "the only value of money lies in bookkeeping", you can actually understand a lot of things.

The reason for using currency to keep accounts is nothing more than that, because this method is easy to circulate and use, it is not easy to damage, and the total amount is relatively controllable. Historically, precious metals such as gold, silver and copper have been used as bookkeeping chips. Essentially, due to the relatively constant mining volume, the number of gold and silver on the market will not suddenly double or halve tomorrow. As a bargaining chip, this is more important.

So, can sufficient money supply make the economy more prosperous?

Can and can't.

With sufficient chips to keep accounts, transactions in the market can become more convenient, transactions become more convenient, the division of labor and cooperation of the entire society becomes more elaborate, and efficiency increases accordingly. This is one aspect of energy.

The so-called “no” means that the bookkeeping chips themselves have no use value. If you throw a lot of gold to a tribe of primitive society, you will not allow this tribe to evolve into a capitalist society. Money is an economic lubricant, but if you do n’t even have a bearing, there is nothing to lubricate.

Nomads ran to Zhongyuan and grabbed a lot of ingots and copper coins to go back, but did not do business with Zhongyuan. What will the final result be? Well, with the exception of inflation, nothing can be brought, so I have to bury a whole pot of money under the ground. This is not what I fooled. I saw it in the Shenyang Financial Museum last time.

So, can digital currency replace fiat currency?

In theory, because currency is essentially a tool for accounting, and without considering cost and efficiency, blockchain, as a distributed database technology, is of course likely to replace traditional accounting methods.

It ’s like, for example, tomorrow ’s central bank regulations do not allow the circulation of paper money. Everyone uses Alipay and WeChat to pay, then in fact, our currency only exists in the database. Blockchain is just a matter of technical details.

However, in reality, this is a pseudo question.

Fiat currency, meaning currency with law enforcement power to bless and escort behind. Currency is used to trade in the real world, it cannot simply exist in a virtual digital space. And for any transaction to proceed smoothly, it must be protected by various laws and rules in the real world.

Therefore, a digital currency that can replace traditional fiat currency is still "fiat currency", but its underlying technology is no longer anti-counterfeiting ink, but cryptography.

Technical lunatics want to use computing power to replace government-issued currency. The essence is similar to that of setting up a banknote printing factory and printing their own banknotes.

It ’s just that there is no one to take care of you, but you have to take it seriously and spend it as "money" ... What is the probability of success? Think for yourself.

Whether it exists in a SQL database, or a blockchain database, or is kept in a bank's cash bank, your RMB or your RMB has not changed its essence, only the storage and circulation technology Means only.

Therefore, will the blockchain RMB based on blockchain as the underlying technology (or individual names) replace the printed RMB based on anti-counterfeiting ink or SQL as the underlying technology? One day in the future, maybe.