1.1 Blockchain and smart Society

  • The development of information technology has respectively promoted the development process of digitization, informatization and interconnection of human society, and is now entering the development period of intelligent society.
  • Emerging IT technologies such as 5G, quantum computing, cloud computing, the Internet of things, artificial intelligence and blockchain will support human society into an intelligent society.
  • As one of the key supporting technologies of the evil energy society, the core value of blockchain is to realize the intelligent operation of social relations, which has huge opportunities for industrial development.

1.2 Blockchain concept and system

  • The key to the normal, orderly and benign operation of social relations is that these relations are credible.
  • Traditional trust, whether acquaintances trust, or institutional trust; It’s all based on trust in people.
  • Blockchain is a new paradigm in which trust in social relationships is built on a highly stable IT infrastructure of machines and algorithms.
  • Systematic understanding of blockchain includes four dimensions:
    • Philosophical dimension
    • Sociological dimension
    • Application of dimension
    • Technical dimensions

1.3 Philosophical basis of blockchain

  • Philosophy is the ultimate learning, the mother of all learning
    • Marxism-leninism philosophy → dialectical materialism → historical materialism
  • Based on dialectical materialism, we know that traditional trust is built on the consciousness of uncertainty, while blockchain trust is built on the material foundation of certainty, so blockchain trust has higher objectivity, reliability and security.
  • From the perspective of historical materialism, with the comprehensive intellectualization of the productive forces of intelligent society, the comprehensive intellectualization of production relations will be promoted, so as to construct the intelligent production mode of intelligent society.

1.4 The sociological significance of blockchain

  • The modern communist movement has greatly promoted the human society to a fairer society, and the basic contradiction of the Internet oligarchic economy has been bred to promote the reform of the Internet society.
  • In today’s global social governance and the fragmentation and solidification of interconnected social and economic classes, class mobility is becoming smaller and smaller, which is detrimental to the improvement of social competitiveness and social innovation, and the accumulation of class conflicts, which is detrimental to social stability.
  • Trust infrastructure based on block chain is conducive to the establishment of a more fair, transparent and open social governance system, and promotes a new social and economic form — value community, thus promoting the evolution of social class form from pyramid structure to spindle structure.

1.5 Review of blockchain applications

  • Several key technical characteristics of the construction of blockchain technology system:
    • Asymmetric key systems implement untrust
    • P2P networks are decentralized
    • Consensus mechanism realizes unity of community
    • Block chain data to achieve data immutable
  • Based on the typical technical characteristics of blockchain, the typical scenarios in which blockchain can be applied include:
    • Blockchain of assets
    • Community autonomy (business model, custom cooperation mode) or new business model
    • New economy, governance organization
    • Deposit certificate
    • Automatic contracts
    • The Internet of things

2.1 Assets and their blockchainization

  • Core elements of assets include:
    • Control → value (price) → liquidity
    • Traditional asset management and control systems and modes exist:
      • Loss of ownership of assets
      • Lack of liquidity
      • Quality assurance depends on the brand
      • Imbalance between supply and demand

Through blockchain transformation of assets, we can:

  • To improve the liquidity of assets, value is rooted in the process of quality formation

  • Users implement more effective controls based on asset ownership

  • To demand production, get a better balance between supply and demand, to avoid waste and lack

  • The effective combination of blockchain, traditional trust and Internet of Things can solve the one-to-one matching between assets on the blockchain chain and assets off the chain

2.2 Business model and blockchain

  • In the traditional business structure, consumers pay a lot of fees for intermediary channels, which are mainly spent on marketing, advertising, packaging and channel costs, resulting in limited support for product innovation and quality assurance.
  • In the Internet business architecture, platform operators monopolize capital, traffic and data in commercial operations, and content/commodity providers and consumers become the weakest links in the platform ecosystem, which inhibits innovation and makes quality assurance difficult.
  • Blockchain business architecture maximizes the elimination of intermediaries, making it easier for all parties to reach P2P platforms and other cooperative relationships. Content/product providers and consumers have a greatly enhanced position in the blockchain business ecosystem, which is conducive to promoting innovation and ensuring product quality.

2.3 Blockchain and economic organization

  • As the basic unit of traditional economic organization, the company is highly dependent on human in its decision-making, operation and governance. The existence of these problems and contradictions means that the fate of most companies will eventually die out.
  • Value community, a new economic organization based on blockchain trust, can eliminate many problems and contradictions in traditional corporate governance. And due to the integration of economic organizations and consumers, if code management and updating rules are appropriate, the self-evolution and perfection of value community will make such new economic organizations immortal.

2.4 Blockchain storage

  • The traditional proof system has the following problems
    • Artificial influence by the authority is greater
    • Fakes are flooded
    • Higher cost of proof
    • High cost of anti-counterfeiting and inconvenient to carry
    • Counterfeit, widely borrowed certificates and other problems
  • Blockchain storage has
    • Rubber seals
    • convenience
    • Low sex
    • security
  • Typical application scenarios of blockchain storage include
    • Blockchain education
    • Blockchain product traceability
    • Blockchain justice
    • Blockchain certificate

2.5 Automatic Contract

  • Traditional contracts are described in natural language, and rely on the good faith of the parties concerned and the credibility of the court. They are characterized by high cost, low efficiency and strong dependence on people.
  • Blockchains describe contracts based on computer code and are efficient, fast and automatic.
  • Three scenarios of blockchain application
    • Blockchains store natural language contracts and rely on traditional trust systems for execution
    • Blockchain automatic contract + iot automatic control of offline entities
    • Blockchain fully automatic contract

2.6 Blockchain and Internet of Things

  • The trust limitation of blockchain is reflected in its trust boundary, which is the blockchain network itself (on the chain). Blockchain trust needs to be effectively linked to trust in the physical world before it can serve the physical world.
  • An efficient way to connect blockchain to the physical world
    • Through the Internet of Things, data collected by the Internet of Things can be stored by blockchain to ensure the fairness of data collected.
    • Through the connection between the Internet of Things and the physical entity, it can realize the automatic control and connection of the blockchain trust to the entity of the Internet of Things.
    • The organic combination of blockchain identity and information physical system CPS can realize the automated social function of CPS.

2.7 Data Sharing and data confirmation

  • Traditional data storage in information islands, data authenticity and data confirmation difficult, difficult transaction
  • The key points of blockchain in data application include
    • Co-construction and Sharing database
    • Data authenticity is verified
    • Data property right confirmation and data transaction

3.1 Technical structure of blockchain

  • Blockchain is a new type of software development architecture, which is characterized by P2P network architecture + layered software architecture
  • The layered architecture of blockchain is
    • Base layer
    • Contract layer
    • The application layer
    • Access layer
  • The complete blockchain technology architecture includes
    • The data layer
    • The network layer
    • Consensus layer
    • layer
    • Contract layer
    • The application layer
  • There are three types of blockchain network: public chain, federation chain and private chain, among which the public chain has received the most attention and has the most extensive influence
  • Blockchain has some new technical characteristics that the previous IT technology does not have, but the blockchain technology is still in the early stage of development, and there are many technical challenges and opportunities

3.2 Distributed ledgers and encrypted accounts

  • Distributed ledgers are the cornerstone of blockchain. They are stored on many nodes in the blockchain and have exactly the same structure and content.

  • The distributed ledger consists of a blockchain ledger that stores a set of transaction sequences and a state library that expresses the current state of all accounts in the blockchain.

  • The core working principle of blockchain is that the current state library is equal to the previous state library and the current block as input data, and the state transfer result formed by the state transfer function of the node software is executed.

  • Asymmetric key system is the basic technology of block chain to achieve point-to-point secure communication, and hash computing is the basic technology of block chain to achieve imtamable and traceable data

  • 3.3 Decentralization and P2P communication

    • The Internet is inherently a point-to-point communication network, but due to the historical stage of the physical network architecture and the organization of the real society, the Internet centralization platform has become the main structure of the current Internet
    • The Internet centralization platform has two weak characteristics of complete network and data right confirmation, which is the main reason why P2P communication can be attached importance again.
    • P2P communication is the basic communication technology of block chain and distributed file system. The block chain and distributed file system based on P2P communication have gained new features that the Internet centralized platform does not have: high security and data confirmation solution
    • The combination of blockchain and distributed file system makes it possible to develop arbitrary decentralized applications

3.4 Consensus calculation and incentive mechanism

  • For P2P distributed network architecture unit block chain, preventing “double flower” and “selfish mining”, so as to ensure the consistency of data in the network is a particularly important topic, block chain is mainly through consensus mechanism to ensure
  • The essence of the consensus mechanism of blockchain is how to design a mechanism to generate a blockchain in chronological order in the P2P network environment, and more directly, how to generate, verify and list each block.
  • According to the different mechanism and algorithm of generating block, the blockchain consensus mechanism includes POW\POS\DPOS\POA\PBTF and so on
  • Incentive mechanism is a mechanism in the public chain system to encourage free access of miners to continue to provide computing power to the network, while ensuring network security

3.5 Smart contracts and decentralized applications

  • Smart contract is an important technical achievement of blockchain 2.0, laying the technical foundation of blockchain as an underlying technology. Smart contract is essentially a piece of code stored on the blockchain, which is automatically executed when the transaction is triggered. The typical blockchain platforms that support smart contracts are Ethereum and hyperledger.
  • Application based on the application of intelligent contract called decentralized (DAPP), it with the traditional centralized application such as Web application of B/S structure is followed by the core logic and the data is stored in the intelligence of the contract, therefore I virtualization used to have when deployed, its execution logic and data do not tamper with, can not be controlled by a single organization. Dapps can be used in many situations where trust is required.