Satoshi Nakamoto’s ideal
It is to make the credit of human currency
Built on P2P cryptography
He believes that the traditional credit system
They are all issued by third parties.
But he believes that third-party costs are high
The disadvantages are huge, especially detrimental to
Global Trade in the Internet Era
So he thinks the third party should be removed
Let money and information be the same on the Internet
The cost of running at close to the speed of light is almost zero
need to be able to do this
Satoshi Nakamoto suggested that credit could be built on
Based on cryptography P2P
This is the so-called DAC I will talk about later.
(Distributed Autonomous System)
This idea is of course very innovative
Of course before Satoshi Nakamoto
Austrian economist Hayek
(Nobel Prize winner in economics)
Also proposed in the 1970s
Currencies should compete through markets
Play a decisive role in survival of the fittest
certainly
Satoshi Nakamoto wanted to invent a
Currency built on P2P system
First of all, of course, we need to solve the problem of duplicate payments
That is the problem of counterfeit currency
Everybody knows
Paper money (national sovereign currency)
It relies on the powerful state violence machine to punish
Control possible counterfeit currency
So how can Big Pie solve this problem?
Satoshi Nakamoto’s biggest innovation comes from
It is time stamped
To ensure that repeated payments are impossible
That is, any payment
Transactions are immediately timestamped and accounted for
Guarantee a digital currency
Can no longer be paid to a third party
It stands to reason that digital currency is also a fully cryptographic symbol.
In a sense, it is very easy to be copied
How to ensure repeated payment?
That is to do accounting by stamping the timestamp.
The entire network is made public through this mechanism.
Guaranteed no double payment
Then we naturally have to ask
Who will keep the accounts? Who will stamp the time?
The solution to this problem is
The core innovation of the pie
This is the so-called mechanism that relies on miners to keep accounts.
The word miner in a sense
Not quite accurate
They are bookkeepers first
Computer to mine with TA
Relying on his computing power to provide services for the entire network
Big pie transaction accounting and time stamping
Guaranteed no double payments will occur
Everyone will ask, is this relying on Lei Feng?
On the contrary
Satoshi Nakamoto hypothesized that human nature is inherently evil
Everyone distrusts each other
Not taking the initiative to do good deeds
Everyone is here for the benefit
So we have to count on these computing power
To keep accounts and timestamp the entire network
We must ensure that they have interests
Their benefit is that they can mine at the same time
Get the pie
Mining is based on cryptography
Based on SHA-256
In fact, it is equivalent to solving the cryptographic equation.
Who solves it first? Who finds the hash value first?
At the same time, the whole network's pie will be spread within ten minutes.
Transactions timestamped
Keep the account correct
Whoever digs the mine (big pie)
per block
Each of the first four years will be rewarded with 50 pieces of pie.
Four years later, each block
Generate one every ten minutes
Each reward is 25 pie
So the term miner comes from this
But in fact, miners play the most central role
It’s time stamping and accounting
If these miners do not provide
their computing power
Accounting for the entire pie world network
If timestamped
So the pie as a
The payment system is not established
So a block is mined every ten minutes
The timestamps of all big pie transactions on the Internet within these ten minutes are recorded in this block.
Then make it public to the whole network
If you want to count on mining in the future
Get 25 pie rewards,
The whole network must recognize his legal nature
and put the next block
built on its chain
In fact, the pie system is a chain of blocks that are continuously mined from the first to the later ones.
All accounts are recorded in this chain
The most original pie wallet also downloads the bill at the same time
The entire network confirms its correctness
Every transaction is legal
This ensures that repeated payments cannot be made
Then the total amount of pie is limited
(Satoshi Nakamoto set it to 21 million)
Theoretically, they will all be dug out in 2140
But actually I did the math
More than 20.5 million have been dug out in 2040
At that time, the remaining pie will be very limited.
How to ensure the miners of the entire network at that time?
Then take out its computing power to be the entire
How about timestamp accounting in the pie world?
According to Satoshi Nakamoto’s design
Just pay them transaction fees
Now you have to pay 1/10,000 per transaction fee
It will be raised higher then
Then it’s not mining anymore
But rushing to keep accounts
Who grabbed the legal accounting rights?
Whoever gets the transaction fee
By then we really won’t be called miners anymore.
Instead, call the bookkeeper.
The pie system is roughly designed like this
Let it chain like this forever
(Account and reward) Go down
Will not cause inflation
Therefore, the total amount of pie is limited
is the first to attract many players
important features of participation
Many friends
When I first heard about pie
I always like to ask: Is there national sovereignty behind legal currency?
There is a state apparatus to protect and there is a legal system
What's behind the pie?
In fact, there is also strong protection behind the pie.
That’s the computing power of miners
Those miners who are mining all over the network
They are actually bookkeepers
They also protect the big pie
National defense force is the army
Why do you say that?
Because of course the big pie system also needs
Prevent any possible malicious attacks
For example, counterfeiting currency or destroying the system so that it does not operate according to the rules.
The rules designed by Satoshi Nakamoto are
Unless you control more than 51% of the entire network’s computing power
That is, more than 51% of the attack power
This will lead to the possibility of counterfeit currency
Only then can all the accounts recorded in history be tampered with
It is possible to cause damage to the system
According to the current cost of the entire network’s computing power, the current cost of the entire network’s computing power has reached more than one billion US dollars.
Of course, this number is constantly changing.
To reach more than 51% of the attack power, it would take at least one year of Kazakhstan’s military expenditure.
To launch such an attack
So the pie system
It is protected by the computing power of the entire network.
The price of the pie is to some extent
It’s also related to the computing power behind it.
Now some big-pie economists
Calculating the possible reasonable price of the pie
The first thing to consider is
What is the current situation of the computing power of the entire network?
The value-preserving function of the pie will exist for a long time
And the mathematical properties of cryptography of pie
Ensure that it will never be scarce in circulation
