Bitcoin revolution and does Bitcoin drive the fourth wave of industrial revolution?

Sajjad Hussain
Oct 25 · 5 min read
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People’s understanding of block chain today is just like the understanding of the Internet in the early 1990s. Few people thought that it would have such a huge and far-reaching impact on the world. In a narrow sense, the block chain is distributed, and cryptographic methods are used to ensure chain-type data structure blocks that cannot be tampered with or forged.

In 2008, Satoshi Nakamoto posted a research report in a group of cryptographic decryption experts, describing his idea of ​​using encryption to create electronic money (using block chain technology), which is now widely known as Bit currency. Encrypted electronic currency does not require any authorization from a central issuing agency to pay freely and realize value transfer. One stone stirred up a thousand waves, arousing anger among the people in the circle.

The concept of cryptographic block chain was proposed by scholars as early as 1976, but Satoshi Nakamoto did not directly use the word “block chain” in this significant report. Although Bitcoin has had a strong influence, people have not fully understood and revealed its connotation; nevertheless, the block chain, as its technological basis, has now been pushed to the cusp of the fourth industrial revolution and is considered to be a push One of the main forces of future technological change.

Bitcoin is the most talked-about practical application of block chain technology. In this article, we will discuss the role of block chain technology in the emerging digital economy, the characteristics that a sustainable block chain company should have, the principles of block chain 4D, LASIC, and the ability to enable companies in the block chain industry Business skills and strategies that stand out from the crowd.

▍Bitcoin

Since the first Bitcoin was created in 2009, the world has begun to experience a revolution that few people can understand. With the emergence of Bitcoin, the Bitcoin network came into being. In 2017, its market value exceeded 40 billion U.S. dollars. Although not many people know this network, in the past 9 years, the Bitcoin network has been just like that year. Like the Internet, it is changing our world.

Prior to this, no institution or individual could successfully create a currency system, mainly because they only considered the feasibility within the system. The Bitcoin network has completely changed this mode of operation. It is not in any jurisdiction. In other words, even if some jurisdictions try to govern it, the enforcement of the ruling will be very difficult.

Therefore, as a currency system, the Bitcoin network redefines the operation mode of traditional legal currency. It makes it impossible for the law to exercise overall jurisdiction over it, making it a commercial space free of any legal currency or judicial system.

Most people feel negative when they first hear about Bitcoin, believing that Bitcoin is mainly used for money laundering or buying drugs and pornography. These opinions mislead people’s perception of Bitcoin.

At the same time, many people have found that the philosophical concept of creating Bitcoin is leading. They have used mathematics, cryptography and system design genius to create the Bitcoin network. Internet geniuses have profound insights into the shortcomings of the contemporary global economic and financial system. They no longer believe in the current currency system, thinking that its function is only to create more wealth for the rich.

From this point of view, Bitcoin has a significant socio-economic contribution. Bitcoin has applied the genius design of decentralized systems, P2P networks and open source software, which will possibly redefine the global economy;

The second major contribution of Bitcoin is that in the process of value transmission and economic interaction, an intermediary is no longer needed to confirm and record transactions, that is, the existence of intermediaries is meaningless. Traditional centralized transaction systems require an intermediary, such as a bank, to confirm the transaction behavior of goods and services;

The third major contribution of Bitcoin is that it is no longer necessary to know and confirm the identities of both parties in the transaction. Only a public network address and a key are needed to conduct transactions or transfer the value of digital assets. Personal information is no longer needed. For financial institutions, knowing their customers is the most basic requirement, and Bitcoin’s disruptive, anonymous transactions without identifying information will cause banks a headache.

▍LASIC principles and 4D thinking of digital economy

Through artificial intelligence, big data, Internet of Things, 3D printing and block chain technology, it can be seen that new technologies promote the development of the economy in the direction of digitization. In the emerging digital economy, what are the commonalities of successful companies.

Successful Internet companies generally use low profit margins to quickly attract enough customers to achieve profitability. At the same time, use existing technologies to meet changing customer needs. In addition, in order to prevent other competitors from entering their own business areas, companies generally use the existing Internet infrastructure to operate with light assets to expand the business scale as soon as possible.

At the same time, business models continue to innovate, using technologies such as subversive innovation and inclusive finance to continuously explore markets that have not received relevant services or have insufficient service supply to solve customer pain points.

Finally, successful companies often appear in a more friendly compliance environment. These markets have either received strong support from the government or are brand-new business areas that are still lacking in supervision.

The emerging digital economy has brought us some new thinking. The 4D thinking of the digital economy is quietly changing our business and economic models.

In the era of digital economy, the way of thinking is more important than work skills. Start-ups should not only consider what resources they have and what they can do, but also how to change and how to subvert. In the process of global economic transformation, the thinking and attitude of change and innovation play a vital role in the success of enterprises.

Discussing LASIC principles and 4D thinking in the field of digital economy, decentralization does not seem to be a necessary condition for the success of every company, and block chain technology may not be necessary. However, with the continuous expansion of corporate business, systemic risks will arise. Naturally, regulators will try to strengthen supervision or even restrict the company.

Therefore, to realize the sustainable development of enterprises, a decentralized business model based on the block chain is very necessary. Decentralization makes the market structure of natural monopoly or oligopoly no longer exist, so the importance of supervision in the field of decentralization will significantly decrease

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