Community Observation: 2019.09.02
Community Observation publishes insightful opinions and interesting thoughts collected from the SimpleChain community. If you have any thoughts/opinions about blockchain/crypto that you’d like to share, feel free to contact us through our Telegram group.
By GEB
It takes time to grdually recognize the value of something.
For a long time, I had always thought that currency is power, and that the governance and contradictions of all countries ultimately result from the questions of “who issues currency, for whom, and restrictions on how to use the currency”.
The existing monetary system was determined after the world wars. Within a country, or even around the world, different partis contend for the power of currency. I don’t see a way out for currencies or near-currencies issued by individuals or organizations.
Greenspan once said that he didn’t understand the foundation of Bitcoin’s value. Bitcoin is not universally accepted. The ability to be universally accepted, comes from either a currency’s intrinsic value, or trust of a currency’s issuer.
What exactly is a currency? What is the foundation of digital currencies like Bitcoin?
There are roughly three camps of opinions about the definition of currency.
Frist, the metal theory or the gold&silver standard, which means that metal itself is the currency, and any currencies without the support of metal are fake.
Second, the value of currency comes from the state, and unanimous agreement from society.
Third camp is the current mainstream opinion: currency itself has no unique and special attributes. Currency plays the role of storing and exchanging value. The currency itself is not important. What matters is the exchange of value.
Bitcoin itself has no value, and it is not cash. Jumping out of the box of traditional monetary and political thinking, a decentralized currency is not backed by metal or the state. The power of its value comes from the network, and the rights of the network come from an expansion of scale. The expansion of scale brings trust, and trust produces value.
Hyperinflation makes money less valuable than paper. When a country loses its financial authority and credibility, new currencies will become popular. This is consistent with the birth of Bitcoin and its several soarings. Doubts surrounding Bitcoin will not disappear in a short time, but people have been using Bitcoin as a safe-haven asset, recognizing its role to store value. However, Its role as exchanging value has not been evident yet.
About SimpleChain
SimpleChain is a PoW main chain with flexible sub-chains. Different sub-chains can adopt different kinds of consensus and block data structure as needed, to support a variety of applications and use cases on blockchain. Sub-chains also support sharding to improve performance. This double-layered structure of one main chain and multiple sub-chains can fuel various applications while ensuring the consistency of the network.
Built on Baoquan Chain, SimpleChain’s first sub-chain, Baoquan.com provides electronic data services including electronic evidence service, online evidence gathering service, and copyright protection platform. Based on the non-traceable and non-tamperable features of the blockchain, the advantages of Baoquan.com is that user data can be permanently stored on the blockchain, independent of corporations.
In June 2018, Hangzhou Internet Court of China judged a case of a dispute over information network communication rights. For the first time, the court confirmed the legal effect of the electronic data stored on Baoquan blockchain, and clarified review methods of electronic evidence on blockchain.
We have launched the mainnet beta version in January (see blockchain browser), and we will be launching mainnet official version 1.0 in Q3 this year. Also, our codes are open-sourced on Github.
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