The Most Fundamental Traits of Block Chain

We have discussed the two basic functions of the block chain. They are value expression and value transfer. We have discussed the digital assets, pass cards and pass cards economic systems. Let's take a look at the traits and uses of the block chain. Let's try to answer the question. What's the use of the block chain? The answer lies in the four basic traits of the block chain.

1. No Tampering

The most understood feature of the block chain is its tamper-proof feature.

The tamper-proof is based on the unique ledger of block + chain. Blocks with transactions are added to the end of the chain in chronological order. You want to modify the data in a block. You need to regenerate all the blocks after it.

Consensus mechanism makes the cost of modifying many blocks high. It is one of the important functions of it. This makes the modification impossible. Take the block chain network (such as Bitcoin and Ethereum) that uses workload proof as an example. Only with more than 51% computing power can all blocks be regenerated to tamper with data.

2. Express the Uniqueness Required by Value

Ethereum's tokens all demonstrate an important feature of the blockchain. It can express the uniqueness required by value. For example, the interchangeable token (ERC20). For example, the non-interchangeable token (ERC721), or other proposed token standards.

In the digital world, the most basic unit is the bit. The fundamental trait of bits is that they can be replicated. But value cannot be copied, value must be unique. As we have discussed before, this is where the conflict lies. In the digital world, it is difficult to make a document unique. At least it is difficult to do this widely. This is why we need centralized ledger books to record value.

3. Intelligent Contract

From bitcoin to Ethereum, the biggest change in the block chain is "smart contract". Bitcoin system is designed for a digital cash. Its UTXO and scripts can handle some complex transactions. But they have great limitations. Vitalik created the chain of Ethereum blocks. His core goals are all around intelligent contracts. For example, a Turing complete scripting language. For example, a virtual machine (EVM) running intelligent contracts. For example, a series of standardized intelligent contracts for different types of pass certificates developed later.

4. Decentralized and Self-Organization

The organization and operation of major block chain projects are related to this feature. Many people have ideal expectations for blockchain projects. They will become autonomous operating communities or ecosystems.

Anonymous Satoshi Nakamot completed bitcoin development and initial iterative development. Then he disappeared from the Internet. But the bitcoin system he created continues to operate. Bitcoin protocol is its issuing and trading mechanism. Bitcoin's distributed books, decentralized networks, bitcoin miners and bitcoin development all operate in a decentralized and self-organized way.