"Second generation money" really exist? And Bitcoin is competition or complementary
Author: @ Rampaging Prince Gong
Edit/Translation: Stan Larimer
Long time no write some text, most recently with the launch of BTSX, there are many of my friends started to discuss things about the meaning of the second generation of currency, we can also see a lot of friends on the second-generation full of coins and the community in the micro-Bo hostility that second-generation technology is not enough to replace currency generation currency or coins are considered second-generation digital currency within a community blood will lead to a decline Bitcoin prices. Indeed, there are more than a year into the digital currency industry friends, does not seem to understand the generation of second-generation currency and coins What is the difference, it was generally considered the second generation currency is misappropriating things, the basic tool is a liar. The reality of the situation is that no one really seriously discuss what is really the second generation currency, its currency and so-called generation what difference.
Personally feel that many of the problems we intense debate, the fact is that everyone is different definitions of things.The reason seems to be due to the currency on the second generation has a great understanding of the deviation. So today I want to talk about the "second generation currency" personal understanding. First, Bitcoin (BITCOIN, is capitalized) is a decentralized payment system, which can be seen in the title of this paper Cong "Bitcoin: A Peer-to-Peer Electronic Cash System (Bitcoin: A peer electronic cash system). " And every bitcoin (bitcoin, lowercase) is a unit of measurement of the system.
I think the core values of bitcoin system is "decentralized", it relies entirely on decentralized system architecture for self-operation and Development. And "to the center" is a very valuable concept, so many people think, if Bitcoin seen as a "decentralized" in the field of monetary payment, does it also can be applied to other fields. For example, decentralized exchange, to the center of the betting, decentralized microblogging. This is the so-called "second generation currency" comes from, so we can find the so-called "second generation currency" is a name for itself in question, he is actually an application, but does not have too much money and relationships. Currency is currently the second-generation kind of argument, does not seem to find a similar abroad say more is called DAC (to the center of the autonomous system), I think this is probably more in line with the actual situation.
" second-generation currency (DAC) "essentially more similar to a particular application, a kind of" decentralized "as a symbol of the system, it may in the future is that Taobao, microblogging, micro-letters, like the taxi system You can be understood as a software system or a company. That's why they take more POS (Proof of Stake) Equity proven way, because the so-called equity POS allocation is the reality of the stock. The original founder of the majority stake will definitely be left to the relevant stakeholders and systems, these stakeholders are willing to devote more resources to make the system better growth. This is the current practice in many real-world companies, has also been recognized by most people. Thus, we can find POS and POW is not a mutually exclusive relationship. Playing a not entirely appropriate metaphor, in the world, manufacturing and distribution processes and currency listed shares distributed process has a very big difference between the two, so the POS and POW but in different application environments, selected according to the actual situation two distributions, and there is no competition, even far from the question of who will eventually replace anyone. Currently most of the main starting point of contention is the "second generation currency" as a kind of currency to look at, but the reality on the contrary, if you can it be seen as a stock company, the POS becomes a logical outcome .
Based on this knowledge base if you can, you will find a lot of controversy is in fact unnecessary. The so-called "second generation currency" and simply not enough to compete with bitcoin. Instead, these "second generation currency (DAC, go to the center of the autonomous system)" to build a complete digital money ecosystem. Bitcoin is currently the biggest problem is actually the problem is the application, in addition to the usefulness of cross-border payments, currently applied in other places may still small, and the "second generation currency (DAC)" is inherently Bitcoin application scenarios, if there is to the center of the systems, which are inherently digital currency can be combined.
Light so that it would appear to be more abstract, let's take a concrete example.
We can envisage the establishment of a DAC (second generation currency) of microblogging, microblogging system there is no centralized server, but to provide a client (network client software may also include APP). The DAC will provide Weibo and Sina Weibo microblogging functionality similar to that everyone can publish free microblogging system, the system every 10 minutes will be the latest microblogging packaged and tweets after finishing into block chain ( Blockchain) a new block, and the new block which is transmitted to each node. The new participants to contribute their computer systems and hard disk as one of the nodes, the system will provide the operator in return for power and hard disk nodes microblogging currency (referred to as WBB, WBB began sending 100 per hour, after annual halved), each will own a microblogging currency BTC address. The system functions in addition to providing release micro-Bo will provide some special charging function, such as Weibo microblogging can be top or broadcast a range of users in each time you use a function, you need to pay 0.0001BTC. It also provides advertising interfaces need to publish advertisements in microblogging advertisers need to pay certain advertising costs to the system (via the built-in BTC address), and then click or browse according to the number, the system will automatically deduct the BTC. The BTC system every 24 hours, will be charged to the total current WBB has been issued, and sent to the holders of WBB's personal account.
Thus, we constructed a simple microblogging DAC, the DAC in this, beginning perhaps not too much participation is likely to communicate in a small area, but if the team has a strong confidence in the DAC, the After the initial release can themselves become a node, then continuous optimization and promotion, as long as the micro-Bo began to have a certain income, people would join the system becomes a node to get rewarded by obtaining WBB. Even better, since each WBB itself has the ability to be able to get bitcoins, the market will have a valuation of WBB itself, and each WBB will be freely tradable. With WBB valuations increasing, more and more people to contribute their forces and the hard count, the user experience will be better and better, will encourage more people to use microblogging. Thereby forming a virtuous circle.
From one perspective, this is the shares of WBB system, and the entire DAC is completely open source microblogging system, but it is also completely decentralized, which means that the microblogging DAC is more difficult to be attacked and regulatory location.
Like the previous example, we can build a similar Taobao e-commerce DAC. The same also allow buyers and sellers to trade, of course, the beginning of this DAC may be suitable to accept bitcoin born as the only currency. Then the system will be charged a 1% fee from the transaction, and also to the system according to the proportion paid to provide computing power and data storage nodes. Similarly, he can also provide grant money as a contribution of some kind of digital identification, but this figure may be closer to the company's shares in the currency.
Obviously, this DAC is in accordance with the globalization, to the center of the development. The entire system is also able to build a virtuous cycle and have a contribution for each participant's own ability to continue driving force.
Non-DAC, if let you participate in such projects as Taobao is very difficult, and DAC, each of us can participate at any time and at any time according to their ability to choose to put resources and effort. We can be found through the DAC, a lot of people who had no intersection can hold the same purpose to collaborate. Between them may never know, but it can pay for the same work DAC and DAC accompanied by a corresponding growth harvest feedback. This in no DAC era is unimaginable.
Through the above two examples, we will find that these so-called "second generation currency (DAC)" and Bitcoin is absolutely not competitive state, but entirely complementary. Digital currency can be completely seamless access DAC system, so the preferred payment DAC is necessarily digital currency. DAC can become great digital currency scenarios, have appeared in various types of DAC will greatly expand the use of digital currency. This constitutes a closed loop, forming a complete ecological system, and perhaps this is the real next generation of the Internet environment, a great environment to achieve but to the center of self-development, and this trend is in line with the Internet itself, democracy, freedom and equality of these qualities.
DAC (II coins?), You need to bring to the center thanks to technology and intellectual revolution, to the center of the system makes the possibility of obtaining a great success in the future become so real. To the center will not only thinking for digital currency, which is to establish a method for almost all types of non-erosion commercial relations. Like internet technology is by no means merely a document that can be used to search, but there are infinite possible business model.This new way of using different brought, like choosing a plane or a sphere as a model to plan your route as global navigation. When we learn from past experience that the company is driven by the market how it works in the real world, the variety of inspiration will be generated.
So when we call "second generation currency" when it seems to have potential as a so-called "generation currency" upgrade version, and seems to constitute the relationship between competition and replace. This is a lot of money just to understand the digital ecosystem friend will have a lot of trouble understanding.
Finally, I hope everyone in the future be able to "DAC" or "(to the center) autonomous system" to refer to the so-called "second generation currency."
Chinese version article: https://bitsharestalk.org/index.php?topic=6651.0