Industrial blockchain: the future is here

This article hopes to analyze the blockchain (starting from BTC) in the context of the current world situation of “great changes unseen in a century” and at the time of the major changes in the industrial upgrading of the “third industrial revolution to the fourth industrial revolution” The seemingly chaotic colorful changes, discovering laws from chaos, establishing order from disorder, trying to present facts and rigorous arguments, present a clear evolution path (trend) for readers:

The first is to move towards encrypted digital currency, token and token economy from the perspective of currency;

The second is to integrate with the industry based on the technical characteristics of the blockchain depository database and move towards the industrial blockchain;

The third is when the two converge , using tokens as a link and incentive mechanism to integrate emerging technologies such as big data, Internet of Things, artificial intelligence, and 5G to achieve industrial upgrading and accelerate the arrival of the digital economy era.

At the same time, clarify the status quo for readers: the current blockchain has gone out of the initial impetuous and chaotic, completed technical evaluation, proof of concept, and preliminary infrastructure construction, and is accelerating its integration with the industry, opening up a new world of industrial blockchain.

So we are calling out: The future of industrial blockchain is here. I hope that every reader will stand on the cusp of the times when clarifying the trend and the status quo, find their own position, dance with the wind, and follow the trend.

—–The full text is about 14,000 words, it is recommended to read after collection—-


1 Great changes unseen in a century

1.1 Start a new era

1.2 Interpretation of connotation

2 The development of science and technology promotes great changes in the industrial revolution

3 Back to the basic point: where the story begins

3.1 BTC Creation

     3.1.1 Three-layer definition of technology stack

     3.1.2 Traditional currencies and Bitcoin

3.2 The “coin circle” triggered by BTC

3.3 “Chain circle” triggered by BTC

3.4 Thinking triggered by BTC

           3.4.1 Huge consensus divergence

           3.4.2 Existence is reasonable

           3.4.3 New positioning

           3.4.4 From human consensus to machine consensus

4 Deduction from the basic point

4.1 Organizational form: from circle to community

4.2 Cryptocurrency: From Tokens, Tokens to Token Economy

4.3 Technical Application: From the Depository Database to the Industrial Blockchain

5 The Road to Formation of Industrial Blockchain

5.1 Breakthrough of the public chain

    5.1.1 Starting from BTC: Programmable Currency

    5.1.2 ETH Relay: Smart Contract

    5.1.3 Polkadot came into being: the expansion of the chain

5.2 Applications and assets “out of the circle”

5.3 Blockchain industrialization

    5.3.1 Distribution of Blockchain Industry Structure

    5.3.2 Polkadot ecology is showing large-scale

5.4 Data becomes a new factor of production

5.5 Industrial Blockchainization: The Road to Formation

6 Catalyst: The logic of industrial evolution contained in the bull market

7 The clarion call of the industrial blockchain


Big changes unseen in a century

Start a new era

At this critical moment, history kicked off and opened a new era.

On December 28, 2017, General Secretary Xi Jinping pointed out in his speech when receiving diplomatic envoys abroad: “Looking at the world, we are facing a major change unseen in a century.” This is the first time that the central government has clearly stated “a major change unseen in a century.” “. 【1】

At the Central Foreign Affairs Work Conference held from June 22 to 23, 2018, General Secretary Xi Jinping further pointed out: “At present, my country is in the best period of development since modern times, and the world is undergoing major changes unseen in a century. The two are simultaneously intertwined. , Mutual excitement.”

The Fifth Plenary Session of the 19th Central Committee of the Communist Party of China held in Beijing from October 26 to 29, 2020 deeply analyzed the profound and complex changes facing my country’s development environment and pointed out: “At present and in the future, my country’s development is still in a period of important strategic opportunities. However, both opportunities and challenges have new developments and changes. The world today is undergoing major changes unseen in a century. A new round of scientific and technological revolution and industrial transformation are developing in depth, and the balance of international power is profoundly adjusted.” 

General Secretary Xi’s speech highly summarized the characteristics of the times of today’s world situation and unified thinking and understanding. Against the background and guiding ideology of such “great changes unseen in a century”, a new era has kicked off, and it is destined to be an extraordinary journey.

Connotation interpretation

How to understand the “big change unseen in a century” and what kind of connotation it contains? Professor Jin Canrong, deputy dean of the School of International Relations, Renmin University of China, believes that there are 4 connotations [2]: 

Industrial blockchain: the future is here

Figure 1-1 The 4 connotations of “Major changes unseen in a century”

The first is the new pattern : the world pattern has gradually changed from being dominated by the West to being balanced between the East and the West. The main manifestation is that the West used to be advanced, but now it is aging; we used to lag behind, but now we are up; between the ups and downs, the world pattern has gradually changed from the West to a balance between the East and the West.

The second is a new model : the path of socialism with Chinese characteristics has broken the Western model’s dominance of the world. China’s modernization was initially successful, but the development model was different from the Western model, including the Anglo-American model, the German model, the Dutch model, and the Swedish model. It had its own characteristics.

The third is the new industrial revolution : it may fundamentally change the situation where the West was far ahead in productivity in the past. China failed to seize any opportunities in the first and second industrial revolutions. It seized the opportunities in the mobile Internet stage during the second half of the third industrial revolution, and achieved innovation and catch-up in mobile applications. If we seize the opportunity of the fourth industrial revolution, China will have the leading momentum and achieve overall surpassing.

The fourth is the new globalization : this will lead to the increasing interdependence of mankind. Globalization has given us many conveniences, but it also brings many problems: network management, super capital, disease transmission, etc. China actively participates in global governance and promotes the reform of the global governance system.

The interpretation of the four connotations gives a big picture. As a science and technology practitioner, while having a global view, we will focus on the great changes in the industrial revolution driven by technological development.

Technological development promotes great changes in the industrial revolution

The history of human development is also the change in productivity that promotes changes in production relations, and finally shows changes in life and economic forms. As the primary productive force, science and technology have greatly promoted the changes in several industrial revolutions.

Industrial blockchain: the future is here

Figure 2-1 Science and Technology Promotes Great Changes in the Industrial Revolution

The first industrial revolution : the age of steam. In the 1760s, represented by the invention of the steam engine, advanced productivity and production tools such as machines, automobiles, and trains appeared. In the capitalist production represented by the United Kingdom, large-scale machine production replaced the handicraft industry in the workshop and started the first industrial revolution in human history.

The second industrial revolution : the electrical age. In the second half of the 19th century, starting with the invention of electricity, represented by the United States, electrical inventions and industrial upgrades centered on electricity. The appearance of internal combustion engines, generators, electric lights, telephones, movies, airplanes, etc., started the second industrial revolution. .

The third industrial revolution : the information age. In 1946, marked by the invention of the computer by the United States, science and technology moved from the analog era to the digital era, and the world entered the third industrial revolution. We have gone through the era of stand-alone computers, the era of the Internet, and then to the era of mobile Internet. People’s lives and work have become digitized, informatized, mobile, and intelligent.

The fourth industrial revolution : the digital age. Now, the world is in a transition period from the third industrial revolution to the fourth industrial revolution, the fourth industrial revolution represented by big data, artificial intelligence, Internet of things, blockchain, 5G, quantum communication, etc. Will greatly change the way human lives and operations.

From the above analysis, we realize that science and technology are the core elements of the great changes in the industrial revolution , and the depth, breadth, intensity, and complexity of its impact on the social and economic forms are enough to cause every country to attach great importance to it. As a practitioner, it is also very necessary for us to study each key technology, discover its evolutionary laws, innovate applications, and explore the development path of technology-enabled industries.

Here, we mainly explore the industrial blockchain, trying to clarify the digital currency and the region from various perspectives such as the origin of the blockchain, technology, community, consensus, value system, model, data, token, assets, ecology, and industry. The development and changes of the block chain strive to show readers the current status and evolution path of the development of the block chain empowering industry.

Back to the basics: where the story begins

BTC Creation

To thoroughly understand the blockchain industry and grasp the essence of things from various chaotic appearances, you need to return to the place where Bitcoin (BTC) started, which is the basic point: the creation of BTC. From here, we discover laws from chaos, establish order from disorder, and explore its beginning, development and change.

The global financial crisis broke out in 2008. On October 31 of the same year, a person calling himself Satoshi Nakamoto sent a Bitcoin white paper “Bitcoin: A Peer-to-Peer Electronic Cash System” to members of the “cryptocurrency mail group” [3], stated his new vision for electronic cash-Bitcoin came out. On January 3, 2009, Satoshi Nakamoto calculated the Bitcoin genesis block on the computer, marking the official birth of “BTC” as an encrypted digital currency.

  • Three-tier definition of the technology stack

From the implementation principle of BTC, it is actually a technology stack [4], which contains three different meanings, as shown in Table 3-1:


Table 3-1: The technological stack level of the Bitcoin blockchain

The first layer : is the underlying technology, namely the blockchain, which is a decentralized, open and transparent transaction record ledger.

The second layer : is a protocol based on the underlying blockchain technology, which can describe how assets are transferred on the blockchain.

Layer 3 : The currency itself, that is, Bitcoin, which is usually expressed as BTC when it is exchanged in a transaction or exchange.

For all modern encrypted digital currencies, the three levels of blockchain, protocol and currency are a common structure. Usually each currency represents a currency and a protocol, and it can have its own independent blockchain or run on a Bitcoin-based blockchain. For example, the currency of Litecoin is based on the protocol of Litecoin, and the protocol of Litecoin is based on the blockchain of Litecoin. Based on this general structure, more than 6000 encrypted digital currencies have been produced so far.

It is very important to understand this three-layer protocol stack. This is a new perspective: Blockchain is a kind of underlying technology, and BTC is actually the first successful application of blockchain technology.

From this, we can define Bitcoin as follows: Bitcoin is a kind of electronic cash. It is an electronic currency and online payment system that uses encryption technology to realize the issuance and verification of payment validity by agreement, independent of the central bank. BTC aims to create a financial network that can fight deflation and can create and transfer currency without the intervention of any central authority.

  • Traditional currencies and Bitcoin

The traditional monetary theory believes that the essence of money is a commodity or a general equivalent. The original money is a thing with actual value , which is physical money. But with the establishment of trust, money began to evolve in the direction of credit money. Especially with the collapse of the gold standard, the sovereign currencies of almost all countries have become credit currencies.

Currency plays a central role in the market economy, and the relationship between credit and currency is closer. Yuval Harari said in “A Brief History of Mankind”: “Money is a system of mutual trust, and it is not a random system—money is the most common and effective in history. Mutual trust system.” So it can be said that the essence of money is credit.

The positioning of the “currency” attribute of BTC has been controversial. Because Bitcoin is completely decentralized, there is no credit endorsement of a sovereign country, no wealth corresponding, and it does not belong to any individual. This “three noes” feature has greatly impacted people’s perception of currency and also challenged a country’s Monetary sovereignty. Therefore, except for the pursuit of a very small number of geeks, whether it is a sovereign country, an authoritative economic organization, or the general public, all regard BTC as a “heterogeneous”.

The “coin circle” triggered by BTC

However, the violent fluctuations in the price of BTC have aroused the attention of all parties. Since the birth of BTC, the initial purchase of 2 pizzas from 10,000 BTC in 2010, the value of one Bitcoin was only 0.003 cents, the first price discovery was realized; by December 2013, the price increased by more than 390,000 times, reaching a maximum of $1,175. Soon there was a correction of more than 90%. In the follow-up development of BTC, short-term price fluctuations such as these have become commonplace compared to traditional financial transaction assets, as shown in the following figure:

Industrial blockchain: the future is here

Figure 3-1 The violent price fluctuations of BTC in three bull markets (TradingView)

The violent price fluctuations are the violent fluctuations of wealth, which strongly provokes people’s desires ; in addition, simply copying open source code can “print money” out of thin air. Everyone is a central bank, which immediately makes people with a keen sense of smell smell it. The taste of “wealth”.

People in the currency circle hardly care about the use of blockchain technology at the bottom of the three-layer protocol stack and how the two-layer protocol software runs. They only care about what “coins” are issued and how much they can earn. Even if technical principles are mentioned occasionally, it is just a better marketing method, which makes people feel unclear.

Especially under the blessing of the “one-click issuance” of the Ethereum smart contract, countless digital currencies have entered the room in the form of a project or a paper document (white paper). Suddenly, fish and dragons were mixed and swarmed out; and enthusiastic speculators swarmed in from various industries, classes, men and women, old and young. Everyone is searching for wealth opportunities here, for fear of missing good opportunities, promises projects, promises opportunities, promises investment, a moment of empathy between good and bad, and a flurry of demons, forming a wave after wave of “coin circle” climax.

“Chain circle” triggered by BTC

Different from the deductive logic of the currency circle, the “chain circle” focuses on the first layer of the three-layer protocol stack, which is blockchain technology. In the beginning, the “chain circle” was mostly composed of engineers who loved programming and were keen on “chain-making”.

Industrial blockchain: the future is here

Figure 3-2 Security system framework of financial distributed ledger technology [5]

As shown in Figure 3-2, they are inspired by the implementation principle of the underlying blockchain of BTC, and use the distributed database, encryption algorithm, smart contract, consensus protocol, P2P communication technology, etc. possessed by blockchain technology to improve, expand, and perform Technology and application innovation. Hope to “build rules with code”, “create value with technology”, and “create dreams through chain building”, such as EOS, NEO, ONT, Gongxinbao, TT, TRON, etc. As a result, a large number of cutting-edge capital has entered, and technology has engulfed capital, setting off a wave of entrepreneurship and innovation.

Thoughts triggered by BTC

It can be seen that when Bitcoin was born, it was a god on the one hand, admired by countless geeks, and became a loyal pump fan; on the other hand, it was a demon, blocked by a sovereign state, and disgusted by people who did not recognize it. On the one hand, it is water, which nourishes the “utopia” of believers, and makes many pioneers earn a lot of money, completely changing the class; on the other hand, it is fire, burning the desires of countless people, and it is completely degenerate because of greed, ignorance, and impulse. Imprisoned for BTC’s order.

Standing in the present, looking back at the past, thinking about why BTC caused such great confusion and disagreement?

  • Huge consensus divergence

From a monetary point of view, BTC is completely new. People have found that in human history, there is no such precedent, a “three no products”, a string of software codes can become “currency.” In the original experience system, there was no reference standard, and now the monetary value system in the economic system has failed.

Sovereign currencies are backed by the country’s credit and have real wealth. Therefore, the price of sovereign currencies is relatively stable and only fluctuates within a small range, which is reasonable. But when a financial crisis occurs in this country, the currency is severely issued, and the country’s credit is lost, the currency price will fluctuate sharply, extremely depreciate, and even become obsolete and abolished.

According to a report from Reference News Network on August 7, the Venezuelan government announced on the 5th that its currency, the Bolivar, will be revalued. This is the third revaluation of the Bolivar in this century. Its currency value will be removed by 6 zeros. And enable digital bolivar. According to the report, due to hyperinflation and currency devaluation, the Bolivar banknotes, which had their currency value removed by 5 zeros in 2018, have almost completely disappeared from the streets. This is the logic of the operation of the sovereign currency value system.

There is no national credit endorsement behind BTC, and there is no real wealth correspondence . People have lost the standard of reference, and the only thing they rely on is their own cognition. Some people think that if it is valuable, the price can be “one currency, one villa”, and even that it will promote the process of changing human financial activities and social economy; some people think that it is worthless, then it is a “shit”, which is regarded as a Ponzi scheme , Just like the “tulip bubble” of the year. This is the so-called consensus. The long-term violent fluctuation of BTC price fully reflects the huge divergence of people’s consensus.

  • Existence is reasonable

But existence is reasonable. This means that the appearance of a thing is not for no reason, there must be a reason behind it, and it must have a certain “mission” to solve a certain problem, which contains the inevitable law of the development of things. BTC appeared at the outbreak of the financial crisis, especially in the United States, where the Federal Reserve’s currency was used indiscriminately, people’s wealth was passively reduced, they were directly robbed, and the credit of national authority was lost. And for BTC as a new thing to be universally recognized, one can find a benchmarking system that can be used to make people feel familiar; or it has to reshape cognition from all levels of society, reach a new consensus, and form a new value system.

BTC should belong to the latter kind, and it has taken a counterattack from “rural (grass-roots)” to “urban (authoritative institution)” to the country (sovereign state). The violent fluctuations in the price of Bitcoin have triggered a wealth effect, aroused strong attention and prompted countless people to participate in it. This process is also a process in which people re-recognize BTC with the original “stigma”. In terms of institutions, as the market value of BTC continues to increase, some institutions have begun to enter the market.

According to News bitcoin on August 8, Tom Jessop, president of Fidelity Digital Assets, a US$10.4 trillion management company with 37 million individual investors, said that he is ready to bring encrypted digital assets into the mainstream market. As early as today, in February, Tesla bought 1.5 billion U.S. dollars in Bitcoin and said that it might accept Bitcoin as a payment for high-end trams. On the national side, El Salvador passed legislation in June this year, becoming the first country in the world to adopt Bitcoin as legal tender.

  • New positioning

With the gradual participation of sovereign states and financial authorities, BTC has received more and more attention, and a portrait has gradually become clear and strengthened.

Initially, BTC was a “point-to-point electronic cash system”, which was positioned as a currency and payment network system, but the price has been fluctuating violently, which is obviously not suitable for purchase and payment methods in daily economic activities.

However, after more than ten years of development, the encrypted digital currency represented by Bitcoin has evolved a huge ecology and various financial innovations, and has rapidly grown into a financial force that cannot be ignored. At the same time, BTC has developed in several bull markets. In the daily encrypted digital asset trading market, it is similar to the “big market” and has a kind of “anchor” effect; plus the total number of 21 million, it is scarce; it needs to consume electricity. “Mining” is similar to gold. Therefore, people began to refer to BTC as a “digital gold”, which is superior to gold. It can store and transfer value conveniently and efficiently. It can be positioned as an “encrypted digital asset”. “.

As an encrypted digital asset, BTC has been recognized by institutions, and has begun to be used as an asset allocation, becoming an important part of the left side of the balance sheet. Since then, the positioning of BTC has gradually changed from an “encrypted digital currency” to an “encrypted digital asset”.

With the continuous innovation of technology and financial applications, we will wait and see where BTC will go and what changes will be made.

  • From human consensus to machine consensus

In a centralized system structure, the consensus of the system is determined by the center, and each participant only needs to obey the center. Therefore, the establishment of consensus is extremely efficient. In a decentralized structural system, since all parties in the system have equal status, how to reach a consensus becomes a problem when there are differences. 【6】

The generation process of BTC is simply a process in which a decentralized distributed ledger is cross-validated and reached a consensus for accounting. Here we are not discussing how consensus is formed, but rather emphasize the way in which consensus is formed-the computer runs a set of software algorithms, “Through calculations, we can find the correct solution in an astronomical random number (2 to the hundredth power). “[7], that is, the right to bookkeeping is obtained, and this bitcoin is dug up. This way of consensus formation is a major change in human consensus, that is, the formation of consensus is developing into a machine consensus in a way that can be achieved by scientific and technological means. This is also the meaning of the “algorithm is the rule” and “code is the law” often said in the blockchain industry. In the following chapters, we will focus on the “blockchain consensus mechanism and changes in consensus formation methods”.

Deduction from the basic point

Organizational form: from circle to community

The development process of human society is also a process of changes in the way of cooperation between people and the continuous change of organizational forms.

From the tribes in primitive society to the villages in the farming era, they are all organized forms that rely on blood and geographical connections. This is a production relationship determined by the backward production tools and productivity at that time. Effective, the original way of collaboration.

Beginning with the establishment of the British East India Company in 1600, it meant the emergence of a corporate system, which united individuals with rules, and greatly improved production efficiency through division of labor. After hundreds of years of evolution, this centralized and efficient organizational form has spread all over the world, greatly improving the efficiency of people’s production and collaboration, and accelerating the creation of social wealth.

However, this highly centralized organizational form has also aggravated the concentration of resources and wealth, formed a monopoly, widened the gap between the rich and the poor, and created social instability, and even the phenomenon of vested interest groups hindering the innovation of new forces and hindering social development Change and progress. For example, Internet giants such as Google, Facebook, Baidu, Alibaba, and Tencent have absolute advantages in data resources in the fields of search, social networking, and e-commerce. Get huge profits. But on the other hand, you can also use the data generated by the user to do evil to the user, such as data leakage, advertising bombing, and so on. In addition, as an Internet start-up company, if it depends on a certain platform to obtain data resources and traffic, it is often restricted by this platform, and even “harmonious” or blocked by the platform in the early discontinuity.

The emergence of BTC and blockchain technology seems to be changing this status quo. The decentralized nature of the blockchain has changed the way people collaborate, and a new form of social organization is taking shape.

As mentioned above, the emergence of BTC has formed two connected but different circles, the “coin circle” and the “chain circle”. The so-called circle is characterized by loose, temporary, extensive, casual, weak thematic, and Tetra Pak-oriented gathering groups. For example, a WeChat group established for a certain blockchain project, although it has themes and the role of the group leader, it is generally unconstrained and loosely organized. Such an organizational form will play a certain role in the new project and the search for target customers.

Compared with various circles, the community is a more rigorous form of organization. The so-called community here does not refer to living groups and organizations formed in neighboring geographical areas in real life. The organizational form of the community is also different from the pyramidal governance structure of shareholders and employees in the company. In the community, a group of stakeholders, with consensus as the link, for the common goal, through an economic game incentive mechanism, through the division of labor and collaboration, make their own contributions, and obtain corresponding benefits, so as to achieve consensus, sharing, co-construction, and co-construction. win. Therefore, the community is a close, long-term, thematic, organized, division of labor and collaboration, governance, interest-related, value-oriented, and an organizational form formed through consensus cohesion, which is a more efficient Production collaboration method. For example, in the Polkadot community, there are developers, collectors, validators, phishers, governance committees, investors and other roles. They act according to their respective roles, take their own responsibilities, make contributions, receive rewards, and jointly promote Polkadot’s development. OK.

Cryptocurrency: From Tokens, Tokens to Token Economy

Before the advent of BTC, cryptocurrencies already existed. Encrypted currency is a digital currency that uses cryptography to encrypt to ensure the security of transactions and circulation. Encryption currency is a type of digital currency (Digital Currency). The European Banking Authority defines digital currency as: a digital representation of value, which is not issued by the central bank or the authorities, nor is it linked to legal currency, but because it is accepted by the public, it can be used as a means of payment, and it can also be transferred, stored or traded in electronic form. . [8] So BTC belongs to encrypted digital currency.

BTC is the first decentralized encrypted digital currency realized by blockchain distributed ledger technology. This is an important milestone in the field of cryptocurrency. From this as a starting point, referring to the ideas and design principles of BTC, a large number of blockchain projects and their digital currencies, such as LTC, ETH, Doge, XRP, etc., have emerged. At the same time, a large number of air coins that have no application scenarios and no application value have emerged. All these “coins” were originally called “Tokens” and translated as “Tokens”.

As a token, the emphasis is on the attributes of digital currency that are affiliated with blockchain projects. However, with the enrichment of the connotation of digital currency, the term “token” cannot fully summarize the attributes of Token. In 2017, Ms. Meng Yan translated Token into “pass” for the first time, meaning “a circulated encrypted digital equity certificate”, which has the attributes of equity certification, circulation, and economic value. The translation of “token” has been widely recognized in China.

Therefore, the token not only has the attributes of encrypted digital currency, but also has the attributes of “equity certificate”. The extension of this connotation enables “tokens” to be associated with assets, commodities, services, etc. in economic activities, and become a corresponding digital carrier, so as to realize the digitalization, transaction, circulation and value transfer of assets.

With the enrichment and wide application of the connotation of the token, a new set of economic forms-the token economy has been constructed around the concept of “token”. Token economy will become a bridge between the real economy and the emerging virtual economy.

Since then, the blockchain has started from BTC, from the perspective of “currency”, has experienced the process of cryptocurrency, digital currency, tokens and certificates, and deduced a set of “token economy” system. We expect that “blockchain + token economy + real economy” will inject new growth momentum into social and economic activities. Regarding the “token economy and how to empower the industry and promote social and economic development”, we will focus on the introduction in the subsequent chapters.

Technical application: from deposit certificate database to industrial blockchain

As a technical means to realize BTC, blockchain has received continuous attention, mining and evolution due to BTC. In July 2020, the central bank issued the “Blockchain Technology Financial Application Evaluation Rules” [9], which defines the blockchain: Blockchain, as a kind of joint maintenance by multiple parties, uses cryptography to ensure transmission And access security, can achieve a consistent data storage, anti-tampering, non-repudiation technical system. The central bank’s definition of blockchain emphasizes that the essence of blockchain technology is a decentralized depository database.

It can be seen from this that the Chinese government’s choice of blockchain is the industrial blockchain, and the focus is on the integration of blockchain and the physical industry to promote industrial upgrading and transformation. Using blockchain’s distributed storage, multi-party consensus bookkeeping, block chain structure, smart contracts and other technical features and performance features such as loss prevention, tamper resistance, easy traceability, and automatic rules, it can be used in judicial, government, public welfare, finance, In areas such as entities, it has carried out applications such as certificate deposit optimization, process simplification, credibility enhancement, process reengineering, credit transmission, and commodity traceability to reduce costs and increase efficiency, and improve production and service efficiency.

On this basis, with the in-depth integration of blockchain and industry, blockchain will become the infrastructure of the industry, laying the foundation for the upgrade of the digital economy ; combining artificial intelligence, Internet of Things, big data, 5G and other high-tech technologies to promote Realize the upgrade of the digital economy. Regarding the content of “Blockchain combined with new infrastructure technology to promote digital economy upgrade”, we will focus on the following chapters.

The road to industrial blockchain shaping

  • Starting with BTC: programmable currency

The emergence of BTC has two major historical contributions. One is the first decentralized distributed ledger , namely blockchain technology; the second is the innovation in the currency field , the first programmable currency, namely BTC. From the perspective of the three-layer protocol stack implementation principle, BTC clearly positions itself as a kind of electronic cash, a kind of encrypted digital currency. Because of this “currency” positioning, BTC deliberately limits the built-in scripting language, and can only write simple contracts to realize functions such as secured transactions, joint accounts, and delayed payments. Even so, this scripted contract makes BTC the first programmable currency in history.

Regardless of whether BTC is the originator of “coin” or “chain”, it has a radiant brilliance. It has not only established a strong community consensus, but also gathered countless volunteers to develop, maintain and expand this network. However, due to special positioning settings and as an initial public chain technology, there are many bottlenecks, such as: small block capacity, slow processing speed, simple smart contracts, and single digital assets, which are difficult to expand. Such performance characteristics cannot satisfy widespread use and application innovation.

  • ETH Relay: Smart Contract

At the end of 2013, Ethereum founder Vitalik Buterin released the first version of the Ethereum white paper “Ethereum: Next Generation Smart Contract and Decentralized Application Platform” [10]. Ethereum is an open source, global decentralized computer infrastructure designed as a general programmable blockchain. Its virtual machine can execute arbitrary and infinitely complex codes, and can execute smart contract programs.

Ethereum has realized the expansion of smart contracts and opened the way for general-purpose blockchains to be used to build multiple applications. Its vision is to become a programming platform for decentralized applications (DApp). 【11】

With a powerful smart contract system and DApp programming platform, the blockchain has entered the 2.0 era and has begun to break away from innovation in the currency field and move to other commercial fields involving contract functions.

After 3 years of precipitation, during 2016-2019, the technology and applications based on the ETH public chain have experienced explosive growth. Mainly manifested as a single encrypted digital asset in the BTC era, to the blooming of digital assets (ICO) and applications (DApp), covering all aspects of the blockchain, such as exchanges, wallets, browsers, oracles, and infrastructure And so on, a number of star projects and application innovations have emerged, such as Filecoin, Polkadot, DeFi, NFT, Cosmos, etc., detonating the entire market.

With the explosion of various services, all applications are competing for the computing resources and processing power of ETH. The scalability and scalability of the network have become serious bottlenecks. On the one hand , it causes problems such as slow processing speed, congestion, and extremely expensive costs; on the other hand, , With the application of DeFi and NFT and the innovation of asset products, new demands such as asset on-chain and asset cross-chain have become imminent. However, the existing public chain networks, whether BTC, ETH, EOS, TRON, etc., cannot meet the requirements. .

In order to cope with this situation, ETH has been upgrading and reforming, and also proposed a solution of ETH2.0. In addition, the industry provides many solutions, such as side chains, LAYER2, sharding, cross-chains, etc. Among them, Polkadot has emerged as a new force among many solutions. It has outstanding performance in terms of technical architecture and ecological construction. Be concerned.

  • Polkadot came into being: the expansion of the chain

In October 2016, Gavin Wood released the white paper “Polkadot (Polkadot): Imagine a heterogeneous multi-chain architecture”, and Polkadot came into being. [12] As stated in the Polkadot white paper, the existing blockchain architecture has many problems with extensibilty and scalability. Validity is too tightly bound.

In order to separate the two, and to maintain the minimum absolute security (security) and transport (transport) and other basic functions, so as to propose a native support for core extensibilty (core extensibilty) feasible method.

Polkadot’s core idea of ​​constructing a network is heterogeneous sharding, that is, linking multiple chains to build a multivariate heterogeneous network. This network is mainly composed of three parts: relay chain, parallel chain, and transit bridge. The basic principle is shown in Figure 5-1:

Industrial blockchain: the future is here

Figure 5-1 Schematic diagram of Polkadot architecture

The relay chain is the core of Polkadot , also known as the main network, responsible for network security, consensus, and cross-chain interoperability. Its native digital asset is DOT. Parachain is a sovereign blockchain that can have its own tokens and optimize its functions for specific scenarios. In order to connect to the relay chain, the parachain can pay on demand or rent a card slot for continuous connection. A transit bridge is a special blockchain that allows Polkadot to connect and communicate with external networks such as Ethereum and Bitcoin in shards.

Polkadot’s architecture design separates consistency and effectiveness, solves many problems of scalability and scalability, so that it can perfectly realize arbitrary expansion at the chain level, and also makes Polkadot the infrastructure of the next-generation blockchain network. Becomes feasible. At the same time, in the Polkadot network, cross-chain and 10,000-chain interconnection of data and assets can be efficiently realized, thereby forming a blockchain Internet. The Polkadot community proposed to build Polkadot and jointly build WEB3.0 to realize the progress of the Internet of Information to the Internet of Value. All this will also lay the foundation for the landing and development of the industrial blockchain.

Applications and assets “out of the circle”

During this period, the development of the blockchain has shown a major change-“out of the circle” has first appeared. This change will become a turning point and opportunity for the ecological development of the blockchain.

On the one hand, with the DeFi of now, mortgage lending on the chain of financial transactions, derivatives and other financial services extend integration a reality, forming a “chain + Chain” complete financial closed-loop business; on the other hand, as the NFT With the emergence, the category of encrypted asset products has been greatly enriched, and is no longer limited to the original assets of the blockchain. It has begun to correspond to physical, financial, and virtual assets in real life and real economic activities, such as sports stars, artworks, and game equipment. Wait. This type of NFT asset attribute change provides a feasible solution for the digitalization and chaining of assets in the physical world.

Since then, the blockchain has started to explore the “pragmatic” path from the initial “inner circle”, “involution” to “out of the circle”, trying to connect with reality and docking with the industry. Regarding the content of “blockchain applications and digital assets to achieve closed loops on the chain and off the chain, and inside and outside the circle”, we will focus on the following chapters.

  • Distribution of Blockchain Industry Structure

With the continuous progress and improvement of blockchain technology and applications, the internal ecological links of the blockchain are available, tending to scale , showing the industrialization of the blockchain ecology, which is the integration of the blockchain and the industry and serving the industry Foundation.

The emergence of BTC has realized currency innovation and given a reference block chain technology paradigm; ETH’s smart contract and decentralized application platform have accelerated application innovation and ecological project maturity, especially Defi and NFT categories The project is showing explosive growth; while the Polkadot mainnet is online, and the first online KSM slot auction is accelerating the ecological maturity.

According to the statistics of CCID Blockchain Research Institute, at present, the upper, middle and lower ecological levels of my country’s blockchain are gradually clear, and the ecological distribution structure is relatively focused. The upstream accounted for 27.66%, mainly including the hardware infrastructure and the underlying technology platform layer, which includes hardware companies such as mining machines and chips, as well as companies such as basic protocols and underlying platforms. Midstream accounted for 35.11%, focusing on general blockchain applications and technology expansion platforms, including smart contracts, fast computing, information security, data services, distributed storage and other companies; downstream accounting for 37.23%, focusing on serving end users, Provide various industry applications for finance, supply chain management, medical, energy and other industries. As shown in Figure 5-2:

Industrial blockchain: the future is here

Figure 5-2: Distribution of blockchain industry structure

  • Polkadot ecology presents large-scale

Since the Polkadot mainnet went live on May 26, 2020, it has made good progress in terms of underlying technologies, tools, chains, integration, ecological projects, etc., and has attracted the attention of the industry.

In terms of infrastructure, according to PolkaWorld statistics, in 2020, the Polkadot mainnet will add 68778 lines of code; the blockchain framework Substrate used to build Polkadot has added 130,226 lines of code; and 18 chain runtime upgrades have been implemented. More than 100 chains are ready to be connected to Polkadot, and more than 60 testnets are online; more than 30 products and tools are online, and more than 60 are in development.

In terms of ecological projects, according to PolkaProject statistics, as of July 2021, Polkadot currently has about 481 ecological projects, of which 170 are Substratebased, 47 are Tools, 7 are Polkadotmpl, 40 are wallets, and 37 are infrastructure. , 55 development categories, 31 Validator categories, 15 browsers, 24 Forum categories, 19 Workshop categories, and 36 DApp categories. Ecological projects cover almost every link in the upper, middle and lower reaches. As shown in Figure 5-3:

Industrial blockchain: the future is here

Figure 5-3 Distribution of Polkadot Ecological Projects

In addition, the Polkadot Web3.0 Foundation, through funding high-quality projects to achieve resource management and utilization, since its inception in December 2018, 302 teams have been funded. These teams are studying various decentralized use cases, including digital identity and privacy, Internet of Things, gaming, data storage and finance, etc., to jointly build Web3.0.

The complete list of accepted applications can be viewed here (requires scientific Internet access):

Data becomes a new factor of production

From October 28th to 30th, 2019, the Fourth Plenary Meeting of the 19th Central Committee of the Communist Party of China was held in Beijing. “Decisions on Several Major Issues of Capacity Modernization” (referred to as “Decisions”) [13]. The “Decision” mentioned: “Improve the mechanism in which production factors such as labor, capital, land, knowledge, technology, management, and data are contributed by market evaluation, and remuneration is determined based on contribution.”

Before the Fourth Plenary Session of the 19th Central Committee of the Communist Party of China, China’s officially recognized production factors included six items: land, labor, capital, knowledge, technology, and management. At the Fourth Plenary Session of the 19th Central Committee, “data” was added as a factor of production for the first time. There is no doubt that China’s judgment of data as a new production factor will have an important impact on future economic and social life.

For data to become a factor of production, it needs to solve the problems of data right confirmation, privacy, security, credibility, and pricing, and the technical characteristics of the blockchain such as anti-tampering, anti-lost, usability and invisible, value transfer, etc., can become data production factors An ideal support platform for globalization. For example, the use of blockchain technology to confirm the rights of data creation, processing, and dissemination, so that contributors can enjoy the ownership, income and operation rights of data, and form new production relations; change the traditional world data aggregation platform to become the only benefit of big data The status quo of “data hegemony” makes data contributors the beneficiaries of data.

Only when rights are confirmed can data circulation and transactions become feasible, and data as a core element resource will be transformed from social resources into quantifiable digital assets ; subsequent financial innovation will evolve into productive digital capital. Release its intrinsic value.

Once data production is factorized and data is capitalized, the migration of physical world assets on the chain becomes feasible: on the one hand, the combination of data and oracles can connect on-chain and off-chain data to form a complete business closed loop. The second is that smart contracts become data-driven software, which can automate and intelligentize business processes. We will focus on the content related to “Oracle and Smart Contract” in the following chapters.

In short, as a new driving factor, data will accelerate the integration of blockchain and industry and accelerate the development of the digital economy. The continuous evolution process from primitive digital resources, to digital assets, and then to digital capital is the core goal of the development of the digital economy, and it will also provide a powerful source of capital for China’s future economic growth. This is the real supply-side reform [14 ].

Industrial Blockchainization: The Road to Formation

In summary, the evolution and breakthrough of basic blockchain technology, applications, and encrypted digital assets are also the road to the formation of industrial blockchain. Summarized in five aspects:

  1. Since the emergence of BTC, the “coin circle” and “chain circle” have been deduced, one leading to digital currency and token economy, one positioning certificate database leading to the industrial blockchain; when the two converge, many emerging technologies are integrated Under circumstances, the industry is upgraded to the era of digital economy.
  2. As the basis for the construction of various applications, public chain technology has developed from BTC and ETH to Polkadot, smart contracts, decentralized application platforms, scalable network architecture, cross-chain and many other issues have been well resolved. Network security and privacy , Efficiency, cost and other performance will be greatly improved, the ecosystem will gradually take shape, and finally realize the interconnection of tens of thousands of chains, laying the foundation for the industrial blockchain.
  3.  In terms of application, Defi has opened up on-chain and off-chain, forming a closed loop with real financial services; in terms of assets, in addition to native digital assets, the types of non-native encrypted digital assets are rapidly increasing (such as NFT), and are connected with real assets. This is the core basic element for the migration of assets from the physical world to the network world.
  4.  Within the blockchain ecology, the upper, middle, and downstream levels are gradually becoming clearer and showing large-scale development. From the upstream hardware infrastructure and the underlying technology platform layer, the midstream general application and technology expansion platform, and the downstream vertical industry applications, it lays the foundation for the industrial blockchain.
  5. Data production factorization and data assetization are the foundation of the industrial blockchain; and the data-driven economic form will greatly accelerate the development of the industrial blockchain, and will eventually be upgraded to the era of the Internet of Value and the era of digital economy.

Catalyst: Industry Speech Logic Contained in the Bull Market

Industrial blockchain: the future is here

Figure 6-1: The two-line logic contained in the three digital asset bull markets [15]

Figure 6-1 is from teacher Meng Yan, who proposed the “two-line logic in the bull market”. According to his analysis: BTC has experienced three digital asset bull markets since its birth. The first time was from May 2013 to December 2013, the protagonists of the bull market were BTC and LTC; the second time was from January 2017 to January 2018, the protagonists were BTC and ETH (ICO); the third time From March 2020, the protagonists are BTC and DeFi.

We found that every bull market is not independent complete BTC into, has a “general” as a partner. In the blockchain world, BTC is equivalent to the cornerstone. It is useful because it is useless. It is a highly abstract value symbol. It is equivalent to digital gold and is useless. To set off a bull market, there must be some kind of innovation to expand and enlarge people’s imagination, such as new digital asset innovation (such as: LTC), technological innovation (such as: ETH), or application innovation (such as: DeFi, NFT) ) Wait, this is useful. This is the two-line logic contained in the three bull markets.

Following the bull market double-line logic of usefulness + uselessness, we have reason to infer that BTC, as the cornerstone of the blockchain, continues to play the role of value anchoring and value return in the world of digital assets ; and “useful use” Only innovation and development will promote social and economic progress and bring greater development space and wealth opportunities. In other words, the integration of blockchain into real life, into the financial system, into the real economy, and into the virtual economy will be the inevitable direction. This is the industrial blockchain.

In summary, from the birth of BTC, the blockchain has gone out of a path of price discovery, price speculation, value discovery, application innovation, and then to the empowering industry. It also has an evolution path in technology, infrastructure, data elements, asset categories, and users. Pave the way for cognition and other levels to help the industrial blockchain to welcome the next wave of “industry” bull market.

Industrial blockchain blows the horn

On October 24, 2019, the Political Bureau of the CPC Central Committee conducted the 18th collective study on the current status and trends of blockchain technology. When presiding over the study, Xi Jinping, the general secretary of the CPC Central Committee, emphasized that the integrated application of blockchain technology plays an important role in new technological innovation and industrial transformation. We must take the blockchain as an important breakthrough for independent innovation of core technologies, clarify the main direction, increase investment, focus on a number of key core technologies, and accelerate the development of blockchain technology and industrial innovation. 【16】

On April 20, 2020, at the regular meeting of the National Development and Reform Commission, the scope of new infrastructure was delineated for the first time, mainly including information infrastructure, integrated infrastructure, and innovation infrastructure . Blockchain is incorporated into the information infrastructure of the new infrastructure. 【17】

On May 27, 2021, the Ministry of Industry and Information Technology and the Office of the Central Cyber ​​Security and Informatization Commission jointly issued the “Guiding Opinions on Accelerating the Promotion of Blockchain Technology Application and Industrial Development”, proposing specific details by 2025 and 2030. development Goals. 【18】

A series of policies and guidelines have been introduced, so that the blockchain has moved to the center of the stage. From the perspective of the development stage of the industrial blockchain itself, technology evaluation, proof of concept, and preliminary infrastructure construction have been completed, and now it is the time for technology expansion and application to land. Next, under the resonance of policies, capital and industry, a more exciting road to revitalization of industrial transformation and digital upgrading will be demonstrated.

In the context of such a “big change unseen in a century”, in the wave of the fourth industrial revolution, we backed by the country’s policy dividends and stood from the perspective of the industrial blockchain. The series of evolutions and changes that BTC began to clarify the current status of the industrial blockchain ready to go. At the same time, it hopes to trigger a series of explorations and reflections from various levels such as currency, token, technology, application, ecology, and industry, and establish a preliminary for readers. At the same time as the overall picture and cognitive framework of the company, we also hope that more people in the same group will start with us to find answers and explore the road of “blockchain empowering industry development”.

Written at the end of the article

Many of the points mentioned in the article have not been expanded in detail, and we will specifically state them in subsequent chapters. Next, we will think about some questions: Why is the blockchain (BTC) so powerful, not only changing people’s thinking, but also promoting social and economic activities for this change? What is the logic at the bottom of this power? What kind of trajectory will it present? In what way is the WEB3.0 ecology under the effect of the blockchain as the underlying technology rising rapidly, and how will it change the way of thinking of human collaborative production? How can we make good use of it so that it can better serve our life, work, industry, and social and economic development?

I hope you will join us to start a journey of exploration and discover the wonderful things constantly!

This is the outlet of the times, the future has come, and we are full of expectations.

Remarks: The content of the full text only represents the views of the author of this number. If there is any deviation, thank you for your correction. The citations involved in the article are listed in the references. If there is any omission, please contact this number, and we will adjust and modify it in time.


[1] Chinese Communist Party News

[2] China Youth Daily, “Jin Canrong: Facing “Great Changes Unseen in a Century”, China has 4 major advantages”

[3] Satoshi Nakamoto “Bitcoin White Paper: A Peer-to-Peer Electronic Cash System”

[4] Melanie Swann (United States), “Blockchain New Economy Blueprint and Guide”, first edition, January 2016

[5] The People’s Bank of China “Financial Distributed Ledger Technology Security Specification”, JR/T 0184-2020

[6] Zhang Jian, “Blockchain Defines the New Pattern of Future Finance and Economy”, first edition P44-45 in March 2018

[7] Han Feng et al. “The Wealth of Nations on Blockchain”, first edition, March 2021, P206

[8] Zhang Rongfeng, “A Preliminary Study on the Issuance and Supervision of Digital Currency”, North China Finance, 2017(1): 36-38.

[9] The People’s Bank of China “Blockchain Technology Finance Application Evaluation Rules”, 2020-07-10

[10] Vitalik Buterin “Ethereum: Next Generation Smart Contract and Decentralized Application Platform”, 2013

[11] Gavin Wood (English), etc., translated by Yu Yong and others, “Mastering Ethereum: Developing Smart Contracts and Decentralized Applications”, 2021

[12] Gavin Wood “Polkadot (Polkadot: Imagine a heterogeneous multi-chain architecture”

[13] China Communist Party News, “Decisions of the Central Committee of the Communist Party of China on Several Major Issues Concerning Upholding and Improving the Socialist System with Chinese Characteristics and Promoting the Modernization of the National Governance System and Governance Ability”, 1105/c419242-31439391.html 

[14] “Fan Wenzhong on the Future of Fintech: Infrastructure is the Core Competitiveness”, August 06, 2021

[15] Meng Yan’s lecture PPT

[16] China Communist Party News, “Xi Jinping emphasized the use of blockchain as an important breakthrough in independent innovation of core technology during the 18th collective study of the Political Bureau of the Central Committee to accelerate the development of blockchain technology and industrial innovation”, http://cpc.

[17] China Economic Net, “For the first time, the National Development and Reform Commission clarified the scope of the new infrastructure and will promote the new infrastructure from four aspects”,

[18] Ministry of Industry and Information Technology, Central Cyber ​​Security and Information Technology Commission Office “Guiding Opinions on Accelerating the Promotion of Blockchain Technology Application and Industrial Development”


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