On April 24, the 2021 New Infrastructure Blockchain Summit was held in Chengdu. Zhu Jiaming, an economist and chairman of the Academic and Technical Committee of the Digital Asset Research Institute, shared that we are facing an extremely important macro-historical development trend, that is, through our own observation of new hash power based on hash power, we can say with certainty , The only way for the entire computing power system is to replace traditional (classical) computing power with new computing power. That is to say, the computing power based on the blockchain will inevitably replace and transform the centralized, non-blockchain-based traditional computing power.
The following is the full text of the speech:
I participated in the computing power conference for the second time this month. The first computing power conference was held in Chengdu on August 22 last year. At each computing power conference, I was arranged to share some of my views. For this year’s meeting, I have also made some preparations and put forward some new ideas, which I will share with you below.
1. How to re-understand the computing power and computing power structure in the digital economy era. The meeting we are holding now is what is commonly known as the mining circle meeting. Everyone is talking about matters related to the mining of digital currencies. They are collectively referred to as the narrow computing power meeting. But today, what needs to be considered is the background to understand the relationship between our computing power and the generalized computing power that everyone usually understands, so that we can have a more comprehensive and profound understanding of what we do.
This is my summary of computing power (referring to PPT). This picture gives us an overall concept. When we talk about digital economy, we must talk about data, and when we talk about data, we must talk about computing power. What is the position of the computing power that today’s conference focuses on in the overall computing power system? I divided the entire computing power. One is non-blockchain, centralized computing power, called traditional (classical) computing power. This computing power is developing and proceeding every day. A large number of national supercomputing centers are essentially a strong centralized computing power system that supports non-blockchain computing power. It can be called classical computing power.
Let’s take a look at what the computing power of the mining circle refers to. It is based on hash power, based on Merkle proof, and based on blockchain computing power, so we call it a new type of computing power, which is decentralized computing power. . That is to say, there are two kinds of computing power. In this context, we will see that the computing power discussed in today’s meeting is a combination of three basic technologies. It must be based on the blockchain and the blockchain as the premise, through the hash algorithm and the computing power supported by the Merkel tree. Such computing power constitutes a computing power that is different from traditional classical computing power. This computing power is not the mainstream now, this computing power will become the mainstream, and I will talk about why it will become the mainstream.
Based on this computing power, what is its real impact? It has led to the continuous evolution of the public chain structure in the past 11 years. Everyone has experienced Bitcoin. For more than ten years, 21 million Bitcoins have been mined through mining. More than 11.8 million Bitcoins have been dug. Bitcoin uses the Merkel tree to store each block chain transaction. The block header is an 80-byte data block in each block, which contains only 5 elements, instead of downloading every transaction and every block. In Ethereum, each Ethereum block is no longer a Merkel tree, but three trees designed by three objects. Smart contracts are more complicated. From the structure of Bitcoin to the structure of Ethereum, it is clearly evolving.
Since last year, IPFS has undergone even greater changes, starting to use Merkel tree DAG, each data segment has a unique identifier, such as CID, through the Merkel tree DAG to connect CID blocks into files, using distributed The hash table is used to track files, creating a new addressing method, which can meet the requirements of unstructured data and Web3.0.
Don’t underestimate this change. The hash power, Merkel proof, and blockchain-based computing power that we discussed at the beginning are progressing, and the progress is very fast. In more than 11 years, its technical connotation has occurred. Has made a substantial change. At the same time, the most important result is the transformation of the often-speaking Internet and the advancement of the Internet from centralized 2.0 to decentralized 3.0.
In this context, we can understand that even in terms of what we call the new computing power that has just started and has a history of 11 years, it has already possessed the basic characteristics of industrialization. But when is this industrialization a substantive sign? I divided it into two stages. The period from 2009 to 2020 is currently in the self-closing phase of the mining circle. Since last year, the mining circle has moved towards an open phase, and this process has a very important event. Why is the epidemic last year as an important event? We have seen DeFi happened last year, and there has been a fundamental development. During the development of DeFi, everyone heard that transactional mining is liquid mining. This morning I was discussing this concept with two young people. There were several major events last year and several fundamental changes were discovered, that is, a large amount of structural capital entered the mining field.
The global distribution of the mining circle has undergone great changes. The nodes of Ethereum surpassed the nodes of Bitcoin, and trading platforms such as Coinbase have achieved unprecedented development last year. That is to say, 2020 is a year when the computing power supported by the blockchain has achieved a comprehensive development milestone. The industrial chain centered on the computing power revolution basically formed a powerful social force like miners. In summary, there are a few of these.
The first aspect is that up to now, the evolution of the computing power technology system has accelerated. Up to now, it has surpassed CPU, GPU, and FPGA, and soon entered ASIC.
In the second aspect, the distribution model of computing power has begun to mature. Originally, PoW was the absolute dominant player, but now we see PoW, PoS, EC, and PTF, which are quite diversified.
Third, the scale of computing power (referring to the computing power of the entire network) continues to grow.
In the fourth aspect, the value and connotation of computing power are also changing. The original value of computing power is basically equal to the value of Bitcoin. Now this situation has begun to change. We see that the value of computing power is not only associated with the continued diversification of encrypted digital currencies, but also with DeFi and NFT. The computing power market is expanding to different areas in an all-round way.
In the fifth aspect, the status of the hash power producer has changed a lot. The hash power producer has become the backbone. Not only the income (profit sharing) is generally increased, but also participates in the public chain DAO voting, participates in the project, and becomes the public chain ecological investor.
In the sixth aspect, we see that the combination of computing power and some regional developments has formed a relatively stable distribution of computing power, not only in China, but also globally.
The most important aspect of this computing power revolution is that it has begun to form a complete distribution model. I found five relationships here, evolutionary relationship, and complementary relationship. I saw PoW solve problems through calculation, PoS pledged Token to obtain rights, PFT influence tolerance, EC expected consensus, and PoC used storage to replace computing power to solve problems. We did not have the ability to summarize this situation at last year’s meeting, on August 22 last year. Now that 10 months have passed, we can conclude that mining itself includes innovation in the distribution system.
Today I want to emphasize the third issue in particular. We are facing an extremely important macro-historical development trend. Through our own observation of new computing power based on hash power, it can be said with certainty that the only way for the entire computing power system is the new computing power. Power to replace traditional (classical) computing power. That is to say, the computing power based on the blockchain will inevitably replace and transform the centralized, non-blockchain-based traditional computing power.
why? There are several reasons. We see changes in decentralized computing, decentralized transactions, decentralized storage, decentralized identity authentication, and addressing methods: subverting the root node, HTTP, and Web3.0 accelerate the replacement of Web2.0, all of these reasons have changed As a trend, all traditional computing power systems are required to undergo fundamental changes. It is the only way for the traditional computing power system to move from centralization or extreme centralization to decentralization and toward blockchain-based computing power.
We can clearly see that it is the topic of today’s conference, the new infrastructure, and the future computing power. Its new infrastructure contains three connotations, one which is obviously a stable triangular interaction composed of blockchain computing power and storage. relationship. The consequences of decentralization of IT infrastructure are equal rights in computing and equal rights in storage. Accelerate the realization of the originally proposed but not yet fully realized goal-data is an asset. And everyone can control their own data assets. Just entered the venue and saw the title of a booth: Everyone has computing power. This is not a general slogan. This slogan has a deep meaning. Our slogan is that everyone has computing power, and computing power is an asset. Everyone has computing power, and what is required must be a decentralized, blockchain-based computing power, which is Web3.0. In this process, producers are both creators and consumers. It will lead to changes in the overall macroeconomic system as previously understood.
Computing power is an asset, creating a new financial system and a new distribution system. Since BTC, the so-called digital assets are mainly derived from computing power. Mining is equal to assets. A special distribution mechanism will inevitably be formed during the mining process. Digital assets formed by computing power The basic model. In short, hash power is an asset. This situation is very acceptable to the young people present here. It will take time if it becomes a different concept between the whole people and the vast majority of the people, and this is the meaning of the revolution.
Under such circumstances, the computing power industry is still affected by some factors. The influence of these factors In today’s situation, in the context of April 2021, we are undoubtedly affected by these factors. Everyone is familiar with these factors, namely, currency prices, semiconductor supply, energy and electricity prices, and mining operations. In mining work, special emphasis is placed on the role of miners in voting, in arbitrage, in DeFi, in lock-up volume and investment, as well as gas fees. Of course, the core issue is what we expect and hope What kind of economic system and legal policy environment.
Finally, talk about the future of the computing power industry. Its future is blockchain, computing power, and storage will become the infrastructure of social operations and the container of human and social behavior.
In summary, the computing power industry contains a revolution in the distribution system. The computing power industry will change the traditional, non-digital economy model of the national economy, and it will also produce wealth spillover and distribution effects. It will be combined with green energy, and it is bound to be affected by the development of artificial intelligence and quantum technology. In computing power, especially mining, a new global wave is forming.
in conclusion. My conclusion on August 22 last year was that computing power determines the future. What I am talking about today is that the computing power revolution has pushed the non- computing power industry into a new stage and new cycle. I think this cycle can be foreseen for at least 10 years. In addition to its own development, this cycle, as I said at the beginning, will in turn transform the traditional, centralized, non-blockchain computing power system.
At the last minute, talk about one thing. The next year will be the 1000th anniversary of the birth of Jiaozi. We have erected a monument in Chengdu, which will be the 1000th anniversary of Jiaozi in the past few years. What we are doing now is very meaningful. Perhaps the descendants after 1,000 years will re-evaluate everyone and your efforts, thank you!
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.