Wang Chuan: Looking at Blockchain from Liu Bang's Self-Promotion
Anyone can go online and connect to the blockchain through wallet software.This article is sourced from investguru, authored by Wang Chuan from Silicon Valley.
1/ The essence of cryptographic algorithms is: the weak can protect their rights from being infringed upon by the strong. It is very simple to derive a public key from a private key, but deriving a private key from a public key is computationally difficult to the point of being nearly impossible. As long as the weak master their private keys and do not leak them, they can completely control their encrypted assets and not be infringed upon by the strong.
2/ A characteristic derived from decentralized blockchain technology based on cryptographic algorithms is: once a decentralized consensus is formed, everyone agrees on a fair rule, and no one can harm the interests of others or unilaterally change the rules of the game. The fact that no one can unilaterally change the rules also means that the security of assets on the chain is guaranteed.
This immutable characteristic has been repeatedly proven in the operational history of some public chains and has been continuously reinforced with the increase in on-chain computing power.
3/ Anyone can go online and connect to the blockchain through wallet software. Because of this characteristic of "the weak can protect themselves from being infringed upon" and "no one can unilaterally change the rules," and with the long-term increase in the market value of some public chains, more people are attracted to the chain. Notable blockchain investor Raoul Pal estimates that the global number of blockchain users is currently growing at over 110% per year, while the global number of internet users grew only 63% in 1997.
Even following the trajectory of internet development after 1997, the global number of blockchain users could grow from the current approximately 200 million to around 4.3 billion by 2030.
4/ Smart contracts on the blockchain allow strangers to trade freely without the need for centralized institutions, making the large personnel structure of centralized institutions redundant. The automated market maker on Ethereum, Uniswap, has only about twenty employees and currently has a market value of around $20 billion. In contrast, the parent company of the New York Stock Exchange, Intercontinental, has nearly 9,000 employees and a market value of over $60 billion. Refer to my old article:
Wang Chuan: The Decentralized Liquidity Black Hole and the First Law of Blockchain
5/ If smart contracts on the blockchain now allow a team of just over twenty people to accomplish what originally required thousands, can you imagine the immense productivity that could be unleashed in the future when two thousand, twenty thousand, or even two billion people spontaneously collaborate through smart contracts in real-time?
6/ The efficiency gains brought about by free trade are the essential source of wealth creation. Sellers can access a larger market; buyers can have more affordable and high-quality choices. Various production materials for producers will also become much cheaper.
The blockchain that carries various smart contracts will create, in effect, an unprecedented and the largest free trade port in the world. This wealth effect from efficiency gains will compound and grow exponentially, unstoppable by anyone.
7/ There is a passage in the Records of the Grand Historian about Emperor Gaozu:
Emperor Gaozu received the jade goblet and ascended to the position of the Supreme Emperor, saying: "In the beginning, the great man often considered me useless, unable to manage the industry, not as good as Zhongli. Now, in terms of what I have achieved, how does it compare to Zhong's?" The ministers in the hall all shouted "Long live!" and laughed heartily.
8/ By the time we reach 2030, when the number of users reaches 4.3 billion, you, who have been deeply involved in the blockchain industry for many years, may say to your father: "When I was young, you always thought I was bad at doing problems, couldn't get into a key university, and couldn't enter a big company like Xiao Ming next door, happily working the 996 schedule. Now, in terms of what I have achieved, how does it compare to Xiao Ming's?"
