Mandatory consensus further stabilizes the supply-demand relationship of digital currency
Throughout the course of the development of digital currency in the past nine years, from the initial resistance of the public to the gradual recognition, the road is very unstable. Especially in the process of development, a large number of financial giants have entered the market and started to "clean up" the huge financial market of digital currency several times, which has caused the general public to worry about the future development of digital currency. Deeply investigating the reasons, we find that the current soft consensus mechanism of digital currency does not protect the interests of ordinary people, but more is made by capital itself.The whole financial market is gradually under control.
For ordinary people, the most worrying thing in the digital money market is the sharp fluctuation of prices. Once the price devalues in a short time and a large area, the whole market will become extremely fragile, and even a series of domino effects will appear. A single stone will set off a thousand waves, affecting all areas associated with digital money. In the long run, the digital money market urgently needs a compulsory consensus mechanism established on the basis of universal recognition. One of the benefits of this mechanism is to stabilize the supply-demand relationship of the digital money, and then stabilize the price system of the market.
The cornerstone of the healthy development of future digital currency - compulsory consensus
As we all know, the decentralization characteristic of block chain technology effectively solves the core problem of financial market transactions: trust. The basis of trust is consensus, which effectively promotes the construction of financial market trust system. But this consensus is not the consensus of the whole people. Why do you say that? From the perspective of the development process of human history, people gather in the form of tribes in many places, and the language, culture, monetary system and so on are different among each tribe. On the premise of lacking the sole subject matter and without the value consensus of the same kind of things, the development of tribes becomes slow, and more of them are operated by a self-created consensus mechanism within tribes, which is multi-faceted, life consensus, trust consensus, value consensus, rights consensus and so on. But the problem is that the consensus mechanism is soft and unilateral, not the collective consensus of all tribes, which we also call "compulsory consensus". Block chains are similar to tribes. Node collections distributed all over the world are equivalent to tribes distributed all over the world. Each tribe has its own unique cultural consensus. Node collections are the same. They have not formed a unified consensus system. Each node set has its own monetary system, which is unknown. Because of the asymmetry of information, ordinary people are not willing to enter this trust-free market easily, which further hinders the development of digital money and the evolution of block chain technology.
The Underlying Principle of Mandatory Consensus Mechanism-Cross-Chain Fusion
From the existing block chain technology, we can find that the cross-chain integration mechanism developed by NEO team brings a new dawn. CSC extends a compulsory consensus mechanism based on the deep integration of NEO's cross-chain integration mechanism. This mechanism can effectively solve the price fluctuation problem in the market and stabilize the market price system.
While integrating other high-quality public chains, CSC（cscfusion.com） gradually detects the demand of corresponding public chains in the market, and tracks the price changes of corresponding digital currency and USDT. At this time, CSC（cscfusion.com）will act as a stabilizer between different currencies in the digital money market. For example, when the price of BTC rises from 7000USDT to 7100USDT, the price of CSC（cscfusion.com）will rise slowly. When the price of BTC rises sharply, the number of CSCs circulating in the market will decrease, the supply will not meet the demand, and the price of CSC（cscfusion.com）will rise sharply to stabilize the price relationship between currencies.
The Future Trend of Money Issuance - Decentralization
At present, a serious problem is that the pricing power of digital currency is still based on French currency. The price instability caused by the inflation of French currency will also affect the price of digital currency. The fundamental reason is that the price stability of money has not been decentralized, and digital money has not departed from the ideology of traditional currency pricing. The circulation of French currency mainly lies in the national credit it represents, which is the trust of ordinary people to the country. From this point of view, it also belongs to the compulsory consensus. But this kind of coercive consensus is not decentralized. From the point of view of the small countries that have found economic crisis in the world, when their economy is paralysed and the country is not trusted, then the common people will go to find a new currency to represent the coercive consensus. Just like Venezuela's emergency paralysis, the people spontaneously chose BTC as the consensus currency for circulation transactions, which is also a feature of the scarcity, uniqueness and untouchability of BTC.
Future Currency Development Trend-Integration and Symbiosis
The natural disadvantage of French currency is inflation, which is based on the economic development of the country. The natural advantage of digital money is deflation. It relies on people to form automatically in the network nodes. The two can form a financial cycle system depending on each other. When the country's economic development is in reverse growth, the rate of depreciation of the French currency will accelerate. At this time, the digital currency can largely make up for the deficiency of the French currency. The national economic development can rely on the digital currency to circulate so that people can use the digital currency to stimulate the country's economic development.
Block chain is not only a technology or tool, but also a built-in economic system to solve the coordination problems among participants through economic incentives. Decentralized system does not have a big brother to distribute benefits. It can only rely on incentive compatible economic mechanism to ensure that the game between participants is effective. This is the most innovative part of the block chain, which is in conflict with the traditional economic model. The traditional business organization model is not suitable for the block chain. There will be no block chain giants like Google and Facebook in the future.
Block chains will serve small and medium-sized institutions in the future, as the connector of the real economy, connecting small and medium-sized enterprises and individuals, so as to achieve the goal of de-intermediation and breaking monopoly, thus realizing the free capitalist economy in the eyes of Adam Smith and Austrian economists.
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Topic: New Revolution of Block Chain-------Mandatory consensus (Read 14851 times)