Hi~ It's Unicorn

People have been used to trusting others for a long time. However, some people use the public’s trust for profit, but the public still don’t know it. This is called "trust problem.”

The Economist compares the blockchain to a "trust machine”. The essence of the blockchain provided solutions to the trust problems. If a fair third party has cheating issues, we add another fourth party, but this is still risky, so we will continue to add the number of notaries. The concept of blockchain is a system that allowing people to act as notaries, creating a “decentralized" system.

Blockchain 1.0

Blockchain 1.0 is the earliest blockchain system, it’s a peer-to-peer electronic cash system-Bitcoin. Fiat currency issuance is controlled by the central bank, and banks play the role of broker, no matter you transfer, international remit, or pay. It also adds lots of unnecessary costs. The announcement of Bitcoin happened during the global financial tsunami in 2008, when the U.S. dollar as the universal currency was severely depreciated. The fiat currency had a crisis of confidence in the world. 

Bitcoin's white paper: "What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party. "

Distributed Ledger

Blockchain 1.0 is a peer-to-peer payment system, can be treated as a "distributed ledger technology (DLT)" that is not controlled by anyone or any organization.

Blockchain 2.0

 In 2015, Ethereum developed the blockchain completely, such as he concept of smart contracts and various decentralized applications (Dapp). The technology of blockchain have extended from to decentralized platform”. Everyone can develop applications on the blockchain (such as Ethereum). The nodes of blockchain can handle complex transactions, data operations and data storage besides accounting. It’s like a cloud platform that is operated by global users, ensuring that all transaction processing and data storage can be transparent, safe, fair, and without trust.

From Blockchain 1.0 to Blockchain 2.0, it shows that people don’t trust legal tender, banks, and financial institutions. The essence of the blockchain, Decentralization, is a method to solve the trust problems. Blockchain is an innovation, we cannot underestimate the future development of the blockchain.