Why is Blockchain Open Source (Why is Blockchain Supported by the State)

Why is blockchain open source? Why is blockchain open source?

In the past few years, with the development and maturity of technology, public chains such as Ethereum, EOS, and Tron have gained a lot of attention. Nowadays, distributed systems based on distributed technology are increasingly being applied in various fields, including decentralized finance (DeFi), digital assets, and the Internet of Things (IoT).

Although these concepts may seem abstract, they do have some fundamental differences: one is that the data itself is not transparent; the other is that the information is copied and stored in one place, making it impossible to trace back to the original source; in addition, other aspects rely more on third parties to complete the verification process, such as Bitcoin transaction history storage or block packaging. So what exactly is a distributed ledger?

To some extent, we can see that a distributed ledger can provide people with a secure and accessible data platform, allowing users to make peer-to-peer payments without any permission. However, many companies on the market waste these resources in order to facilitate their use of blockchain development tools, making it difficult for a large amount of funds to be invested in this scenario.

In fact, for start-up companies that want to use open protocols to establish trust mechanisms, the problems they face are often very complex, especially when it comes to blockchain. Without this solution, it is impossible to solve all problems, and it is also easy to have inefficiency. Therefore, in this case, open-source is the most helpful for entrepreneurial teams to solve problems.

This article will introduce why blockchain should be open source.

1. Open source refers to a software product created and operated by a few large institutions in the Internet era, called “alliance”, which allows participants from all over the world to cooperate, trust, and jointly manage every node in the network by sharing code globally, thus improving the security of the system.

2. The main purpose of open source is to ensure the security and reliability of the entire ecosystem. For example:

1. Encourage enthusiasm and support from social organizations and individuals for open source projects. Because open source projects usually receive rewards based on contributions from everyone, these incentive measures will be reduced, ultimately achieving consensus, reducing costs, increasing the stickiness and vitality of the community, and avoiding duplicated work and errors.

3. The purpose of open source is to promote communication and communication between different stakeholders. In this way, blockchain can not only optimize business processes under the business model, but also meet the needs of different people and markets, and even change production relations.

4. Open source development frameworks can be deployed in different industries. For example, applications in the agricultural supply chain, electronic contract management systems, trade financing service providers, insurance technology, and other fields.

5. What is the core value of blockchain technology?

Why is Blockchain Supported by the State

Editor’s note: This article is from HiveEcon (ID: HiveEcon), author: Yuan Shang, authorized reprint from Odaily Star Daily.

In recent times, the country has been relatively cautious about the regulation of blockchain. At the important meeting on “Promoting the Development and Application of Blockchain Technology” held by the Central Political Bureau on January 28, 2018, it was clearly stated that blockchain should be regarded as an important breakthrough in independent innovation of core technologies, focusing on digital currency, network security, and other fields. This work is considered to be the government’s high attention and active exploration of blockchain technology. However, from the end of 2017 to the beginning of 2019, various aspects of the domestic policy began to show signs of supportive measures. These policy supports include the “Notice on Preventing Bitcoin Risks” and the “Implementation Rules for Regulatory Pilot of Financial Technology Innovation”. So why encourage some of these?

1. Strengthen top-level design

According to the guidance issued by the State Council, the “People’s Republic of China Cryptography Law” will use a technology called “encrypted asset trading” to protect the security and privacy of user funds. In addition, it also stipulates that the issuer must submit a registration statement or commitment to the market entity, and only verified true identity can prove its authenticity and validity.

2. Standardize industry behavior

According to statistics, more than ten supporting laws, regulations, and standards drafts have been issued in China to support the development of blockchain since 2017. Since 2017, the country has successively introduced some policies and plans to encourage the development of blockchain, but has not provided formal guidelines; one of them is to require the establishment of a dedicated management system to prohibit any institution from engaging in business activities without approval and providing information disclosure services. Another requirement is that all enterprises should accept advertisements and services provided by Internet platforms, and not engage in new project financing activities that do not meet the needs of national strategies or industrial economies. 4. Strengthen governance mechanisms

In recent years, the “Blockchain + Government Data Sharing Platform” has attracted attention from all walks of life. Since 2020, more and more government departments and enterprises and institutions have actively followed up in this field. For example, the Ministry of Industry and Information Technology has also launched an e-government special column-the China Smart City Construction Project Database (referred to as the evaluation card). At the same time, it is also vigorously promoting the standardization construction of blockchain. In May this year, the “Guiding Opinions on Accelerating the Development of the Blockchain Industry” issued by the Office of the Ministry of Industry and Information Technology mentioned that it is necessary to build a blockchain-based public infrastructure and operation model to promote the digital transformation and upgrading of government service, improve the efficiency of public resource allocation, and improve the intelligence level of government procurement business. At the same time, improve the tax collection method, encourage the use of blockchain technology to optimize the business environment, reduce administrative costs, and promote the application of fair competition and other aspects. 5. Increase investment and build an international ecosystem.