Author: Xie Guoqing Source: Walking translation C
Yesterday, I learned from relevant reports that a meeting was held in Hong Kong on May 19 to raise funds for BCH development, and I have followed the follow-up developments through various channels. As a former tech nerd, I’d like to take this opportunity to share my thoughts with you. The general content is divided into the following points:
Why did BCH bring in developers
How to position THE BCH derived from BTC
Perfect closed-loop excitation design for BTC
How to introduce the fourth leg — developers
Mutual benefit to overcome all barriers
First of all, why did BCH bring in developers? Too often when we argue about a problem, we ignore the source of the problem and focus on the symptoms.
BCH is derived from BTC and focuses on improving the performance and scalability of BTC. BCH solves the performance bottleneck through large blocks in a very simple, crude and effective way, which increases the speed of BCH rapidly and reduces the commission cost.
We all know that BTC is digital gold, so what is the positioning of BCH derived from BTC? It is not that ordinary people have been arguing that it should replace BTC. If BTC is going to be the gold of the digital world, then BCH is going to be the cash of the digital world. Maybe that’s why BCH is called Bitcash in Chinese (pure speculation).
The faster speed and lower transaction fees make people more inclined to use BCH in micropayments. BTC’s low frequency, high commission fee, low risk and high brand effect will make people more inclined to use BTC in bulk transactions.
Now that we understand that BCH is going to be the cash of the digital world, it has to conquer the micropayments space. What are the features and application scenarios of micropayment? Micropayment is characterized by high frequency and low commission fee, and its application scenarios cover all aspects of life. Since the issues of performance and fees resonated with the entire community, BCH could easily solve the first problem with a series of operations such as capacity expansion.
The second problem needs to be solved, since payment is only the skeleton and application scenario scaling is the foundation to build an ecosystem. That’s why BCH has to bring in developers. It has to attract enough developers to build rich apps on TOP of BCH to create an ecosystem that BTC doesn’t.
After the introduction, we can see why BCH needs to bring in developers. So let’s go back and analyze how this incident is resolved. In fact, for any blockchain project that needs to establish a complete ecology, a reasonable and effective economic incentive model design is a very important step.
At this conference, Jiang jiazhi introduced the current status of competitors such as ETH, Dash and Tron. However, we need to understand that the current situation of BCH is not consistent with them. BCH is born from BTC, so it has the blood of the founder of blockchain, and cannot be the same as ETH, Dash and Tron. They are standing on the shoulders of BTC, BCH needs to find a suitable path. So where is the path for BCH?
BCH bifurcated from BTC. Satoshi Nakamoto designed a perfect triangle in BTC: consensus mechanism, miners and books.
Ledgers are shared to enable a peer-to-peer electronic payment system. A consensus mechanism is designed to unify account information. The miners were set up to maintain the consensus mechanism, and the economic incentives were added to ensure the miners, and this economic incentive was perfectly integrated into the accounting module.
This is a perfect closed-loop incentive design, and now we introduce the fourth leg — the developer. The developer ecosystem was added as an extension of BCH, which was not in the original design. So we should add as much as possible without upsetting the original balance. This will not disturb the existing balance and avoid unnecessary disputes.
We can start with the model of economic incentives. The biggest difference between blockchain and the Internet is that it has a complete economic incentive model, while the Internet only has business model. While other blockchain systems are designed with a space reserved for developers, BCH does not. So BCH has to give developers a break.
On the underlying source code, BCH opens up new functions to make this engineering feasible. In the absence of proper financial incentives, developers are essentially miners of a different kind.
ETH, Dash and Wave field also provide economic incentives to these special “miners”, thus theoretically promoting the prosperity and development of their own ecology, while BCH does not. BCH is only a simple miner, and all the profits are monopolized by the miners. That’s where this controversy comes in.
How to achieve this, or start with the miners. But do it in a “friendly” way. We can take miners and developers as a separate dimension and build a closed loop economic incentive system separately. Here because of thinking time is too short, I put forward a less mature scheme for your reference.
Given that BCH’s computing power was in the hands of the big miners, and that computing power could be voted on by mining machines at any time, all mandatory requirements seemed inappropriate at an early stage.
So the crowdpurchase model can be used to support developers in the early days. Developers can display their ideas and plans on a web page or other places for all BCH communities. After seeing the information, miners can support according to their own wishes and count all the people. Those who are willing to support can jointly contribute to support, and all the capital flows are recorded in BCH.
When the developer’s project is ready for use, a certain proportion of the developer’s income in the project operation process should be required to supply the initial supporters according to the initial investment proportion, so as to form a closed-loop channel of business flow.
The whole model is similar to traditional equity investment, but in this process, we record all the flow of funds on the blockchain, that’s all. This model has been used in the physical world for many years, and it’s been tested, and it works.
As we see more and more projects succeed and do bring more users and more services to the BCH community, the miners, as the biggest supporters and vested interests in the community, will not resist fundraising. Small fundraising will evolve into large-scale crowdfunding, and large-scale crowdfunding will evolve into BCH’s new consensus.
Finally, to paraphrase the famous saying: Rome wasn’t built in a day, and blockchain consensus takes a process. But instead of doubting each other, we should consider these proposals calmly, dispassionately and objectively. Arguing won’t solve the problem.