Yesterday morning, the 2018 4th Blockchain Global Summit officially opened in Shanghai. Ethereum founder Vitalik Buterin delivered a keynote speech on "Blockchain and Mechanism Design". He believes that the current mechanism faces credibility and efficiency problems due to the existence of a central mechanism, and blockchain can solve these problems well.
However, the blockchain mechanism also faces four major challenges, namely the manipulation of miners or verifiers, privacy, unfairness, and bribery. For these four major challenges, he also proposed corresponding solutions. Frequent batch transactions can achieve centralized processing of transactions and prevent evil; zero-knowledge proofs and partial disclosure mechanisms can improve privacy; centralized identity verification can prevent a single participant from appearing The unfair phenomenon of people owning multiple accounts; multi-party calculation can solve the problem of bribery.
The following is the full text of the speech:
Hello everyone! What I am discussing today is the design of the blockchain mechanism. We know that the mechanism has existed for a long time, and more and more people are very interested in the mechanism of the blockchain. The so-called mechanism can also be other mechanisms that are separated from the blockchain. We see that these two fields now have very good synergies. Blockchain affects many mechanisms, affects its testing, and affects the implementation of these mechanisms. Therefore, we must first understand how the blockchain integrates with the mechanism.
Reasonable application of mechanism = improvement of efficiencySpeaking of mechanisms, many different examples are listed here. The so-called mechanism is that some different people participate in an event, and then different people will make different decisions. This decision will ultimately affect the allocation of this resource. The first is voting. You can see that voting can be a national presidential election vote, or a vote in the blockchain, and a vote within the enterprise. There are auctions, markets, and exchanges. Exchanges also include decentralized exchanges. Recently, decentralized exchanges are also a hot topic. There is also the domain name service of Ethereum, which can be regarded as a mechanism. Because in the domain name service, there are some different mechanisms.
I just mentioned that now more and more people are beginning to be interested in mechanism and apply mechanism design to our society more widely. The market has existed for many years, but in the past 50 to 100 years, what we have been thinking about is how to build a better mechanism so that we can achieve better management and make this mechanism have better characteristics. We can distribute commodities through this mechanism, or provide incentives and punishments for the production and manufacture of public products, and ultimately achieve social justice. Of course, the mechanism can also be used to coordinate different behaviors of people.
Here I am sharing with you a book called "The Radical Market". Under such a concept, we hope to achieve social fairness and justice through technology and our mechanisms. Here are some new ideas. As you can see, this is an extension of our existing voting mechanism. We call it quadratic voting. Through quadratic voting, people can use currency to buy votes, and there is no upper limit on the number. Because the power of each of them is very small, it will be more difficult for them to pay for the cost of such a project by themselves. Therefore, in this case, we have established such a mechanism, relying on the government, enterprises and other institutions to realize such a free and radical resource allocation mechanism.
Under normal circumstances, investment projects will have the government or some charitable organizations to finance. In this case, what we have to think about is how to realize this free and radical resource allocation mechanism. Through our mechanism, we can use some special equations to make different distributions of donations from different people. There is also the Harberger tax, which exists in some markets and exchanges. In this way, they can make their processes more efficient. There is also frequent batch auctions, which are very popular in the auction field. We see that the current financial market also has this problem. Because the financial market is centralized, there are different participants, sending orders or canceling orders at the same time. This process may cause many problems. For example, some people will spend a lot of money. Therefore, we hope to reduce the cancellation and cancellation of orders through our mechanism. This involves a lot of resources. Every year, millions of dollars are wasted in this link, but through frequent batch auctions, this problem can be solved. There are other new solutions, including combined auctions, which make auctions based on two or more assets more efficient through combined auctions. In addition, it is an automatic market maker. You can see that all these new ideas are recently proposed in the blockchain or in some areas other than the blockchain.
Solve the trust problem with blockchainHow can blockchain help us solve problems? There is a concept called the credibility of the mechanism. People are more concerned about the credibility of the mechanism after it is established. Regarding the credibility of the mechanism, for example, there is a mechanism, it can be an exchange, it can be an auction, it can be a voting mechanism, and so on. The problem we face is that you need to trust the middle party to ensure that they are effective in the process of implementing the mechanism. However, the current mechanism is not very efficient. Such an intermediary sometimes cheats and deceives, which will cause a big trust problem. For example, in our mechanism, there is a central server. For the central provider, it There is a great opportunity to cheat. When this deception occurs, we don't even know whether it is a deception or not, which involves the credibility of the mechanism.
The short-term application of blockchain mechanism mainly focuses on the following three aspects. Of course, here I am mainly focusing on the mechanism design on the blockchain. Blockchain can verify the new economic technology, for example, it can be applied to decentralized exchanges, or it can be applied to the financing of public goods in the blockchain ecology, financing community resources and archives, and It can be used to sell virtual real estate-for example, for some APP for advertising settings. In addition, we can also think about some other models to use our blockchain. Because in such applications, the mechanism can help us increase sales revenue, and at the same time can greatly stimulate the enthusiasm of the entire community. All these problems are the credibility of the mechanism. If the mechanism is centralized, you must trust the centralized mechanism. But as participants in the blockchain field, we don't want to trust the so-called third party, yes, no one wants to trust the centralized mechanism of the third party.
Four major challenges facing the blockchain mechanismIf we want to deploy a blockchain mechanism, what challenges will we face? One is manipulation from miners or verifiers. Whether it is a miner or a validator, once they have selected a transaction packaged in a block, they can attack this block. This is a problem faced by distributed ledgers. In fact, for auctions, there are also such problems. I think Ethereum also has this problem. In the past year, we have also seen some ICOs. Their mechanism and organization are very chaotic. In the end, they have become a zero-sum game, and they will charge a lot of transaction fees. If you want to get your transactions on the chain as soon as possible, you need to pay huge transaction fees. In this case, we found that large quantities of dollars were wasted on the blockchain. But the purpose of blockchain is to make the world more open and transparent, not to consume unnecessary dollars and other resources.
Such a challenge can be achieved through high-frequency batch transactions, so-called high-volume transactions, all transactions that can occur within 1 second will be processed as simultaneous transactions. It can be seen that in this case, these transactions can be received at the same time, and the transactions are processed in a standardized order. Even if the producer of one of the blocks has malicious behavior, the whole mechanism can still work.
Another challenge is privacy. When we design a mechanism, many mechanisms presuppose that the information they submit to the mechanism is confidential, and what we see is only external output, for example, the result of the calculation is only publicly announced. However, the blockchain itself does not have such a confidentiality function, so the solution we adopt can be implemented through a mechanism such as submission and display. If you only need to achieve temporary privacy, you can require participants to submit transaction hashes to display all transactions. If you are not very interested in such a method, you can also use other methods. Another solution is zero-knowledge proof.
The third challenge-anti-Sybil attack (anti-witch attack). The so-called anti-Sybil attack means that we must ensure that in the quadratic voting, each participant has only one account. If a participant has many accounts, it is likely to bring some unfair factors. Of course, there are some solutions for anti-Sybil attacks, such as a centralized identity oracle or social verification, which relies on the social network between people for verification.
The fourth challenge-conspiracy. Under any voting mechanism, anything that happens on the blockchain, in theory, voting on the blockchain should be transparent. In fact, we can also bribe participants to get more voting opportunities, making some votes not very fair. If we want to stop this kind of attack, we need to make it impossible for everyone to prove to others how they voted. For example, you can bribe him for 10 yuan and let him vote for you. But if we design a mechanism so that the voted person does not know who you ultimately voted for, such a form of bribery will not exist. Of course this is more difficult to achieve.
Another solution is what we are talking about Multi-Party Computing (MPC). Through multi-party calculations, all participants cannot see the confidential information and the calculation process, only the final result. The other is reliable hardware. Of course, such hardware has also been attacked recently. Everyone looks at Intel’s SGX (sound) and there is a data leak. Especially when you need to do some high-value things, it is very troublesome, so we are more inclined to solve it through MPC.
In the end, it is very important to use blocks to establish a very simple mechanism. We say that the simpler the better, it is to make the technical foundation and security assumptions of this mechanism as simple as possible.
Finally, such mechanism design is now a rapidly expanding field. Blockchain can help us solve many problems. On the other hand, more and more people are beginning to be interested in mechanism design. We can achieve higher efficiency through some of these new mechanisms. Of course, some complex mechanisms may rely on a centralized operation. The blockchain can help us solve the trust problem of these mechanisms, but it cannot solve all the problems. Therefore, the use of blockchain must be correct and must be combined with other cryptographic techniques. The combination of blockchain and cryptography and other off-chain solutions, I believe, can minimize the trust needed between people.
ZGAR bar 600 Puffs
ZGAR electronic cigarette uses high-tech R&D, food grade disposable pod device and high-quality raw material. All package designs are Original IP. Our designer team is from Hong Kong. We have very high requirements for product quality, flavors taste and packaging design. The E-liquid is imported, materials are food grade, and assembly plant is medical-grade dust-free workshops.
Our products include disposable e-cigarettes, rechargeable e-cigarettes, rechargreable disposable vape pen, and various of flavors of cigarette cartridges. From 600puffs to 5000puffs, ZGAR bar Disposable offer high-tech R&D, E-cigarette improves battery capacity, We offer various of flavors and support customization. And printing designs can be customized. We have our own professional team and competitive quotations for any OEM or ODM works.
We supply OEM rechargeable disposable vape pen,OEM disposable electronic cigarette,ODM disposable vape pen,ODM disposable electronic cigarette,OEM/ODM vape pen e-cigarette,OEM/ODM atomizer device.
ZGAR bar 600 Puffs Disposable Vape, bar 600puffs,ZGAR bar 600 Puffs disposable,ZGAR bar 600 Puffs,ZGAR bar 600 Puffs OEM/ODM disposable vape pen atomizer Device E-cig
ZGAR INTERNATIONAL(HK)CO., LIMITED , https://www.szvape-pen.com