This post was originally featured on the website of ZeMing M. Gao, and we have re-shared it with the author’s permission. You can access the complete article here.
In Volume 1 of the book BIT & COIN: Merging Digitality and Physicality, I emphasize two key points:
- The necessity for humanity to have a timechain to uphold truth (Refer to the TimeChain concept that safeguards humanity in the digital era).
- The crucial requirement for Decentralized Human Capitalism in the global economy to prevent the feudalization of traditional capitalism and the encroachment of socialism (See Decentralized Data Ownership – The Path to Decentralized Human Capitalism).
Both of these propositions demand an immensely scalable blockchain with a Transaction Per Second (TPS) capacity surpassing millions and an exceptionally low Cost Of Transaction (CoT). The original vision of Bitcoin blockchain, as envisioned by Satoshi, aims to achieve precisely this.
However, after 15 years, we find BTC processing only 7 TPS while perpetuating an open Ponzi scheme. Furthermore, there is a misconception among the public that BTC represents the authentic Bitcoin according to Satoshi’s vision.
Unlimited scalability and a low CoT are both indispensable. Together, they not only streamline existing transactions, making them more convenient and cost-effective but also enable the execution of previously impossible transactions.
The contemporary economy operates as a covert exchange mechanism. Technological advancements that enhance productivity contribute positively, whereas governmental interventions through monetary and fiscal policies often act as a deterrent. The productivity surge facilitated by technology essentially masks the government’s missteps, albeit incompletely. Without technological advancements, modern governments and their fiat currencies would have faced bankruptcy much sooner than their current predicament.
A nonproductive blockchain exacerbates economic issues rather than offering a solution. It merely introduces an alternative mode of wealth redistribution, if not outright theft.
Scalability and low CoT, encompassing payment costs, hold greater significance for the overall economy and society than commonly acknowledged.
BTC, along with the entire cryptocurrency industry, represents a failure not only in establishing a scalable blockchain with low CoT but also in suppressing the original Bitcoin blockchain’s potential for unlimited scalability and low CoT.
The crypto industry’s reliance on nonproductive financial schemes further compounds this failure.
From a moral standpoint, BTC and cryptocurrencies exhibit more corruption than fiat currencies and their financial systems.
Technologically, blockchain and Distributed Ledger Technology (DLT) have regressed into distractions, less transparent and functional than traditional database systems.
Nonetheless, the focus of the book lies in proposing solutions rather than solely identifying problems.
The central message I advocate for is the development of a New Internet based on IPv6 integrated with a highly scalable blockchain (TPS exceeding millions) featuring an extremely low CoT. This vision is attainable if a sufficient number of individuals embrace it.
The global necessity for such an innovation is evident.
Despite assertions that there is minimal market demand for such an advancement currently, I believe there is a distinction between demand and necessity, which may not always align. Over time, these factors tend to converge when the system progresses healthily. The invention of the Internet itself lacked immediate market demand but was driven by the foresight of its pioneers. Market demand for the Internet materialized two decades later.
The foundational elements of the New Internet were conceptualized 15 years ago, with a definitive protocol emerging over the past five years. We are closer to realizing the New Internet than the early 1980s pioneers were to the Internet.
Moreover, owing to existing technologies, certain applications designed for the New Internet may witness commercial adoption even before the complete realization of the New Internet. This suggests that the development of the New Internet will be more structured than the evolution of the old Internet.
Ultimately, not all endeavors are solely motivated by market demands. While there is a prevalent demand for Ponzi schemes in the crypto sphere, not every participant in blockchain technology pursues such schemes. Some individuals are driven by a sense of righteousness and purpose, even if it diverges from conventional economic theories. It is noteworthy that understanding the disparity between demand and necessity is crucial. For instance, I know of an individual who dedicates time to guiding individuals battling drug addiction towards a better path (through faith, education, etc.) despite the prevalent demand for drugs in that “market.” Recognizing the difference between demand and genuine need is essential.
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