V-God's 15 tweets in a row: the PoS and fractional blockchain will be 1000x more efficient
Vitalik Buterin, the founder of Ether, recently sent out 15 short tweets in a row with his views on non-financial applications of blockchain. Key points include: public blockchains have a real competitive advantage over centralized servers and federated chains; PoS and sharding (sharding) blockchains will be 1000x more efficient in the future, etc. Here are all of V-God's points.
1.It's time for a tweetstorm, so let me give a brief overview of the non-financial applications of blockchain. As the blockchain becomes more scalable, the user experience becomes better, and the costs become lower, this will become a bigger and bigger part of the story.
2.One of the ways in which blockchain is underrated is that the technology is an extension of cryptography capable of doing different things. Cryptography allows you to encrypt data, prove that someone has signed it, etc. .... Blockchain, on the other hand, allows you to prove that a piece of data "wasn't" released.
3.A simple example of this is the blockchain university degree verification application I recently saw. There is only one digital signature on the degree certificate, but "(degree) revocation" is performed for up-linking. Using cryptography alone, you cannot check for revocation of "no" signatures; however, this is possible on the blockchain...
4.To check if a degree has not been revoked yet, simply scan the blockchain and check all logs of revoked contracts. If a given degree is signed and no revocation is found in the chain, then this means that the degree is still valid.
5.You can extend this to other scenarios. One of the big application scenarios is the revocation of keys (Key) in autonomous identity. If you have a Key A, and then you switch to Key B, and later Key A is hacked, how does the person you are communicating with know that Key A is no longer valid? He can check the chain for revocation.
6.Another type of use case is to verify the integrity of the process. For example, in an auction, you may want to verify that all bids submitted on time are included and that late bids are not included. You can do this if the bids are posted to the chain and even encrypted.
7.There are many other categories of use cases that require different applications to be placed on a public database, which would be more convenient (or less risky) if this were a reliable neutral platform. In theory, this could be applied in the field of supply chain tracking.
8.In terms of trusted signal neutrality, public blockchains have a real competitive advantage over centralized servers and federated chains. Now it seems that such an advantage may not outweigh the cost of the current public chain.
9.PoS and sharding (sharding) blockchains will be 1000x more efficient in the future. Thus, in the future, any efficiency sacrifices made in chaining transactions will be acceptable.
10.Blockchain is not about reducing computational costs (at least relative to centralized servers). Blockchain is a sacrifice in the form of increased computational costs to achieve *reduced* social costs*.
11.The cost of a computer per unit of computation has been reduced by a factor of 1 trillion in the last 70 years. Labor costs have gone up 2-10 times. Thus, incurring higher technology costs in order to reduce social costs is, at least sometimes, a very cost effective trade off.
12.If blockchain Layer 1 becomes cheap enough, I can foresee things like daily shopping receipts being posted to the blockchain. Because blockchain is the easiest tool to achieve verifiability, guarantee non-dual payments, etc.
13.Another interesting thing that blockchain brings to the table is the value of persistence. For example, the ERC721 collection you hold in your ethereum wallet is "yours" in a very real crypto sense, which would not be the case if it were simply stored in a central server.
14.The centralized servers can decide to change the rules later, they can be hacked, or if the company disappears, these servers can simply be shut down. Blockchain Merkle receipts, on the other hand, are ever-present.
15.In an important sense, non-financial applications of blockchain have an advantage over financial applications: if a non-financial application crashes, the risk is lower, so the rapid deployment of these applications rarely raises concerns. As such, such applications are likely to be among the first to be widely deployed, especially in institutional environments.