Hello everyone, I am Mr. K, today we will summarize the digital currency article and talk about "what impact does digital currency bring to us"?

Many people's concept of digital currency still stays in the impression of "no intrinsic value" or just a "speculative tool", but in fact, the concept of digital currency was proposed before 1996 and has been developed until today. Our society has a huge impact, and its impact has two points.

First, the most intuitive thing is that the development of digital currency has promoted the birth of blockchain technology. The concept of digital currency was first proposed by David Chaum in his paper "Security without identification: transaction systems to make big brother obsolete" published in 1985. After he expounded the idea of ​​an untraceable cryptographic network payment system and digital currency, a large number of cryptographic geniuses began to try to make this concept a reality.

Since then, during the period from 1990 to 2007, many digital currency payment systems have emerged, including Adam Baker's HashCash, Dai Wei's B-Money, Nick Szabo's bit gold, etc. Although they all failed, but In this development process, the core technologies of the blockchain have been precipitated one by one. It was not until the emergence of Bitcoin in 2008 that there was a systematic blockchain technology.

Afterwards, with the official launch of Ethereum in 2015, the infinite possibilities of the blockchain were revealed, and this technology was promoted to all walks of life, which led to the current glory of the blockchain. So, if there is no digital currency, the current blockchain industry may still be in a small corner, waiting quietly!

In addition, the second impact of digital currency is to promote the progress of social financial payment. Why do you say that? Don't underestimate the power of digital currency.

We all know that cashless payment must be more progressive than cash payment, but even in my country, where cashless payment services are very developed, there is still no way to completely get rid of cash, like the "Alipay" and "WeChat" we usually use. It should be called electronic cash, which essentially still requires bank cash for settlement.

But that is not the case with digital currencies. The essence of digital currency is information, and the transmission speed of information must be faster than the settlement speed of cash, especially when it comes to cross-border payments. For example, if we buy a certain network service product in the United States in China, we need to have a bank card in the United States. Even if we don’t need it, we have to use the SWIFT international financial network for settlement when we pay, which takes 2 to 5 days. It's all very troublesome.

But if that website supports digital currency payment, we can transfer directly through digital currency, and the blockchain system at the bottom of digital currency will automatically record this transfer, which is much less time and cost than traditional payment. The essence of this transaction is the transmission of information. Therefore, many countries are currently engaged in digital currency, because it helps to improve the internationalization of their national currencies.

In addition, digital currency is also easier to track data, which is very helpful in anti-money laundering and preventing illegal transactions, and this is the real impact of digital currency.

In general, for us, digital currency is a product born of technological innovation. In the early days, it may be very weak like a spark, but as people join and time goes by, it continues to grow larger, and eventually Feed that power back to the world and make it a better and brighter place.

Thanks to Mr. Bandit for his help and guidance on the content of this episode.

Sina Weibo: @风马

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