Dr. Xiao Feng: Distributed Network Is the First Level of Blockchain Mechanism Design. IntelliShare Is the Practitioner
About Dr. Xiao Feng:
He holds a Ph.D. in Economics from Nankai University and has over 18 years of experience in securities industry and asset management. He once served as deputy director of the Securities Management Department of the Shenzhen Economic Special Branch of the People's Bank of China, director of the Shenzhen Securities Management Office, deputy director of the Securities and Exchange Commission, and president of Bosera Fund Management Co., Ltd. He is currently the vice chairman and executive director of China Wanxiang Holdings Co., Ltd., the founder of Wanxiang Blockchain Lab, and the largest blockchain investment fund in China, the partner of distributed capital.
Optimal application of distributed commerce:
The Sucker Theory of Blockchain Mesh Structure
In the past three years, Dr. Xiao Feng has shared a lot of views on the blockchain architecture and development direction. The framework concept of distributed business has very similarities with the application concept of IntelliShare.
One of them is determined by the natural distributed structure of the wireless Mesh network (WMN); on the other hand, it is inspired by Dr. Xiao Feng. Based on various considerations and discussions, IntelliShare achieves the optimal application of distributed commerce with The Sucker Theory of Blockchain Mesh Structure
IntelliShare's STBS The Sucker Theory of Blockchain Mesh Structure is a natural distributed network structure. It customizes the exclusive local area network through blockchain + Mesh network technology, which first forms a specific Token Economy form in the region, and then solves the trust consensus problem between different local area networks. Throughout the IntelliShare Mesh network mechanism, everyone builds and shares with consensus and can act as a network operator, naturally reflecting the characteristics of a distributed business model.
Characteristics of a distributed business model
In the development of the blockchain industry, the distributed business model is gradually setting sail and showing great prospects.
1. The basic technical architecture is embodied in a distributed network structure, and the relevant parties are in a peer-to-peer relationship and are not affiliated with each other;
2. The value creation mechanism is embodied as the zero marginal cost under the digital rules;
3. The value growth mechanism is embodied in “Moore's Law”. Once it passes the inflection point, it will achieve exponential growth immediately;
4. The organizational mechanism is embodied in the framework of community autonomy, platform organization and ecosystem;
5. The collaboration mechanism is reflected in relying on consensus rather than instructions;
6. The incentive mechanism is embodied in the Internet thinking of obtaining income from third parties;
7. The interest distribution mechanism is reflected in sharing.
The distributed business model, despite its various manifestations, has a common trait at this early stage: compared with ownership, it pays attention to the right to use, even without ownership, and only the right to use.
The distributed business model is a derivative of the development of blockchain, and in the design of the entire blockchain mechanism by Dr. Xiao Feng, the whole mechanism design is divided into three levels.
Distributed network is the first level of blockchain mechanism design
From the perspective of mechanism design, the blockchain can be divided into three levels.
1. The first level is a distributed network, which mainly solves the problem of peer-to-peer communication network and is also the basis for the establishment of blockchain.
Peer-to-peer network technology has been around for decades, such as early P2P networks, and now NVIDIA computing chips. The IoT calculations made by NVIDIA make each sensor itself capable of computing, eliminating the need for a centralized database to process the data.
2. By establishing a cryptographic ledger system on top of peer-to-peer communication, you can move from peer-to-peer communication to peer-to-peer transactions. This is the second level of the blockchain—distributed ledger.
The biggest feature of distributed ledgers is that everyone is billed on a ledger. Anyone can open their own passwords and accounts on this ledger without any approval from any institution or individual. After the account is opened, you can complete the payment, transaction, and exchange of value without relying on any financial intermediary. This is a typical distributed ledger of peer-to-peer value exchanges. In this system, all parties concerned can have the same ledger, and all affairs can be recorded on it, which greatly saves manpower, material resources and financial resources.
3. Adding a new incentive mechanism and governance mechanism to the distributed ledger is the third level of the blockchain – the public blockchain, such as the most typical bitcoin blockchain.
Global peer-to-peer transactions, payments and exchanges occur every second on the Bitcoin blockchain, but this network has neither shareholders, boards of directors, management, employees, nor business, office, funds or any assets. However, there has not been a mistake, and the entire system has not experienced a one-second downtime. In this system, the system can automatically issue digital currency as an incentive, and combines a consensus algorithm based on game theory to construct a new governance mechanism. When people pay for the bitcoin blockchain, they can get bitcoin as a reward, which is an incentive mechanism for self-circulation. No management decides how many bonuses people should receive, and everything is automatically issued by the system.
The biggest feature of the blockchain is that the data on it is highly consistent, non-tamperable and completely transparent. Because the blockchain is built on a peer-to-peer distributed network, each node on the network has full access to information. In a system with completely symmetrical information, there is no need for the board of directors and management. Everyone makes decisions peer-to-peer. Everyone uses a set of algorithms on the Internet to reach a consensus and decide what to do.
This is why the blockchain can establish a governance mechanism that does not require third parties. The technical theory behind it is algorithmic game theory. Relying on these theoretical foundations and the development of cryptography, the blockchain will make subversive changes to existing social relations, commercial civilization, corporate organizational forms, and business models.
IntelliShare structural level
1. Distributed network level
The IntelliShare Wireless Mesh Network (WMN) itself is a perfect distributed peer-to-peer communication network. The core is to use distributed Mesh technology, blockchain technology, distributed ledger system (DLT) to create a diversified business ecosystem that can be self-organizing and self-expanding.
2. Distributed ledger level
In the second level of the IntelliShare distributed network, the distributed ledger technology is used to register the Mesh network nodes that provide traffic and perform matching stamping of the data. This allows the node port of the provided service to perform a unique value authentication according to the set time ratio by time, flow consumption, access nodes, etc. And reconfirmed by data retention comparison between nodes to ensure the reliability of data between nodes.
3. Public blockchain level
INE is the Token incentive form of the entire distributed network ecosystem. In the IntelliShare Mesh distributed network ecosystem, INE can be obtained by sharing IntelliShare Mesh network resources, accepting content distribution, transaction redemption, project activity rewards, etc. INE can be circulated within the Mesh network mechanism to stimulate node contributors.
And to achieve the degree of sharing like Bitcoin, IntelliShare has a long way to go, and future plans are already in progress.
First, create an IntelliShare Mesh distributed network public chain with multi-scenario commercial applications.
This is actually not so difficult. In the IntelliShare launch conference, the project founder Raymond said: IntelliShare Mesh first implements the application scenario, and then launches a public chain. The Mesh network is a customized exclusive LAN that means doing a Token Economy model in this LAN. This small scene can be a big chain store, a hotel, a factory, a smart community, etc. We can customize a Token Economy model for it on the Mesh network.
Second, the IntelliShare Community Autonomous Committee is being formed.
In mid-November 2018, the IntelliShare Community Autonomous Committee Orange Book was officially announced, and the management personnel were openly recruited in the community, and the community members signed up for the election. IntelliShare will open up some of the community consensus management share and motivate consensus builders. Please wait and see for the further development.
As Dr. Xiao Feng said, the mechanism design of the blockchain is divided into three levels. And the distributed network as the first level, commercial exploration is far from beginning. The goal of IntelliShare is to build the cornerstone of a blockchain. On this basis, emerging technologies such as the Internet of Things and artificial intelligence will be the greatest development, and an era of global connectivity will come.