What are the risks of blockchain investment?

There are three layers of blockchain: the first layer is distributed network; The second level is to add a set of cryptographic account system on the basis of distributed network, from distributed network to distributed ledger. If an economic incentive system for digital currency issuance is added to the distributed ledger, a networkwide consensus governance mechanism based on game theory, known as blockchain, can be further divided into public blockchains. Public blockchains add incentives and governance to a distributed ledger.

Each of these three levels has its value and its application. For example, the digital currency Research Institute once said that the currency issued by the central bank does not necessarily use blockchain, but may use distributed ledger or distributed network in some places to achieve certain purposes. But if you want to build a completely self-motivated, self-organized disintermediation, or decentralized organization in the business world, you have to use the public blockchain. The alliance chain can be regarded as the embodiment of the neutralization of distributed ledger technology, which extracts the governance mechanism of coin issuing mechanism, incentive mechanism and the consensus of the whole network, and is more inclined to the neutral governance mechanism to some extent.

There is no distinction between the three layers of blockchain, but different purposes using different layers of blockchain technology. Blockchain will merge all aspects of the physical world. Blockchain itself is also a complete virtual society, with algorithms and protocols at the bottom, economics and sociology at the middle, and politics at the top. Risk: all the risks of traditional VC blockchain are in addition, investors have weaker control over the investment target, the uncertainty of project recovery is greater, and there is the market risk of ETH basic currency

There are three layers of blockchain: the first layer is distributed network; The second level is to add a set of cryptographic account system on the basis of distributed network, from distributed network to distributed ledger. If an economic incentive system for digital currency issuance is added to the distributed ledger, a networkwide consensus governance mechanism based on game theory, known as blockchain, can be further divided into public blockchains. Public blockchains add incentives and governance to a distributed ledger. Each of these three levels has its value and its application. For example, the digital currency Research Institute once said that the currency issued by the central bank does not necessarily use blockchain, but may use distributed ledger or distributed network in some places to achieve certain purposes. But if you want to build a completely self-motivated, self-organized disintermediation, or decentralized organization in the business world, you have to use the public blockchain. The alliance chain can be regarded as the embodiment of the neutralization of distributed ledger technology, which extracts the governance mechanism of coin issuing mechanism, incentive mechanism and the consensus of the whole network, and is more inclined to the neutral governance mechanism to some extent. There is no distinction between the three layers of blockchain, but different purposes using different layers of blockchain technology. Blockchain will merge all aspects of the physical world. Blockchain itself is also a complete virtual society, with algorithms and protocols at the bottom, economics and sociology at the middle, and politics at the top. Risk: all the risks of traditional VC blockchain are in addition, investors have weaker control over the investment target, the uncertainty of project recovery is greater, and there is the market risk of ETH basic currency.

So how do we understand that? We are all familiar with the concept of database, any website or system behind a database, we can imagine a database as a book, for example alipay, Banks, public accounting firm of the database, it is a actually a billing system, the accounting system by every team in the center of the operation and maintenance, This is typical of centralized database management.