In-depth crypto planet: What is its essential value

The chaos and lack of innovation in the crypto world make people wonder: Are we actually moving towards our ideal future?The introduction to “Protocol Revolution and DigiLaw Project” explores the essence of the crypto world, the development points, and the infinite possibilities of future construction from a systematic perspective, providing important thoughts for understanding the true face of this new planet.

Matt Huang isCasino on MarsThe Chinese point out that the crypto world is a new planet worth building because it provides a blank piece of paper and we have the opportunity to establish a new property rights system and build an upgraded financial system and Internet platform.This is an analysis from a more macro perspective. If you start from a more micro and first-principles perspective, what is the essential value of the crypto world?What is the most essential difference between it and the existing world system?Where does the unchanging foundation and motivation to ensure its vigorous development come from?

Matt Huang pointed out in Casino on Mars that the crypto world is a new planet worth building because it provides a blank piece of paper and we have the opportunity to build a new property rights system, build an upgraded financial system and the Internet.platform.This is an analysis from a more macro perspective. If you start from a more micro and first-principles perspective, what is the essential value of the crypto world?What is the most essential difference between it and the existing world system?Where does the unchanging foundation and motivation to ensure its vigorous development come from?

Tokenized decentralized protocol: core value of the crypto world

Personally, I believe in Bitcoin and am optimistic about the future of smart contracts represented by Ethereum and Web3.But as a researcher, I have been asking myself in the past few years: put aside all the gorgeous words and hot-temptation concepts,By 2050, when humans look back at the entire crypto world built on blockchain, what is its most essential value?

I currently have a vague answer in my mind:The tokenized decentralized protocol is the most essential value of the entire crypto world.

To better express this core insight, I refer to this kind of “tokenized decentralized protocol” as “DigiLaw”.Because the term “protocol” is too broad, the TCP/IP agreement, the Paris climate agreement, traffic rules, home purchase contracts and even oral agreements are all agreements, but it is different from the “crypto agreement” we are going to discuss here.Today’s “cryptographic protocol” mainly includes two major categories: “blockchain protocol” and “smart contract protocol”. I call this type of encryption protocol that aims to promote the decentralization and tokenization process in a transparent way. I call it the “cryptographic protocol” that aims to promote the decentralization and tokenization process in a transparent way.”DigiLaw” (see the figure below for the specific relationship).

The Law of Digital Nature: Immutable Encryption Consensus

“DigiLaws” is inspired by “Digital world” and “Laws of nature”, which literally means that such encryption protocols will eventually be as transparent and tampered with the laws of nature (Note: for non-crypto users: here””Improperties” does not mean that the agreement remains unchanged, but rather that the change of the agreement needs to be carried out under collective consensus and is not affected by the will of a few people).

“DigiLaw” not only allows non-encrypted users to see its essence at a glance, but also always reminds encryption participants not to be obscured by the gorgeous narrative of the project, but should examine whether they adhere to the principles of transparency and immutability with the high standards of “DigiLaw”.Even if the project cannot be fully decentralized and tokenized at the beginning, the entire process should be transparent to minimize the possibility of using information gaps to do evil.When “DigiLaw” becomes a social consensus, we can work together to break through the disguise of centralized projects and return to the original intention of “Can’t be evil” in the crypto world.

“DigiLaw”‘s “decentralization” and “tokenization” are indispensable.As Vitalik stated in his 2024 Token2049 speech:Blockchains create persistent structures that can be extremely robust.“Decentralization” provides a rigid algorithm consensus for “robust”.It enhances the immutability of the protocol, bringing it closer to the laws of nature, thus creating a “trustless” environment that compresses the potential evil space of the protocol to a minimum; on this basis, “tokenization” is“robust” provides a lasting social consensus.It attracts a large number of participants to protect the protocol through incentives, thus forming a social consensus that goes beyond algorithms, time spans, broad and indestructible. This unshakable collective will enable the immutability of the protocol to be truly realized.At the same time, the incentives given by “tokenization” will also help the value creation of the protocol, so that it has the initiative similar to life, and thus continues to grow into “attention black hole” (“attention black hole” refers to countless attention connections.Together, the “black hole” formed that can significantly affect the development of the world and collapse the future).

CreateX Era: Unleashing the Digital Leap of Human Innovation

In the digital society of the future, DigiLaw will become a new element on which humans and AI rely on for survival.This primitive is a “digital natural law” designed by humans but cannot be tampered with. Since then, the digital world has no longer been entirely built by artificially, but has changed into a part that can collaborate with AI to evolve “digital nature”.In digital nature, trust no longer needs to be built at high cost, but is directly encoded in DigiLaw, where network participants are able to reach consensus based on a set of “unchanged rules” supported by encryption techniques and mathematical principles, rather thanCentral authorities or third parties, this naturally forms an environment of “no trust”.

In such a credible, equal and open environment, value can flow freely, and innovation will no longer be restricted and scrutinized by “centralization”. Coupled with the incentives given by tokenization, a natural globalizationbottom-up blowout innovation involving all mankind will naturally emerge.

For example, in order to implement an idea in the real world, it not only requires permission from all parties, but also requires forming a team, and at the same time investing a lot of time, energy and capital to promote this process.In the crypto world, the threshold and cost of innovation are greatly reduced.As long as you have an idea, you can start right away without any permission.Coupled with the rich and nearly free “digital natural resources” that provide a large number of basic “Lego bricks” for innovation. In the near future, you can even form a professional AI team at extremely low costs, 24 hours without interruptionHelp you build and promote your original “DigiLaw Lego”.Everyone can use the existing “Lego” as “building blocks” and quickly build a large number of new “DigiLaw Legos” with more advanced and complexity.Explosive underlying independent innovation will promote the diverse ecology of digital nature to emerge rapidly at an immeasurable rate and evolve independently without restrictions.

The achievements of the “Protocol Revolution” will penetrate all aspects of the economy and society at an exponential rate, a new paradigm will be established, and the development of digital nature nurtured by encryption technology will quickly surpass digital artificiality.

In this never-ending “protocol revolution”, the crypto world will also expand into an “endless future”, when our thinking and lifestyle may be profoundly changed.Most of the repetitive routine work will be easily handled by AI. Humans are no longer troubled by survival pressure. The digital natural environment without trust will maximize the innovation potential of all mankind. Driven by AI and humans, the entire worldThe subjective attention will be more diverted to the pursuit of creation and experience, and that will be a brand new and extremely dynamic era, which I call the “CreateX era”.