Some understanding of DW20 product design

Decryption White Paper Series

As the airdrop approaches, we have begun to publish DW20 white papers, chainless white papers, and comments from experts. The knowledge span of cryptocurrency is enormous. Based on our learning experience, we have launched a white paper series with various authors and perspectives. There will always be one that suits you. There are five versions of the DW20 white paper; there are two versions of the chainless white paper, suitable for different readers. We will publish them starting with the most readable version. Interspersed with commentaries.

Written in front:

Mr. Ren is my WeChat group friend, and the group gathers because of similar interests. In August 2008, Satoshi Nakamoto sent his white paper to some friends in the cypherpunk mailbox, including the great Hal Finney and Adam Baker, who is still alive today and are most likely to understand him. The first response gave Satoshi Nakamoto great confidence. Mr. Ren is a highly thoughtful person who likes to think about problems from a philosophical perspective. He has a different view on DW20, which is unique and in-depth. The relationship between linear and nonlinear shows that the current blockchain’s shortcomings are profound.

Zhu Weisha August 3, 2023

Ren Leipeng commented:

“Realization of DW20 Decentralized Standard Currency” is a rare innovative solution for the continued development of Bitcoin in recent years. Among them, the DW20 decentralized standard currency is mainly to solve two main problems; one is to construct the decentralized standard currency DW20 based on Bitcoin, that is, through the three stages of meme currency, US dollar stable currency, and Bitcoin standard currency, the DW20 Deep binding with Bitcoin through mechanism design to speed up the realization of the Bitcoin standard; second, to realize DW20 applications through chainless carriers. It proposes to inherit the strong security of Bitcoin at the settlement layer based on the chainless system and realize the infinite scalability of distributed computing, seamless and safe interoperability, and security by running the chainless system.

1. The first Bitcoin standard currency design method

Zhu Weisha’s “Invite Out Satoshi Nakamoto to Welcome the New World” is a pioneering work for studying Satoshi Nakamoto’s design on Bitcoin. The author’s rigorous thinking, logic, and academic skills are like a gem in the Bitcoin world, and his deep homework on studying Satoshi Nakamoto’s thoughts is even more impressive.

There is a well-known old saying in Chinese that “DAO FA SHU” – ideology, thinking methods, and application technology are indispensable, especially the innovation of ideas cannot be replaced by thinking methods and technology applications. The DW20 decentralized standard currency proposed by Zhu is based on the entire study and research of Satoshi Nakamoto’s ideology. After inheriting Satoshi Nakamoto’s Bitcoin ideology, it is an innovation in the application of Bitcoin in terms of thinking methods and technical applications.

After Satoshi Nakamoto disappeared, the currency value of Bitcoin fluctuated sharply on a four-year cycle, which made it impossible for this algorithm trust to be better applied in the real world. From Litecoin, which imitated Bitcoin, to Ethereum, which pioneered smart contract applications, ten thousand chains have been issued together, just like the Old King Xietang Qianyan, but it has not yet flown into the homes of ordinary people. In the future, will Bitcoin become an anti-inflation and anti-risk financial product like gold, or will it become the world’s standard currency using Satoshi Nakamoto’s design concept? The DW20 decentralized standard currency proposal is a continuous innovation of trust in this algorithm. Let us understand the feasibility of achieving the Bitcoin standard.

The history of Bitcoin has verified its value storage function, but it does not have the ruler function that currency should have. Because it is impossible to know the design method of Satoshi Nakamoto after his disappearance, but it can be imitated from his Bitcoin design, and innovation comes from imitation and portfolios. From “air” to general commodities, then to general equivalents, and then to currency, Bitcoin requires a mechanism design process. How to understand the design mechanism of DW20 is particularly important. I interpret DW20 as a three-stage rocket.

First Stage Rockets: Air to General Merchandise. Legal currency is a consensus-based on national credit, and Bitcoin is based on mathematical consensus. DW20 has laid an excellent genetic foundation by relying on the Bitcoin consensus instead of the fiat currency consensus in the early stage. With the birth of the Bitcoin BRC20 protocol, convenience has given the feasibility of issuing DW20, the ability to inherit the Bitcoin credit root and share the settlement and security capabilities of Bitcoin. Bitcoin was also an air currency initially, and now it is an asset currency. With the help of Bitcoin, the air stage of DW20 has undoubtedly been shortened.

The total number of DW20 at this stage is 210 billion, equivalent to expanding the number of bitcoins ten thousand times, and it also has the characteristics of meme coins such as DOGE. Because the issuance mechanism is bound to the number of Bitcoin address users, the value of users is accumulated through airdrops. As the number of users increases, the conversion from air to general commodities recognized by the public is completed.

Secondary Rockets: General Commodities to Stablecoins. Join Bitcoin mortgage and gradually form a stable currency that participates in regulating through mortgage Bitcoin. At this time, DW20 began to be issued in unlimited quantities, and with the automatic regulation of mortgaged bitcoins, the conversion from meme-coins to stablecoins was completed.

Three-stage rocket: stable currency to standard currency. Bitcoin needs 32 four-year cycles to complete the basic issuance. How to shorten and quickly realize the standard function of Bitcoin, give Bitcoin an M1 issuance mechanism similar to modern currency, and realize the regulation of the overall economy. It is what the DW20 model needs to solve The problem. Bitcoin can be used to measure the total assets of human beings. And DW20 completes the measurement of specific commodities.

2. The innovation of DW20’s issuance and carrying mechanism

Technological progress and economic development have driven every change in currency form in history. Each currency form has a corresponding wallet or carrier. DW20 issues the Bitcoin-based BRC20 protocol, but its carrying tool is the key to its successful operation.

Obviously, as a Bitcoin-based standard currency, its operating carrying tool needs to have the essential attribute of Bitcoin-distributed computing consensus, and it also needs to be fast and secure.

The Bitcoin system was conceived in the context of the Byzantine Generals Problem, a distributed computing problem that assumes that any given message can fail and that any given agent can lie. It achieves distributed consensus through the game of workload proof calculation and the longest chain principle. The essence of the idea of blockchain extended from Bitcoin is how to cultivate algorithmic trust to replace social or authoritative credit. Therefore, blockchain has become synonymous with the value Internet with account and settlement systems.

From the perspective of complex systems, the essence of any system is neither linear nor nonlinear, but the unity of opposites between linear and nonlinear. That is, without linearity, nonlinearity will inevitably become the “chaos” of cognition and cannot be recognized; similarly, without nonlinearity, linearity will become a simple line that constitutes the essence of the system and is recognized by most people. From Ethereum to the present, under the constraints of the Impossible Triangle rule, most blockchains strengthen the speed of blockchains through node consensus, man-machine consensus, sharding, and layering. From the view of “DAO FA SHU, ” only pursuing excellence at the skill level and things that most people easily agree with do not necessarily represent the essence of things. The essence of Bitcoin is transparency and openness, and the use of blockchain is a technology to achieve this transparency and openness. However, the practice of most application projects proves that the absolutization of linear blocks is not entirely correct.

Today, under the cover of the light of the blockchain, distributed computing has still made significant technological progress. As the operating carrier of DW20, the chainless system adopts the distribution mode of the general ledger index sub-ledger, forming a transparent and open financial application system. At the same time, the chainless system and the Bitcoin system adopt a cross-chain mapping mechanism. The operation mode of DW20 forms the characteristics of nonlinear distributed computing and linear settlement, which significantly simplifies the payment burden of the Bitcoin system and also has an Infinitely scalable distributed payment model.

With the release of DW20, we will wait and see whether the road to the standard currency of DW20 will be smooth and whether the chainless system will become a pagoda for distributed applications.

The above is the analysis of the design concept of DW20 decentralized standard currency. For specific design methods and technical applications, please refer to the white paper “Realization of DW20 Decentralized Standard Currency” and the white paper of the chainless system.

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