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The design of DW20 Decentralized Standard currency incorporates the issuance principles and methods of the US dollar, Bitcoin, fiat-backed stablecoins, algorithmic stablecoins, and collateralized stablecoins. It absorbs their advantages and improves upon their shortcomings. Currently, stablecoins issued in the cryptocurrency field do not possess the conditions to become a standard currency, but DW20 has the potential to become a standard currency.
Ms. He Bing is my good friend; she graduated from the Graduate School of the People’s Bank of China (now merged into Tsinghua University to become Tsinghua PBC School of Finance) and once owned and operated her own securities company in China. Currently living in the United States. Her specialty is foreign exchange trading. The analysis part is my interpretation of Mr. He’s article. Quite a question and answer.
Miles is in charge of wallet and application development. He has been immersed in the field of cryptocurrency for many, many years. His version does not have a lot of financial narrative, which is especially suitable for friends with insufficient financial background, and it is easy to get started immediately. What he wrote is very much like an instruction manual. They understood my idea and implemented a chainless system using modular blockchain tools.
The content of the DW20 Decentralized Standard Currency White Paper is vibrant, and the professional level is also very high. From my understanding, I have excerpted or abbreviated the full text and added some of my analysis and experience. Because I only have the level of a beginner, mistakes are inevitable. For relevant errors, please correct me, and the original text of the white paper shall prevail.
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.
Written earlier: I met Lu Xiaobo in 2023 through the series of articles “Invite out Satoshi Nakamoto to welcome the new world.” He is the first reader to leave a message on our website chainless.hk. That is what the community is like, meeting friends through writing. I invited Xiaobo to write a white paper from his perspective. He put in a lot of effort and also showed his strengths and viewpoints—a financial view of a cryptocurrency novice. That is a self-effacing statement. In fact, both the concept of cryptocurrency and financial cognition are of a high level. His writing is easy to understand, more friendly to most readers who do not understand technology, more readable, and has a larger audience.
The DW20 decentralized standard currency is the best project in the cryptocurrency circle after Bitcoin that I have seen, and it has the qualification to challenge second place. Mr. Zhu said that calling DW20 a standard currency is “taking advantage of Bitcoin,” which is a modest statement. When DW20 enters the stablecoin stage, it has stored value, transaction medium, and ruler. There are three characteristics of currency is real cryptocurrency. But Bitcoin is just a crypto asset.
The author of this article, Guangrong Shi, is the executive director of Yuxing Technology (8005). He is my college classmate and a newbie in the currency circle. The article incorporates Guangrong’s understanding of “the realization of the DW20 decentralized standard currency”. The full text avoids the obscure concept of cryptocurrency and the part of the DW20 white paper written for technical experts. It expresses it in as simple a language as possible for laymen without foundation. His articles are easier to understand and very suitable for beginners to read. By reading this article, you can get a general understanding of the significance of DW20 and the central idea of the white paper.
The biggest feature of cryptocurrency is its ability to change production relations and simplify regulatory structures and objects. Stablecoin is also another inaccurately defined term in the field of cryptocurrency. The so-called stablecoins that have appeared in the field of cryptocurrency until now are not stablecoins but are anchored coins. Stablecoins do not exist. The exact definitions are anchor coins and standard currencies. Current stable coins can’t become standard currencies. Without a standard currency, establishing a new financial ecosystem is empty talk. DW20 fills this gap.
DW20 has passed the stable currency stage and entered the standard currency stage. The comparison object now is the U.S. dollar, the leader of the standard currency. The standard currency is a currency with pricing power. It is the pricing unit of goods, the standard for pricing. What conditions must currency meet before it can be used as a yardstick for pricing?