China is one of the leading countries in accepting and implementing the Blockchain Technology, but it wasn't like this always.Long back, China's central bank had warned the country's Bitcoin exchanges against margin trading and money laundering as reported by the local news.Today, The People’s Bank of China (PBOC) officially announced the set-up of a FinTech committee .According to the unofficial translation of the release made on May 15, 2017 from the central Bank of China, “Recently, the People's Bank of China set up a financial technology (FinTech) committee, aimed at strengthening the financial and scientific research work planning and coordination.“ FinTech is a technology-driven financial innovation, for the financial development.The People's Bank of China will organize an in-depth study on the impact of financial and technological development on monetary policy, financial market, financial stability and payment and settlement, and will do the strategic planning and policy guidance for China's financial and technological development.

The People's Bank of China is willing to join hands with the parties to work together to promote the healthy and orderly development of China's financial technology, and to serve the real economy.litecoin rss feedThe People's Bank of China (PBOC) attaches great importance to the development of monetary policy, new opportunities and challenges of digital money.bitcoin kaç paraAccording to a press release, in 2014, the PBOC set up a special research team, and in early 2015 to further enrich the power of the digital currency issuance and business operation framework, the key technology of digital money, digital currency distribution environment, digital currency In a seminar held on January 20, 2016 at Beijing on digital currency, the digital money research experts from People's Bank of China, Citibank and Deloitte discussed the overall framework of digital currency issuance, the national digital currency in currency evolution, and the encrypted currency issued by the state.100 mh/s bitcoin

The meeting pointed out that with the development of information technology and the evolution of technologies such as mobile Internet, trusted and controllable cloud computing, terminal secure storage and block chain, the global payment method has undergone tremendous changes.compile bitcoin in linuxThe development of digital money is Banks' currency issuance and monetary policy bring new opportunities and challenges.ethereum downloading chain structureThe meeting believed that in China's the issuance of digital money can reduce the high cost of traditional paper issuance and circulation.bitcoin peer to peer donationIt enhances the convenience and transparency of economic transactions, reduce money laundering and evasion of tax evasion, and enhance the central bank's control over money supply and currency circulation.

Later that month ,the PBOC announced that it will make the necessary moves to work toward issuing a digital currency, as soon as possible.A ‘special’ research team put together by the PBOC was set up as early as 2014 to conduct research and look into all possible regulatory frameworks for the issuance of a nationwide digital currency and the impact it may have on the economy.In the promotion of digital currency research, the People's Bank of China has established communication links with relevant international organizations and Internet enterprises, and has conducted extensive discussions with relevant financial institutions and traditional card companies at home and abroad.) and EtherWorld (Facebook).#cryptonews #blockchain #China #PBOC #etherworldThe author of this article, Vitalik Buterin, is also the founder of Ethereum, and this article is intended as an expository piece and not a review.Over the past year, there has been an increasingly large amount of discussion around so-called “Bitcoin 2.0″ protocols – alternative cryptographic networks that are inspired by Bitcoin, but which intend to make the underlying technology usable for far more than just currency.

The earliest implementation of this idea was Namecoin, a Bitcoin-like currency created in 2010 which would be used for decentralized domain name registration.More recently, we have seen the emergence of colored coins, allowing users to create their own currencies on the Bitcoin network, and more advanced protocols like Mastercoin, Bitshares and Counterparty which intend to provide features such as financial derivatives, savings wallets and decentralized exchange.However, up until this point all of the protocols that have been invented have been specialized, attempting to offer detailed feature sets targeted toward specific industries or applications usually financial in nature.Now, a group of developers including myself have come up with a project that takes the opposite track: a cryptocurrency network that intends to be as generalized as possible, allowing anyone to create specialized applications on top for almost any purpose imaginable.The project: Ethereum.One common design philosophy among many cryptocurrency 2.0 protocols is the idea that, just like the internet, cryptocurrency design would work best if protocols split off into different layers.

Under this strain of thought, Bitcoin is to be thought of as a sort of TCP/IP of the cryptocurrency ecosystem, and other next-generation protocols can be built on top of Bitcoin much like we have SMTP for email, HTTP for webpages and XMPP for chat all on top of TCP as a common underlying data layer.So far, the three main protocols that have followed this model are colored coins, Mastercoin and Counterparty.The way the colored coins protocol works is simple.First, in order to create colored coins, a user tags specific bitcoins as having a special meaning; for example, if Bob is a gold issuer, he may wish to tag some set of bitcoins and say that each satoshi represents 0.1 grams of gold redeemable from him.The protocol then tracks those bitcoins through the blockchain, and in that way it is possible to calculate who owns them at any time.Mastercoin and Counterparty are somewhat more abstract; they use the Bitcoin blockchain to store data, so a Mastercoin or Counterparty transaction is a Bitcoin transaction, but the protocols interpret the transactions in a completely different way.

One can have two Mastercoin transactions, one sending 1 MSC and the other 100000 MSC, but from the point of view of a Bitcoin user that does not know how that Mastercoin protocol works they both look like small transactions sending 0.0006 BTC each; the Mastercoin-specific metadata is encoded in the transaction outputs.A Mastercoin client then needs to search the Bitcoin blockchain for Mastercoin transactions in order to determine the current Mastercoin balance sheet.I personally have had the privilege of talking directly to many of the originators of the colored coins and Mastercoin protocol, and have participated considerably in the development of both projects.However, over about two months of research and particpation, what I eventually came to realize is that, while the underlying idea of having such high-level protocols on top of low-level protocols is laudable, there are fundamental flaws in the implementations, as they stand today, that may well prevent the projects from ever gaining anything more than a small amount of traction.The reason is not that the ideas behind the protocols themselves are bad; the ideas are excellent, and the response of the community alone is proof that they are trying to do something that is very much needed.

Rather, the reason is that the low-level protocol that they are trying to build their high-level protocols on top of, Bitcoin, is simply not cut out for the task.This is not to say that Bitcoin is bad, or is not a revolutionary invention; as a protocol for storing and transferring value, Bitcoin is excellent.However, as far as being an effective low-level protocol is concerned, Bitcoin is less effective; rather than being like a TCP on top of which one can build HTTP, Bitcoin is like SMTP: a protocol that is good at its intended task (in SMTP’s case email, in Bitcoin’s case money), but not particularly good as a foundation for anything else.The specific failure of Bitcoin is particularly concentrated in one place: scalability.Bitcoin itself is as scalable as a cryptocurrency can be; even if the blockchain balloons to over a terabyte, there is a protocol called “simplified payment verification”, described in the Bitcoin whitepaper that allows “light clients” with only a few megabytes of bandwidth and storage to securely determine whether or not they have received transactions.

With colored coins and Mastercoin, however, this possibility disappears.The reason is this.In order to determine what color a colored coin is, you need to not just use Bitcoin simplified payment verification to prove that it exists; you also need to trace it all the way back to its genesis, and do an SPV check each step of the way.Sometimes, the backward scan is exponential; and with metacoin protocols there is no way to know anything at all without verifying every single transaction.And this is what Ethereum intends to fix.Ethereum does not intend to be a Swiss Army knife protocol with hundreds of features to suit every need; instead, Ethereum aims to be a superior foundational protocol, and allow other decentralized applications to build on top of it instead of Bitcoin, giving them more tools to work with and allowing them to gain the full benefits of Ethereum’s scalability and efficiency.At the time that Ethereum was being developed, there was a large amount of interest in allowing financial contracts on top of cryptocurrencies; the basic type of contract being a “contract for difference”.

In a contract for difference, two parties agree to put in some amount of money, and then get money out in a proportion that depends on the value of some underlying asset.For example, a CFD might have Alice put in $1000, Bob put in $1000, and then after 30 days the blockchain would automatically return to Alice $1000 plus $100 for every dollar that the LTC/USD price went up during that time period and send Bob the rest.These contracts allow people to speculate on assets at high leverage, or alternatively protect themselves from cryptocurrency volatility by canceling out their exposure, without any centralized exchange.At this point, however, it is clear that contracts for difference are really only one special case of a much more general concept: contracts for formula.Instead of having the contract take in $x for Alice, $y from Bob, and return to Alice $x plus an additional $z for every dollar that some given ticker went up, a contract should be able to return to A an amount of funds based on any mathematical formula, allowing contracts of arbitrary complexity.

If the formula allows random data as inputs, these generalized CFDs can even be used to implement a sort of peer-to-peer gambling.Ethereum takes this idea and pushes it one step further.Instead of contracts being agreements between two parties that start and end, contracts in Ethereum are like a sort of autonomous agent simulated by the blockchain.Each Ethereum contract has its own internal scripting code, and the scripting code is activated every time a transaction is sent to it.The scripting language has access to the transaction’s value, sender and optional data fields, as well some block data and its own internal memory, as inputs, and can send transactions.To make a CFD, Alice would create a contract and seed it with $1000 worth of cryptocurrency, and then wait for Bob to accept the contract by sending a transction containing $1000 as well.The contract would then be programmed to start a timer, and after 30 days Alice or Bob would be able to send a small transaction to the contract to activate it again and release the funds.Aside from this narrow contract-for-difference model, however, the whitepaper outlines many other transaction types that will become possible with Ethereum scripting, of which a few include: Code example of an Ethereum currency contract, written in a high-level language.if tx.value < 100 * block.basefee: stopif contract.memory[1000]: from = tx.sender to = tx.data[0] value = tx.data[1] if to <= 1000: stop if contract.memory[from] < value: stop contract.memory[from] = contract.memory[from] - value contract.memory[to] = contract.memory[to] + valueelse: contract.memory[mycreator] = 10000000000000000 contract.memory[1000] = 1This is the advantage of Ethereum code: because the scripting language is designed to have no restrictions except for a fee system, essentially any kind of rules can be encoded inside of it.

One can even have an entire company manage its savings on the blockchain, with a contract saying that, for example, 60% of the current shareholders of a company are needed to agree to move any funds (and perhapps 30% can move a maximum of 1% per day).Other, less traditionally capitalistic, structures are also possible; one idea is for a democratic organization with the only rule being that two thirds of the existing members of a group must agree to invite another member.The financial applications, however, only scratch the surface of what Ethereum, and cryptographic protocols on top of Ethereum, can do.While Ethereum's financial applications may be what initially excites many people in the cryptocurrency community, the long-term promise is arguably in the ways that Ethereum can work together with other, non-financial, peer-to-peer protocols.One of the main problems that non-financial peer-to-peer protocols have faced so far is the lack of incentive - that is to say, unlike centralized for-profit platforms, there is no financial reason to participate.

In some cases, participation is in some sense its own reward; it is for this reason that people continue to write open source software, contribute to Wikipedia, and make comments on forums and write blog posts.In the context of peer-to-peer protocols, however, participation is often not a "fun" activity in any meaningful sense; rather, it consists of putting in a large quantity of resources, letting a daemon run in the background potentially hogging CPU and battery power, and forgetting about it.For example, there have already for a long time been data protocols such as Freenet that essentially provide everyone with decentralized uncensorable static content hosting; in practice, however, Freenet is very slow, and few people contribute resources.File sharing protocols all suffer from the same problem: although altruism is good enough for spreading popular commercial blockbusters around, it becomes markedly less effective for those with less mainstream preferences.Thus, perversely, the peer-to-peer nature of file sharing may actually be helping the centralization of entertainment and media production, not hindering it.

All of these problems, however, can potentially be solved if we add incentivization - empowering people to build not just nonprofit side projects, but also businesses and livelihoods, around participating in the network.Many of the above applications consist of actual peer-to-peer protocols and projects that are already well under development; in those cases, we intend to establish partnerships with as many of these projects as we can, and help fund them in exchange for bringing their value into the Ethereum ecosystem.We want to help not just the cryptocurrency community, but also the peer to peer community as a whole, including file sharing, torrents, data storage and mesh networking.We believe that there are many projects, especially in the non-financial area, that can potentially bring great value to the community, but for which development is underfunded precisely because they lack an opportunity to effectively introduce a financial component; perhaps Ethereum may be what ultimately pushes dozens of these projects to the next stage.Why are all of these applications possible on top of Ethereum?

The answer lies in the currency's internal programming language.An analogy here may be made with the internet.Back in 1996, the web was nothing but HTML, and all people could do with it was serve static web pages on sites like Geocities.Then, people decided that there was a great need for people to submit forms in HTML, so HTML added a forms feature.This was like a "colored coins" of web protocols: try to solve a specific problem, but do it on top of a weak protocol without looking at the larger picture.Soon, however, we came up with Javascript, a programming language inside the web browser.And it was Javascript that solved the problem: because Javascript is a universal, Turing-complete programming language, it can be used to build apps of arbitrary complexity; Gmail, Facebook and even Bitcoin wallets have all been made with the language.And this was not because the Javascript developers decided that they wanted people to build Gmail, Facebook, and Bitcoin wallets; they just wanted a programming language.

What we can do with the language is up to our own imaginations.And that is the spirit that we want to bring to Ethereum.Ethereum does not intend to be the end of all cryptocurrency innovation; it intends to be the beginning.Along with its main feature of a Turing-complete, universal scripting language, Ethereum will also have a number of other improvements over existing cryptocurrency:Ethereum is potentially a massive and wide-reaching undertaking, and will take months to develop.With that in mind, the currency will be released in multiple stages.The first stage, the release of the whitepaper, has already happened.Forums, a wiki and a blog have been set up, and anyone is free to visit them and set up an account and comment on the forums.On January 25, a 60-day fundraiser will launch at the confrence in Miami, during which anyone will be able to purchase ether, Ethereum's internal currency, for BTC much like the Mastercoin fundraiser; the price will be 1000 ether for 1 BTC, although early investors will get roughly a 2x benefit to compensate for the increased risk that they're taking for participating in the project earlier.

The fundraiser participants will not just get ether; there will also be a number of additional rewards, likely including free tickets to conferences, a spot to put 32 bytes into the genesis block, and for the top donors even the ability to name three sub-units of the currency (eg.the equivalent of the "microbitcoin" in BTC).The issuance of Ethereum will not be any single mechanism; instead, a compromise approach combining the benefits of multiple approaches will be used.The issuance model will work as follows:There is an important distinction compared to Bitcoin and most other cryptocurrencies: here, the eventual supply is unlimited.The "permanent linear inflation" model is designed to make ether neither inflationary nor deflationary; the lack of a supply cap is intended to dampen some of the speculative and wealth inequality effects of existing currencies, but at the same time the linear, rather than traditionally exponential, inflation model will mean that the effective inflation rate tends to zero over time.

Additionally, because the initial currency supply will not start from zero, the currency supply growth in the first eight years will actually be slower than Bitcoin, giving fundraiser participants and early adopters a chance to benefit substantially in the medium term.At some point in February, we will release a centralized testnet - a server which anyone can use to send transactions and create contracts.Soon after that, the decentralized testnet will come, which we will use to test different mining algorithms and make sure that the peer to peer daemon works and is secure, and take measurements to look for optimizations to the scripting language.Finally, once we are sure that the protocol and the client is secure, we will release the genesis block, and allow mining to begin.Since Ethereum includes a Turing-complete scripting language, it can be mathematically proven that it can do essentially anything that a Bitcoin-like blockchain-based cryptocurrency potentially can do.But there are still problems that the protocol, as it stands today, leaves unresolved.

For example, Ethereum offers no solution for the fundamental scalability problem in all blockchain-based cryptocurrencies - namely, the fact that every full node must store the entire balance sheet and verify every transaction.Ethereum's concept of a separate "state tree" and "transaction list", borrowed from Ripple, mitigates this to some extent, but nevertheless no fundamental breakthrough is mine.For that, technology like Eli ben Sasson's Secure Computational Integrity and Privacy (SCIP), now under development, will be required.Additionally, Ethereum offers no improvements on traditional proof-of-work mining with all its flaws, and proof of excellence and Ripple-style consensus are left unexplored.If it turns out that proof of stake or some other proof of work algorithm is a better solution, then future cryptocurrencies may use proof of stake algorithms like MC2 and Slasher instead.If there is room for an Ethereum 2.0, it is in these areas that it the improvements will lie.And ultimately, Ethereum is an open-ended project; if the project gets enough funding, we may even be the ones to release Ethereum 2.0 ourselves, carrying over the original account balances onto an even further improved network.