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Content
Ⅰ、Blockchain Overview
1、Bitcoin and blockchain overview
2、The basic model and key technologies of blockchain
3、Application scenarios of blockchain
4、Existing problems of blockchain
5、Smart contracts based on blockchain
6、Blockchain driven parallel society
1、LTE development motivation
2、Development direction
2.1、The data layer
2.2、The network layer
2.3、Consensus layer
2.4、Layer
2.5、Contract layer
4.1 、Security problem
4.2 、The efficiency problem
4.3 、Resource issues
4.4 、Game problem
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Ⅱ 、Design philosophy
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Ⅲ、 Summary of LTE
1、What is the LTE
2、How to get LTE
Ⅳ 、The technical details
1、Litecoin branching
2、UTXO
3、EquiHash
4、POW+POS
5、Replay attack protection
6、Zero knowledge proof
7、Technical route
Ⅴ、Team member
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1、member introduction
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Ⅰ、Blockchain Overview
1、Bitcoin and blockchain overview
Bitcoin is so far the most successful block chain scenarios. According to
the real-time monitoring site Blockchain. The information statistics show
that on average about $7, 5 million, 120 000 transactions are written to
the currency block chain per day, has generated more than 400000
blocks.
Encryption, according to the monetary value of statistics website, coin-
marketcap.com until February 2016, a total of 675 global encryption cur-
rency, total market capitalization of more than $6.7 billion, in which the
currency market capitalization of about 86%, Rayleigh wave currency
and etheric currency respectively in two, three. Now the currency supply
(i.e., has dug out the number of COINS) is more than 1 5 million, accord-
ing to the current price of $389.50 per commemorative COINS to esti-
mate the total market capitalization of more than $5.9 billion. In 2015, the
countries all over the world GDP ranking occupied 144th (moldova) is
slightly lower than Europe. In other words, in the absence of government
and central bank credit endorsement, decentralized algorithm of COINS
have to rely on credit to create with small volume quite global economies
in Europe. By 2027, 10% of global GDP will be stored by chain block
technology.
he first Bitcoin the block (called creation blocks) was born on January 4,
2009 by the founder of this hearing. A week later, in the hearing sent 10
COINS to cryptography experts Hal finney, formed for the first time in the
history of currency trading; In May 2010, Florida programmers use
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10000 COINS and buy pizza coupon worth $25, so the currency was
born the first fair exchange rate. Since then, the currency price rise
quickly, and in November 2013 in each currency exchange 1 high histori-
cal value of $242, $1, 241.98 a Troy ounce of gold prices over the same
period. According to CoinDesk estimate, there are about 60000 busi-
nesses worldwide accepted currency transactions, which China is the
country's fastest-growing currency trading.
The currency is essentially a system generated by the distributed net-
work of digital currency, its process does not rely on particular central-
ized organization, but depends on the workload in a distributed network
nodes is called.
(Proof of the work, PoW) consensus process to complete the verification
for the currency transactions and records. PoW consensus process
(commonly known as mining, each node called the miners) contribution
of all nodes is usually their own computing resources competition to
solve a difficult mathematical problems can be adjusted dynamically,
successfully solve the problem of the mathematical miners will get the
block of charge to an account, and the current time period all the curren-
cy transactions recorded in the packaging of a new block, according to
the time sequence to link to the main chain of the currency. The currency
system will be issued at the same time a certain number of COINS to
reward the miners, and inspire other miners continue to contribute force.
The currency circulation process depends on security cryptography
method. Every currency transactions through special algorithm process-
ing and the miners to block chain after verificat ion, as well as the
attached with certain flexibility script code (smart contracts) in order to
realize the programmable automation currencies. Thus, the currency
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and chain block system generally has the following five key elements,
namely public block chain books, distributed peer-to-peer network
system, decentralized consensus algorithm, moderate economic incen-
tive mechanism, and programmable script code.
Block chain technology to solve the currency system of digital encryption
monetary field for a long time required to face two important questions,
namely double pay and Byzantine general problems. Double payment
issues is also known as \ double flower ", it is using digital characteristics
of monetary twice or more times the use of \ the same amount of money
"to complete the payment. Traditional financial and monetary system, the
cash (fiat) as a physical entity, can avoid double pay naturally; Other
forms of digital money need trusted third party institutions (such as bank)
to ensure that the center. The contribution of block chain technology is in
the absence of third parties, through validation and consensus of distrib-
uted node mechanism can solve the problem of decentralized system of
double pay, accomplished the value in the process of information trans-
mission and transfer. The Byzantine general problem is a distributed
system interaction problems generally, which in the case of lack of trust-
ed central node of the distributed node how to reach a consensus and
build trust. Blockchain through digital encryption technology and distrib-
uted consensus algorithm, realized in the case of without trust a single
node of the trusted system. Build a decentralized and traditional institu-
tions such as the central bank at the center of the credit mechanism of
endorsement, the currency blockchain formation is a software defined
credit, this marks a centralized national credit to the decentralized algo-
rithm of radical change.
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Bitcoin with its first born advantage, at present has formed complete
system covers the issue, circulation and ecosystem of financial deriva-
tives market and industry chain (as shown in figure 1), which is its
long-term occupy the vast majority of market share of the main causes
of digital encryption currency. The currency of the open source nature
attracted a large number of developers continuous contribution to its
innovative technology, method and mechanism; Currency count each
network node (men) to provide power to ensure the stability of the cur-
rency consensus and security, most of its work force from the vendors
selling consensus algorithm for PoW professional equipment (mill.) the
currency network for each new discovery of the block to issue a certain
number of COINS to reward the miners, some miners may cooperate to
establish mineral pools of revenue sharing, collection in order to calcu-
late the force to improve the probability of the currency. The currency
after released into the circulation, the holder can through specific soft-
ware platform (such as COINS) wallet to pay COINS to the businessman
to buy goods or services, which embodies the currency monetary prop-
erties; At the same time because of the currency price rise and fall of the
mechanism to make it fully has all the attributes of the financial
derivatives, therefore appeared the currency trading platform to facilitate
the holder investment or speculative currency. In the circulation and
financial market, each a currency deal by the currency network all the
miners validation and credited to block chain.
Currency is the first block chain technology can assign \ killer ", the core
technology and block chain so far most talent resources is still in the field
of research and development of the currency. However, block chain as a
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Fig. 1.1 The Bitcoin ecosystem
Trading
information
BTC Development
BTC network
Mining Pool
Miner Miner Miner
Miner Miner ⋯⋯
Merchant
The holder
BTC trading platform
Investor
BTC software platform
BTC
Trading information
BTC
BTC
BTC
BTC
update
BTC
Equipment
computations
Equipment supplier
Release Circulation market
foundation for the future of a new generation of the underlying technolo-
gy, its application scope will surpass digital encryption monetary and ex-
tends to the financial, economic, technological and political and other
fields.
The existing technology, the mode and mechanism of Bitcoin,
provide some useful reference to blockchain in the development
of new application fields, and the new blockchain in the field of in-
novation also certainly will, in turn, promote the currency system
of the existing problems. Therefore, there is a synergy evolution,
harmonious coexistence between the currency and blockchain
technology rather than competing positive feedback relations.
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In this section, we will together with the present situation of the technolo-
gy and application of the currency system, the basis of block chain tech-
nology model, basic principle and key technology, and block chain in
several innovation mode of the currency system. The existing other block
chain applications mostly like COINS, only in some specific link more or
less adopts the model of the currency of the variation.
Block chain technology infrastructure model is shown in figure 2. Gener-
ally speaking, block chain system consists of data layer, network layer,
consensus, incentive, contract of layer and application layer. Among
them, the data layer encapsulates the underlying data block and related
technologies such as data encryption and timestamp; The network layer
includes distributed network mechanism, data transmission mechanism
and data verification mechanism. The consensus layer mainly encapsu-
lates the various consensus algorithms of network nodes. The incentive
layer integrates economic factors into the blockchain technology system,
mainly including the distribution mechanism and distribution mechanism
of economic incentives. The contract layer mainly encapsulates various
kinds of scripts, algorithms and smart contracts, which is the basis of the
programmable characteristics of block chain. Application layer encapsu-
lates the block chain various application scenarios and case study. This
model, based on the timestamp of the chain block structure, the mecha-
nism of consensus, a distributed node based on consensus to calculate
force of economic incentives and flexible programmable intelligent con-
tracts is the most representative block chain technology innovations.
2、The basic model and key technologies of blockchain
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Narrow chain block is a decentralized system, each node Shared data
books. Each distributed node can through specific Merkle hash algorithm
and tree data structure, will be a period of time to receive the transaction
data and code wrapped in a data block with a timestamp, and link to the
longest main blocks in the current chain, form a new block. This process
involves block, chain structure, hash algorithm, Merkle technology ele-
ments such as trees and timestamp.
Data block, as shown in figure 3, each data block is usually the head
(Header) and the block Body (Body) two parts. Block head encapsulates
the current Version (Version), the former block address (Prev - block),
the goal of the current block hash value (Bits), the current consensus
process solution of random number block PoW (Nonce), Merkle root
(Merkle - root) and the information such as Timestamp (Timestamp).
[21] currency network consensus can dynamically adjust PoW difficulty
value of the process, the first to find the right solutions for the random
number Nonce and tested all the miners will get the current block billing.
Block Body, including the current number of deals and proven, the block
generated in the process of creating all transaction records. These re-
cords through the process of Merkle hash of the tree generated only
Merkle root and recorded in the block.
2.1 The data layer
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Fig. 1.2 A basic framework of blockchain
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Programmablecurrency
Programmablefinance
Programmablesociety
Script code
Release rule
PoW PoS DPoS ⋯⋯
Allocation rule
Algorithm mechanism
Transmissionrule
Authenticationrule
Intelligentcontract
The application layer
Contract layer
P2P network
Transmissionrule
Authenticationrule
P2P network
The datablock
The chainstructure
The timestamp
Asymmetricencryption
MerkleTree
The hashfunction
The network laye
The data layer
Consensus laye
The network layer
Layer
Consensus layer
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Chain structure: acquired the right to charge to an account of the miners
will be the current link to the previous the block, the formation of the latest
main chain blocks. Each block into the inside, in order to form the foun-
dation of the block to the current block is one of the longest main chain,
which recorded the complete history of chain block data, can provide
block chain traceability of data and positioning function, ultimately, any
data can be through the chain structure of tracing. To be sure, if short
time there were two men at the same time, dig out "to link two new blocks,
the main chain of the block may be temporarily \ bifurcate" phenomenon,
its solution is agreed upon in the miners always choose to extend the cu-
mulative effort to prove that the largest block chain. Therefore, after the
main chain bifurcate, subsequent through calculating and comparing, the
Fig. 1.3 The structure of blocks
Version number
Thepreviousblock
Thenextblock
The previous block The time stamp The random number
Merkle tree
The number of deals Hash1~8
Hash1234
Hash12
Hash1 Hash2 Hash3 Hash4 Hash5 Hash6 Hash7 Hash8 ⋯⋯
⋯⋯
Hash34 Hash56 Hash78
Hash5678
Objective the hash
Trading1 Trading2 Trading3 Trading4 Trading5 Trading6 Trading7 Trading8
The block body
The block head
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miners of the block links to the current total workload, prove that maxi-
mize alternative chain to form a longer new main chain, so as to solve the
problem of bifurcation [19].
Timestamp: technical requirements to obtain the right of charge to an ac-
count block chain node must be stamped with the timestamp in the cur-
rent data block header, data show that block write time. Therefore, each
block is on the main chain according to the order of time sequence. The
time stamp technology itself is not complicated, but its application in block
chain technology is a significant innovation. The existence of the time
stamp can be used as a block of data to prove (Proof of existence), helps
to form not tamper with the database and unforgeable block chain, to
block chain is applied to the notarization, registration of intellectual prop-
erty rights and other time sensitive areas laid a solid foundation. More
importantly, the timestamp for the future based on the Internet and large
data block chain increases the time dimension, through the block data
and time stamp to reconstruct history possible.
Hash function: block chain to keep the original data or transaction re-
cords usually does not directly, but rather the hash function value, the
original data encoding for a particular length of string composed of Num-
bers and letters written block chain. Hash function (also called a hash
function) has many excellent characteristics, and is especially suitable
for used to store data block chain. For example, by working backward
hash output can hardly input values (one-way), different length of input
hash process consumes about the same amount of time (time) and pro-
duces the output of the fixed length (staying power), even if the input (just
a byte will also have a significant different output values (random), etc.
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The currency block chain usually adopts double SHA256 hash function,
the original data of arbitrary length after two SHA256 hash operation is
converted into a length of 256 bits (32 bytes) of a binary number to a uni-
fied storage and identification. In addition to the above characteristics,
SHA256 algorithm also has the huge hash space (2256) and impact re-
sistance (to avoid different input values produce the same hash value)
features, can satisfy the currency of any relevant tags need without con-
flict.
Merkle tree: Merkle tree is an important data structure of block chain, its
effect is the existence of rapid induction and calibration block data and
integrity. As shown in figure 3, Merkle tree usually contains blocks in the
bottom of the body (trading) database, block head to the root of the hash
value (that is, Merkle root) and all along the bottom block of data to the
root hash branch. Merkle tree operation process is generally will block
body data grouping hash, and will generate new inserted into the Merkle
hash value is in the tree, so the recursive until the last of the root and
notes for block head Merkle hash value. The most common Merkle tree
is to use the binary tree of Merkle COINS, its each hash node always
contains two adjacent blocks of data or the hash value [22], and other
varieties, including the etheric fang Merkle Patricia tree etc. [4] Merkle
tree has many advantages: the first is greatly improves the efficiency and
scalability of the block chain, makes the block head only contains root
hash value without having to encapsulate all the underlying data, which
makes the hash algorithms can run efficiently on smart phones and even
the Internet of things device; Followed by Merkle tree can support \ sim-
plified payment verification agreement, i.e. without running under the
condition of complete block chain network nodes, also can carry on the
inspection to the data (trading) [3].
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For example, to verify in figure 3 deal 6, without a chain data, the client
can download the complete blocks from trading by including other nodes
for 6 along the Merkle hash tree root that block head hash hash se-
quence (namely the hash node 6, 5, 56, 78, 5, 678, 1 234) to quickly es-
tablish the existence and correctness. Generally speaking, in N trading
block in the confirmation of any transaction algorithm complexity only
log2N. This will greatly reduce block and validate the bandwidth required
of the chain operation time, and only save some related data block chain
lightweight client is possible. Asymmetric encryption: asymmetric en-
cryption is to meet the demand of security requirements and ownership
verification and integrated into the blocks in the chain of encryption tech-
nology, the common algorithms including RSA, Elgamal, Rabin, d-h,
ECC (elliptic curve encryption algorithm), etc. Asymmetric encryption is
used in the process of encryption and decryption two asymmetric pass-
word, respectively referred to as the public and private keys. Asymmetric
keys which has characteristics of the two, first is to use one of the key
(public or private key encrypted information, only the corresponding key
to unlock another; Followed by the public key can be open to others, the
private key is secret, others can't through the corresponding private key.
The public key calculated asymmetric encryption technology in the appli-
cation scenario of block chain mainly includes the login information en-
cryption, digital signature and authentication, etc., including information
encryption scenario is dominated by the sender (to A) the use of the re-
cipient (for B) public key to encrypt information and then send to B, B
used his private key to decrypt the message. The currency trading en-
cryption which belongs to the scene; The digital signature scenario is
sent to B by sender A using its own private key encryption information,
and B USES the public key of A to decrypt the information to ensure that
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the information is sent by A; The login authentication scenario is sent to
the server by the client using the private key encrypted login information.
After receiving, the user USES the public key of the client to decrypt and
authenticate the login information.
Currency system, for example, the asymmetric encryption mechanism
as shown in figure 4: the currency system in general by calling the oper-
ating system at the bottom of the random number generator to generate
256 random Numbers as the private key. The total amount of up to 2256
COINS a private key, by iterating through all the private key space ex-
tremely hard to get the private key entities COINS, thus security of cryp-
tography. To facilitate identification, a 256 - bit binary form of currency
private key will be sent to you by SHA256 hash algorithm and Base58
conversion, the formation of 50 characters easy to identify the length of
the written and presented to the user's private key; COINS of the public
key is generated by the private key by Secp256k1 elliptic curve algorithm
first 65 bytes of random Numbers. The public key can be used to gener-
ate address used in currency trading, the generation process for the first
public key SHA256 and RIPEMD160 digest double hash operation and
generate 20 bytes of the result (namely hash160 results), then after
transformation SHA256 hash algorithm and Base58 forming 33 charac-
ters length COINS address. Public key generation process is irrevers-
ible, which cannot be deduced through public key private key. The cur-
rency of the public and private keys are usually stored in COINS wallet
file, which is the most important private key. The loss of the private key
means lost corresponds to address all of the currency assets. Current
COINS and chain block system, according to the actual application
demand has spawned many private key encryption technology, to satisfy
the multiple signature is more flexible and complex scenes.
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Fig. 4 he asymmetric cryptography of the Bitcoin system
The private key( 256bits)
SHA256
Base58
SHA256Base58
SHA256RIPEMD160
Secp256k1
Elliptic curve algorithm
The private key(50character)
The public key
(65 bytes)The public key
(20 bytes)
address(33character)
Network layer encapsulates the network mode of block chain system,
elements such as message transmission protocol and the data validation
mechanism. Combined with the actual application requirements, with the
specific design of communication protocol and the data validation mech-
anism, chain blocks, each node in the system may be can participate in
the process of block data validation and billing, only when the block of
data by most tech-oriented nodes after verification, can be credited to
block chain.
Network mode: block chain system of nodes usually with a distributed,
autonomous, free to access features such as open, thus generally USES
peer-to-peer network (Peer - to - Peer network, P2P network) spread
around the world to organize the participation of the data validation and
billing nodes. Each node in the P2P network are opposite and with flat
topology interconnection and interaction, there is no centralized special
2.2 The network layer
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How to effectively reach a consensus in a distributed system is an im-
portant research problem in the field of distributed computing. As in the
2.3 Consensus layer
nodes and hierarchy, each node will undertake the network routing, vali-
dation data, spread the block data, found a new node, etc., depending on
the node storing data quantity can be divided into the node and light-
weight. The former holds so far to the current newest the block from the
creation of the complete data block chain, and to participate in the block
of data through real-time calibration and billing to dynamically update the
main chain.
The node's advantage is not dependent on any other nodes that can be
independently realize arbitrary block of data validation, query and
update, disadvantage is the maintenance of all nodes space high cost;
Currency, for example, as of February 2016, creation to present the
block the amount of data has more than 60 GB. In contrast, lightweight
node is given only part of the chain block data, and through the simple
mentioned in section 2.1 payment authentication way to the adjacent
nodes data needed for the request to complete the data validation.
Data transmission protocol: after any block data generation, broadcast to
the entire network, the data generated by the node to verify all the other
nodes. The existing block chain system general design according to the
requirements of practical application of the currency variations of trans-
mission protocols, such as the etheric fang block chain integration the
so-called \ "ghost agreement in order to solve because of the fast block
data confirm.
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social system of democracy \ "and \" relationship, decision-making, the
dispersion of the lower the efficiency of the system to reach a consensus,
but the system stability and satisfaction is higher; And the more concen-
trated the decision-making system is easier to reach a consensus, but
also appear more repressive and authoritarian. Block chain technology is
one of the core advantages to high dispersion in the decision-making in
the decentralized system makes the effectiveness of the data to each
node efficiently blocks on the same page.
Early currency block chain is proved by means of count is highly depen-
dent on the node force workload (Proof of the work, PoW) mechanism to
ensure the consistency of distributed bookkeeping currency network.
With the development of the block chain technology and a variety of
competitive currency rising, the researchers have proposed many do not
rely on work force and can reach a consensus mechanism, such as the
rights and interests of little money first prove (Proof of gaining, PoS) con-
sensus and bit the first authorized shares prove mechanism (Delegated
Proof of gaining, DPOS) consensus mechanism. Block chain consensus
mechanism layer that encapsulates the consensus.
PoW consensus: the hearing in its currency, founding the thesis designs
the PoW consensus mechanism, its core idea is distributed nodes to cal-
culate power competition is introduced to guarantee the safety of data
consistency and consensus. The currency system, each node (i.e., the
miners) based on their own computer to calculate force competing to
solving complex but a verification easy SHA256 mathematical problems
(i.e., dig), the fastest to solve the problem of node to get the block to an
account and the system automatically generate the currency reward.
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The mathematical problems can be formulated as follows: based on the
current difficulty value, by a proper random number search solution
(Nonce) made of figure 3 central each metadata double SHA256 hash
value hash value less than or equal to the target. The currency system by
the difficulty of the flexible adjustment of random search value to control
block generated time to an average of 10 minutes. Generally speaking,
PoW consensus of random search process (see figure 3) block structure
as follows:
Step 1. Collect the entire network of the current time period unconfirmed
transactions and add a Coinbase transaction for issuing new bitcoins.
Forming the transaction set of the current block;
Step 2. Calculate the Merkle root of the block transaction collection and
fill in the other metadata of the block header, in which the random number
Nonce set zero;
Step 3. Random number Nonce add 1; The double SHA256 hash value
of the current block head is calculated, if the value is less than or equal to
the target hash value, then the appropriate random number is success-
fully searched and the bookkeeping power of the block is obtained. Oth-
erwise, continue step 3 until the appropriate random number is searched
by any node;
Step 4. If a certain period of time is not successful, then update the time-
stamp and unrecognized transaction collection, recalculate Merkle con-
tinue to search after the root. Conform to the requirements of the block
head hash value is usually composed of several leading zeros, target
hash value is smaller, the more leading zeros block head hash value,
managed to find suitable random number and dig \ "the difficulty of the
new block. According to the real-time monitoring site Blockchain block
chain. The info display, as of February 2016, conform to the
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requirements of the block head with an average of 17 leading zeros hash
value, such as the 398th block hash value is 346
\0000000000000000077f754f22f21629a7975cf ¢ ¢ ¢ ".
According to the probability calculation of random number 16 per search
will have to find a block containing a leading zeros hash value, and thus
the currency now 17 leading zeros hash value asked 1617 random
search to find a proper random number and generate a new block. Thus,
the currency block chain system security, and tamper-resistant sex is
strong consensus by PoW mechanism is guaranteed, any attack or tam-
pered with to block data must recalculate the SHA256 problem and later
all the block, and computing speed must make forge the main chain of the
chain length of more than, this kind of attack difficulty caused by the costs
will be far more than its benefits. It is estimated that as of January 2016,
the currency block chain work force has reached 800, 000, 000 h/s,
namely 8 £1018 calculations per second, greater than the sum of the
global Top500 supercomputers to calculate force.
PoW consensus mechanism is important significance to innovation, its
almost perfectly integrates the currency system of issuing and trading
currency payment and verification, and other functions, and the safety of
the system through calculating power competition guaranteed and de-
center; PoW consensus mechanism at the same time there is a signifi-
cant defect, calculate its powerful force caused by the waste of resourc-
es (such as electricity) has always been criticized by the researchers,
trade confirmations and 10 minutes time to make it relatively is not suit-
able for small business applications.
PoS consensus mechanism: PoS consensus is the common mechanism
for resolving PoW resources waste and security flaws, and alternative.
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Limited to space, this paper mainly focuses on the innovation of the PoS,
relative to the PoW. PoS consensus is essentially determined by the use
of interest instead of PoW work proved that based on hash work force is
the system has the highest equity rather than force node get the block to
an account. The ownership of the rights and interests embodied in the
node to a specific number money, days age or currency is called curren-
cy (Coin days). The age of money is the last time a certain number of
currency and trade the product of the length of time that each transaction
will consume a certain number of currency age. For example, someone
in a deal and hold for 10 days, after receipt of the 10 dollar 100 dollar of
age; Then its after spending five COINS, consume 50 COINS age.
Clearly, using PoS consensus mechanism of system total number of
COINS of age in a particular point in time is limited, long-term cash more
tend to have more money, so money age can be considered as its inter-
ests in the PoS system. In addition, each node in the process of PoW
consensus dig the same difficulty, and the difficulty in the process of PoS
consensus is inversely proportional to the input to a currency of age, the
dig, the more difficult the more low consumption currency age. Main
chain nodes judging standards are the highest cumulative consensus by
PoW difficulty into the highest consumption c age, every block trades will
be submitted to the consumption of its currency age the blocks, the high-
est cumulative consumption currency age blocks will be linked to the
main chain. Thus, PoS only rely on internal currency consensus process
of age and interests without external force and resources consumption,
fundamentally solved the problem of the PoW consensus to calculate
power waste, and can shorten the time of the agreement in a certain
extent, so many competitive currency after the currency mechanism
adopts PoS consensus.
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DPoS consensus mechanism: DPoS consensus mechanism is the basic
idea is similar to \ decisions of the board of directors ", namely the system
of each node can be holding shareholders' rights, as a representative of
the vote to grant a gets the most votes and willing to be on behalf of the
former 101 nodes will enter \ "of the board of directors, in turn according
to the established schedule package settlement for the deal and sign a
new block (i.e., production). Each block is signed before, you must first
verify the previous block has been signed by the representative of the
trusted nodes. The board of directors of the \" authorized representatives
of the nodes can be obtained from each transaction fee income, at the
same time to be authorized on behalf of the node must pay a certain
amount of deposit, the amount is equal to the production of a block of
income 100 times. Authorized representatives node must be responsible
for the other shareholder nodes and if its miss sign corresponding
blocks, the shareholders will recover votes to the node \ out "the board of
directors. Therefore, authorized representative nodes usually must
ensure that more than 99% of the time online to achieve profit targets.
Obviously, and PoW consensus mechanism must trust mechanism of
nodes and PoS consensus is the highest power must trust rights node,
highest DPoS consensus mechanism in each node can decide its trust
authorized node and generate new blocks of charge to an account in turn
by the nodes, thus greatly reducing the participate in verification and the
number of nodes of charge to an account, you can achieve rapid con-
sensus.
Apart from the above three mainstream consensus mechanism, the
actual application of block chain also spawned PoW + PoS and action to
prove (Proof of ac - tivity), and other variant mechanism.
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Block chain consensus process by gathering massive consensus node
work force resources to realize the sharing chain block books data vali-
dation and accounting work, and its essence is a kind of consensus be-
tween nodes task crowdsourcing process. The consensus in decentral-
ized system node itself is self-interest, participation in the data validation
and maximize their profit is the fundamental goal of charge to an account.
Therefore, must design the reasonable crowdsourcing incentive com-
patibility mechanism, the individual rationality behavior of consensus
node to maximize its own benefits and guarantee decentralized block
chain system of the safety and effectiveness of the overall goal is con-
sistent. Block chain system by designing moderate economic incentive
mechanism and integrate with the process of consensus, thus gathered
massive nodes to participate in and form the history of block chain stabil-
ity of consensus.
, in the case of the currency, the currency PoW consensus of economic
incentives and issued by the new currency reward of transactions in the
process of handling fee of two parts, awarded to a successful search to
the blocks in the process of PoW consensus random number and record
the block of the node. Therefore, only when each node through coopera-
tion jointly build sharing and credible history block chain, and maintain the
effectiveness of the currency system, its currency reward and transac-
tion fees will have value. The currency has formed mature mining eco-
system, miners actively involved in the equipped with professional mining
machine equipments based on mining of PoW consensus process, its
fundamental purpose is by getting the currency reward and converted to
the corresponding legal tender to profit.
2.4 Layer
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Release mechanism: each block issuance of the currency in the curren-
cy system is JieTiXing decreasing over time. The number of blocks in the
creation of each block will issue 50 COINS awarded to charge to an ac-
count of the block, after every 4 years (210000 blocks) of each block
issue currency quantity reduced by half, and so on, until the number of
currency stability in the cap of 2, 1 million. The currency trading process
will produce poundage, currently the default fee is one over ten thousand
of the currency, the fees will be credited to block and reward to charge to
an account. The two parts cost will be encapsulated in each block of the
first transaction (called Coinbase trading). Although now each block rel-
ative to the total costs for new COINS is small (usually not more than 1
COINS), but with the future currency number gradually reduce and even
stop issuing, poundage will gradually become the main power of driver
nodes consensus and billing. At the same time, the handling charge can
also prevent a large number of micro amount of trading on the currency
network launched \ dust "attack, have the effect of safety.
Allocation mechanism: the currency system, a large number of nodes is
small force will usually choose to join the mineral pools, through mutual
cooperation together to calculate force to improve dig \ "to the new block
probability, COINS and share this block, and fees. According to Bitcoin-
mining.com, 13 different allocation mechanism. The existing mainstream
mine pool usually adopt PPLNS (Pay per last N shares), PPS (Pay per
share) and PROP (PROPortionately) mechanism.
Mineral pool will calculate the contribution of each node force divided into
shares in proportion (Share), including PPLNS mechanism refers to find
blocks, each cooperative nodes according to their contribution in the last
N shares actual stake to allocate blocks of COINS;
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LITECOIN
PPS directly according to stake for each node earnings estimates and
pay a fixed theory, adopt the way of mine pool will be modest fees to
make up for each node of income uncertainty risk; PROP mechanism is
based on node shares in proportion to the contribution of distribution of
the currency. The emergence of mine pool is for COINS and chain blocks
of the potential threat of decentralization trend, how to design reasonable
allocation mechanism to guide reasonable cooperation, avoid all nodes
due to calculate force caused by excessive concentration of security re-
search problem to be solved is the problem.
Contract layer encapsulation blocks all types of script code, algorithm of
chain system and the resulting more complex intelligent contract. If the
data, network and consensus three levels as the underlying block chain \
virtual machine "for data representation, data transmission and data val-
idation function, contract layer is based on virtual machine block chain
business logic and algorithm, is to realize the flexible block chain system
programming and operation data. The basis of digital encryption, includ-
ing COINS, currency mostly adopts the Turing complete simple script
code to program control exchange process, this is the prototype of intel-
ligent contracts; With the development of technology, is now in the ethe-
ric lane and other turning-complete can realize more complex and flexi-
ble intelligent contract scripting language, enables the block chain to
support the macro financial and social system of many applications. This
section will COINS script, for example, from a technical point briefly de-
scribes the basic techniques and methods of contract layer; The exten-
sion of the smart contract will be discussed in section 5.
2.5 Contract layer
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COINS with a simple, based on the stack, from left to right to deal with the
scripting language, and a script attached to the currency trading is es-
sentially a set of instructions of the list. The currency trading is depen-
dent on two kinds of script to verified, namely the lock and unlock script,
the different combination of both can be derived in the currency trade un-
limited number of control conditions. Among them, the locking scripts are
attached on the transaction output values \ obstacle ", output regulation
cost after the deal condition; Unlock script is satisfy is locked in an output
set on the condition of the script, it will allow the output to be consumption
at the same time. For example, most of the currency trading is using the
recipient's public key encryption and private key to decrypt, and their
corresponding P2PKH (Pay to public key hash).
The locking script in the standard trading script is to use the recipient's
public key to block the output function, while the digital signature corre-
sponding to the private key is unlocked.
The bitcoin scripting system can achieve flexible transaction control. For
example, delay payment can be achieved by specifying a time period
(such as a week) as an unlocked condition. By stipulating that the recipi-
ent and the guarantor must sign a private key to control a bitcoin, the
guarantee transaction can be realized. By designing a kind of can ac-
cording to the external information source rules and check whether a
certain probability event happened as unlock script attached on a certain
number of currency trading, gambling can be realized and predict the
market and other types of applications; By setting N private key collection
provide at least M private key to unlock, can realize M � N multigeniture,
namely at least M a N a potential recipient agree to payment by signature
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can be realized. Multiple signature can be widely used in decision-mak-
ing, financial supervision, the mediation guarantees even bequest allo-
cation, etc.
COINS script is the prototype of intelligent contract, has given rise to
human history the first programmable global currency. However, the
currency scripting system is turning-complete, in which there is no com-
plex circulation and flow control, the loss of flexibility at the same time can
greatly reduce the complexity and uncertainty, and can avoid the denial
of service caused by an infinite loop and other logic bombs and other
types of security attacks. In order to improve the flexibility and scalability
of the scripting system, researchers are trying on COINS protocol stack
of the New Deal, to meet in the building of a more complex block chain
intelligence contract requirements. The etheric fang has developed a
spirit complete scripting language code, users can be based on Ethernet
fang build arbitrarily complex and precise definition of intelligent decen-
tralized contracts and application, which is based on building block chain
programmable financial and social system laid a solid foundation.
The technical design, block by block chain unique chain system with dis-
tributed redundant storage, time-series data and tampering and forgery,
decentralized credit, automatic intelligent, security and privacy and other
significant characteristics of contract, which makes the block chain tech-
nology not only can be successfully applied in the digital encryption cur-
rency areas, at the same time in economic, financial and social system is
3 Application scenarios of blockchain
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widely used in the scene. According to the present situation of block
chain technology application in this article, we will block chain is mainly
used in general as digital currency, data storage, data verification, finan-
cial transactions, asset management and voting, a total of six scenarios,
and Outlines the five scenarios of besides digital currency and block
chain three application modes.
High redundant storage of data storage: block chain, each node storing
a data), decentralized, high security and privacy protection features
make it particularly suitable for storage of privacy and protection of im-
portant data, in order to avoid the centralized organization attack or au-
thority due to its improper management of large-scale data lost or
leaked. Similarly, with the currency trading data any data can be through
the hash algorithm to generate the corresponding Merkle tree and pack-
aged to block chain, through the common node of the system to calculate
force and asymmetric encryption technology to ensure the safety. Chain
of multiple signature technology can flexible configuration data access
permissions, for example must obtain specified 5 people in 3 individuals
authorized to gain access to the private key. At present, the use of chain
blocks to store personal health data (such as electronic medical records
and genetic data, etc.) is a promising application area, in addition to store
all kinds of important electronic files (video, images, text, etc.) and even
the human mind and consciousness and so on also has a certain appli-
cation space.
Data verification: data block chain with a timestamp, verify and record
together by consensus node, tampering and forgery, these characteris-
tics make block chain notarization and audit scenario can be widely used
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in all kinds of data. For example, chain blocks can be safely stored per-
manently from all kinds of license, registration, license issued by the
government agencies, certificate, certification and records, etc., and can
at any time convenient to prove the existence of certain data and the au-
thenticity of a certain extent. Many professional audit companies, includ-
ing deloitte has deployed block chain technology to help the auditor to
implement low cost and efficient real-time audit; Factor has designed an
accurate, verifiable and unalterable audit notarization process and
method based on the blockchain.
Financial transactions: block chain technology and the application of
financial markets can be very high fit. Block chain can spontaneously
produce credit in the decentralized system, to establish credit endorse-
ment without central organization of financial markets, which to a large
extent achieved \ financial disintermediation ", the third party payment,
escrow, all intermediaries is disruptive business model change. In the
field of Internet finance, blockchain is particularly suitable for business
models such as equity crowdfunding, P2P network lending and Internet
insurance. Securities and banking is an important application field of
block chain, traditional need through a central clearing institutions, secu-
rities trading center institutions, such as Banks, securities companies
and exchange of multiple coordinate, and the use of block chain con-
tracts and the characteristics of programmable automation intelligence,
can greatly reduce the cost and improve efficiency, avoid cumbersome
centralized clearing delivery process, realize convenient financial prod-
ucts transactions; At the same time, the instant access account of the
blockchain and bitcoins allows Banks to make cross-border transfers
that are faster, more economical and safer than the SWIFT code system;
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This is also an important reason why the R3CEV and Nasdaq have
invested in the research and development of blockchain technology.
Asset management: block chain in the field of asset management has a
broad prospect of application of can achieve tangible and intangible
assets of approval and authorization, and real-time monitoring. For
intangible assets, based on the time stamp technology and do not tamper
with the characteristics of block chain technology can be applied to the
protection of intellectual property rights, domain management, integral
management and etc.; For tangible assets, and by combining the Inter-
net of things technology design a unique identifier for assets and de-
ployed to block chain, can form \ digital intelligence assets ", realize dis-
tributed asset authorization and control based on block chain. For exam-
ple, through to the physical assets such as houses, cars block chain key
authorization, can be based on specific permission to distribute and the
right to use the recycling assets, to help someone whose house lease or
vehicle leasing business model to realize the automation of assets
transfer; By combining the asset marking and identification technology of
the Internet of things, we can also use the blockchain to realize flexible
supply chain management and product traceability.
Vote: voting is typical applications of block chain technology in political
affairs. Distributed consensus based on block chain validation and tam-
per-resistant, can efficiently achieve political elections, low cost applica-
tions such as enterprise shareholder vote; At the same time, block chain
support individual users to vote on certain issues. For example, by re-
cording users to vote on whether a particular event happens, chain block
can be used in scenarios such as gambling and forecast market;
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By recording users' voting scores and Suggestions on specific products,
we can achieve the "mode of social manufacturing" of large-scale user
crowdsourcing design products.
Scenarios and requirements according to the actual application, block
chain technology has evolved three application modes, namely Public
chain (Public blockchain), union (Consortium blockchain) and Private
chain (Private blockchain). Public chain is completely decentralized block
chain, distributed systems are involved in any node chain data reading
and writing, validation, and consensus on the process, and according to
the pew or PoS contribution to obtain corresponding economic incen-
tives. The currency is the typical representative of Public chain. Chain is
of decentralized (or more centralized) block chain, applies to organiza-
tions consisting of multiple entities or alliance, the consensus process is
a set of nodes by predefined control, for example, the generated block
need to gain 10 primary five nodes in a consensus on node to confirm;
Private chain is totally centralized block chain, apply to specific institu-
tions internal data management and audit, etc., the write access is con-
trolled by a central organization, and read permissions visual demand
selectively opening to the outside world. To be sure, because of the dif-
ferent degree of decentralization, league chain and private chain may not
be completely in accordance with section 2 proposes block chain model,
such as high degree of centralized block chain may not need the design
layer of economic incentives and so on.
As the rise and rapid development of new technology in recent years,
4 Existing problems of blockchain
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4.1 Security problem
block chain is bound to be faced with all kinds of problems and obstacles
that limit the development of the. This section will from four perspectives:
safety, efficiency, resources and game overview block chain technology
to solve the problem.
Security threat is block chain so far the most important problem facing.
Among them, the process of consensus based on PoW block chain main
problem is 51%, namely by master cut in more than 51% of the node
force have the ability to successfully tampering and forgery block chain
data. In the case of the currency, according to statistics, China's large
pool of mineralization is already accounts for over 60% of the entire net-
work finally force, in theory, the mineral pools may perform 51% attack
through cooperation, so as to realize the double pay [1] of the currency.
Even though the actual system to master the 51% cut in the cost of inputs
to calculate force than earnings after a successful attack, but 51%
against security threats always exists. Based on PoS consensus pro-
cess to a certain extent, solve the problem of 51%, but also the introduc-
tion of block bifurcate when N @ S (Nothing at gaining) attack problem.
Researchers have proposed by constructing at the same time rely on
high force and high memory PoW consensus algorithm to partially solve
the problem of 51% [4], the consensus is more safe and effective mech-
anisms to be more in-depth research and design.
Block chain of asymmetric encryption mechanism will also with the de-
velopment of mathematics, cryptography and computing technology and
become more and more fragile. It is estimated that at present the Tianhe
ii work force, to produce COINS SHA256 hash algorithm is a hash colli-
In recent years the rapid development of Internet and the depth of the
physical world coupled with powerful feedback that already have radically
altered the production of modern society, life and management decision
model, and formed the real physical world {virtual network space is tight
coupling, interaction and co-evolution of parallel social space, Internet
sion is about 248, but with the development of quantum computers and
other new computing technology, the future asymmetric encryption algo-
rithm has certain possibility of cracking, it is also a potential security
threats of block chain technology.
Block chain privacy protection there is also a security risk. Each node in
the system is not completely anonymous block chain, but by a similar
email address identifier (such as COINS public address) to implement
the data transmission. Although the address label was not directly asso-
ciated with the real world of characters, but the data block chain is com-
pletely transparent, with the development of all kinds of an anonymous
identity screening technology, implementation key purpose. Rather than
meaningless SHA256 hash value. The potential development trend of
the future is to design effective interaction mechanism to gather and use
distributed consensus node of swarm intelligence, to help solve practical
problems on a large scale.
The importance of the consumption of resources. Therefore, how to
effectively collect distributed nodes of the network is to solve practical
problems, is an important problem of block chain technology needs to
solve. Researchers have been trying to solve this problem at present.
has given rise to \ + "4.0 and a series of national strategy and industry.
The development trend of the future society will from CPS real world of
physical + network (Cyber - physical systems, CPS) to the spirit of
human world, forming a physical + + network of artificial {{machine the
ternary coupling system of content integration, known as social physical
information systems (Cyber - physical - social systems, CPSS). At
present, based on the parallel CPSS society has emerged, the core and
essential feature is the actual interaction and parallel evolution.
Block chain is to realize the CPSS parallel social infrastructure, one of its
main contribution is to distributed social systems and distributed artificial
intelligence research provides an effective decentralized data structure,
the interaction mechanism and calculation model, and to achieve the
data of the parallel society have laid a solid basis and credit basis. In
terms of data base, management experts Dai Mingceng Edward said, in
addition to god, all people must speak with data. However, in a central-
ized social system, the data are usually in the government and big com-
panies such as the minority of \ "hand, speaking for a few people \", its
impartiality, authority, and even may be unable to guarantee safety. Data
block chain, through highly redundant storage distributed node, in all \ ",
can do real democracy \ data ". In terms of the credit foundation, because
of its highly centralized society system engineering complexity and social
complexity and will inevitably exist \ "Merton system features, namely,
uncertainty, diversity and complexity, the central organization in the
social system and rules may be broken by individual behavior; Block
chain technology contributes to the realization of social system, the soft-
ware to define its basic idea is to eliminate centralized organization, the
unpredictable behavior in the form of intelligent contract procedural code
deployment and curing in the chain of blocks in the data in advance, and
cannot be forged and tampered with automation, thus to some extent can
\ Merton "social system into a comprehensive observation, active control,
can accurately predict \ Newton" social system.
Parallel Computational experiments and parallel execution method is by
far the only into the areas of social management of systematic and com-
plete research framework, the complexity science is the logic of social
environment in the new era of parallel extension and innovation. ACP
can be naturally combined with block chain technology, realize block
parallel social management of chain drive. First of all, collaboration and
block chain of P2P network, distributed consensus based on the contri-
bution of economic incentive mechanism itself is the distributed nature of
social system modeling, in which each node in a distributed system, and
serve as a independent and autonomous Agent (Agent). With the im-
provement of the ecological system block chain, chain blocks all common
nodes and the increasingly complex and autonomous intelligent contract
will by participating in various forms of Dapp, form a specific organization
form of DAC and the DAO, eventually forming the DAS, the ACP of artifi-
cial society. Secondly, intelligent programmable characteristics of con-
tract makes the block chain can be carried out various \ what-if "type of
virtual experiment design, scene deduction and result evaluation, such
calculation experiment process and automatic or semi-automatic to im-
plement the optimal decisions. Finally, blockchains, such as the Internet
of things intelligent asset formed by the combination of make Unicom real
physical world and virtual network space, and can be real and artificial
social system between virtual interaction and parallel tuned to achieve
social management and decision-making of the collaborative optimiza-
tion. It is not difficult to foresee, the physical world in the future real assets
are registered as chain intelligence assets, is the parallel block chain
drive society arrives.
32
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4.2 The efficiency problem
Block chain is also an important factor of restricting its application effi-
ciency. The first is block expansion problem: block chain for each node in
the system to save a backup of the data, it is for the growing mass data
storage is very difficult. In the case of the currency, fully synchronous
since the creation of the block data needs to be about 60 GB storage
space, while the lightweight node can partly solve this problem, but is
Security threat is block chain so far the most important problem facing.
Among them, the process of consensus based on PoW block chain main
problem is 51%, namely by master cut in more than 51% of the node
force have the ability to successfully tampering and forgery block chain
data. In the case of the currency, according to statistics, China's large
pool of mineralization is already accounts for over 60% of the entire net-
work finally force, in theory, the mineral pools may perform 51% attack
through cooperation, so as to realize the double pay [1] of the currency.
Even though the actual system to master the 51% cut in the cost of inputs
to calculate force than earnings after a successful attack, but 51%
against security threats always exists. Based on PoS consensus pro-
cess to a certain extent, solve the problem of 51%, but also the introduc-
tion of block bifurcate when N @ S (Nothing at gaining) attack problem.
Researchers have proposed by constructing at the same time rely on
high force and high memory PoW consensus algorithm to partially solve
the problem of 51% [4], the consensus is more safe and effective mech-
anisms to be more in-depth research and design.
Block chain of asymmetric encryption mechanism will also with the de-
velopment of mathematics, cryptography and computing technology and
become more and more fragile. It is estimated that at present the Tianhe
ii work force, to produce COINS SHA256 hash algorithm is a hash colli-
In recent years the rapid development of Internet and the depth of the
physical world coupled with powerful feedback that already have radically
altered the production of modern society, life and management decision
model, and formed the real physical world {virtual network space is tight
coupling, interaction and co-evolution of parallel social space, Internet
sion is about 248, but with the development of quantum computers and
other new computing technology, the future asymmetric encryption algo-
rithm has certain possibility of cracking, it is also a potential security
threats of block chain technology.
Block chain privacy protection there is also a security risk. Each node in
the system is not completely anonymous block chain, but by a similar
email address identifier (such as COINS public address) to implement
the data transmission. Although the address label was not directly asso-
ciated with the real world of characters, but the data block chain is com-
pletely transparent, with the development of all kinds of an anonymous
identity screening technology, implementation key purpose. Rather than
meaningless SHA256 hash value. The potential development trend of
the future is to design effective interaction mechanism to gather and use
distributed consensus node of swarm intelligence, to help solve practical
problems on a large scale.
The importance of the consumption of resources. Therefore, how to
effectively collect distributed nodes of the network is to solve practical
problems, is an important problem of block chain technology needs to
solve. Researchers have been trying to solve this problem at present.
suitable for the larger industrial solutions remains to be developed. The
second is the market efficiency: the currency block chain per second can
handle only 7 deals at present, this greatly limits the block chain in most
of the financial system, the application of high-frequency trading scene
(such as VISA can handle up to 10 000 transactions per second). Finally,
the transaction confirmation time problem: the currency block generated
for 10 minutes, thus transaction confirmation time is 10 minutes com-
monly, this to a certain extent, limits the COINS in the application of the
trading of microfinance and time sensitive.
has given rise to \ + "4.0 and a series of national strategy and industry.
The development trend of the future society will from CPS real world of
physical + network (Cyber - physical systems, CPS) to the spirit of
human world, forming a physical + + network of artificial {{machine the
ternary coupling system of content integration, known as social physical
information systems (Cyber - physical - social systems, CPSS). At
present, based on the parallel CPSS society has emerged, the core and
essential feature is the actual interaction and parallel evolution.
Block chain is to realize the CPSS parallel social infrastructure, one of its
main contribution is to distributed social systems and distributed artificial
intelligence research provides an effective decentralized data structure,
the interaction mechanism and calculation model, and to achieve the
data of the parallel society have laid a solid basis and credit basis. In
terms of data base, management experts Dai Mingceng Edward said, in
addition to god, all people must speak with data. However, in a central-
ized social system, the data are usually in the government and big com-
panies such as the minority of \ "hand, speaking for a few people \", its
impartiality, authority, and even may be unable to guarantee safety. Data
block chain, through highly redundant storage distributed node, in all \ ",
can do real democracy \ data ". In terms of the credit foundation, because
of its highly centralized society system engineering complexity and social
complexity and will inevitably exist \ "Merton system features, namely,
uncertainty, diversity and complexity, the central organization in the
social system and rules may be broken by individual behavior; Block
chain technology contributes to the realization of social system, the soft-
ware to define its basic idea is to eliminate centralized organization, the
unpredictable behavior in the form of intelligent contract procedural code
deployment and curing in the chain of blocks in the data in advance, and
cannot be forged and tampered with automation, thus to some extent can
\ Merton "social system into a comprehensive observation, active control,
can accurately predict \ Newton" social system.
Parallel Computational experiments and parallel execution method is by
far the only into the areas of social management of systematic and com-
plete research framework, the complexity science is the logic of social
environment in the new era of parallel extension and innovation. ACP
can be naturally combined with block chain technology, realize block
parallel social management of chain drive. First of all, collaboration and
block chain of P2P network, distributed consensus based on the contri-
bution of economic incentive mechanism itself is the distributed nature of
social system modeling, in which each node in a distributed system, and
serve as a independent and autonomous Agent (Agent). With the im-
provement of the ecological system block chain, chain blocks all common
nodes and the increasingly complex and autonomous intelligent contract
will by participating in various forms of Dapp, form a specific organization
form of DAC and the DAO, eventually forming the DAS, the ACP of artifi-
cial society. Secondly, intelligent programmable characteristics of con-
tract makes the block chain can be carried out various \ what-if "type of
virtual experiment design, scene deduction and result evaluation, such
calculation experiment process and automatic or semi-automatic to im-
plement the optimal decisions. Finally, blockchains, such as the Internet
of things intelligent asset formed by the combination of make Unicom real
physical world and virtual network space, and can be real and artificial
social system between virtual interaction and parallel tuned to achieve
social management and decision-making of the collaborative optimiza-
tion. It is not difficult to foresee, the physical world in the future real assets
are registered as chain intelligence assets, is the parallel block chain
drive society arrives.
33
LITECOIN
4.3 Resource issues
Block chain technology has redefined the smart contract. Smart PoW
consensus process is highly dependent on the chain of chain network
node contribution agreement is the block core elements (layers), is
driven by events, with state, running in the chain of reproducible Shared
block of work force, the work force is mainly used to solve the SHA256
hash and random number search, in addition to the social value, does not
produce any computer program for data on the books, can achieve a
process the data in the active or passive, accept, store and send the
value, as well as the control and management. And in general, think
these work force resources waste is \ "intelligence asset off, all kinds of
chain, and other functions. Smart contracts as a kind of embedded at the
same time wasted a lot of power and resources. As the currency type
procedural contract, can be built in any block the rising popularity of chain
data, trading and the emergence of professional mining equipment,
COINS ecosystem on tangible or intangible assets, the formation of pro-
grammable control software has been in the capital and equipment of the
Block chain is also an important factor of restricting its application effi-
ciency. The first is block expansion problem: block chain for each node in
the system to save a backup of the data, it is for the growing mass data
storage is very difficult. In the case of the currency, fully synchronous
since the creation of the block data needs to be about 60 GB storage
space, while the lightweight node can partly solve this problem, but is
In recent years the rapid development of Internet and the depth of the
physical world coupled with powerful feedback that already have radically
altered the production of modern society, life and management decision
model, and formed the real physical world {virtual network space is tight
coupling, interaction and co-evolution of parallel social space, Internet
suitable for the larger industrial solutions remains to be developed. The
second is the market efficiency: the currency block chain per second can
handle only 7 deals at present, this greatly limits the block chain in most
of the financial system, the application of high-frequency trading scene
(such as VISA can handle up to 10 000 transactions per second). Finally,
the transaction confirmation time problem: the currency block generated
for 10 minutes, thus transaction confirmation time is 10 minutes com-
monly, this to a certain extent, limits the COINS in the application of the
trading of microfinance and time sensitive.
definition of arms race, obviously system, markets and assets. The issu-
ance and trading, creation and management provides innovative solu-
tions.
has given rise to \ + "4.0 and a series of national strategy and industry.
The development trend of the future society will from CPS real world of
physical + network (Cyber - physical systems, CPS) to the spirit of
human world, forming a physical + + network of artificial {{machine the
ternary coupling system of content integration, known as social physical
information systems (Cyber - physical - social systems, CPSS). At
present, based on the parallel CPSS society has emerged, the core and
essential feature is the actual interaction and parallel evolution.
Block chain is to realize the CPSS parallel social infrastructure, one of its
main contribution is to distributed social systems and distributed artificial
intelligence research provides an effective decentralized data structure,
the interaction mechanism and calculation model, and to achieve the
data of the parallel society have laid a solid basis and credit basis. In
terms of data base, management experts Dai Mingceng Edward said, in
addition to god, all people must speak with data. However, in a central-
ized social system, the data are usually in the government and big com-
panies such as the minority of \ "hand, speaking for a few people \", its
impartiality, authority, and even may be unable to guarantee safety. Data
block chain, through highly redundant storage distributed node, in all \ ",
can do real democracy \ data ". In terms of the credit foundation, because
of its highly centralized society system engineering complexity and social
complexity and will inevitably exist \ "Merton system features, namely,
uncertainty, diversity and complexity, the central organization in the
social system and rules may be broken by individual behavior; Block
chain technology contributes to the realization of social system, the soft-
ware to define its basic idea is to eliminate centralized organization, the
unpredictable behavior in the form of intelligent contract procedural code
deployment and curing in the chain of blocks in the data in advance, and
cannot be forged and tampered with automation, thus to some extent can
\ Merton "social system into a comprehensive observation, active control,
can accurately predict \ Newton" social system.
Parallel Computational experiments and parallel execution method is by
far the only into the areas of social management of systematic and com-
plete research framework, the complexity science is the logic of social
environment in the new era of parallel extension and innovation. ACP
can be naturally combined with block chain technology, realize block
parallel social management of chain drive. First of all, collaboration and
block chain of P2P network, distributed consensus based on the contri-
bution of economic incentive mechanism itself is the distributed nature of
social system modeling, in which each node in a distributed system, and
serve as a independent and autonomous Agent (Agent). With the im-
provement of the ecological system block chain, chain blocks all common
nodes and the increasingly complex and autonomous intelligent contract
will by participating in various forms of Dapp, form a specific organization
form of DAC and the DAO, eventually forming the DAS, the ACP of artifi-
cial society. Secondly, intelligent programmable characteristics of con-
tract makes the block chain can be carried out various \ what-if "type of
virtual experiment design, scene deduction and result evaluation, such
calculation experiment process and automatic or semi-automatic to im-
plement the optimal decisions. Finally, blockchains, such as the Internet
of things intelligent asset formed by the combination of make Unicom real
physical world and virtual network space, and can be real and artificial
social system between virtual interaction and parallel tuned to achieve
social management and decision-making of the collaborative optimiza-
tion. It is not difficult to foresee, the physical world in the future real assets
are registered as chain intelligence assets, is the parallel block chain
drive society arrives.
34
LITECOIN
4.4 Game problem
Block chain technology has redefined the smart contract. Smart PoW
consensus process is highly dependent on the chain of chain network
node contribution agreement is the block core elements (layers), is
driven by events, with state, running in the chain of reproducible Shared
block of work force, the work force is mainly used to solve the SHA256
hash and random number search, in addition to the social value, does not
produce any computer program for data on the books, can achieve a
process the data in the active or passive, accept, store and send the
value, as well as the control and management. And in general, think
these work force resources waste is \ "intelligence asset off, all kinds of
chain, and other functions. Smart contracts as a kind of embedded at the
same time wasted a lot of power and resources. As the currency type
procedural contract, can be built in any block the rising popularity of chain
data, trading and the emergence of professional mining equipment,
COINS ecosystem on tangible or intangible assets, the formation of pro-
grammable control software has been in the capital and equipment of the
In recent years the rapid development of Internet and the depth of the
physical world coupled with powerful feedback that already have radically
altered the production of modern society, life and management decision
model, and formed the real physical world {virtual network space is tight
coupling, interaction and co-evolution of parallel social space, Internet
definition of arms race, obviously system, markets and assets. The issu-
ance and trading, creation and management provides innovative solu-
tions.
Block chain network as the decentralization of the distributed system,
each node would inevitably exist in the process of interaction of competi-
tion and cooperation game relation, which is especially obvious in the
process of currency dig. Generally speaking, the currency can through
the mutual cooperation between mineral pool preserving stability of
earnings. However, the mineral pools can be called a Block intercept
attack (Block, withholding attacks) way, through the disguised as ore
mining pool the miners, enjoy opponents pool income but not the actual
contribution of complete work certificate to attack other mineral pools,
reducing the opponent mineral pool. If the ore tank attack each other, the
party’s gains are less than don't attack each other. When mine pool
earnings function satisfies certain conditions, this attack and competition
will cause \ the prisoner's dilemma".
Specifically, intelligent contracts are a set of scenarios | deal with proce-
dural rules and logic, is deployed in the chain of blocks on the decentral-
ized, credible sharing program code. Intelligence contracts with the same
data block chain general characteristics, such as distributed recording,
storage, and validation, tampering and forgery, etc. The parties to sign
the contract on contract contents, conditions of breach and external veri-
fication data sources agree, if necessary after check and test the con-
tract code to be sure, in the form of intelligent contract deployment on
block chain, cannot rely on any center institutions signed on behalf of
each party enforce contracts to automation. Intelligent programmable
characteristics of the contract that the parties can increase the terms of
any complex.
Smart contract operation mechanism as shown in figure 5: normally,
intelligent after the contract signed by the parties, in the form of program
code attached in block chain data (such as a currency deal), after verified
by P2P networks and node credited with specific blocks of block chain.
Smart contract encapsulates the predefined number of state and trans-
formation rules, trigger contract execution situation (e.g., arrived at a
specific time or specific incidents, etc.) and response under the particular
situation, etc. Block chain can be real-time monitoring of intelligent the
status of the contract, and through the verification external data sources,
confirmed that meet specific trigger condition after activation and exe-
cute the contract.
has given rise to \ + "4.0 and a series of national strategy and industry.
The development trend of the future society will from CPS real world of
physical + network (Cyber - physical systems, CPS) to the spirit of
human world, forming a physical + + network of artificial {{machine the
ternary coupling system of content integration, known as social physical
information systems (Cyber - physical - social systems, CPSS). At
present, based on the parallel CPSS society has emerged, the core and
essential feature is the actual interaction and parallel evolution.
Block chain is to realize the CPSS parallel social infrastructure, one of its
main contribution is to distributed social systems and distributed artificial
intelligence research provides an effective decentralized data structure,
the interaction mechanism and calculation model, and to achieve the
data of the parallel society have laid a solid basis and credit basis. In
terms of data base, management experts Dai Mingceng Edward said, in
addition to god, all people must speak with data. However, in a central-
ized social system, the data are usually in the government and big com-
panies such as the minority of \ "hand, speaking for a few people \", its
impartiality, authority, and even may be unable to guarantee safety. Data
block chain, through highly redundant storage distributed node, in all \ ",
can do real democracy \ data ". In terms of the credit foundation, because
of its highly centralized society system engineering complexity and social
complexity and will inevitably exist \ "Merton system features, namely,
uncertainty, diversity and complexity, the central organization in the
social system and rules may be broken by individual behavior; Block
chain technology contributes to the realization of social system, the soft-
ware to define its basic idea is to eliminate centralized organization, the
unpredictable behavior in the form of intelligent contract procedural code
deployment and curing in the chain of blocks in the data in advance, and
cannot be forged and tampered with automation, thus to some extent can
\ Merton "social system into a comprehensive observation, active control,
can accurately predict \ Newton" social system.
Parallel Computational experiments and parallel execution method is by
far the only into the areas of social management of systematic and com-
plete research framework, the complexity science is the logic of social
environment in the new era of parallel extension and innovation. ACP
can be naturally combined with block chain technology, realize block
parallel social management of chain drive. First of all, collaboration and
block chain of P2P network, distributed consensus based on the contri-
bution of economic incentive mechanism itself is the distributed nature of
social system modeling, in which each node in a distributed system, and
serve as a independent and autonomous Agent (Agent). With the im-
provement of the ecological system block chain, chain blocks all common
nodes and the increasingly complex and autonomous intelligent contract
will by participating in various forms of Dapp, form a specific organization
form of DAC and the DAO, eventually forming the DAS, the ACP of artifi-
cial society. Secondly, intelligent programmable characteristics of con-
tract makes the block chain can be carried out various \ what-if "type of
virtual experiment design, scene deduction and result evaluation, such
calculation experiment process and automatic or semi-automatic to im-
plement the optimal decisions. Finally, blockchains, such as the Internet
of things intelligent asset formed by the combination of make Unicom real
physical world and virtual network space, and can be real and artificial
social system between virtual interaction and parallel tuned to achieve
social management and decision-making of the collaborative optimiza-
tion. It is not difficult to foresee, the physical world in the future real assets
are registered as chain intelligence assets, is the parallel block chain
drive society arrives.
35
LITECOIN
ntelligent contract
Preset departureconditions
External verificationdata source
Condition1:Response1
Condition2:Response2
Condition3:Response3
ConditionN:ResponseN
……
…………
(time, event, etc.)
status
block
value
block block block block
Preset response rules (specific transactions, actions, etc.)
Fig. 5 The rationale of smart contracts
In recent years the rapid development of Internet and the depth of the
physical world coupled with powerful feedback that already have radically
altered the production of modern society, life and management decision
model, and formed the real physical world {virtual network space is tight
coupling, interaction and co-evolution of parallel social space, Internet
Block chain network as the decentralization of the distributed system,
each node would inevitably exist in the process of interaction of competi-
tion and cooperation game relation, which is especially obvious in the
process of currency dig. Generally speaking, the currency can through
the mutual cooperation between mineral pool preserving stability of
earnings. However, the mineral pools can be called a Block intercept
attack (Block, withholding attacks) way, through the disguised as ore
mining pool the miners, enjoy opponents pool income but not the actual
contribution of complete work certificate to attack other mineral pools,
reducing the opponent mineral pool. If the ore tank attack each other, the
party’s gains are less than don't attack each other. When mine pool
earnings function satisfies certain conditions, this attack and competition
will cause \ the prisoner's dilemma".
Specifically, intelligent contracts are a set of scenarios | deal with proce-
dural rules and logic, is deployed in the chain of blocks on the decentral-
ized, credible sharing program code. Intelligence contracts with the same
data block chain general characteristics, such as distributed recording,
storage, and validation, tampering and forgery, etc. The parties to sign
the contract on contract contents, conditions of breach and external veri-
fication data sources agree, if necessary after check and test the con-
tract code to be sure, in the form of intelligent contract deployment on
block chain, cannot rely on any center institutions signed on behalf of
each party enforce contracts to automation. Intelligent programmable
characteristics of the contract that the parties can increase the terms of
any complex.
Smart contract operation mechanism as shown in figure 5: normally,
intelligent after the contract signed by the parties, in the form of program
code attached in block chain data (such as a currency deal), after verified
by P2P networks and node credited with specific blocks of block chain.
Smart contract encapsulates the predefined number of state and trans-
formation rules, trigger contract execution situation (e.g., arrived at a
specific time or specific incidents, etc.) and response under the particular
situation, etc. Block chain can be real-time monitoring of intelligent the
status of the contract, and through the verification external data sources,
confirmed that meet specific trigger condition after activation and exe-
cute the contract.
has given rise to \ + "4.0 and a series of national strategy and industry.
The development trend of the future society will from CPS real world of
physical + network (Cyber - physical systems, CPS) to the spirit of
human world, forming a physical + + network of artificial {{machine the
ternary coupling system of content integration, known as social physical
information systems (Cyber - physical - social systems, CPSS). At
present, based on the parallel CPSS society has emerged, the core and
essential feature is the actual interaction and parallel evolution.
Block chain is to realize the CPSS parallel social infrastructure, one of its
main contribution is to distributed social systems and distributed artificial
intelligence research provides an effective decentralized data structure,
the interaction mechanism and calculation model, and to achieve the
data of the parallel society have laid a solid basis and credit basis. In
terms of data base, management experts Dai Mingceng Edward said, in
addition to god, all people must speak with data. However, in a central-
ized social system, the data are usually in the government and big com-
panies such as the minority of \ "hand, speaking for a few people \", its
impartiality, authority, and even may be unable to guarantee safety. Data
block chain, through highly redundant storage distributed node, in all \ ",
can do real democracy \ data ". In terms of the credit foundation, because
of its highly centralized society system engineering complexity and social
complexity and will inevitably exist \ "Merton system features, namely,
uncertainty, diversity and complexity, the central organization in the
social system and rules may be broken by individual behavior; Block
chain technology contributes to the realization of social system, the soft-
ware to define its basic idea is to eliminate centralized organization, the
unpredictable behavior in the form of intelligent contract procedural code
deployment and curing in the chain of blocks in the data in advance, and
cannot be forged and tampered with automation, thus to some extent can
\ Merton "social system into a comprehensive observation, active control,
can accurately predict \ Newton" social system.
Parallel Computational experiments and parallel execution method is by
far the only into the areas of social management of systematic and com-
plete research framework, the complexity science is the logic of social
environment in the new era of parallel extension and innovation. ACP
can be naturally combined with block chain technology, realize block
parallel social management of chain drive. First of all, collaboration and
block chain of P2P network, distributed consensus based on the contri-
bution of economic incentive mechanism itself is the distributed nature of
social system modeling, in which each node in a distributed system, and
serve as a independent and autonomous Agent (Agent). With the im-
provement of the ecological system block chain, chain blocks all common
nodes and the increasingly complex and autonomous intelligent contract
will by participating in various forms of Dapp, form a specific organization
form of DAC and the DAO, eventually forming the DAS, the ACP of artifi-
cial society. Secondly, intelligent programmable characteristics of con-
tract makes the block chain can be carried out various \ what-if "type of
virtual experiment design, scene deduction and result evaluation, such
calculation experiment process and automatic or semi-automatic to im-
plement the optimal decisions. Finally, blockchains, such as the Internet
of things intelligent asset formed by the combination of make Unicom real
physical world and virtual network space, and can be real and artificial
social system between virtual interaction and parallel tuned to achieve
social management and decision-making of the collaborative optimiza-
tion. It is not difficult to foresee, the physical world in the future real assets
are registered as chain intelligence assets, is the parallel block chain
drive society arrives.
36
LITECOIN
In recent years the rapid development of Internet and the depth of the
physical world coupled with powerful feedback that already have radically
altered the production of modern society, life and management decision
model, and formed the real physical world {virtual network space is tight
coupling, interaction and co-evolution of parallel social space, Internet
Block chain and intelligent contract has extremely broad application sce-
narios. For example, in the field of Internet financial stake in the raise or
P2P lending business model can achieve by chain block and intelligent
contract. The traditional way is through equity raise or peer-to-peer
lending exchange or the complete network platform as the central orga-
nization fund-raising, management and investment, easy to appear be-
cause of the central organization in the process of actual operation
caused by lack of credit and financing risk. Using intelligent contracts,
these functions can be encapsulated in the decentralized credible auto-
matically block chain. Chain block can record every financing, when suc-
cessfully achieve specific financing amount calculated each investor
equity share, or for a period did not meet credit line automatic return
money to the investors. Such as, through the physical assets such as
houses and cars to asymmetric encryption, and embed intelligent de-
ployment after contract with specific access control rules on the block
chain, users meet certain access permissions or perform a operation
(e.g., payment) after just can use these assets, which can effectively
solve the house or car rental business model in asset transfer and
licensing of pain points.
Smart contracts are characterized by autonomy, self-sufficiency and
decentralization. Autonomous means that once the contract is started, it
will run automatically without any interference from other signatories.
Self-sufficiency means that the contract can obtain funds by providing
services or issuing assets, and using them when needed; Decentraliza-
tion means intelligent contract for verification by the decentralized stor-
age and program code rather than centralized entity to guarantee exe-
cution of contracts, can to a great extent, guarantee the fairness and im-
partiality of the contract.
Intelligent contract for block chain technology has important significance.
On the one hand, smart contracts is the activator block chain, for static
data given the underlying block chain flexible programmable mechanism
and algorithm, and chain of 2.0 and 3.0 times for building blocks pro-
grammable financial system and social system laid a foundation; Intelli-
gent contract, on the other hand, automated and programmable features
make it can encapsulate complex behavior of each node in the distribut-
ed block chain system, become the block chain software agents in the
virtual world of robot, which helps to promote block chain technology in
the application of all kinds of distributed artificial intelligence system,
makes the application based on block chain technology to build all kinds
of Decentralized (Decentralized applicantion, Dapp), Decentralized au-
tonomous organization (Decentralized au tumorous - organization,
DAO), Decentralized autonomous company (Decentralized autonomous
corporation, DAC) even Decentralized autonomous social (Decentral-
ized autonomous society, DAS) possible.
In terms of the status quo, chain block and intelligent contract technology
is the main development trend of the evolution from the automation to the
intelligent direction. The essence of all kinds of intelligent contracts and
the applications of the existing logic is mostly based on predefined sce-
narios \ the IF - THEN "type of conditional response rules, can satisfy the
requirements of automatic transaction and data processing. The future
of smart contracts should have according to the unknown scene \
what-if" deduction, computational experiments, and a degree of autono-
mous decision-making function, so as to realize the current \ automation
"to true \ intelligence" agreement of fly
Jump.
has given rise to \ + "4.0 and a series of national strategy and industry.
The development trend of the future society will from CPS real world of
physical + network (Cyber - physical systems, CPS) to the spirit of
human world, forming a physical + + network of artificial {{machine the
ternary coupling system of content integration, known as social physical
information systems (Cyber - physical - social systems, CPSS). At
present, based on the parallel CPSS society has emerged, the core and
essential feature is the actual interaction and parallel evolution.
Block chain is to realize the CPSS parallel social infrastructure, one of its
main contribution is to distributed social systems and distributed artificial
intelligence research provides an effective decentralized data structure,
the interaction mechanism and calculation model, and to achieve the
data of the parallel society have laid a solid basis and credit basis. In
terms of data base, management experts Dai Mingceng Edward said, in
addition to god, all people must speak with data. However, in a central-
ized social system, the data are usually in the government and big com-
panies such as the minority of \ "hand, speaking for a few people \", its
impartiality, authority, and even may be unable to guarantee safety. Data
block chain, through highly redundant storage distributed node, in all \ ",
can do real democracy \ data ". In terms of the credit foundation, because
of its highly centralized society system engineering complexity and social
complexity and will inevitably exist \ "Merton system features, namely,
uncertainty, diversity and complexity, the central organization in the
social system and rules may be broken by individual behavior; Block
chain technology contributes to the realization of social system, the soft-
ware to define its basic idea is to eliminate centralized organization, the
unpredictable behavior in the form of intelligent contract procedural code
deployment and curing in the chain of blocks in the data in advance, and
cannot be forged and tampered with automation, thus to some extent can
\ Merton "social system into a comprehensive observation, active control,
can accurately predict \ Newton" social system.
Parallel Computational experiments and parallel execution method is by
far the only into the areas of social management of systematic and com-
plete research framework, the complexity science is the logic of social
environment in the new era of parallel extension and innovation. ACP
can be naturally combined with block chain technology, realize block
parallel social management of chain drive. First of all, collaboration and
block chain of P2P network, distributed consensus based on the contri-
bution of economic incentive mechanism itself is the distributed nature of
social system modeling, in which each node in a distributed system, and
serve as a independent and autonomous Agent (Agent). With the im-
provement of the ecological system block chain, chain blocks all common
nodes and the increasingly complex and autonomous intelligent contract
will by participating in various forms of Dapp, form a specific organization
form of DAC and the DAO, eventually forming the DAS, the ACP of artifi-
cial society. Secondly, intelligent programmable characteristics of con-
tract makes the block chain can be carried out various \ what-if "type of
virtual experiment design, scene deduction and result evaluation, such
calculation experiment process and automatic or semi-automatic to im-
plement the optimal decisions. Finally, blockchains, such as the Internet
of things intelligent asset formed by the combination of make Unicom real
physical world and virtual network space, and can be real and artificial
social system between virtual interaction and parallel tuned to achieve
social management and decision-making of the collaborative optimiza-
tion. It is not difficult to foresee, the physical world in the future real assets
are registered as chain intelligence assets, is the parallel block chain
drive society arrives.
37
LITECOIN
In recent years the rapid development of Internet and the depth of the
physical world coupled with powerful feedback that already have radically
altered the production of modern society, life and management decision
model, and formed the real physical world {virtual network space is tight
coupling, interaction and co-evolution of parallel social space, Internet
Block chain and intelligent contract has extremely broad application sce-
narios. For example, in the field of Internet financial stake in the raise or
P2P lending business model can achieve by chain block and intelligent
contract. The traditional way is through equity raise or peer-to-peer
lending exchange or the complete network platform as the central orga-
nization fund-raising, management and investment, easy to appear be-
cause of the central organization in the process of actual operation
caused by lack of credit and financing risk. Using intelligent contracts,
these functions can be encapsulated in the decentralized credible auto-
matically block chain. Chain block can record every financing, when suc-
cessfully achieve specific financing amount calculated each investor
equity share, or for a period did not meet credit line automatic return
money to the investors. Such as, through the physical assets such as
houses and cars to asymmetric encryption, and embed intelligent de-
ployment after contract with specific access control rules on the block
chain, users meet certain access permissions or perform a operation
(e.g., payment) after just can use these assets, which can effectively
solve the house or car rental business model in asset transfer and
licensing of pain points.
Smart contracts are characterized by autonomy, self-sufficiency and
decentralization. Autonomous means that once the contract is started, it
will run automatically without any interference from other signatories.
Self-sufficiency means that the contract can obtain funds by providing
services or issuing assets, and using them when needed; Decentraliza-
tion means intelligent contract for verification by the decentralized stor-
age and program code rather than centralized entity to guarantee exe-
cution of contracts, can to a great extent, guarantee the fairness and im-
partiality of the contract.
Intelligent contract for block chain technology has important significance.
On the one hand, smart contracts is the activator block chain, for static
data given the underlying block chain flexible programmable mechanism
and algorithm, and chain of 2.0 and 3.0 times for building blocks pro-
grammable financial system and social system laid a foundation; Intelli-
gent contract, on the other hand, automated and programmable features
make it can encapsulate complex behavior of each node in the distribut-
ed block chain system, become the block chain software agents in the
virtual world of robot, which helps to promote block chain technology in
the application of all kinds of distributed artificial intelligence system,
makes the application based on block chain technology to build all kinds
of Decentralized (Decentralized applicantion, Dapp), Decentralized au-
tonomous organization (Decentralized au tumorous - organization,
DAO), Decentralized autonomous company (Decentralized autonomous
corporation, DAC) even Decentralized autonomous social (Decentral-
ized autonomous society, DAS) possible.
In terms of the status quo, chain block and intelligent contract technology
is the main development trend of the evolution from the automation to the
intelligent direction. The essence of all kinds of intelligent contracts and
the applications of the existing logic is mostly based on predefined sce-
narios \ the IF - THEN "type of conditional response rules, can satisfy the
requirements of automatic transaction and data processing. The future
of smart contracts should have according to the unknown scene \
what-if" deduction, computational experiments, and a degree of autono-
mous decision-making function, so as to realize the current \ automation
"to true \ intelligence" agreement of fly
Jump.
has given rise to \ + "4.0 and a series of national strategy and industry.
The development trend of the future society will from CPS real world of
physical + network (Cyber - physical systems, CPS) to the spirit of
human world, forming a physical + + network of artificial {{machine the
ternary coupling system of content integration, known as social physical
information systems (Cyber - physical - social systems, CPSS). At
present, based on the parallel CPSS society has emerged, the core and
essential feature is the actual interaction and parallel evolution.
Block chain is to realize the CPSS parallel social infrastructure, one of its
main contribution is to distributed social systems and distributed artificial
intelligence research provides an effective decentralized data structure,
the interaction mechanism and calculation model, and to achieve the
data of the parallel society have laid a solid basis and credit basis. In
terms of data base, management experts Dai Mingceng Edward said, in
addition to god, all people must speak with data. However, in a central-
ized social system, the data are usually in the government and big com-
panies such as the minority of \ "hand, speaking for a few people \", its
impartiality, authority, and even may be unable to guarantee safety. Data
block chain, through highly redundant storage distributed node, in all \ ",
can do real democracy \ data ". In terms of the credit foundation, because
of its highly centralized society system engineering complexity and social
complexity and will inevitably exist \ "Merton system features, namely,
uncertainty, diversity and complexity, the central organization in the
social system and rules may be broken by individual behavior; Block
chain technology contributes to the realization of social system, the soft-
ware to define its basic idea is to eliminate centralized organization, the
unpredictable behavior in the form of intelligent contract procedural code
deployment and curing in the chain of blocks in the data in advance, and
cannot be forged and tampered with automation, thus to some extent can
\ Merton "social system into a comprehensive observation, active control,
can accurately predict \ Newton" social system.
Parallel Computational experiments and parallel execution method is by
far the only into the areas of social management of systematic and com-
plete research framework, the complexity science is the logic of social
environment in the new era of parallel extension and innovation. ACP
can be naturally combined with block chain technology, realize block
parallel social management of chain drive. First of all, collaboration and
block chain of P2P network, distributed consensus based on the contri-
bution of economic incentive mechanism itself is the distributed nature of
social system modeling, in which each node in a distributed system, and
serve as a independent and autonomous Agent (Agent). With the im-
provement of the ecological system block chain, chain blocks all common
nodes and the increasingly complex and autonomous intelligent contract
will by participating in various forms of Dapp, form a specific organization
form of DAC and the DAO, eventually forming the DAS, the ACP of artifi-
cial society. Secondly, intelligent programmable characteristics of con-
tract makes the block chain can be carried out various \ what-if "type of
virtual experiment design, scene deduction and result evaluation, such
calculation experiment process and automatic or semi-automatic to im-
plement the optimal decisions. Finally, blockchains, such as the Internet
of things intelligent asset formed by the combination of make Unicom real
physical world and virtual network space, and can be real and artificial
social system between virtual interaction and parallel tuned to achieve
social management and decision-making of the collaborative optimiza-
tion. It is not difficult to foresee, the physical world in the future real assets
are registered as chain intelligence assets, is the parallel block chain
drive society arrives.
38
LITECOIN
Intelligent contract concept originally in 1994 put forward by scholars,
Nick Sz - abo, was originally defined as a set of defined commitment in
digital form, including contract participants can perform these promises
agreement on it and hope that through the smart is the designed contract
built into the physical entity to create a variety of flexible and controllable
intelligence assets. Because of the poor means computing and the lack
of application scenarios, intelligent contract has not received extensive
attention of the researchers.
Block chain technology has redefined the smart contract. Intelligent con-
tract is the core of the chain block elements (layers), is driven by events,
with state, running in the chain of reproducible Shared block data books
on computer programs, can achieve a process the data in the active or
passive, accept, store and send the value, and intelligent control and
manage all kinds of chain assets, and other functions. Intelligent con-
tracts as a kind of embedded programming, data can be built in any block
chain, trading, tangible or intangible assets, the formation of program-
mable control system of the definition of software, markets and assets.
Intelligent contract not only for traditional financial assets.
In recent years the rapid development of Internet and the depth of the
physical world coupled with powerful feedback that already have radically
altered the production of modern society, life and management decision
model, and formed the real physical world {virtual network space is tight
coupling, interaction and co-evolution of parallel social space, Internet
5 Smart contracts based on blockchain
6 Blockchain driven parallel society
has given rise to \ + "4.0 and a series of national strategy and industry.
The development trend of the future society will from CPS real world of
physical + network (Cyber - physical systems, CPS) to the spirit of
human world, forming a physical + + network of artificial {{machine the
ternary coupling system of content integration, known as social physical
information systems (Cyber - physical - social systems, CPSS). At
present, based on the parallel CPSS society has emerged, the core and
essential feature is the actual interaction and parallel evolution.
Block chain is to realize the CPSS parallel social infrastructure, one of its
main contribution is to distributed social systems and distributed artificial
intelligence research provides an effective decentralized data structure,
the interaction mechanism and calculation model, and to achieve the
data of the parallel society have laid a solid basis and credit basis. In
terms of data base, management experts Dai Mingceng Edward said, in
addition to god, all people must speak with data. However, in a central-
ized social system, the data are usually in the government and big com-
panies such as the minority of \ "hand, speaking for a few people \", its
impartiality, authority, and even may be unable to guarantee safety. Data
block chain, through highly redundant storage distributed node, in all \ ",
can do real democracy \ data ". In terms of the credit foundation, because
of its highly centralized society system engineering complexity and social
complexity and will inevitably exist \ "Merton system features, namely,
uncertainty, diversity and complexity, the central organization in the
social system and rules may be broken by individual behavior; Block
chain technology contributes to the realization of social system, the soft-
ware to define its basic idea is to eliminate centralized organization, the
unpredictable behavior in the form of intelligent contract procedural code
deployment and curing in the chain of blocks in the data in advance, and
cannot be forged and tampered with automation, thus to some extent can
\ Merton "social system into a comprehensive observation, active control,
can accurately predict \ Newton" social system.
Parallel Computational experiments and parallel execution method is by
far the only into the areas of social management of systematic and com-
plete research framework, the complexity science is the logic of social
environment in the new era of parallel extension and innovation. ACP
can be naturally combined with block chain technology, realize block
parallel social management of chain drive. First of all, collaboration and
block chain of P2P network, distributed consensus based on the contri-
bution of economic incentive mechanism itself is the distributed nature of
social system modeling, in which each node in a distributed system, and
serve as a independent and autonomous Agent (Agent). With the im-
provement of the ecological system block chain, chain blocks all common
nodes and the increasingly complex and autonomous intelligent contract
will by participating in various forms of Dapp, form a specific organization
form of DAC and the DAO, eventually forming the DAS, the ACP of artifi-
cial society. Secondly, intelligent programmable characteristics of con-
tract makes the block chain can be carried out various \ what-if "type of
virtual experiment design, scene deduction and result evaluation, such
calculation experiment process and automatic or semi-automatic to im-
plement the optimal decisions. Finally, blockchains, such as the Internet
of things intelligent asset formed by the combination of make Unicom real
physical world and virtual network space, and can be real and artificial
social system between virtual interaction and parallel tuned to achieve
social management and decision-making of the collaborative optimiza-
tion. It is not difficult to foresee, the physical world in the future real assets
are registered as chain intelligence assets, is the parallel block chain
drive society arrives.
39
LITECOIN
In recent years the rapid development of Internet and the depth of the
physical world coupled with powerful feedback that already have radically
altered the production of modern society, life and management decision
model, and formed the real physical world {virtual network space is tight
coupling, interaction and co-evolution of parallel social space, Internet
has given rise to \ + "4.0 and a series of national strategy and industry.
The development trend of the future society will from CPS real world of
physical + network (Cyber - physical systems, CPS) to the spirit of
human world, forming a physical + + network of artificial {{machine the
ternary coupling system of content integration, known as social physical
information systems (Cyber - physical - social systems, CPSS). At
present, based on the parallel CPSS society has emerged, the core and
essential feature is the actual interaction and parallel evolution.
Block chain is to realize the CPSS parallel social infrastructure, one of its
main contribution is to distributed social systems and distributed artificial
intelligence research provides an effective decentralized data structure,
the interaction mechanism and calculation model, and to achieve the
data of the parallel society have laid a solid basis and credit basis. In
terms of data base, management experts Dai Mingceng Edward said, in
addition to god, all people must speak with data. However, in a central-
ized social system, the data are usually in the government and big com-
panies such as the minority of \ "hand, speaking for a few people \", its
impartiality, authority, and even may be unable to guarantee safety. Data
block chain, through highly redundant storage distributed node, in all \ ",
can do real democracy \ data ". In terms of the credit foundation, because
of its highly centralized society system engineering complexity and social
complexity and will inevitably exist \ "Merton system features, namely,
uncertainty, diversity and complexity, the central organization in the
social system and rules may be broken by individual behavior; Block
chain technology contributes to the realization of social system, the soft-
ware to define its basic idea is to eliminate centralized organization, the
unpredictable behavior in the form of intelligent contract procedural code
deployment and curing in the chain of blocks in the data in advance, and
cannot be forged and tampered with automation, thus to some extent can
\ Merton "social system into a comprehensive observation, active control,
can accurately predict \ Newton" social system.
Parallel Computational experiments and parallel execution method is by
far the only into the areas of social management of systematic and com-
plete research framework, the complexity science is the logic of social
environment in the new era of parallel extension and innovation. ACP
can be naturally combined with block chain technology, realize block
parallel social management of chain drive. First of all, collaboration and
block chain of P2P network, distributed consensus based on the contri-
bution of economic incentive mechanism itself is the distributed nature of
social system modeling, in which each node in a distributed system, and
serve as a independent and autonomous Agent (Agent). With the im-
provement of the ecological system block chain, chain blocks all common
nodes and the increasingly complex and autonomous intelligent contract
will by participating in various forms of Dapp, form a specific organization
form of DAC and the DAO, eventually forming the DAS, the ACP of artifi-
cial society. Secondly, intelligent programmable characteristics of con-
tract makes the block chain can be carried out various \ what-if "type of
virtual experiment design, scene deduction and result evaluation, such
calculation experiment process and automatic or semi-automatic to im-
plement the optimal decisions. Finally, blockchains, such as the Internet
of things intelligent asset formed by the combination of make Unicom real
physical world and virtual network space, and can be real and artificial
social system between virtual interaction and parallel tuned to achieve
social management and decision-making of the collaborative optimiza-
tion. It is not difficult to foresee, the physical world in the future real assets
are registered as chain intelligence assets, is the parallel block chain
drive society arrives.
OINS with a script in trading system, and the FORTH (a compiled lan-
guage), the script is a simple, based on the stack, and from left to right, it
is specially designed to be a turing-complete, no cycle (LOOP) state-
ment of a system. In the currency In the network, a scripting system to
the operation of the data, which was completed through the stack (the
main stack and the stack), the stack is a commonly used abstract data
types, the most main characteristic is the Last In, First Out (LIFO: Last In
First Out).
In the currency of the client, the developers put COINS support client
Script type through Standard () function is made a summary, in the Stan-
dard () function contains five types of Script: P2PKH (Pay to publickey
hash), P2PK (Pay to publickey), MultiSignature 15 private key signature
(limited), P2SH (Pay to Script hash) and OP_Return. The five standard
script types are implemented, with public key hash payments, public key
payments, multiple signatures, the ability to pay through the script hash,
and data output. With these five standard script types, bitcoin clients can
implement complex payment logic. In addition, a non-standardized script
type may be created, but a miner who is willing to package the non-stan-
dardized transaction must be found, and the non-standardized script will
be executed.
We take P2PKH (Pay to publickey hash) as an example to illustrate the
production and execution of scripts. Suppose we need to pay 0.01BTC to
a bakery to buy Bread, the bakery's Address is: Bread Address.
The output of the transaction is:
OP_DUP OP_HASH160 <Bread Public Key Hash> OP_EQUAL OP_-
CHECKSIG
The unlock script corresponding to the locking script is:
<Bread Signature> <Bread Public Key>
Combining the two scripts can form the following combination script:
<Bread Signature> <Bread Public Key> OP_DUP OP_HASH160
<Bread Public Key Hash> OP_EQUAL OP_CHECKSIG
Only when the unlocking script is in line with the setting conditions for the
lock script, when the composite script is executed, the result is true
(Ture). To implement the combination of the script the results is true, also
means that the Bread Signature Signature is Bread that Address the
corresponding private key Signature, is a Bread Address valid signa-
tures, only in this way can trade execution results through (the result is
true).
Although bitcoin's scripting language contains many operators, it is im-
portant to note that the bitcoin scripting language is unsophisticated. In
this scripting language, there is no loop function, which means that the
transaction is limited in complexity and the number of transactions can be
limited. Script is not a general purpose programming language, these re-
strictions also avoids the potential to create an infinite loop or other com-
plex logical loopholes terms of payment, to leave the currency network
security hidden danger.
In UTXO model, we can through an open book clear trace the history of
every transaction, and can be totally transparent, UTXO model also
brought some parallel processing ability, can launch multiple addresses
to the address of the trading, bring certain reference for can expand sex.
In addition, the UTXO model also brings some privacy, and users can
use the Change address as the output address of UTXO. But UTXO itself
is stateless, and we will implement a UTXO type of smart contract
through a series of innovative designs.
40
LITECOIN
In recent years the rapid development of Internet and the depth of the
physical world coupled with powerful feedback that already have radically
altered the production of modern society, life and management decision
model, and formed the real physical world {virtual network space is tight
coupling, interaction and co-evolution of parallel social space, Internet
has given rise to \ + "4.0 and a series of national strategy and industry.
The development trend of the future society will from CPS real world of
physical + network (Cyber - physical systems, CPS) to the spirit of
human world, forming a physical + + network of artificial {{machine the
ternary coupling system of content integration, known as social physical
information systems (Cyber - physical - social systems, CPSS). At
present, based on the parallel CPSS society has emerged, the core and
essential feature is the actual interaction and parallel evolution.
Block chain is to realize the CPSS parallel social infrastructure, one of its
main contribution is to distributed social systems and distributed artificial
intelligence research provides an effective decentralized data structure,
the interaction mechanism and calculation model, and to achieve the
data of the parallel society have laid a solid basis and credit basis. In
terms of data base, management experts Dai Mingceng Edward said, in
addition to god, all people must speak with data. However, in a central-
ized social system, the data are usually in the government and big com-
panies such as the minority of \ "hand, speaking for a few people \", its
impartiality, authority, and even may be unable to guarantee safety. Data
block chain, through highly redundant storage distributed node, in all \ ",
can do real democracy \ data ". In terms of the credit foundation, because
of its highly centralized society system engineering complexity and social
complexity and will inevitably exist \ "Merton system features, namely,
uncertainty, diversity and complexity, the central organization in the
social system and rules may be broken by individual behavior; Block
chain technology contributes to the realization of social system, the soft-
ware to define its basic idea is to eliminate centralized organization, the
unpredictable behavior in the form of intelligent contract procedural code
deployment and curing in the chain of blocks in the data in advance, and
cannot be forged and tampered with automation, thus to some extent can
\ Merton "social system into a comprehensive observation, active control,
can accurately predict \ Newton" social system.
Parallel Computational experiments and parallel execution method is by
far the only into the areas of social management of systematic and com-
plete research framework, the complexity science is the logic of social
environment in the new era of parallel extension and innovation. ACP
can be naturally combined with block chain technology, realize block
parallel social management of chain drive. First of all, collaboration and
block chain of P2P network, distributed consensus based on the contri-
bution of economic incentive mechanism itself is the distributed nature of
social system modeling, in which each node in a distributed system, and
serve as a independent and autonomous Agent (Agent). With the im-
provement of the ecological system block chain, chain blocks all common
nodes and the increasingly complex and autonomous intelligent contract
will by participating in various forms of Dapp, form a specific organization
form of DAC and the DAO, eventually forming the DAS, the ACP of artifi-
cial society. Secondly, intelligent programmable characteristics of con-
tract makes the block chain can be carried out various \ what-if "type of
virtual experiment design, scene deduction and result evaluation, such
calculation experiment process and automatic or semi-automatic to im-
plement the optimal decisions. Finally, blockchains, such as the Internet
of things intelligent asset formed by the combination of make Unicom real
physical world and virtual network space, and can be real and artificial
social system between virtual interaction and parallel tuned to achieve
social management and decision-making of the collaborative optimiza-
tion. It is not difficult to foresee, the physical world in the future real assets
are registered as chain intelligence assets, is the parallel block chain
drive society arrives.
OINS with a script in trading system, and the FORTH (a compiled lan-
guage), the script is a simple, based on the stack, and from left to right, it
is specially designed to be a turing-complete, no cycle (LOOP) state-
ment of a system. In the currency In the network, a scripting system to
the operation of the data, which was completed through the stack (the
main stack and the stack), the stack is a commonly used abstract data
types, the most main characteristic is the Last In, First Out (LIFO: Last In
First Out).
In the currency of the client, the developers put COINS support client
Script type through Standard () function is made a summary, in the Stan-
dard () function contains five types of Script: P2PKH (Pay to publickey
hash), P2PK (Pay to publickey), MultiSignature 15 private key signature
(limited), P2SH (Pay to Script hash) and OP_Return. The five standard
script types are implemented, with public key hash payments, public key
payments, multiple signatures, the ability to pay through the script hash,
and data output. With these five standard script types, bitcoin clients can
implement complex payment logic. In addition, a non-standardized script
type may be created, but a miner who is willing to package the non-stan-
dardized transaction must be found, and the non-standardized script will
be executed.
We take P2PKH (Pay to publickey hash) as an example to illustrate the
production and execution of scripts. Suppose we need to pay 0.01BTC to
a bakery to buy Bread, the bakery's Address is: Bread Address.
The output of the transaction is:
OP_DUP OP_HASH160 <Bread Public Key Hash> OP_EQUAL OP_-
CHECKSIG
The unlock script corresponding to the locking script is:
<Bread Signature> <Bread Public Key>
Combining the two scripts can form the following combination script:
<Bread Signature> <Bread Public Key> OP_DUP OP_HASH160
<Bread Public Key Hash> OP_EQUAL OP_CHECKSIG
Only when the unlocking script is in line with the setting conditions for the
lock script, when the composite script is executed, the result is true
(Ture). To implement the combination of the script the results is true, also
means that the Bread Signature Signature is Bread that Address the
corresponding private key Signature, is a Bread Address valid signa-
tures, only in this way can trade execution results through (the result is
true).
Although bitcoin's scripting language contains many operators, it is im-
portant to note that the bitcoin scripting language is unsophisticated. In
this scripting language, there is no loop function, which means that the
transaction is limited in complexity and the number of transactions can be
limited. Script is not a general purpose programming language, these re-
strictions also avoids the potential to create an infinite loop or other com-
plex logical loopholes terms of payment, to leave the currency network
security hidden danger.
In UTXO model, we can through an open book clear trace the history of
every transaction, and can be totally transparent, UTXO model also
brought some parallel processing ability, can launch multiple addresses
to the address of the trading, bring certain reference for can expand sex.
In addition, the UTXO model also brings some privacy, and users can
use the Change address as the output address of UTXO. But UTXO itself
is stateless, and we will implement a UTXO type of smart contract
through a series of innovative designs.
41
LITECOIN
2.1 LTE development motivation
2.2 Development direction
In recent years the rapid development of Internet and the depth of the
physical world coupled with powerful feedback that already have radically
altered the production of modern society, life and management decision
model, and formed the real physical world {virtual network space is tight
coupling, interaction and co-evolution of parallel social space, Internet
has given rise to \ + "4.0 and a series of national strategy and industry.
The development trend of the future society will from CPS real world of
physical + network (Cyber - physical systems, CPS) to the spirit of
human world, forming a physical + + network of artificial {{machine the
ternary coupling system of content integration, known as social physical
information systems (Cyber - physical - social systems, CPSS). At
present, based on the parallel CPSS society has emerged, the core and
essential feature is the actual interaction and parallel evolution.
Block chain is to realize the CPSS parallel social infrastructure, one of its
main contribution is to distributed social systems and distributed artificial
intelligence research provides an effective decentralized data structure,
the interaction mechanism and calculation model, and to achieve the
data of the parallel society have laid a solid basis and credit basis. In
terms of data base, management experts Dai Mingceng Edward said, in
addition to god, all people must speak with data. However, in a central-
ized social system, the data are usually in the government and big com-
panies such as the minority of \ "hand, speaking for a few people \", its
impartiality, authority, and even may be unable to guarantee safety. Data
block chain, through highly redundant storage distributed node, in all \ ",
can do real democracy \ data ". In terms of the credit foundation, because
of its highly centralized society system engineering complexity and social
complexity and will inevitably exist \ "Merton system features, namely,
uncertainty, diversity and complexity, the central organization in the
social system and rules may be broken by individual behavior; Block
chain technology contributes to the realization of social system, the soft-
ware to define its basic idea is to eliminate centralized organization, the
unpredictable behavior in the form of intelligent contract procedural code
deployment and curing in the chain of blocks in the data in advance, and
cannot be forged and tampered with automation, thus to some extent can
\ Merton "social system into a comprehensive observation, active control,
can accurately predict \ Newton" social system.
Parallel Computational experiments and parallel execution method is by
far the only into the areas of social management of systematic and com-
plete research framework, the complexity science is the logic of social
environment in the new era of parallel extension and innovation. ACP
can be naturally combined with block chain technology, realize block
parallel social management of chain drive. First of all, collaboration and
block chain of P2P network, distributed consensus based on the contri-
bution of economic incentive mechanism itself is the distributed nature of
social system modeling, in which each node in a distributed system, and
serve as a independent and autonomous Agent (Agent). With the im-
provement of the ecological system block chain, chain blocks all common
nodes and the increasingly complex and autonomous intelligent contract
will by participating in various forms of Dapp, form a specific organization
form of DAC and the DAO, eventually forming the DAS, the ACP of artifi-
cial society. Secondly, intelligent programmable characteristics of con-
tract makes the block chain can be carried out various \ what-if "type of
virtual experiment design, scene deduction and result evaluation, such
calculation experiment process and automatic or semi-automatic to im-
plement the optimal decisions. Finally, blockchains, such as the Internet
of things intelligent asset formed by the combination of make Unicom real
physical world and virtual network space, and can be real and artificial
social system between virtual interaction and parallel tuned to achieve
social management and decision-making of the collaborative optimiza-
tion. It is not difficult to foresee, the physical world in the future real assets
are registered as chain intelligence assets, is the parallel block chain
drive society arrives.
On October 7, 2011, a network organization announced the release of a
new P2P virtual currency, called the Litecoin (LTC). The name is LTC,
and the English name is LiteCoin, meaning that lite means lightweight,
and the meaning behind it is lightweight. In fact, the idea of the release of
the LTC was designed to address some of the shortcomings of bitcoin,
and to make some optimizations and improvements on the basis of bit-
coin. However, at present, the efficiency of the use of the currency has
been unable to meet the needs of the customers, and it is difficult for
merchants to use blockchain technology in their business, so the LTE
operation is born. LTE not only inherits all the benefits of the Wright coin,
but also has faster networks, more sophisticated algorithms (EquiHash),
more stable performance, and more mature models.
In the early development of LTE, first of all, complete infrastructure, free
of charge transfer, user authentication, encryption, digital asset distribu-
tion, management and the basic function such as alliance, service to
businesses and ordinary users. Next, the improved encryption digital
asset payment function and asset transfer function will be completed. In
the future, automatic dividend sharing and other more advanced cryp-
Ⅱ 、 Design concept
tographic asset management capabilities will be issued to enable it to be
applied to more industries and scenarios.
OINS with a script in trading system, and the FORTH (a compiled lan-
guage), the script is a simple, based on the stack, and from left to right, it
is specially designed to be a turing-complete, no cycle (LOOP) state-
ment of a system. In the currency In the network, a scripting system to
the operation of the data, which was completed through the stack (the
main stack and the stack), the stack is a commonly used abstract data
types, the most main characteristic is the Last In, First Out (LIFO: Last In
First Out).
In the currency of the client, the developers put COINS support client
Script type through Standard () function is made a summary, in the Stan-
dard () function contains five types of Script: P2PKH (Pay to publickey
hash), P2PK (Pay to publickey), MultiSignature 15 private key signature
(limited), P2SH (Pay to Script hash) and OP_Return. The five standard
script types are implemented, with public key hash payments, public key
payments, multiple signatures, the ability to pay through the script hash,
and data output. With these five standard script types, bitcoin clients can
implement complex payment logic. In addition, a non-standardized script
type may be created, but a miner who is willing to package the non-stan-
dardized transaction must be found, and the non-standardized script will
be executed.
We take P2PKH (Pay to publickey hash) as an example to illustrate the
production and execution of scripts. Suppose we need to pay 0.01BTC to
a bakery to buy Bread, the bakery's Address is: Bread Address.
The output of the transaction is:
OP_DUP OP_HASH160 <Bread Public Key Hash> OP_EQUAL OP_-
CHECKSIG
The unlock script corresponding to the locking script is:
<Bread Signature> <Bread Public Key>
Combining the two scripts can form the following combination script:
<Bread Signature> <Bread Public Key> OP_DUP OP_HASH160
<Bread Public Key Hash> OP_EQUAL OP_CHECKSIG
Only when the unlocking script is in line with the setting conditions for the
lock script, when the composite script is executed, the result is true
(Ture). To implement the combination of the script the results is true, also
means that the Bread Signature Signature is Bread that Address the
corresponding private key Signature, is a Bread Address valid signa-
tures, only in this way can trade execution results through (the result is
true).
Although bitcoin's scripting language contains many operators, it is im-
portant to note that the bitcoin scripting language is unsophisticated. In
this scripting language, there is no loop function, which means that the
transaction is limited in complexity and the number of transactions can be
limited. Script is not a general purpose programming language, these re-
strictions also avoids the potential to create an infinite loop or other com-
plex logical loopholes terms of payment, to leave the currency network
security hidden danger.
In UTXO model, we can through an open book clear trace the history of
every transaction, and can be totally transparent, UTXO model also
brought some parallel processing ability, can launch multiple addresses
to the address of the trading, bring certain reference for can expand sex.
In addition, the UTXO model also brings some privacy, and users can
use the Change address as the output address of UTXO. But UTXO itself
is stateless, and we will implement a UTXO type of smart contract
through a series of innovative designs.
42
LITECOIN
3.1 What is the LTE
3.2 How to get LTE
In recent years the rapid development of Internet and the depth of the
physical world coupled with powerful feedback that already have radically
altered the production of modern society, life and management decision
model, and formed the real physical world {virtual network space is tight
coupling, interaction and co-evolution of parallel social space, Internet
has given rise to \ + "4.0 and a series of national strategy and industry.
The development trend of the future society will from CPS real world of
physical + network (Cyber - physical systems, CPS) to the spirit of
human world, forming a physical + + network of artificial {{machine the
ternary coupling system of content integration, known as social physical
information systems (Cyber - physical - social systems, CPSS). At
present, based on the parallel CPSS society has emerged, the core and
essential feature is the actual interaction and parallel evolution.
Block chain is to realize the CPSS parallel social infrastructure, one of its
main contribution is to distributed social systems and distributed artificial
intelligence research provides an effective decentralized data structure,
the interaction mechanism and calculation model, and to achieve the
data of the parallel society have laid a solid basis and credit basis. In
terms of data base, management experts Dai Mingceng Edward said, in
addition to god, all people must speak with data. However, in a central-
ized social system, the data are usually in the government and big com-
panies such as the minority of \ "hand, speaking for a few people \", its
impartiality, authority, and even may be unable to guarantee safety. Data
block chain, through highly redundant storage distributed node, in all \ ",
can do real democracy \ data ". In terms of the credit foundation, because
of its highly centralized society system engineering complexity and social
complexity and will inevitably exist \ "Merton system features, namely,
uncertainty, diversity and complexity, the central organization in the
social system and rules may be broken by individual behavior; Block
chain technology contributes to the realization of social system, the soft-
ware to define its basic idea is to eliminate centralized organization, the
unpredictable behavior in the form of intelligent contract procedural code
deployment and curing in the chain of blocks in the data in advance, and
cannot be forged and tampered with automation, thus to some extent can
\ Merton "social system into a comprehensive observation, active control,
can accurately predict \ Newton" social system.
Parallel Computational experiments and parallel execution method is by
far the only into the areas of social management of systematic and com-
plete research framework, the complexity science is the logic of social
environment in the new era of parallel extension and innovation. ACP
can be naturally combined with block chain technology, realize block
parallel social management of chain drive. First of all, collaboration and
block chain of P2P network, distributed consensus based on the contri-
bution of economic incentive mechanism itself is the distributed nature of
social system modeling, in which each node in a distributed system, and
serve as a independent and autonomous Agent (Agent). With the im-
provement of the ecological system block chain, chain blocks all common
nodes and the increasingly complex and autonomous intelligent contract
will by participating in various forms of Dapp, form a specific organization
form of DAC and the DAO, eventually forming the DAS, the ACP of artifi-
cial society. Secondly, intelligent programmable characteristics of con-
tract makes the block chain can be carried out various \ what-if "type of
virtual experiment design, scene deduction and result evaluation, such
calculation experiment process and automatic or semi-automatic to im-
plement the optimal decisions. Finally, blockchains, such as the Internet
of things intelligent asset formed by the combination of make Unicom real
physical world and virtual network space, and can be real and artificial
social system between virtual interaction and parallel tuned to achieve
social management and decision-making of the collaborative optimiza-
tion. It is not difficult to foresee, the physical world in the future real assets
are registered as chain intelligence assets, is the parallel block chain
drive society arrives.
In the early development of LTE, first of all, complete infrastructure, free
of charge transfer, user authentication, encryption, digital asset distribu-
tion, management and the basic function such as alliance, service to
businesses and ordinary users. Next, the improved encryption digital
asset payment function and asset transfer function will be completed. In
the future, automatic dividend sharing and other more advanced cryp-
Ⅲ、 Summary of LTE
tographic asset management capabilities will be issued to enable it to be
applied to more industries and scenarios.
The currency was a digital currency based on bitcoin code, and many of
the new features were first tested on the currency and then merged into
bitcoin branches. Our primary goal is to fork out a digital currency. It is a
digital currency based on blockchain technology and one of the most
successful digital currencies to date. There are many advantages, from
the split of the coin to the advantage of the Wright coin.
OINS with a script in trading system, and the FORTH (a compiled lan-
guage), the script is a simple, based on the stack, and from left to right, it
is specially designed to be a turing-complete, no cycle (LOOP) state-
ment of a system. In the currency In the network, a scripting system to
the operation of the data, which was completed through the stack (the
main stack and the stack), the stack is a commonly used abstract data
types, the most main characteristic is the Last In, First Out (LIFO: Last In
First Out).
In the currency of the client, the developers put COINS support client
Script type through Standard () function is made a summary, in the Stan-
dard () function contains five types of Script: P2PKH (Pay to publickey
hash), P2PK (Pay to publickey), MultiSignature 15 private key signature
(limited), P2SH (Pay to Script hash) and OP_Return. The five standard
script types are implemented, with public key hash payments, public key
payments, multiple signatures, the ability to pay through the script hash,
and data output. With these five standard script types, bitcoin clients can
implement complex payment logic. In addition, a non-standardized script
type may be created, but a miner who is willing to package the non-stan-
dardized transaction must be found, and the non-standardized script will
(1)POW is a very good work - proof mechanism, but it's all for miners.
We decided to join the POS mechanism and take care of the interests of
the holders in the interest of the miners. This forms a collaborative model.
(2)POW and POS have a 1:1 ratio, and have their own way of difficulty
adjustment.
be executed.
We take P2PKH (Pay to publickey hash) as an example to illustrate the
production and execution of scripts. Suppose we need to pay 0.01BTC to
a bakery to buy Bread, the bakery's Address is: Bread Address.
The output of the transaction is:
OP_DUP OP_HASH160 <Bread Public Key Hash> OP_EQUAL OP_-
CHECKSIG
The unlock script corresponding to the locking script is:
<Bread Signature> <Bread Public Key>
Combining the two scripts can form the following combination script:
<Bread Signature> <Bread Public Key> OP_DUP OP_HASH160
<Bread Public Key Hash> OP_EQUAL OP_CHECKSIG
Only when the unlocking script is in line with the setting conditions for the
lock script, when the composite script is executed, the result is true
(Ture). To implement the combination of the script the results is true, also
means that the Bread Signature Signature is Bread that Address the
corresponding private key Signature, is a Bread Address valid signa-
tures, only in this way can trade execution results through (the result is
true).
Although bitcoin's scripting language contains many operators, it is im-
portant to note that the bitcoin scripting language is unsophisticated. In
this scripting language, there is no loop function, which means that the
transaction is limited in complexity and the number of transactions can be
limited. Script is not a general purpose programming language, these re-
strictions also avoids the potential to create an infinite loop or other com-
plex logical loopholes terms of payment, to leave the currency network
security hidden danger.
In UTXO model, we can through an open book clear trace the history of
every transaction, and can be totally transparent, UTXO model also
brought some parallel processing ability, can launch multiple addresses
to the address of the trading, bring certain reference for can expand sex.
In addition, the UTXO model also brings some privacy, and users can
use the Change address as the output address of UTXO. But UTXO itself
is stateless, and we will implement a UTXO type of smart contract
through a series of innovative designs.
43
LITECOIN
4.1 Litecoin branching
4.2 UTXO
In recent years the rapid development of Internet and the depth of the
physical world coupled with powerful feedback that already have radically
altered the production of modern society, life and management decision
model, and formed the real physical world {virtual network space is tight
coupling, interaction and co-evolution of parallel social space, Internet
has given rise to \ + "4.0 and a series of national strategy and industry.
The development trend of the future society will from CPS real world of
physical + network (Cyber - physical systems, CPS) to the spirit of
human world, forming a physical + + network of artificial {{machine the
ternary coupling system of content integration, known as social physical
information systems (Cyber - physical - social systems, CPSS). At
present, based on the parallel CPSS society has emerged, the core and
essential feature is the actual interaction and parallel evolution.
Block chain is to realize the CPSS parallel social infrastructure, one of its
main contribution is to distributed social systems and distributed artificial
intelligence research provides an effective decentralized data structure,
the interaction mechanism and calculation model, and to achieve the
data of the parallel society have laid a solid basis and credit basis. In
terms of data base, management experts Dai Mingceng Edward said, in
addition to god, all people must speak with data. However, in a central-
ized social system, the data are usually in the government and big com-
panies such as the minority of \ "hand, speaking for a few people \", its
impartiality, authority, and even may be unable to guarantee safety. Data
block chain, through highly redundant storage distributed node, in all \ ",
can do real democracy \ data ". In terms of the credit foundation, because
of its highly centralized society system engineering complexity and social
complexity and will inevitably exist \ "Merton system features, namely,
uncertainty, diversity and complexity, the central organization in the
social system and rules may be broken by individual behavior; Block
chain technology contributes to the realization of social system, the soft-
ware to define its basic idea is to eliminate centralized organization, the
unpredictable behavior in the form of intelligent contract procedural code
deployment and curing in the chain of blocks in the data in advance, and
cannot be forged and tampered with automation, thus to some extent can
\ Merton "social system into a comprehensive observation, active control,
can accurately predict \ Newton" social system.
Parallel Computational experiments and parallel execution method is by
far the only into the areas of social management of systematic and com-
plete research framework, the complexity science is the logic of social
environment in the new era of parallel extension and innovation. ACP
can be naturally combined with block chain technology, realize block
parallel social management of chain drive. First of all, collaboration and
block chain of P2P network, distributed consensus based on the contri-
bution of economic incentive mechanism itself is the distributed nature of
social system modeling, in which each node in a distributed system, and
serve as a independent and autonomous Agent (Agent). With the im-
provement of the ecological system block chain, chain blocks all common
nodes and the increasingly complex and autonomous intelligent contract
will by participating in various forms of Dapp, form a specific organization
form of DAC and the DAO, eventually forming the DAS, the ACP of artifi-
cial society. Secondly, intelligent programmable characteristics of con-
tract makes the block chain can be carried out various \ what-if "type of
virtual experiment design, scene deduction and result evaluation, such
calculation experiment process and automatic or semi-automatic to im-
plement the optimal decisions. Finally, blockchains, such as the Internet
of things intelligent asset formed by the combination of make Unicom real
physical world and virtual network space, and can be real and artificial
social system between virtual interaction and parallel tuned to achieve
social management and decision-making of the collaborative optimiza-
tion. It is not difficult to foresee, the physical world in the future real assets
are registered as chain intelligence assets, is the parallel block chain
drive society arrives.
Ⅳ、 The technical details
OINS with a script in trading system, and the FORTH (a compiled lan-
guage), the script is a simple, based on the stack, and from left to right, it
is specially designed to be a turing-complete, no cycle (LOOP) state-
ment of a system. In the currency In the network, a scripting system to
the operation of the data, which was completed through the stack (the
main stack and the stack), the stack is a commonly used abstract data
types, the most main characteristic is the Last In, First Out (LIFO: Last In
First Out).
In the currency of the client, the developers put COINS support client
Script type through Standard () function is made a summary, in the Stan-
dard () function contains five types of Script: P2PKH (Pay to publickey
hash), P2PK (Pay to publickey), MultiSignature 15 private key signature
(limited), P2SH (Pay to Script hash) and OP_Return. The five standard
script types are implemented, with public key hash payments, public key
payments, multiple signatures, the ability to pay through the script hash,
and data output. With these five standard script types, bitcoin clients can
implement complex payment logic. In addition, a non-standardized script
type may be created, but a miner who is willing to package the non-stan-
dardized transaction must be found, and the non-standardized script will
It is well known that the currency is a digital currency based on bitcoin
code, and many of the new features are first tested on the currency and
then merged into bitcoin branches. Our primary goal is to fork out a digital
currency. It is a digital currency based on blockchain technology and one
of the most successful digital currencies to date. There are many advan-
tages, from the split of the coin to the advantage of the Litecoin.
The UTXO model used by Wright was proved to be a reliable model for a
reliable digital currency over the course of nine years. And the inherited
UTXO model is also the first condition of the coin split. The most import-
ant function of the digital currency is the transfer of digital money, which
inherits the UTXO model and the basic model of the whole trading
system of digital money.
In the network of the currency, UTXO (Unspent Transaction Output with-
out spending deal Output) is the basic unit of currency trading, through
the deal of input and Output, the currency network money changes into a
data structure that is distinguished from the credit card payment must be
in the encryption security network transmission, the data can be in any
currency may not secure network transmission of (WiFi, bluetooth, NFC,
tables, etc.). UTXO can be a "hearing" (1 � 10 to 9 BTC) of arbitrary inte-
ger times. Although UTXO can be any number less than 21 million, once
UTXO is created, it can only be spent. If a transaction requires a BTC
less than one UTXO, then the UTXO will still be spent and form a null
UTXO.
UTXO can be considered a bitcoin currency unit identified by the owner
of the private key and recognized by the entire bitcoin network.
In the UTXO model, UTXO consumed by a transaction is called a trans-
action input, and the UTXO created by the transaction is called the trans-
action output. In this way, a certain amount of bitcoin is transferred be-
tween different private key owners and is constantly consumed and cre-
ated in the trading chain. A bitcoin transaction is used to unlock UTXO
through the owner's private key signature, and it locks and creates UTXO
using the new owner's bitcoin address. In the initial stages of the curren-
cy network, miner through a special type of transaction type, Coin base
trading to create the output (the deal no input), the currency, can be used
to create other UTXO.
UTXO is each Node (Full Node) currency the client in a stored in the
memory of the tracking database, the database is also called "UTXO set"
or "UTXO pool", a New Deal to build from UTXO pool consume one or
more output, and currency network monitoring with all available UTXO, in
millions of dollars in currency network does not exist in the world the con-
cept of "balance of COINS", because the currency on the Internet will
only record all not cost UTXO, the concept of the balance of the currency
more is through the currency wallet client derived products, COINS wallet
through the scan chain blocks and aggregate all belong to the user's
UTXO to calculate the balance of the user.
In addition to the transaction cost, we can calculate the transaction cost
of a transaction by calculating the difference between the input and the
output.
Bitcoin network transaction costs = trading input sum - total transaction
output
Because every COIN all client according to a series of rules for each
deal, an independent checking, a currency exchange some business
information are included in the script, if any one node according to the
script, and to check the validity of the results, and all the other nodes will
get consistency check result, this also means that a valid transaction is
valid for everyone.
The execution of each transaction in the bitcoin network relies on the
unlock script and the lock script. The unlock script can solve the lock
script's blocking of an output value, and lock the script to set the cost on
a certain output value. The unlock script typically contains a signature of
the private key, also known as ScriptSig, and the lock script typically
locks a transaction output to a bitcoin address (the Hash Hash value of
the public key).
The entire node client of bitcoin performs the locking script and the lock-
ing script to verify the validity of a transaction. Client will first retrieve the
input points to UTXO, this UTXO contains a lock script defines the cost
condition, the client then reads tried to spend this UTXO by the client
structure contained in the input that unlock script, and perform the two
scripts. If the result of the locking script is true after the stack data is
copied from the unlock script, then the unlock script has the power to use
the UTXO and initiate a new transaction.
A simple unlock script and a lock script are shown below:
be executed.
We take P2PKH (Pay to publickey hash) as an example to illustrate the
production and execution of scripts. Suppose we need to pay 0.01BTC to
a bakery to buy Bread, the bakery's Address is: Bread Address.
The output of the transaction is:
OP_DUP OP_HASH160 <Bread Public Key Hash> OP_EQUAL OP_-
CHECKSIG
The unlock script corresponding to the locking script is:
<Bread Signature> <Bread Public Key>
Combining the two scripts can form the following combination script:
<Bread Signature> <Bread Public Key> OP_DUP OP_HASH160
<Bread Public Key Hash> OP_EQUAL OP_CHECKSIG
Only when the unlocking script is in line with the setting conditions for the
lock script, when the composite script is executed, the result is true
(Ture). To implement the combination of the script the results is true, also
means that the Bread Signature Signature is Bread that Address the
corresponding private key Signature, is a Bread Address valid signa-
tures, only in this way can trade execution results through (the result is
true).
Although bitcoin's scripting language contains many operators, it is im-
portant to note that the bitcoin scripting language is unsophisticated. In
this scripting language, there is no loop function, which means that the
transaction is limited in complexity and the number of transactions can be
limited. Script is not a general purpose programming language, these re-
strictions also avoids the potential to create an infinite loop or other com-
plex logical loopholes terms of payment, to leave the currency network
security hidden danger.
In UTXO model, we can through an open book clear trace the history of
every transaction, and can be totally transparent, UTXO model also
brought some parallel processing ability, can launch multiple addresses
to the address of the trading, bring certain reference for can expand sex.
In addition, the UTXO model also brings some privacy, and users can
use the Change address as the output address of UTXO. But UTXO itself
is stateless, and we will implement a UTXO type of smart contract
through a series of innovative designs.
44
LITECOIN
In recent years the rapid development of Internet and the depth of the
physical world coupled with powerful feedback that already have radically
altered the production of modern society, life and management decision
model, and formed the real physical world {virtual network space is tight
coupling, interaction and co-evolution of parallel social space, Internet
has given rise to \ + "4.0 and a series of national strategy and industry.
The development trend of the future society will from CPS real world of
physical + network (Cyber - physical systems, CPS) to the spirit of
human world, forming a physical + + network of artificial {{machine the
ternary coupling system of content integration, known as social physical
information systems (Cyber - physical - social systems, CPSS). At
present, based on the parallel CPSS society has emerged, the core and
essential feature is the actual interaction and parallel evolution.
Block chain is to realize the CPSS parallel social infrastructure, one of its
main contribution is to distributed social systems and distributed artificial
intelligence research provides an effective decentralized data structure,
the interaction mechanism and calculation model, and to achieve the
data of the parallel society have laid a solid basis and credit basis. In
terms of data base, management experts Dai Mingceng Edward said, in
addition to god, all people must speak with data. However, in a central-
ized social system, the data are usually in the government and big com-
panies such as the minority of \ "hand, speaking for a few people \", its
impartiality, authority, and even may be unable to guarantee safety. Data
block chain, through highly redundant storage distributed node, in all \ ",
can do real democracy \ data ". In terms of the credit foundation, because
of its highly centralized society system engineering complexity and social
complexity and will inevitably exist \ "Merton system features, namely,
uncertainty, diversity and complexity, the central organization in the
social system and rules may be broken by individual behavior; Block
chain technology contributes to the realization of social system, the soft-
ware to define its basic idea is to eliminate centralized organization, the
unpredictable behavior in the form of intelligent contract procedural code
deployment and curing in the chain of blocks in the data in advance, and
cannot be forged and tampered with automation, thus to some extent can
\ Merton "social system into a comprehensive observation, active control,
can accurately predict \ Newton" social system.
Parallel Computational experiments and parallel execution method is by
far the only into the areas of social management of systematic and com-
plete research framework, the complexity science is the logic of social
environment in the new era of parallel extension and innovation. ACP
can be naturally combined with block chain technology, realize block
parallel social management of chain drive. First of all, collaboration and
block chain of P2P network, distributed consensus based on the contri-
bution of economic incentive mechanism itself is the distributed nature of
social system modeling, in which each node in a distributed system, and
serve as a independent and autonomous Agent (Agent). With the im-
provement of the ecological system block chain, chain blocks all common
nodes and the increasingly complex and autonomous intelligent contract
will by participating in various forms of Dapp, form a specific organization
form of DAC and the DAO, eventually forming the DAS, the ACP of artifi-
cial society. Secondly, intelligent programmable characteristics of con-
tract makes the block chain can be carried out various \ what-if "type of
virtual experiment design, scene deduction and result evaluation, such
calculation experiment process and automatic or semi-automatic to im-
plement the optimal decisions. Finally, blockchains, such as the Internet
of things intelligent asset formed by the combination of make Unicom real
physical world and virtual network space, and can be real and artificial
social system between virtual interaction and parallel tuned to achieve
social management and decision-making of the collaborative optimiza-
tion. It is not difficult to foresee, the physical world in the future real assets
are registered as chain intelligence assets, is the parallel block chain
drive society arrives.
OINS with a script in trading system, and the FORTH (a compiled lan-
guage), the script is a simple, based on the stack, and from left to right, it
is specially designed to be a turing-complete, no cycle (LOOP) state-
ment of a system. In the currency In the network, a scripting system to
the operation of the data, which was completed through the stack (the
main stack and the stack), the stack is a commonly used abstract data
types, the most main characteristic is the Last In, First Out (LIFO: Last In
First Out).
In the currency of the client, the developers put COINS support client
Script type through Standard () function is made a summary, in the Stan-
dard () function contains five types of Script: P2PKH (Pay to publickey
hash), P2PK (Pay to publickey), MultiSignature 15 private key signature
(limited), P2SH (Pay to Script hash) and OP_Return. The five standard
script types are implemented, with public key hash payments, public key
payments, multiple signatures, the ability to pay through the script hash,
and data output. With these five standard script types, bitcoin clients can
implement complex payment logic. In addition, a non-standardized script
type may be created, but a miner who is willing to package the non-stan-
dardized transaction must be found, and the non-standardized script will
The UTXO model used by Wright was proved to be a reliable model for a
reliable digital currency over the course of nine years. And the inherited
UTXO model is also the first condition of the coin split. The most import-
ant function of the digital currency is the transfer of digital money, which
inherits the UTXO model and the basic model of the whole trading
system of digital money.
In the network of the currency, UTXO (Unspent Transaction Output with-
out spending deal Output) is the basic unit of currency trading, through
the deal of input and Output, the currency network money changes into a
data structure that is distinguished from the credit card payment must be
in the encryption security network transmission, the data can be in any
currency may not secure network transmission of (WiFi, bluetooth, NFC,
tables, etc.). UTXO can be a "hearing" (1 � 10 to 9 BTC) of arbitrary inte-
ger times. Although UTXO can be any number less than 21 million, once
UTXO is created, it can only be spent. If a transaction requires a BTC
less than one UTXO, then the UTXO will still be spent and form a null
UTXO.
UTXO can be considered a bitcoin currency unit identified by the owner
of the private key and recognized by the entire bitcoin network.
In the UTXO model, UTXO consumed by a transaction is called a trans-
action input, and the UTXO created by the transaction is called the trans-
action output. In this way, a certain amount of bitcoin is transferred be-
tween different private key owners and is constantly consumed and cre-
ated in the trading chain. A bitcoin transaction is used to unlock UTXO
through the owner's private key signature, and it locks and creates UTXO
using the new owner's bitcoin address. In the initial stages of the curren-
cy network, miner through a special type of transaction type, Coin base
trading to create the output (the deal no input), the currency, can be used
to create other UTXO.
UTXO is each Node (Full Node) currency the client in a stored in the
memory of the tracking database, the database is also called "UTXO set"
or "UTXO pool", a New Deal to build from UTXO pool consume one or
more output, and currency network monitoring with all available UTXO, in
millions of dollars in currency network does not exist in the world the con-
cept of "balance of COINS", because the currency on the Internet will
only record all not cost UTXO, the concept of the balance of the currency
more is through the currency wallet client derived products, COINS wallet
through the scan chain blocks and aggregate all belong to the user's
UTXO to calculate the balance of the user.
In addition to the transaction cost, we can calculate the transaction cost
of a transaction by calculating the difference between the input and the
output.
Bitcoin network transaction costs = trading input sum - total transaction
output
Because every COIN all client according to a series of rules for each
deal, an independent checking, a currency exchange some business
information are included in the script, if any one node according to the
script, and to check the validity of the results, and all the other nodes will
get consistency check result, this also means that a valid transaction is
valid for everyone.
The execution of each transaction in the bitcoin network relies on the
unlock script and the lock script. The unlock script can solve the lock
script's blocking of an output value, and lock the script to set the cost on
a certain output value. The unlock script typically contains a signature of
the private key, also known as ScriptSig, and the lock script typically
locks a transaction output to a bitcoin address (the Hash Hash value of
the public key).
The entire node client of bitcoin performs the locking script and the lock-
ing script to verify the validity of a transaction. Client will first retrieve the
input points to UTXO, this UTXO contains a lock script defines the cost
condition, the client then reads tried to spend this UTXO by the client
structure contained in the input that unlock script, and perform the two
scripts. If the result of the locking script is true after the stack data is
copied from the unlock script, then the unlock script has the power to use
the UTXO and initiate a new transaction.
A simple unlock script and a lock script are shown below:
be executed.
We take P2PKH (Pay to publickey hash) as an example to illustrate the
production and execution of scripts. Suppose we need to pay 0.01BTC to
a bakery to buy Bread, the bakery's Address is: Bread Address.
The output of the transaction is:
OP_DUP OP_HASH160 <Bread Public Key Hash> OP_EQUAL OP_-
CHECKSIG
The unlock script corresponding to the locking script is:
<Bread Signature> <Bread Public Key>
Combining the two scripts can form the following combination script:
<Bread Signature> <Bread Public Key> OP_DUP OP_HASH160
<Bread Public Key Hash> OP_EQUAL OP_CHECKSIG
Only when the unlocking script is in line with the setting conditions for the
lock script, when the composite script is executed, the result is true
(Ture). To implement the combination of the script the results is true, also
means that the Bread Signature Signature is Bread that Address the
corresponding private key Signature, is a Bread Address valid signa-
tures, only in this way can trade execution results through (the result is
true).
Although bitcoin's scripting language contains many operators, it is im-
portant to note that the bitcoin scripting language is unsophisticated. In
this scripting language, there is no loop function, which means that the
transaction is limited in complexity and the number of transactions can be
limited. Script is not a general purpose programming language, these re-
strictions also avoids the potential to create an infinite loop or other com-
plex logical loopholes terms of payment, to leave the currency network
security hidden danger.
In UTXO model, we can through an open book clear trace the history of
every transaction, and can be totally transparent, UTXO model also
brought some parallel processing ability, can launch multiple addresses
to the address of the trading, bring certain reference for can expand sex.
In addition, the UTXO model also brings some privacy, and users can
use the Change address as the output address of UTXO. But UTXO itself
is stateless, and we will implement a UTXO type of smart contract
through a series of innovative designs.
45
LITECOIN
In recent years the rapid development of Internet and the depth of the
physical world coupled with powerful feedback that already have radically
altered the production of modern society, life and management decision
model, and formed the real physical world {virtual network space is tight
coupling, interaction and co-evolution of parallel social space, Internet
has given rise to \ + "4.0 and a series of national strategy and industry.
The development trend of the future society will from CPS real world of
physical + network (Cyber - physical systems, CPS) to the spirit of
human world, forming a physical + + network of artificial {{machine the
ternary coupling system of content integration, known as social physical
information systems (Cyber - physical - social systems, CPSS). At
present, based on the parallel CPSS society has emerged, the core and
essential feature is the actual interaction and parallel evolution.
Block chain is to realize the CPSS parallel social infrastructure, one of its
main contribution is to distributed social systems and distributed artificial
intelligence research provides an effective decentralized data structure,
the interaction mechanism and calculation model, and to achieve the
data of the parallel society have laid a solid basis and credit basis. In
terms of data base, management experts Dai Mingceng Edward said, in
addition to god, all people must speak with data. However, in a central-
ized social system, the data are usually in the government and big com-
panies such as the minority of \ "hand, speaking for a few people \", its
impartiality, authority, and even may be unable to guarantee safety. Data
block chain, through highly redundant storage distributed node, in all \ ",
can do real democracy \ data ". In terms of the credit foundation, because
of its highly centralized society system engineering complexity and social
complexity and will inevitably exist \ "Merton system features, namely,
uncertainty, diversity and complexity, the central organization in the
social system and rules may be broken by individual behavior; Block
chain technology contributes to the realization of social system, the soft-
ware to define its basic idea is to eliminate centralized organization, the
unpredictable behavior in the form of intelligent contract procedural code
deployment and curing in the chain of blocks in the data in advance, and
cannot be forged and tampered with automation, thus to some extent can
\ Merton "social system into a comprehensive observation, active control,
can accurately predict \ Newton" social system.
Parallel Computational experiments and parallel execution method is by
far the only into the areas of social management of systematic and com-
plete research framework, the complexity science is the logic of social
environment in the new era of parallel extension and innovation. ACP
can be naturally combined with block chain technology, realize block
parallel social management of chain drive. First of all, collaboration and
block chain of P2P network, distributed consensus based on the contri-
bution of economic incentive mechanism itself is the distributed nature of
social system modeling, in which each node in a distributed system, and
serve as a independent and autonomous Agent (Agent). With the im-
provement of the ecological system block chain, chain blocks all common
nodes and the increasingly complex and autonomous intelligent contract
will by participating in various forms of Dapp, form a specific organization
form of DAC and the DAO, eventually forming the DAS, the ACP of artifi-
cial society. Secondly, intelligent programmable characteristics of con-
tract makes the block chain can be carried out various \ what-if "type of
virtual experiment design, scene deduction and result evaluation, such
calculation experiment process and automatic or semi-automatic to im-
plement the optimal decisions. Finally, blockchains, such as the Internet
of things intelligent asset formed by the combination of make Unicom real
physical world and virtual network space, and can be real and artificial
social system between virtual interaction and parallel tuned to achieve
social management and decision-making of the collaborative optimiza-
tion. It is not difficult to foresee, the physical world in the future real assets
are registered as chain intelligence assets, is the parallel block chain
drive society arrives.
OINS with a script in trading system, and the FORTH (a compiled lan-
guage), the script is a simple, based on the stack, and from left to right, it
is specially designed to be a turing-complete, no cycle (LOOP) state-
ment of a system. In the currency In the network, a scripting system to
the operation of the data, which was completed through the stack (the
main stack and the stack), the stack is a commonly used abstract data
types, the most main characteristic is the Last In, First Out (LIFO: Last In
First Out).
In the currency of the client, the developers put COINS support client
Script type through Standard () function is made a summary, in the Stan-
dard () function contains five types of Script: P2PKH (Pay to publickey
hash), P2PK (Pay to publickey), MultiSignature 15 private key signature
(limited), P2SH (Pay to Script hash) and OP_Return. The five standard
script types are implemented, with public key hash payments, public key
payments, multiple signatures, the ability to pay through the script hash,
and data output. With these five standard script types, bitcoin clients can
implement complex payment logic. In addition, a non-standardized script
type may be created, but a miner who is willing to package the non-stan-
dardized transaction must be found, and the non-standardized script will
The UTXO model used by Wright was proved to be a reliable model for a
reliable digital currency over the course of nine years. And the inherited
UTXO model is also the first condition of the coin split. The most import-
ant function of the digital currency is the transfer of digital money, which
inherits the UTXO model and the basic model of the whole trading
system of digital money.
In the network of the currency, UTXO (Unspent Transaction Output with-
out spending deal Output) is the basic unit of currency trading, through
the deal of input and Output, the currency network money changes into a
data structure that is distinguished from the credit card payment must be
in the encryption security network transmission, the data can be in any
currency may not secure network transmission of (WiFi, bluetooth, NFC,
tables, etc.). UTXO can be a "hearing" (1 � 10 to 9 BTC) of arbitrary inte-
ger times. Although UTXO can be any number less than 21 million, once
UTXO is created, it can only be spent. If a transaction requires a BTC
less than one UTXO, then the UTXO will still be spent and form a null
UTXO.
UTXO can be considered a bitcoin currency unit identified by the owner
of the private key and recognized by the entire bitcoin network.
In the UTXO model, UTXO consumed by a transaction is called a trans-
action input, and the UTXO created by the transaction is called the trans-
action output. In this way, a certain amount of bitcoin is transferred be-
tween different private key owners and is constantly consumed and cre-
ated in the trading chain. A bitcoin transaction is used to unlock UTXO
through the owner's private key signature, and it locks and creates UTXO
using the new owner's bitcoin address. In the initial stages of the curren-
cy network, miner through a special type of transaction type, Coin base
trading to create the output (the deal no input), the currency, can be used
to create other UTXO.
UTXO is each Node (Full Node) currency the client in a stored in the
memory of the tracking database, the database is also called "UTXO set"
or "UTXO pool", a New Deal to build from UTXO pool consume one or
more output, and currency network monitoring with all available UTXO, in
millions of dollars in currency network does not exist in the world the con-
cept of "balance of COINS", because the currency on the Internet will
only record all not cost UTXO, the concept of the balance of the currency
more is through the currency wallet client derived products, COINS wallet
through the scan chain blocks and aggregate all belong to the user's
UTXO to calculate the balance of the user.
In addition to the transaction cost, we can calculate the transaction cost
of a transaction by calculating the difference between the input and the
output.
Bitcoin network transaction costs = trading input sum - total transaction
output
Because every COIN all client according to a series of rules for each
deal, an independent checking, a currency exchange some business
information are included in the script, if any one node according to the
script, and to check the validity of the results, and all the other nodes will
get consistency check result, this also means that a valid transaction is
valid for everyone.
The execution of each transaction in the bitcoin network relies on the
unlock script and the lock script. The unlock script can solve the lock
script's blocking of an output value, and lock the script to set the cost on
a certain output value. The unlock script typically contains a signature of
the private key, also known as ScriptSig, and the lock script typically
locks a transaction output to a bitcoin address (the Hash Hash value of
the public key).
The entire node client of bitcoin performs the locking script and the lock-
ing script to verify the validity of a transaction. Client will first retrieve the
input points to UTXO, this UTXO contains a lock script defines the cost
condition, the client then reads tried to spend this UTXO by the client
structure contained in the input that unlock script, and perform the two
scripts. If the result of the locking script is true after the stack data is
copied from the unlock script, then the unlock script has the power to use
the UTXO and initiate a new transaction.
A simple unlock script and a lock script are shown below:
be executed.
We take P2PKH (Pay to publickey hash) as an example to illustrate the
production and execution of scripts. Suppose we need to pay 0.01BTC to
a bakery to buy Bread, the bakery's Address is: Bread Address.
The output of the transaction is:
OP_DUP OP_HASH160 <Bread Public Key Hash> OP_EQUAL OP_-
CHECKSIG
The unlock script corresponding to the locking script is:
<Bread Signature> <Bread Public Key>
Combining the two scripts can form the following combination script:
<Bread Signature> <Bread Public Key> OP_DUP OP_HASH160
<Bread Public Key Hash> OP_EQUAL OP_CHECKSIG
Only when the unlocking script is in line with the setting conditions for the
lock script, when the composite script is executed, the result is true
(Ture). To implement the combination of the script the results is true, also
means that the Bread Signature Signature is Bread that Address the
corresponding private key Signature, is a Bread Address valid signa-
tures, only in this way can trade execution results through (the result is
true).
Although bitcoin's scripting language contains many operators, it is im-
portant to note that the bitcoin scripting language is unsophisticated. In
this scripting language, there is no loop function, which means that the
transaction is limited in complexity and the number of transactions can be
limited. Script is not a general purpose programming language, these re-
strictions also avoids the potential to create an infinite loop or other com-
plex logical loopholes terms of payment, to leave the currency network
security hidden danger.
In UTXO model, we can through an open book clear trace the history of
every transaction, and can be totally transparent, UTXO model also
brought some parallel processing ability, can launch multiple addresses
to the address of the trading, bring certain reference for can expand sex.
In addition, the UTXO model also brings some privacy, and users can
use the Change address as the output address of UTXO. But UTXO itself
is stateless, and we will implement a UTXO type of smart contract
through a series of innovative designs.
46
LITECOIN
Unlock script Lock the script
Unlock script: provided by the user to meet the requirements of the call transaction
Locking script: exists in a transaction output, setting up the blocking conditions for the transaction output
(scriptSig)
<sig> <Pubk> DUP HASH160 <PubKHash> EQUALVERIFY CHECKSIG
(scritPubKey)
Fig. 5 The rationale of smart contracts
In recent years the rapid development of Internet and the depth of the
physical world coupled with powerful feedback that already have radically
altered the production of modern society, life and management decision
model, and formed the real physical world {virtual network space is tight
coupling, interaction and co-evolution of parallel social space, Internet
has given rise to \ + "4.0 and a series of national strategy and industry.
The development trend of the future society will from CPS real world of
physical + network (Cyber - physical systems, CPS) to the spirit of
human world, forming a physical + + network of artificial {{machine the
ternary coupling system of content integration, known as social physical
information systems (Cyber - physical - social systems, CPSS). At
present, based on the parallel CPSS society has emerged, the core and
essential feature is the actual interaction and parallel evolution.
Block chain is to realize the CPSS parallel social infrastructure, one of its
main contribution is to distributed social systems and distributed artificial
intelligence research provides an effective decentralized data structure,
the interaction mechanism and calculation model, and to achieve the
data of the parallel society have laid a solid basis and credit basis. In
terms of data base, management experts Dai Mingceng Edward said, in
addition to god, all people must speak with data. However, in a central-
ized social system, the data are usually in the government and big com-
panies such as the minority of \ "hand, speaking for a few people \", its
impartiality, authority, and even may be unable to guarantee safety. Data
block chain, through highly redundant storage distributed node, in all \ ",
can do real democracy \ data ". In terms of the credit foundation, because
of its highly centralized society system engineering complexity and social
complexity and will inevitably exist \ "Merton system features, namely,
uncertainty, diversity and complexity, the central organization in the
social system and rules may be broken by individual behavior; Block
chain technology contributes to the realization of social system, the soft-
ware to define its basic idea is to eliminate centralized organization, the
unpredictable behavior in the form of intelligent contract procedural code
deployment and curing in the chain of blocks in the data in advance, and
cannot be forged and tampered with automation, thus to some extent can
\ Merton "social system into a comprehensive observation, active control,
can accurately predict \ Newton" social system.
Parallel Computational experiments and parallel execution method is by
far the only into the areas of social management of systematic and com-
plete research framework, the complexity science is the logic of social
environment in the new era of parallel extension and innovation. ACP
can be naturally combined with block chain technology, realize block
parallel social management of chain drive. First of all, collaboration and
block chain of P2P network, distributed consensus based on the contri-
bution of economic incentive mechanism itself is the distributed nature of
social system modeling, in which each node in a distributed system, and
serve as a independent and autonomous Agent (Agent). With the im-
provement of the ecological system block chain, chain blocks all common
nodes and the increasingly complex and autonomous intelligent contract
will by participating in various forms of Dapp, form a specific organization
form of DAC and the DAO, eventually forming the DAS, the ACP of artifi-
cial society. Secondly, intelligent programmable characteristics of con-
tract makes the block chain can be carried out various \ what-if "type of
virtual experiment design, scene deduction and result evaluation, such
calculation experiment process and automatic or semi-automatic to im-
plement the optimal decisions. Finally, blockchains, such as the Internet
of things intelligent asset formed by the combination of make Unicom real
physical world and virtual network space, and can be real and artificial
social system between virtual interaction and parallel tuned to achieve
social management and decision-making of the collaborative optimiza-
tion. It is not difficult to foresee, the physical world in the future real assets
are registered as chain intelligence assets, is the parallel block chain
drive society arrives.
OINS with a script in trading system, and the FORTH (a compiled lan-
guage), the script is a simple, based on the stack, and from left to right, it
is specially designed to be a turing-complete, no cycle (LOOP) state-
ment of a system. In the currency In the network, a scripting system to
the operation of the data, which was completed through the stack (the
main stack and the stack), the stack is a commonly used abstract data
types, the most main characteristic is the Last In, First Out (LIFO: Last In
First Out).
In the currency of the client, the developers put COINS support client
Script type through Standard () function is made a summary, in the Stan-
dard () function contains five types of Script: P2PKH (Pay to publickey
hash), P2PK (Pay to publickey), MultiSignature 15 private key signature
(limited), P2SH (Pay to Script hash) and OP_Return. The five standard
script types are implemented, with public key hash payments, public key
payments, multiple signatures, the ability to pay through the script hash,
and data output. With these five standard script types, bitcoin clients can
implement complex payment logic. In addition, a non-standardized script
type may be created, but a miner who is willing to package the non-stan-
dardized transaction must be found, and the non-standardized script will
be executed.
We take P2PKH (Pay to publickey hash) as an example to illustrate the
production and execution of scripts. Suppose we need to pay 0.01BTC to
a bakery to buy Bread, the bakery's Address is: Bread Address.
The output of the transaction is:
OP_DUP OP_HASH160 <Bread Public Key Hash> OP_EQUAL OP_-
CHECKSIG
The unlock script corresponding to the locking script is:
<Bread Signature> <Bread Public Key>
Combining the two scripts can form the following combination script:
<Bread Signature> <Bread Public Key> OP_DUP OP_HASH160
<Bread Public Key Hash> OP_EQUAL OP_CHECKSIG
Only when the unlocking script is in line with the setting conditions for the
lock script, when the composite script is executed, the result is true
(Ture). To implement the combination of the script the results is true, also
means that the Bread Signature Signature is Bread that Address the
corresponding private key Signature, is a Bread Address valid signa-
tures, only in this way can trade execution results through (the result is
true).
Although bitcoin's scripting language contains many operators, it is im-
portant to note that the bitcoin scripting language is unsophisticated. In
this scripting language, there is no loop function, which means that the
transaction is limited in complexity and the number of transactions can be
limited. Script is not a general purpose programming language, these re-
strictions also avoids the potential to create an infinite loop or other com-
plex logical loopholes terms of payment, to leave the currency network
security hidden danger.
In UTXO model, we can through an open book clear trace the history of
every transaction, and can be totally transparent, UTXO model also
brought some parallel processing ability, can launch multiple addresses
to the address of the trading, bring certain reference for can expand sex.
In addition, the UTXO model also brings some privacy, and users can
use the Change address as the output address of UTXO. But UTXO itself
is stateless, and we will implement a UTXO type of smart contract
through a series of innovative designs.
47
LITECOIN
OINS with a script in trading system, and the FORTH (a compiled lan-
guage), the script is a simple, based on the stack, and from left to right, it
is specially designed to be a turing-complete, no cycle (LOOP) state-
ment of a system. In the currency In the network, a scripting system to
the operation of the data, which was completed through the stack (the
main stack and the stack), the stack is a commonly used abstract data
types, the most main characteristic is the Last In, First Out (LIFO: Last In
First Out).
In the currency of the client, the developers put COINS support client
Script type through Standard () function is made a summary, in the Stan-
dard () function contains five types of Script: P2PKH (Pay to publickey
hash), P2PK (Pay to publickey), MultiSignature 15 private key signature
(limited), P2SH (Pay to Script hash) and OP_Return. The five standard
script types are implemented, with public key hash payments, public key
payments, multiple signatures, the ability to pay through the script hash,
and data output. With these five standard script types, bitcoin clients can
implement complex payment logic. In addition, a non-standardized script
type may be created, but a miner who is willing to package the non-stan-
dardized transaction must be found, and the non-standardized script will
be executed.
We take P2PKH (Pay to publickey hash) as an example to illustrate the
production and execution of scripts. Suppose we need to pay 0.01BTC to
a bakery to buy Bread, the bakery's Address is: Bread Address.
The output of the transaction is:
OP_DUP OP_HASH160 <Bread Public Key Hash> OP_EQUAL OP_-
CHECKSIG
The unlock script corresponding to the locking script is:
<Bread Signature> <Bread Public Key>
Combining the two scripts can form the following combination script:
<Bread Signature> <Bread Public Key> OP_DUP OP_HASH160
<Bread Public Key Hash> OP_EQUAL OP_CHECKSIG
Only when the unlocking script is in line with the setting conditions for the
lock script, when the composite script is executed, the result is true
(Ture). To implement the combination of the script the results is true, also
means that the Bread Signature Signature is Bread that Address the
corresponding private key Signature, is a Bread Address valid signa-
tures, only in this way can trade execution results through (the result is
true).
Although bitcoin's scripting language contains many operators, it is im-
portant to note that the bitcoin scripting language is unsophisticated. In
this scripting language, there is no loop function, which means that the
transaction is limited in complexity and the number of transactions can be
limited. Script is not a general purpose programming language, these re-
strictions also avoids the potential to create an infinite loop or other com-
plex logical loopholes terms of payment, to leave the currency network
security hidden danger.
In UTXO model, we can through an open book clear trace the history of
every transaction, and can be totally transparent, UTXO model also
brought some parallel processing ability, can launch multiple addresses
to the address of the trading, bring certain reference for can expand sex.
In addition, the UTXO model also brings some privacy, and users can
use the Change address as the output address of UTXO. But UTXO itself
is stateless, and we will implement a UTXO type of smart contract
through a series of innovative designs.
48
LITECOIN
4.3 EquiHash
4.4 POW+POS
The current POW algorithm used in leiter has been supported by mature
mining machines, resulting in a huge computing power monopoly. We will
use Equihash algorithm, which has stable operation in the digital curren-
cy of ZCash, and the docking of the ore pool is stable. At the same time,
this algorithm is mainly used for mining, which has high degree of partici-
pation. It is not easy to be monopolized by a single mine. And this algo-
rithm is an in-memory algorithm, which is not easy to be accelerated by
a proprietary chip in the short term.
POW is a very good work - proof mechanism, but it's all for miners. We
decided to join the POS mechanism and take care of the interests of the
holders in the interest of the miners. This forms a collaborative model.
POW and POS have a 1:1 ratio, and have their own way of difficulty ad-
justment.
OINS with a script in trading system, and the FORTH (a compiled lan-
guage), the script is a simple, based on the stack, and from left to right, it
is specially designed to be a turing-complete, no cycle (LOOP) state-
ment of a system. In the currency In the network, a scripting system to
the operation of the data, which was completed through the stack (the
main stack and the stack), the stack is a commonly used abstract data
types, the most main characteristic is the Last In, First Out (LIFO: Last In
First Out).
In the currency of the client, the developers put COINS support client
Script type through Standard () function is made a summary, in the Stan-
dard () function contains five types of Script: P2PKH (Pay to publickey
hash), P2PK (Pay to publickey), MultiSignature 15 private key signature
(limited), P2SH (Pay to Script hash) and OP_Return. The five standard
script types are implemented, with public key hash payments, public key
payments, multiple signatures, the ability to pay through the script hash,
and data output. With these five standard script types, bitcoin clients can
implement complex payment logic. In addition, a non-standardized script
type may be created, but a miner who is willing to package the non-stan-
dardized transaction must be found, and the non-standardized script will
be executed.
We take P2PKH (Pay to publickey hash) as an example to illustrate the
production and execution of scripts. Suppose we need to pay 0.01BTC to
a bakery to buy Bread, the bakery's Address is: Bread Address.
The output of the transaction is:
OP_DUP OP_HASH160 <Bread Public Key Hash> OP_EQUAL OP_-
CHECKSIG
The unlock script corresponding to the locking script is:
<Bread Signature> <Bread Public Key>
Combining the two scripts can form the following combination script:
<Bread Signature> <Bread Public Key> OP_DUP OP_HASH160
<Bread Public Key Hash> OP_EQUAL OP_CHECKSIG
Only when the unlocking script is in line with the setting conditions for the
lock script, when the composite script is executed, the result is true
(Ture). To implement the combination of the script the results is true, also
means that the Bread Signature Signature is Bread that Address the
corresponding private key Signature, is a Bread Address valid signa-
tures, only in this way can trade execution results through (the result is
true).
Although bitcoin's scripting language contains many operators, it is im-
portant to note that the bitcoin scripting language is unsophisticated. In
this scripting language, there is no loop function, which means that the
transaction is limited in complexity and the number of transactions can be
limited. Script is not a general purpose programming language, these re-
strictions also avoids the potential to create an infinite loop or other com-
plex logical loopholes terms of payment, to leave the currency network
security hidden danger.
In UTXO model, we can through an open book clear trace the history of
every transaction, and can be totally transparent, UTXO model also
brought some parallel processing ability, can launch multiple addresses
to the address of the trading, bring certain reference for can expand sex.
In addition, the UTXO model also brings some privacy, and users can
use the Change address as the output address of UTXO. But UTXO itself
is stateless, and we will implement a UTXO type of smart contract
through a series of innovative designs.
49
LITECOIN
4.6 Zero knowledge proof
4.5 Replay attack protection
Zero knowledge proves that the transaction information can be com-
pletely hidden on the blockchain network. We think that in many cases,
privacy protection is very important, so we're going to have this feature in
the future. We hope that private transactions and ordinary transactions
can coexist.
This is not a feature, it is the protection of the assets on the two chains of
the fork. We must prevent transactions on the leiter chain and LTE chain
from being replayed on another chain.
Before the fork, we were compatible with the trading data of the currency.
After the fork block, we will use a different way of signature and Wright
coin and so on the New Deal in the chain of Wright coin LTE cannot verify
through, Wright coin new deals on the chain cannot verify through on
UBChain. In the meantime, the new signature is adopted to ensure that
no one can replicate/fake the same transaction except for the initiator.
OINS with a script in trading system, and the FORTH (a compiled lan-
guage), the script is a simple, based on the stack, and from left to right, it
is specially designed to be a turing-complete, no cycle (LOOP) state-
ment of a system. In the currency In the network, a scripting system to
the operation of the data, which was completed through the stack (the
main stack and the stack), the stack is a commonly used abstract data
types, the most main characteristic is the Last In, First Out (LIFO: Last In
First Out).
In the currency of the client, the developers put COINS support client
Script type through Standard () function is made a summary, in the Stan-
dard () function contains five types of Script: P2PKH (Pay to publickey
hash), P2PK (Pay to publickey), MultiSignature 15 private key signature
(limited), P2SH (Pay to Script hash) and OP_Return. The five standard
script types are implemented, with public key hash payments, public key
payments, multiple signatures, the ability to pay through the script hash,
and data output. With these five standard script types, bitcoin clients can
implement complex payment logic. In addition, a non-standardized script
type may be created, but a miner who is willing to package the non-stan-
dardized transaction must be found, and the non-standardized script will
be executed.
We take P2PKH (Pay to publickey hash) as an example to illustrate the
production and execution of scripts. Suppose we need to pay 0.01BTC to
a bakery to buy Bread, the bakery's Address is: Bread Address.
The output of the transaction is:
OP_DUP OP_HASH160 <Bread Public Key Hash> OP_EQUAL OP_-
CHECKSIG
The unlock script corresponding to the locking script is:
<Bread Signature> <Bread Public Key>
Combining the two scripts can form the following combination script:
<Bread Signature> <Bread Public Key> OP_DUP OP_HASH160
<Bread Public Key Hash> OP_EQUAL OP_CHECKSIG
Only when the unlocking script is in line with the setting conditions for the
lock script, when the composite script is executed, the result is true
(Ture). To implement the combination of the script the results is true, also
means that the Bread Signature Signature is Bread that Address the
corresponding private key Signature, is a Bread Address valid signa-
tures, only in this way can trade execution results through (the result is
true).
Although bitcoin's scripting language contains many operators, it is im-
portant to note that the bitcoin scripting language is unsophisticated. In
this scripting language, there is no loop function, which means that the
transaction is limited in complexity and the number of transactions can be
limited. Script is not a general purpose programming language, these re-
strictions also avoids the potential to create an infinite loop or other com-
plex logical loopholes terms of payment, to leave the currency network
security hidden danger.
In UTXO model, we can through an open book clear trace the history of
every transaction, and can be totally transparent, UTXO model also
brought some parallel processing ability, can launch multiple addresses
to the address of the trading, bring certain reference for can expand sex.
In addition, the UTXO model also brings some privacy, and users can
use the Change address as the output address of UTXO. But UTXO itself
is stateless, and we will implement a UTXO type of smart contract
through a series of innovative designs.
Transaction1 TransactionN
Signature1 SignatureN
LTE
LTE/LTC
Transaction1 TransactionN
Signature1 SignatureN LTC
Transaction1 TransactionN
Signature1 SignatureN
50
LITECOIN
4.7 Technical route
2017Q4 Modify the EquiHash algorithm to add POS and release new
wallets
2018-01-06 At approximately 1345678 block height, perform bifurca-
tion.
2018Q2 Zero knowledge proof
OINS with a script in trading system, and the FORTH (a compiled lan-
guage), the script is a simple, based on the stack, and from left to right, it
is specially designed to be a turing-complete, no cycle (LOOP) state-
ment of a system. In the currency In the network, a scripting system to
the operation of the data, which was completed through the stack (the
main stack and the stack), the stack is a commonly used abstract data
types, the most main characteristic is the Last In, First Out (LIFO: Last In
First Out).
In the currency of the client, the developers put COINS support client
Script type through Standard () function is made a summary, in the Stan-
dard () function contains five types of Script: P2PKH (Pay to publickey
hash), P2PK (Pay to publickey), MultiSignature 15 private key signature
(limited), P2SH (Pay to Script hash) and OP_Return. The five standard
script types are implemented, with public key hash payments, public key
payments, multiple signatures, the ability to pay through the script hash,
and data output. With these five standard script types, bitcoin clients can
implement complex payment logic. In addition, a non-standardized script
type may be created, but a miner who is willing to package the non-stan-
dardized transaction must be found, and the non-standardized script will
be executed.
We take P2PKH (Pay to publickey hash) as an example to illustrate the
production and execution of scripts. Suppose we need to pay 0.01BTC to
a bakery to buy Bread, the bakery's Address is: Bread Address.
The output of the transaction is:
OP_DUP OP_HASH160 <Bread Public Key Hash> OP_EQUAL OP_-
CHECKSIG
The unlock script corresponding to the locking script is:
<Bread Signature> <Bread Public Key>
Combining the two scripts can form the following combination script:
<Bread Signature> <Bread Public Key> OP_DUP OP_HASH160
<Bread Public Key Hash> OP_EQUAL OP_CHECKSIG
Only when the unlocking script is in line with the setting conditions for the
lock script, when the composite script is executed, the result is true
(Ture). To implement the combination of the script the results is true, also
means that the Bread Signature Signature is Bread that Address the
corresponding private key Signature, is a Bread Address valid signa-
tures, only in this way can trade execution results through (the result is
true).
Although bitcoin's scripting language contains many operators, it is im-
portant to note that the bitcoin scripting language is unsophisticated. In
this scripting language, there is no loop function, which means that the
transaction is limited in complexity and the number of transactions can be
limited. Script is not a general purpose programming language, these re-
strictions also avoids the potential to create an infinite loop or other com-
plex logical loopholes terms of payment, to leave the currency network
security hidden danger.
In UTXO model, we can through an open book clear trace the history of
every transaction, and can be totally transparent, UTXO model also
brought some parallel processing ability, can launch multiple addresses
to the address of the trading, bring certain reference for can expand sex.
In addition, the UTXO model also brings some privacy, and users can
use the Change address as the output address of UTXO. But UTXO itself
is stateless, and we will implement a UTXO type of smart contract
through a series of innovative designs.
51
LITECOIN
OINS with a script in trading system, and the FORTH (a compiled lan-
guage), the script is a simple, based on the stack, and from left to right, it
is specially designed to be a turing-complete, no cycle (LOOP) state-
ment of a system. In the currency In the network, a scripting system to
the operation of the data, which was completed through the stack (the
main stack and the stack), the stack is a commonly used abstract data
types, the most main characteristic is the Last In, First Out (LIFO: Last In
First Out).
In the currency of the client, the developers put COINS support client
Script type through Standard () function is made a summary, in the Stan-
dard () function contains five types of Script: P2PKH (Pay to publickey
hash), P2PK (Pay to publickey), MultiSignature 15 private key signature
(limited), P2SH (Pay to Script hash) and OP_Return. The five standard
script types are implemented, with public key hash payments, public key
payments, multiple signatures, the ability to pay through the script hash,
and data output. With these five standard script types, bitcoin clients can
implement complex payment logic. In addition, a non-standardized script
type may be created, but a miner who is willing to package the non-stan-
dardized transaction must be found, and the non-standardized script will
be executed.
We take P2PKH (Pay to publickey hash) as an example to illustrate the
production and execution of scripts. Suppose we need to pay 0.01BTC to
a bakery to buy Bread, the bakery's Address is: Bread Address.
The output of the transaction is:
OP_DUP OP_HASH160 <Bread Public Key Hash> OP_EQUAL OP_-
CHECKSIG
The unlock script corresponding to the locking script is:
<Bread Signature> <Bread Public Key>
Combining the two scripts can form the following combination script:
<Bread Signature> <Bread Public Key> OP_DUP OP_HASH160
<Bread Public Key Hash> OP_EQUAL OP_CHECKSIG
Only when the unlocking script is in line with the setting conditions for the
lock script, when the composite script is executed, the result is true
(Ture). To implement the combination of the script the results is true, also
means that the Bread Signature Signature is Bread that Address the
corresponding private key Signature, is a Bread Address valid signa-
tures, only in this way can trade execution results through (the result is
true).
Although bitcoin's scripting language contains many operators, it is im-
portant to note that the bitcoin scripting language is unsophisticated. In
this scripting language, there is no loop function, which means that the
transaction is limited in complexity and the number of transactions can be
limited. Script is not a general purpose programming language, these re-
strictions also avoids the potential to create an infinite loop or other com-
plex logical loopholes terms of payment, to leave the currency network
security hidden danger.
In UTXO model, we can through an open book clear trace the history of
every transaction, and can be totally transparent, UTXO model also
brought some parallel processing ability, can launch multiple addresses
to the address of the trading, bring certain reference for can expand sex.
In addition, the UTXO model also brings some privacy, and users can
use the Change address as the output address of UTXO. But UTXO itself
is stateless, and we will implement a UTXO type of smart contract
through a series of innovative designs.
Ⅳ 、 Team member
Jose Nunes is a Spanish native and co-founder of Mychino. He is a senior
researcher at the Spanish institute of financial studies,
university of California, Berkeley,and Stanford
university.
Wang Fei Yue, management and control of complex systems, institute of
automation, Chinese academy of sciences researcher at the state key
laboratory, national university of defense technology military computa-tional experiments and parallel system
technology center, professor. Main research interests include intelligent
system and complex system modeling, analysis and control.
Yuan Yong, The research of complex system management and control state key laboratory of Chinese academy of sciences In 2008, he received his PhD in computer software and theory from shandong university of science and
technology. The main research direc-tions are business intelligence and
computational advertising.
Maria Grazia Erika giufrifi-da,Graduated from Stan-
ford university, computer master, senior c/c++ engi-neer, data analysis engi-
neer.
Hoffmann,Overseas section overall technical
framework, technical direc-tor, study cryptography and
block chain related field work, rich software devel-
opment experience and team management experi-
ence.
Wang Fei Yue Yuan Yong
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