I often hear people have such a question. I already have a general understanding of blockchain technology, but when I look at other people's white papers, I am still confused, and I don't even know where to start.
So let's talk about it today. How to read the white paper?
But here I want to remind you that the ice mage here is all about the chain circle, that is, pure technology. There is no advice on how to invest in cryptocurrencies. The way to look at the white paper is also technology-oriented, not based on whether the value of its tokens will rise.
Blockchain mechanism
In view of the current blockchain projects, the homogenization of the entire industry is relatively serious, so it is usual. Most blockchain projects are based on existing open source blockchain projects. If the white paper does not describe in detail the blockchain mechanism it uses. Then you can only view the white paper or documentation of the project according to it/the blockchain project on which it is based. After seeing these details. We should focus on the following:
- Block transaction structure
- Mechanisms to verify data integrity
- Smart contract support
- Consensus mechanism
The first point is the structure of block transactions. Typically, this is nothing more than a double-entry ledger structure similar to Bitcoin, or a data update storage structure similar to Ethereum. Or use a DAG-based network association structure. None of this will be expanded in detail here. Students who are not clear can refer to my other courses, which describe them in detail.
Second, the mechanism for verifying data integrity. Hash trees, or Merkle trees, are commonly used today. So our main concern is what data he uses hash trees to include and whether he includes all the data that we think is immutable.
The third point is smart contracts. Now in general, it is roughly divided into two smart contract execution methods. One is native code execution, which has the advantages of high running efficiency and a wide range of supported languages, but relatively low security and the risk of cross-platform unreliability. Another smart contract execution method, which is also the most widely used, is the virtual machine model. The advantage is safety. Reliable. Strong cross-platform capability. But often programming languages are limited. Only the few programming languages supported by the blockchain can be used. In terms of language selection, there are usually two ways. The first is to choose the same language as the platform development language, especially when the development language of the blockchain platform is a dynamic language. The other is to choose a dedicated blockchain development language, such as the most widely used Ethereum solidity language.
Fourth, the consensus mechanism. It is necessary to identify whether this blockchain uses PoW proof-of-work or POS proof-of-stake. Or the PBFT practical Byzantine fault-tolerant algorithm or BA-Byzantine protocol of the alliance chain is selected. I won't go into detail here, because each of the different consensus methods can be talked about, if you are not clear, please refer to my other courses.
Token mechanism
The ice mage mentioned many times that he was chained. It doesn't involve the currency circle, but it has to be said. As the blockchain of the Internet of Value, there are no tokens or tokens. He can't do the flow of value. Therefore, the token mechanism is necessary for a blockchain project that tries to serve as an Internet of Value. Here, the main concern is the total amount and distribution scheme of tokens, as well as the method of obtaining the token, and even the method of future destruction. In the industry, there is such a joke. Almost all well-known blockchain projects raise money through ICOs to issue coins, but there is only one that does not, and that is Satoshi Nakamoto's Bitcoin.
Landing project
After reading the above, the last thing we need to look at is, what kind of project is this blockchain project going to land? Whether such a project can be boosted by blockchain technology. Is it possible to actually land? Does he really have a pain point that needs blockchain to build such an Internet of value. Or it just uses the tamper-proofness of blockchain. On this basis, the feasibility of the solution and the specific product features are demonstrated.
Other content
In fact, at this point, the main content in the white paper should be finished, and usually, there may be some other content in the white paper. For example, an innovation to various current blockchains. Innovation usually comes at a high price. It is also impossible to achieve such a huge innovation as the blockchain created by Satoshi Nakamoto at a certain point of innovation, such a level. Therefore, these innovative parts, for the vast majority of white papers, do not care too much. Unless the blockchain project is known for its innovation, such as when you're reading Ethereum's whitepaper, or Algorand's whitepaper that I recommended two days ago/you need to consider.
Summary
Hearing this, the reading method of the white paper has been completed. If you are in the cryptocurrency circle, you may also wonder how to know whether this blockchain project is air coin through this white paper? But I have to say disappointedly. Unless you can see that the project is actually profitable. Otherwise, no one can prove that it is not an air coin. As for what is often said in the cryptocurrency circle, it depends on team members, market prospects, project development and roadmaps, token issuance platforms, landing solutions, etc., and whether there is a big guy endorsement. The ice mage as a chain circle will not be described in detail.