On August 5th, the third issue of the Public Computing Power Class hosted by RRMine and co-sponsored by Lieyun Finance invited Hongdao Chen, a Bachelor of Macroeconomics, as a guest to explain how IPFS promotes the realization of digital sovereignty, helping miners to fight for the ranking on the eve of the test competition’s coming.
Hongdao Chen, Wujiang Cloud Chain CEO
Bachelor of macroeconomics, Liaoning University
Founder of BOS, a blockchain operating system
Partner of GuoXuan capital
He has twenty years of experience in investment management and enterprise management;
Has been tracking and researching the Internet for two decades, he is also investing and starting the business. He has started the new business around the blockchain system when the 5G (Internet of Things) era is approaching. He is a lover of philosophy, anthropology and futurology. An evangelist of independence, freedom, sharing and blockchain collaboration spirit.
RRMine Public Computing Power Class has compiled a record of the content. For the convenience of reading, it has been deleted without changing the original intention. For more details, please check the live replay.
Hello, everyone. Let me introduce myself first. I am Hongdao Chen. The topic discussed today is the value and significance of IPFS for distributed storage and the realization of digital sovereignty.
Isolated information——the urgent problem of the Internet economy
In the past 10 years, there has been a typical phenomenon in the stock market: the larger the companies are, the more they have been occupied by the Internet. This is a typical phenomenon in the era of the digital economy. These large companies include e-commerce, social media platforms and various technology service platforms. This phenomenon represents the shift of the whole physical world to the digital economy. All the real economic activities have been transferred to the Internet.
Large Internet companies have brought convenience to our production and life, but they have formed a data resource monopoly to some extent. This monopoly is actually caused by some current Internet technology systems and capital systems formed by capitalism. The bad situation caused by this system is the phenomenon of information isolation.
The isolated information means that the value of the data you create on another platform does not belong to you and it is difficult to be transferred. That’s why major Internet companies desperately grab traffic as every piece of data is the embodiment of its capital value. This is one of the most fundamental problems arising from the Internet nowadays.
Digital sovereignty——Sovereignty of data creators
So let’s first establish a new concept called digital sovereignty, which is also a conclusion we have made over the past few years. What is digital sovereignty? In fact, each data creator owns the right to data confirmation and the right to realize the value of data. The digital sovereignty we emphasize must be the data sovereignty of the creator, rather than the sovereignty of the platform or data monopoly. The data sovereignty of current large companies is actually very clear, that is, it belongs to the company, which is also the value reflected in the capital market.
Including the concept of traffic and big data that we have heard, the creator of these data is actually each specific user or consumer. But the fragmentation of data sovereignty has caused data creators' value passively dedicated to the creator of the platform. This is reasonable within the current system framework, including the technical and legal aspects.
The theme today is IPFS distributed storage. More specifically, it should be called the promotion of digital sovereignty by decentralized storage and its significance for the realization of data sovereignty.
IPFS provides technical solutions for the realization of digital sovereignty
IPFS is actually a new file retrieval mechanism. The biggest difference between this mechanism and the current Internet retrieval mechanism is that it is addressed by content, while the current Internet is addressed by domain names and websites.
This is a huge improvement. This progress will provide a technical solution mechanism for the realization of everyone's digital sovereignty. This is a fundamental turning point for the Internet progress. The current Internet needs domain name service providers and centralized servers to store website content, therefore, in the process of addressing, the change of the domain name or the disconnection of the network or the downtime of the website server will all cause the problem of addressing.
IPFS can solve this problem. If there is a network signal, you can still find the content stored on your network according to the content index. Through simple comparison and explanation, we can realize the value and role of IPFS.
Filecoin mechanism provides incentives for IPFS
IPFS now has relatively big progress, that is, its Filecoin network. The technical system of Filecoin itself is actually combined with the blockchain, adding an incentive mechanism for the running of IPFS.
The former domain name server, or data centre server, is actually an institutional behaviour of large-scale investment. After establishing a centralized storage centre, they store a large amount of data content for everyone to retrieve.
So what is the IPFS building? It is a mechanism that storage resources are freely added to provide storage space for all Internet content. Filecoin provides a blockchain incentive for this kind of storage resources. As we all know, blockchain is a tamper-resistant consensus mechanism based on public accounting in order to realize value circulation and exchange.
IPFS forms a Filecoin incentive mechanism through the blockchain of storage resources. This mechanism will provide incentives and revenue protection to encourage everyone to contribute storage resources. In this way, our storage space will be infinitely expanded, then our storage content can also be infinitely indexed. In other words, when the centralized server is disconnected from the network, there is no possibility of doing something as in IPFS.
This is an important contribution of IPFS. Filecoin is to provide an incentive mechanism and a value exchange mechanism for everyone to contribute storage resources on the IPFS system. This is the promotion of the whole IPFS by Filecoin in the way of blockchain.
In this system, there is no doubt that Filecoin can promote distributed storage and the Internet. Moreover, its historical value can not be underestimated. It is actually an upgrade, even an iteration and an absolute role in promoting the Internet. On this basis, it may provide a guarantee in the technical system for us to realize digital sovereignty.
IPFS improves the security and efficiency of information storage and reduces the cost of bandwidth
We used domain name addressing and website addressing in the past and there will be some clear costs, including the cost of the domain name, server and bandwidth. As an iterative technology, IPFS will certainly provide two possibilities in order to become a new tool for everyone.
The first is to be more convenient and safer. IPFS storage is distributed and indexed, meaning that every file you save may have several disk Spaces. Even if any one part or storage space is wrong, it will not cause loss of all the files. This is a mechanism of its security.
The second is that any files stored in it are indexed by a private key password, which is a special security mechanism. Any new technology with a replacement function must cost less. IPFS costs less in bandwidth because of its distributed indexing characteristics.
As for bandwidth, we actually have a very clear comparison case. The video sites that we all use, including iQIYI and Youku who are publicly listed and their financial statements are public, spending most of its annual cost in two parts: one is storage space, the other is bandwidth.
How does IPFS reduce the cost in the two aspects? Firstly, its storage space can be a number of physical disk spaces or a virtual cloud. Once the scale is formed, the cost will be reduced to a certain extent, which is a law of economics.
Secondly, there are countless addresses and no centralized bandwidth requirement during the process of your indexing, so the bandwidth cost will naturally fall. In real cases, there are companies that have shown this point from the financial results, for example,Xunlei and other similar video sites cost 20% much lower. This is the optimization of the entire ecological cost by using the user's computer resources. Under the competitive conditions of these two advantages, IPFS has very strong competitiveness.
IPFS implements the rights of data creators by natural law
So on that basis, what's the difference in personal data storage? You have become the creator of a data source on the Internet and the content of your data is directly reflected, and you can be found directly, just as we are returning to the physical world, where there is a natural law assigned to you, not a law and rule.
The original domain name and the centralized website is actually a legal system to restrain this kind of right. However, the content of data creation naturally belongs to the creator through IPFS. Others can find you directly by looking for the content, which enables both parties to directly exchange data without the intermediary need of domain name service provider and website. This is a technical guarantee for the realization of digital rights by IPFS.
Blockchain +IPFS to realize data confirmation and value exchange
What is the biggest motivation for people to get digital rights or any other rights? It is not simply to determine ownership, but to determine exchangeable right and realize the value of their rights。
The value confirmation of data and the possibility of rapid exchange are realized by the coupling of blockchain and IPFS, which is another value of blockchain. The ultimate realization is a large-scale value exchange for the core of blockchain.
Then, through the clear storage of digital content in IPFS and the large-scale exchange of value by blockchain, the future we see is a new Internet, which will provide a broader value exchange platform for all people with digital rights. The realization of digital rights will really enter a new era.
The value and function of Filecoin
Filecoin realizes several aspects of value contribution. The first is to enable the system with storage resources, organizations and individuals to actively participate in the contribution of storage space and build an automatic addressing network or content addressing network.
Another point is that in the process of people's contribution, FIL can become a kind of value asset, or even an investment variety, which will bring a wave of the wealth effect.
One feature of Filecoin is that the final prize is awarded to the optimal settlement miner. This mechanism makes it necessary for everyone to provide the best storage so as to form their own accounting incentive and get the rewards. Therefore, better resources are encouraged to come in and the network will be better.
Another point is that it will raise the threshold, which is better for the miners with technical strength and capital strength and it is not easy for some retail investors. Filecoin can tell stories under the current situation. This kind of story is very malleable, so it is quite possible to realize the investment value at this stage.
When any new thing appears, there is surely some heat and fragrance of the early soup, which is feasible to participate. The further development of Filecoin is a good impetus for us to realize digital rights. From this perspective, it is worthwhile to do anything for IPFS and the entire Filecoin incentive system today. If we invest some mining farms and cloud mining, there is still a higher expectation for the return. This is the value basis.
The core we are discussing today is our cognition and expectations for the next generation of the Internet. Due to the emergence of IPFS and Filecoin, it will be improved to a new level. The emergence of a new system may cause some fundamental changes in recognizing the Internet, using the Internet and creating wealth on the Internet.
There is a great value that tens of millions or even hundreds of millions of employees in China rely on the Internet. With the development of the Internet, the operating system is always changing. We must recognize the changes in its trends and in the way of use while the entire Internet is used as a channel and a tool. Everyone needs to think carefully if it brings some opportunities, which is the main point that we discuss. This may also be the original intention of RRMine Public Computing Power Class to popularize some knowledge.
Thank you for listening.