Jiang Jiazhi is the technical director of BITMAIN, senior developer of BCH community and core developer of Copernicus project. He got to know Bitcoin in 2013 and developed the Bither Wallet or Bitpie ( https://bitpie.com/bither/ ) , a leading crypto wallet in China. He has been working on the development of the underlying blockchain protocol and has an in-depth understanding of the blockchain industry.

Although Jiang Jiazhi is deeply involved in the blockchain industry, he humbly said that he is not the person who knows bitcoin best. He said that if there are 10,000 steps in the development of the entire public blockchain, less than 10 steps have been taken so far.

A lot of things could happen in a single day in the crypto land. Jiang Jiazhi emphasizes that his team should learn quickly, and the technology of a certain project should be constantly updated and evolved. Last Friday, Mr. Jiang was invited to a live chat room to talk about BCH, ADA and ETH. The following is the text version.

01

Did not dare to mention the word "bitcoin"

I got to know Bitcoin in 2013 and have been involving in the development of Bither Wallet. Now I am the technical leader of BITMAIN and have witnessed the development of BCH from last August till now. I am now the core developer of the Copernicus project, mainly implementing the BCH client through the Go language.

From 2013 to the present day, the biggest change is people's attitude towards Bitcoin, from complete contempt to more recognition.

When I took the bus in the past, i would lower my voice when I mentioned the word "bitcoin" . I can't talk about Bitcoin when I eat with my family, because everyone will look at you with a different look and feel that you have fallen into the abyss of multi-level marketing, or pyramid selling.

Until the big bull market in 2017, everyone has a deeper understanding of bitcoin and blockchain. Everyone started to recognize my work, and I can discuss bitcoin and blockchain openly.

I was a supporter of the Austrian School in the early days. After reading the white paper and source code of Bitcoin, I deeply recognized the ideas behind ​​Bitcoin. In short, Bitcoin is the only thing that uses math to protect their wealth. We support Bitcoin because it can protect more people from inflation.

02

Three big figures in the blockchain industry

Satoshi Nakamoto. For me, he is as important as Newton and Einstein. He allows mankind to truly achieve financial freedom, and he can even surpass Einstein and other brilliant brains.

Vitalik, who implemented smart contracts on the basis of Satoshi Nakamoto’s work , is of great significance to the development of the entire industry. Satoshi Nakamoto has liberated human cognition of money, and Vitalik has liberated human cognition of financing and stocks. Satoshi Nakamoto has released the money market and Vitalik has released the venture capital market.

BM is a technological genius. He had a lot of communication with Satoshi Nakamoto in the early days. BM is a simple person who has little pursuit to material abundance. But BM is also a controversial person who gave up early projects and quit from the community. EOS is his third project. He put a lot of energy into EOS. The overall quality of EOS code is good. But in the end, whether it will succeed or not, we have to wait and see.

03

I invested in BCH heavily

BTC has always been the top coin in its market value with its own network effect.

ETH is the most innovative, and basically all of the ico projects are developed in Ethereum. In the future, if Ethereum can reach 200 or even 2000 TPS per second, then it will usher in explosive development.

The design of BCH carries the original vision of Satoshi Nakamoto. The advantage of BCH is that TPS can reach a very high level. But the disadvantages are also obvious. There are still few people using BCH.

ADA is an interesting coin. Its algorithm has undergone rigorous mathematical proof, and ADA has actually developed a new blockchain on it. However, its mathematical proof has certain problems, and its premise is too strong. If these assumptions are not necessarily right, its proof cannot hold.

I buy a lot of BCH and a small amount of Ethereum. BCH is the same bitcoin I knew years ago. BCH can serve as currency. If BCH can be more innovative, there will be a big outbreak in the future.

04

Support large block without hesitation

BTC and BCH have chosen two different ways to scale. BTC deployed a lightning network, and BCH adopted a method of large block expansion on blockchain. At present, big block is the simplest way to scale.

After the big bull market in 2017, the congestion of bitcoin became a big problem. I communicated with many people who supported small block. After the communication, I did not hesitate to support the big block.

The idea of small block does not match the bitcoin I knew. Bitcoin is capable of cross-border payment, low transaction fee and quick confirmation. These are its advantages. Because of congestion, the transaction fee for Bitcoin once even reached 1,000 RMB. How could common people use it?

In the early days, Satoshi Nakamoto also designed the hard fork of Bitcoin. There is some pseudo code on how to expand the block on bitcoin.org. But the code has become history.

The biggest resistance for BCH is the construction of the payment network. BCH is an electronic cash system with a main function of payment. The construction of the entire payment network is very slow, similar to WeChat or Alipay its their early days. But once built, It will be very efficient.

05

BCH does not reject lightning network

If BCH does not expand, it will face the problem of high fees. At present, big block is the simplest way to scale. Even when transaction volumes goes high, BCH will not be congested. The BCH community also supports the lightning network and sidechain. However, the lightning network has its own problems, and the most serious one is the routing problem.

The lightning network has a similar design of routing system. And the routing is relatively stable. For example, if we visit United States from China, the route still works next time. But the lightning network is different because the state of each node will change as long as the transaction is completed. When you send a transaction, it’s not sure whether the node still works in the next second. So the entire routing system is extremely slow.

The Lightning Network has been under development for three years and is still not used on a large scale. In contrast, Ethereum is constantly expanding to solve the problem of onchain trading.

Sharding is also an approach toward scaling. However, sharding will split all the data and most people only have part of the it. So it is not conducive to decentralization. The biggest problem with sharding now is how to solve cross-shard communication, which many people are exploring.

06

Why is there a funding problem with the bitcoinABC team?

There are several BCH development teams, such as bitcoinABC, bitcoin Unlimited, bitcoinXT, and a few other development teams. Among them, bitcoinABC is a main development team of the BCH community.

BitcoinABC needs funds to hire more developers, but the team does not accept investment from institutions and miners because they want to remain independent. This is my personal understanding. The BCH developer community strongly recognize the early ideas of Satoshi Nakamoto.

In my opinion, the funding problem of bitcoinABC team is because the design of the entire protocol does not involve developer incentives. At present, only miners can get rewards, but developers don't. In fact, developers make a lot of contribution. This is a problem that needs to be solved.

07

Exploring “ Innovation Isolation Zone”

The competition of public blockchain is intense and the technology evolution is very fast. Will Bitcoin be obsoleted? It is hard to say. I personally think that it will not, but its market cap gradually declines. It needs to evolve fast.

When the market cap goes higher, it is unlikely to keep the same rapid to progress as before. Therefore, another solution is needed – to create an innovation isolation zone. Activities in the zone will not affect the main chain, which ensures the security of the main chain and add certain innovative features. We are still thinking about how to make this approach happen.

08

Governance model is important

Among c onsensus, governance, and performance, I think governance is relatively important. C onsensus rules are based on a certain governance model. Bitcoin is built on the PoW governance model, and is managed by means of computing power. The development of blockchain is changing with each passing day. If there is a good governance model, consensus and performance can be well evolved.

It is difficult for us to give a clear definition of consensus. For example, there are a total of 100 people in the community, and we want to make a change to the community. If one person in the community disagrees, should we promote this change? If two people, five people, ten people, and 50 people do not agree, should we pass the proposal? This involves the problem of governance models. If there is a good governance model, the evolution of consensus can be better promoted.

The same is true for performance, because the development of performance is an evolving process. Performance has to be improved to a certain extent and in many cases may sacrifice other things. So it requires a governance model to drive the process. If the governance model is done, the performance problem can be solved better.

09

10,000 steps in Public blockchain development, we have only went through 10 steps

If there are 10,000 steps in the development of the entire public blockchain, it can be said that only 10 steps have been reached so far.

Crypto Kitties caused congestion in Ethereum last year. One dapp can block the Ethereum, let alone the enterprise-level applications in the future. Therefore, there are still great performance problems in the public blockchain.

The public blockchain also faces a bottleneck of how to make the blockchain truly integrate into the existing economy. When work to improve performance, we must use blockchain into the entire economic activities.

The development of many consortium blockchains will also reply on their integration with public blockchain, which is the foundation for enterprise applications because public chains are stable, reliable and secure.

The competition of public blockchain are fierce. Public blockchains such as BCH and Ethereum are constantly evolving. In the end, there will only be a few left, about two or three.