Some people talk about Bitcoin with a tone of contempt: " What's the use of this thing? It's hype, it's gambling, but I'm not against blockchain technology, blockchain technology is good." It seemed like he knew a lot about bitcoin or at least understood blockchain technology. I understand how they feel, because it's impossible to define the value of bitcoin in terms of the utility system. But it's very funny to affirm blockchain technology in a way that denies bitcoin. Blockchain technology is understood by them to be a mysterious system of code that guarantees that data cannot be tampered with, a system that is entirely mathematical and not related to gambling or speculation. Therefore, if I tell him that without game, blockchain is worthless, or even a small data structure topic for a junior high school algorithm researcher, they will definitely be reluctant to accept it
What is the innovation of Bitcoin?
Actually, whether or not the data structure is combined in a chain and block fashion is not the real innovation of Bitcoin. The innovation lies in the construction of such a completely decentralized game, or non-cooperative game, and the algorithms that ensure that this game is conducted in an orderly fashion. There is no mysterious technology that can automatically guarantee the authenticity of data without a trusted agent (even the so-called zk, which requires proofs and storage nodes), and we cannot go beyond the authority, center, or trustor to guarantee that the data or information is untamperable, except for the equilibrium formed by the game.
What is consensus value?
This game is dynamic, round by round, but requires that the gamers (game participants) in a new round accept a t least some already existing local equilibrium and synchronize the results of this round to the equilibrium. Each gamer does not know the size of the equilibrium it is in until external demand information is passed in for a round of correction. When all the gamers are rational and keep feeding back and correcting in the repeated game, it is probable that they will eventually converge to a unique general equilibrium, which is the so-called consensus value, and also the so-called longest chain or the highest arithmetic chain.
What is equilibrium asset?
This process evolves and becomes more and more stable and "generalized" (i.e., a general consensus), i.e., each gamer and each holder gradually reach a consensus expectation and influence each other. In such a game model. Bitcoin actually has many equilibrium splits, which is also referred to as fork events. However, as the depth of information diffusion increases, the probability of such splits will become lower and lower. Even if one day an irrational gamer tries to monopolize the arithmetic and attack the blockchain, it will still be futile due to the inability to obtain a consistent expectation of external demand: arithmetic does not take precedence over equilibrium, and equilibrium must affect arithmetic. When Bitcoin achieves equilibrium, it becomes a whole new risk-reward structure - an equilibrium asset. Given a game type, I think there is only one general equilibrium and the others are partial equilibria, so Bitcoin and Litecoin, one is a general equilibrium and one is a partial equilibrium, and so is Ethereum and other public chains.
NEST is an equilibrium asset
For the DeFi project, one important information is the price of the assets on the chain. And there will be only one most appropriate price quotation at a certain point in time if the price quotations are formed by game theory. Currently, the only blockchain price oracle that uses non-cooperative game theoretic equilibrium to form prices on the chain is the NEST Oracle, which is an important part of the NEST Protocol. NEST Oracle adopts market game theory, synchronizes the price information from the off-chain market to the on-chain by means of miner quotes, and combines with NEST mining mechanism to provide incentives to miners, making it a logical closed-loop distributed quote system. And therefore, NEST is also an equilibrium asset.