It turns out that bitcoin can also issue tokens

Last year, when the ICO was especially popular, everyone sent Token based on the ERC20 standard of ETH. However, I believe that most people do not know that Token can be sent in BTC, and Token can be sent just like ERC20 in the advanced function of bitcoin. However, the method of implementation is not suitable.

The following will introduce some advanced functions of BTC, the technology is more, I hope you will not find it boring.

Advanced trading and scripting, before we talk about advanced trading and scripting, you have to understand what a bitcoin transaction is. The bitcoin transaction actually consists of two parts, one is input and the other is output. Each input is a deal on an output, in a deal there can be multiple input and multiple output, does not require all input belong to a person, for example: I have nothing to do with my colleagues can be input in a transaction, at the same time two input one is mine, a is my colleague, then can also be multiple, then the output can be set to multiple. Any output that has not been played is called UTXO. The whole bitcoin is built on UTXO. Why do I introduce input and output? You have to understand what is input and output before you understand that there is a locked script for each output. The lock script specifies what conditions can be met to spend the money. In front of all the input, there will be an unlock script. The unlock script with the previous output will tell the input that the money can be spent. Because of the locking script and receiving script for bitcoin, it needs to develop a scripting language of its own, and then in that scripting language, we can do more. For example, I have multiple signatures. For example, I have a sum of money, an output is a small fund belonging to me, which is maintained by three people. Well, when it comes to spending money, you have to have two out of three people agree to spend it, so that can form a multiple signature. Another important concept in BTC is time lock. Time locks dictate how long or how many blocks an output or transaction will take to spend.

There is a very important operator in the entire scripting language called return, which can be followed by a string of data with 80 bytes of data. You can save anything you like and you can leave a message or you can put a bunch of files out of the chain and hash them in there, and you can do a lot of things with the return operator.

Dyeing COINS & Segwit, before there is a fire in the currency called dyeing coin (colored coin), dyeing money solve a scene is: everybody in the currency of the currency may be the same, but in real life assets is not the same, such as in the same area of the same family house, according to its different floors, the value of the corresponding is also different. What dyeing coin wants to solve is to put into the world of bitcoin other than bitcoin, such as property and asset proof. Therefore, btc-based staining COINS appeared in the world of bitcoin. If bitcoin represents real world cash, then staining COINS and ERC721 of ETH represent real world assets.

Isolated witness testimony is to speak to the front of the set and unlock script on the block, so can effectively reduce the size of the trading, according to the regulations of the currency of each block size is 1 MB, smaller individual trading means that a single block can hold more deals, gives the overall speed to accelerate.

The lightning network is built on many advanced functions of bitcoin, including multiple signatures, time lock and isolation witness. Currently, the main problem of bitcoin is that the transaction is too slow. It takes ten minutes for a transaction to be confirmed whether it can be traded or not, and six confirmations to be sure that the transaction is successful. The lightning network is an attempt to make transactions quick to confirm outside of the transaction, but not inside the block. Why would I want to introduce lightning network, because I think for the block chain project, for the chain, both BCH and other chain, whether you have the ability or scheme can realize the function similar to lightning network, you will claim that there is a solution for the speed, because it has become a block chain inside a politically correct. In fact, I have read a lot of white papers in the outside world, including many public chain projects or non-public chain projects. A favorite example is bitcoin, which is so slow that it takes ten minutes to trade, and could theoretically hand over only seven transactions per second, which would take an hour to confirm a transaction. Let's say that VISA can process tens of thousands of transactions per second, and let's say that alipay, WeChat, can process 30,000 or 40,000 transactions per second. I think the lightning network is very important for bitcoin, even for the whole blockchain.

Lightning networks are technically and mathematically unproblematic and theoretically achievable. As long as the nodes are enough, the network construction is sound enough, and the engineering implementation is especially good, it can reach thousands and thousands of pens per second. So if the lightning network can be set up, then the market and the BTC is a very good news.

Why lightning network delay to now no one has done, actually still want from engineering point of view to see the problem, according to the hearing in the white paper to achieve COINS I think is not particularly difficult, a dozen people team also can write, when this power is also a person in this code written themselves. But the opposite is to say that the lightning network doesn't work. The lightning network is algorithmically and mathematically beautiful, and it's possible to make a trade that doesn't require a chain to make sure that your trade is successful.

My favorite metaphor is that the lightning network is actually the TCP/IP in the bitcoin network. If you think about it, if our Internet doesn't have the support of the lowest level TCP/IP framework, it's impossible for us to build the current Internet society and mobile Internet. So the same is true for the blockchain world, no matter what the length of the public chain looks like, but there has to be an underlying architecture like a lightning network, where the efficiency of bitcoin is so low that it's hard to be used in actual production applications, and if you want to be used you have to have a framework like a lightning network.

If blockchain-based applications are to be mostly delivered or have killer app, their underlying infrastructure must be improved. BTC now the consensus of the whole of the underlying mechanisms, even said PoW have established more strong, either in the currency, or other blocks of chain or not, as long as it is done and chain must solve the problem of the network is similar to the lightning, with this is equivalent to the Internet with the underlying TCP/IP, the TCP/IP is an HTTP HTTP have websites, video, electronic commerce these, with the Internet are developed, now block chain are still in a relatively early stage.