In blockchain research, we usually fall into a real-world logic: How to use blockchain technology to change lives？ Such as medical treatment, government affairs, supply chain, communication, storage, etc. in real-world applications. This is a normal logical thinking orientation, and it is also a way through which the application of blockchain technology can be implemented and generally accepted. However, from a higher perspective, when we stand on top of Bitcoin, the source of the blockchain, what it brings to us is a brand new social experiment in human society. We need to gradually explore and form new ecology and theories, not old wine in new bottles.

Non-cooperative games

The non-cooperative game refers to the non-cooperative framework that treats everyone's actions as individual actions in a strategic environment. It emphasizes that one person makes independent decisions and has nothing to do with other people in this strategic environment. That is what we mean by literally playing games. The game does not only contain elements of conflict. In many cases, it contains both elements of conflict and cooperation. That is conflict and cooperation overlap.

The simple understanding is that A's strategy will affect B's interests within an agreement, and B's strategy will affect A's interests.

In non-cooperative games, there is another crucial theory called non-cooperative game equilibrium, which we usually call Nash equilibrium. 

In a game process, regardless of the opponent's strategy choice, one of the parties will choose a certain strategy, which is called a dominant strategy. If any participant chooses the optimal strategy when the strategies of all other participants are determined, then this combination is defined as a Nash equilibrium.

A combination of strategies is called the Nash balance when each player's balance strategy achieves the maximum value of their expected return. At the same time, all other players also follow this strategy.

The simple understanding is: in the game process between A and B's strategy. A's strategy game has reached an equilibrium and optimal, so B should also follow A's strategy to maximize the benefits.

Non-cooperative system evaluation

The Bitcoin system is a typical non-cooperative game system.

Aside from the game of the Bitcoin secondary market, from the perspective of Bitcoin's underlying mining protocol, the output of every Bitcoin is mined through the non-cooperative game of miners. A miner's mining strategy will affect all players participating in the game. When a miner's mining strategy can obtain more HashRate or more advanced equipment to dig more bitcoins, other players will follow this strategy. Access to a pool with greater Hashrate, purchase the same mining machine, and take the development of the entire ecology as a common goal.

No company can achieve a non-cooperative game in the production process in the real world. It is a cooperative game. What is not to argue about good or bad, but Bitcoin provides a classic non-cooperative game theory. Practice model.

The essence of this model is inseparable from the ideology of "decentralization".

Bitcoin's peer-to-peer electronic cash system, the encrypted ecology evolved after twelve years, is basically to defeat the weakness of the "trust-based model". Any third party is untrustworthy and requires users to verify and trust themselves.

In the early days, to find a more suitable valuation for Bitcoin, a comprehensive evaluation was carried out from the number of nodes, the number of holding addresses, the number of holding addresses, the mining Hashrate, and the players participating in the game, and so on. These data show precisely the degree of decentralization of Bitcoin. In addition, Bitcoin solves a solution that cannot be tampered with data and fights inflation in the real world.

Since the 2008 financial crisis was proposed, colossal human resources, material resources, and financial resources have been spent after many years of development. The computing power of the physical world is used in a non-cooperative game to escort the safety of this system, which has already been provided for human society. This is a new subject. Just like after the Great Depression in the United States in 1929, Morgan and other families sought President Hoover's rescue. The president mocked the other party. Players think the market determines everything and cannot be saved. It is true. The Fed cannot be saved. At that time, the Fed had no macro-control functions. After the Great Crisis, Keynes put forward the "The General Theory of Employment, Interest, and Money" in 1936, which marked the birth of macroeconomics and became an important subject area for governments and us to study and study. The Bitcoin white paper combined with more than ten years of practical development will eventually become a new theoretical school for the development of human society.

That is the considerable potential brought by the non-cooperative game system, and it is the product of promoting the progress of human society.

However, nowadays, blockchain development is getting closer and closer to the development of so-called usability based on trust. The current valuation of various projects also evaluates the blockchain project through throughput, transaction processing speed, transaction volume, lock-up volume, user volume, and no longer cares about the degree of decentralization and game theory research. If, based on the current judgment of the blockchain project, the transaction speed and usage degree of Bitcoin, it should be worthless.

A simple question can be explained: both are the system for processing transfers. In the Bitcoin system, there are 100 Gamer and Huobi Heco 100 users participating in the game. Who generates more value?

Conclusion

The theoretical research we have drawn is also a conclusion drawn from the current development of Bitcoin. Theoretical research in any industry is a cycle of theory, practice, and conclusions.

As a non-cooperative game system, Bitcoin solves problems that cannot be solved by centralization or cooperative games. It creates new products and ecology. Most projects now move computing, communication, and storage to the blockchain, which is already well-centralized, and they have not solved the real problems.

To evaluate a non-cooperative game system, we need to judge from its degree of decentralization, the number and quality of Gamers participating in the game, the derivative ecology, the ability, and potential to create original assets and information, and so on.

Therefore, while evaluating and researching blockchain projects, we must explore in-depth which projects can participate as non-cooperative game systems. At the same time, different standards should be used rationally to evaluate non-cooperative game systems and available financial products. These are two completely different products.

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