Exploring the encryption planet: What is its intrinsic value?

The chaos and lack of innovation in the world of encryption make people question: Are we really moving towards an ideal future? The preface of 'Protocol Revolution and DigiLaw Engineering' explores the essence of the encryption world, the bottlenecks in its development, and the infinite possibilities for future construction from a systematic perspective, providing important insights into understanding the true face of this new planet.

Matt Huang pointed out in Casino on Mars that the encryption world is a new planet worth building, because it provides a blank canvas for us to establish a new property rights system and build an upgraded financial system and internet platform. This is an analysis from a more macro perspective. If we start from a more micro and first-principles perspective, what is the essential value of the encryption world? What is the fundamental difference between it and the existing world system? Where does the unchanging foundation and driving force for its vigorous development come from?

Matt Huang pointed out in "Casino on Mars" that the encryption world is a new planet worth building, because it provides a blank canvas for us to establish a new property rights system, and to construct an upgraded financial system and internet platform. This is a macroscopic analysis. If we start from a more microscopic and first-principles perspective, what is the fundamental value of the encryption world? What is the essential difference between it and the existing world system? Where does the unchanging foundation and driving force for its vigorous development come from?

tokenization Decentralization protocol: encryption Core Values of the World

Personally, I believe in Bitcoin (BTC) and am optimistic about the future of smart contracts and Web3 represented by Ethereum (ETH). However, as a researcher, I have been constantly asking myself in recent years: aside from all the fancy words and hot concepts, what will be the most essential value of the entire encryption world built on blockchain when humans look back in 2050?

I now have a vague answer in my mind: The decentralized protocol of tokenization is the most essential value of the entire encryption world.

To better express this core insight, I refer to such 'tokenization of decentralized protocols' as 'DigiLaw'. Because the term 'protocol' is too broad, TCP/IP protocol, Paris Climate Agreement, traffic rules, purchase contracts, and even verbal agreements are all protocols, but they are different from the 'encryption protocol' we are discussing here. Today's 'encryption protocol' mainly includes two categories: 'blockchain protocol' and 'Smart Contract protocol'. Among them, the type of encryption protocol that aims to transparently promote the process of Decentralization and tokenization is referred to as 'DigiLaw' (see specific relationships in the figure below).

Digital Natural Law: Unmodifiable encryptionConsensus

“DigiLaws” is inspired by the combination of 'Digital world' and 'Laws of nature', literally pointing to the fact that this type of encryption protocol will ultimately be as transparent and tamper-proof as the laws of nature (Note: for non-crypto users: here, 'tamper-proof' does not mean that the protocol remains unchanged, but rather that changes to the protocol need to be made under collective Consensus, not subject to the will of a minority).

"DigiLaw" can not only allow non-encryption users to see through its essence at a glance, but also constantly alert encryption participants not to be overwhelmed by the project's fancy narrative, but to examine whether it adheres to the high standard of "DigiLaw" of transparency and immutability. Even if the project cannot achieve complete decentralization and tokenization at the beginning, the entire process should be made transparent to minimize the possibility of malicious use of information asymmetry. When "DigiLaw" becomes a social consensus, we can collectively expose the disguise of centralized projects and return to the original intention of the encryption world "Can't be evil".

**DigiLaw's "Decentralization" and "tokenization" are indispensable. **As stated by Vitalik in his Token2049 2024 presentation: Blockchains create persistent structures that can be extremely robust. "Decentralization" provides a rigid AlgorithmConsensus for "robust". It enhances the immutability of the protocol and makes it closer to the laws of nature, thus creating a "trustless" environment and minimizing the potential evil space of the protocol. On this basis, "tokenization" provides a lasting social consensus for "robust". It attracts a large number of participants to jointly protect the protocol through incentives, thus forming a broad and indestructible social consensus that transcends the algorithm, transcends time, and this unshakable collective will makes the immutability of the protocol truly realized. At the same time, the incentive given by "tokenization" will also help the value creation of the protocol, so that it will have life-like agency, so as to continue to rise into an "attention black hole" ("attention black hole" refers to the "black hole" formed by countless attention connected together, which can significantly affect the development of the world and collapse the future).

CreateX Era: Unleashing the Digital Leap of Human Innovation

In the future digital society, DigiLaw will become a new elemental foundation for the survival of humanity and AI. This foundation is the 'Digital Natural Law' designed by humans but cannot be tampered with. The digital world is no longer entirely constructed by humans, but has evolved into a part that can co-evolve with AI in a 'digital natural' manner. In the digital nature, trust no longer needs to be established at a high cost, but is directly encoded in DigiLaw. Network participants can achieve consensus based on a set of 'immutable rules' supported by encryption technology and mathematical principles, rather than relying on central authorities or third parties. This naturally forms a 'trustless' environment.

In such a trustworthy, equal, and open environment, value can flow freely, and innovation will no longer be limited and censored due to 'centralization'. Coupled with the incentive of tokenization, a naturally global, involving all of humanity, and bottom-up explosion of innovation will naturally emerge.

For example, in the real world, to implement an IDEA, not only do you need to obtain various permissions, but you also need to form a team and invest a large amount of time, energy, and capital to drive this process. However, in the encryption world, the threshold and cost of innovation drop significantly. As long as you have an IDEA, you can immediately start working on it without obtaining any permission. Coupled with the abundant and almost free 'digital natural resources' providing a large base of 'Lego building blocks' for innovation, in the near future, you may even be able to assemble a professional AI team at an extremely low cost, working 24/7 to help you build and promote your original 'DigiLaw Lego'. Everyone can use existing 'Lego' as 'building blocks' to quickly create a large number of more advanced and complex new 'DigiLaw Lego'. The explosive bottom-up innovation will drive the rapid emergence of the diverse ecosystem of digital nature at an immeasurable speed, evolving autonomously without restrictions.

The results of the 'protocol revolution' will permeate all aspects of the economy and society at an exponential rate, establishing a new paradigm, and the rapid development of the digital nature nurtured by encryption technology will quickly surpass digital labor.

In this never-ending "protocol revolution", the encryption world will also expand into an "endless future", where our thinking and way of life may be profoundly changed. Most repetitive routine tasks will be easily handled by AI, and humans will no longer be troubled by the pressure of survival. A digital natural environment that does not require trust will maximize the innovative potential of all mankind. Under the collaborative driving force of AI and humans, the subjective attention of the whole world will be more focused on the pursuit of creation and experience. It will be a new and dynamic era, which I call the "CreateX era".

However, we are still in the early stages of a world of exponential development in the field of 01928374656574839201, and the answer is not obvious to most people.