Can blockchain do? Is it MLM

1.

blockchain is a new technology, not a disguised form of MLM. It is just claimed by many MLM organizations as "blockchain". In fact, there is no technology. It's just a practice of MLM under the name of "blockchain". The state has issued several announcements to crack down on this kind of MLM. The following is the Xinhua news report on MLM of blockchain:

blockchain is not equal to virtual currency, but also has security risks. Behind the popularity, there is exaggeration with "ulterior motives". Only by removing the flashiness, can the blockchain return to its real application value

invest 80000 yuan, change to 800000 yuan after three months? Shenzhen police cracked a huge fund-raising fraud. Under the guise of blockchain concept and 10 times income, thousands of investors were deeply involved in the case, involving up to 307 million yuan. Under the "veil of mystery" of the blockchain, the illegal elements have taken advantage of their own tricks, and the blockchain has become a "signboard" of economic crimes such as fraud and pyramid selling

why is the blockchain repeatedly "misused" by illegal activities such as pyramid selling fraud? In addition to "unknown", what is the "function" of blockchain technology itself? Since the beginning of this year, with the increase of supervision and the cooling of currency speculation, new opportunities have been brought to the development of blockchain. How about the implementation of blockchain commercial "application" The reporter of outlook news weekly recently concted an investigation

when the three-month "capital release period" promised by the trading platform expired and the staff began to "kick" in the QQ group, Tang Haiyan, who lives in Bao'an District of Shenzhen City, realized that she might have been cheated

previously, Tang Haiyan invested 80000 yuan to buy a virtual currency called "ordinary silver coin" under the introction of her classmates“ The other side said that this currency is the most advanced blockchain technology at present, with Tibetan tea as collateral. He also showed me the "technical white paper". I didn't understand blockchain, so I didn't read it carefully. "

although she doesn't know about blockchain and virtual currency, the high investment income makes Tang Haiyan full of expectations. She told reporters that companies issuing "ordinary silver coins" will regularly split the virtual currency according to the ratio of 1:10, which means that each split will make the value of "ordinary silver coins" in the hands of investors expand 10 times. As long as after a split, her investment of 80000 yuan is equivalent to the purchase of 800000 yuan worth of "ordinary silver coins", which can be sold on the trading platform to obtain huge profits

according to the rules of the trading platform, the newly purchased "ordinary silver coin" cannot be traded immediately, and it must be frozen on the platform for three months before it can enter the "release period". However, after three months, not only did Tang Haiyan not wait for the assets to double, but the 80000 yuan frozen on the platform could not be used for trading

"other investors began to question the authenticity of this investment in QQ group. As a result, the staff of the company kicked these investors out one by one, which made me feel bad." She said

The fact also proves Tang HaiYan's intuition. At the end of March 2018, Shenzhen police detected a huge fund-raising fraud, with the amount of fraud funds as high as 307 million yuan. In this case, Shenzhen Puyin blockchain Group Co., Ltd. involved in the case issued virtual currency in the mode of "blockchain + Tibetan tea" to obtain public deposits. Tang Haiyan was one of the thousands of victims

Shenzhen police investigation found that the company claimed that investors could buy and sell "ordinary silver coins" on the virtual trading platform "jucoin net" to earn a price difference

. In fact, the change of its trading price is that the company used investors' investment funds for behind the scenes operation, and once raised the price of "ordinary silver coin" from 0.5 yuan to 10 yuan, so that investors can taste some sweetness. When a large number of investors entered the market, the company continued to cash out through malicious manipulation of the price trend of "ordinary silver coin", which eventually led to the worthlessness of "ordinary silver coin" in the hands of investors

since 2018, engaging in fraud and pyramid selling under the banner of blockchain has become a common "routine" in new criminal tactics. In April 2018, Jinan police dropped a pyramid selling Gang under the guise of "western development", "national poverty alleviation", "original stocks", "blockchain" and "e-commerce", arrested more than 10 major suspects, frozen more than 100 accounts involved, and seized more than 300 million yuan of funds involved

according to Jinan police, huileyi e-commerce company designed a fake virtual disk on the Internet on the ground that the country is vigorously developing the big data instry, and released a variety of virtual currencies such as "precious currency" and "precious currency"

under the guise of giving away, they presented a certain amount of virtual currency to the New MLM staff, with the price of tens of yuan each. Then, through artificial manipulation, they appreciated the virtual currency all the way to more than 100 yuan or even hundreds of yuan, attracting people who did not know the truth to join. Finally, they "cut leeks" through the periodic fluctuation of the so-called "devaluation" of virtual currency, Finally, the purpose of seeking illegal interests is achieved

in Xi'an, a few days ago, the local police successfully cracked a huge network pyramid selling case under the banner of blockchain. According to the police, the suspect, Zheng Mou, has paid a high salary to the 9 network members, such as Zhang and Lee. Since March 28, 2018, he has gathered pyramid selling and network pyramid selling as a means to sell the virtual Datang coins at the consumption era network platform at the price of 3 yuan each, and manipulate the appreciation rate; p>

at the same time, promotion meetings were held in many cities at home and abroad to attract members. According to the development of members, 28 level agents were set up. In just 18 days, the gang developed more than 13000 registered members. At present, it has been found that the case involves 31 provinces, cities and autonomous regions in China, and the fund involved is as high as 86 million yuan

according to Tencent's 2017 pyramid selling situation awareness white paper released by Tencent security joint laboratory, in recent years, all kinds of overseas capital disk, virtual currency and ICO (initial public offering token financing of blockchain project) projects have emerged in an endless stream, which hide many risks such as illegal issuance, untrue projects, cross-border money laundering, fraud and pyramid selling, As a result, a large number of funds flow overseas. Once the market collapses, runs away or loses contact, investors often have no way to complain and the losses are difficult to recover. For example, Baichuan coin, mark coin, beta coin, dark coin, etc

the reporter of lookout Newsweek interviewed in Guangdong, Shandong, Shanghai and other places and learned that most people know that the concept of blockchain is very popular, but they "don't know where it is", and there are different opinions on the specific functions of blockchain: some people think it is used for "investment and financing", "buying and selling currency", while others think it is "a major invention of the same magnitude as the steam engine", Some entrepreneurs are even more eager to seize this "once-in-a-lifetime opportunity to get rich."

many people in the instry said that it is precisely because people have many misunderstandings about blockchain that criminals have opportunities to fish in troubled waters and mislead investors

First, blockchain is not equal to virtual currency. By the end of last year, the number of domestic ICO participants and the total volume of transactions have doubled, a large number of digital currency exchanges have fled overseas, and the agent investment mode has involved more ordinary people in high-risk investment

in many instries, we media and celebrities form interest alliances with issuers and digital exchanges to endorse and create public opinion for the "air currency" project. In December last year, nine departments including the people's Bank of China identified ICO as "suspected of illegal fund-raising, financial fraud, pyramid selling and other illegal and criminal activities"

in the interview, many people told our reporter that the existence of token has built a set of rights and interests mechanism for the development of blockchain technology, which is indispensable for stimulating the prosperity of blockchain applications“ The market practice in the past five years has proved that blockchain applications without equity mechanism are just like market economy without computers connected to the Internet and money, with greatly reced application scenarios and development speed. " An investor in Shanghai said

in fact, the token represented by bitcoin is only one of the earliest procts to verify the blockchain technology, and the two can not be equated, and the existence of token has obviously negative effects on the development of blockchain

Xiao Wei, chief engineer of network blockchain, told this reporter that the myth of ICO's sudden wealth shakes the R & D concentration of blockchain technical talents, and the myth of "sudden wealth" with hundreds of times of return tests the patience of blockchain technical R & D talents“ Many of the "comrades in arms" in the circle who used to do research and development of blockchain technology have gone to issue coins, and now few of them can insist on doing research and development and application of technology. "

Xu zewei, Secretary of the Party committee of Beijing Internet Finance Instry Association, said that under the background of China's ban on ICO, many domestic start-ups promoting blockchain applications are "selling dog meat with sheep's pawn" and financing through concept packaging of worthless tokens“ ICO has polluted the good atmosphere of innovation and entrepreneurship, and created a kind of speculative proct. Many young people are not thinking about entrepreneurship, but are thinking about issuing money, which makes us have the illusion of getting rich overnight. "

at present, more and more people in the instry begin to think about whether the development of blockchain must rely on the issuance of tokens to achieve incentives. Guo Dagang, Secretary General of Beijing Internet Finance Instry Association, told this reporter that the so-called incentive mechanism is only the theoretical basis for the project party to issue tokens for itself. Huo Xuewen, director of Beijing Municipal Bureau of financial work, also believes that if blockchain does not get rid of the dilemma of issuing currency, it will never find a legal landing mechanism

secondly, blockchain is not omnipotent and its security is at risk. Blockchain is generally considered to achieve three functions:

first, the data stored on the blockchain can not be tampered or forged, and the data has high credibility and credibility; Second, the whole process of the transaction can be traced, which can achieve accurate responsibility tracking; Third, the embedded smart contract in the blockchain can be executed automatically based on the contract, so as to improve work efficiency and rece the risk of default. It is generally believed that blockchain has broad application prospects in finance, logistics, trade and other fields

in fact, blockchain is not omnipotent, and its function has many limitations. It is generally believed that, according to the characteristics of cryptography, in order to tamper or falsify in the blockchain, more than 51% of the nodes need to be controlled in theory. When there are enough nodes in the blockchain, it is difficult to tamper with the trust creation mechanism widely participated by the public

However, in reality, digital currency exchanges are frequently attacked or even stolen. On June 20, 2018, bithumb exchange of South Korea announced on its official website that the exchange had been attacked by hackers and stolen 35 billion won, about 32 million US dollars of cryptocurrency

Ji Xinhua, known as the first generation of "hackers" in China, said that the blockchain will continue to face attacks, and the process of uploading data to the blockchain is prone to information leakage. Some people in the instry worry that once the super computing power of quantum computing is realized, it will also have a direct impact on the blockchain

Zhao Yao, a special researcher of the Institute of finance of the Chinese Academy of Social Sciences, told this reporter that the academic community has confirmed as early as 2013 that the blockchain is not perfect and there are many "cheating" strategies. As long as there are enough economic incentives, controlling attacks of more than 51% nodes does not only exist in theory

Zeng Guang, Secretary General of Shenzhen Internet Finance Association, said that the blockchain technology itself does not have the ability to do so

2.

Some time ago, a picture of Chinese aunts appearing on the scene of the blockchain conference became popular on the Internet. For a while, it caused a heated discussion. Netizens said one after another: "aunts have been targeted by the blockchain." In fact, since a few years ago, when the concept of blockchain came out, there have been some illegal elements carrying out pyramid selling activities in the name of blockchain, which has become one of the latest varieties of pyramid selling. In fact, with the development of blockchain, all kinds of virtual currencies emerge as the times require. Most of them are scams. In the name of "virtual currency" and "blockchain", swindlers carry out scams. This is mainly to make use of the psychology that investors do not understand virtual currency and blockchain, but want to catch up with the upsurge of virtual currency investment. This kind of scam seems complicated, but it is also very simple. However, once it is cheated, it is difficult to recover the investment

in a word, blockchain technology is not a fraud, but is used by swindlers to cheat investors by using information asymmetry

3.

Recently, a photo of Chinese aunts posing at the blockchain conference became popular in the circle of friends, and netizens commented that aunts have been targeted by blockchain. Since the beginning of this year, some illegal elements have carried out pyramid selling activities under the banner of blockchain finance, becoming one of the latest varieties of pyramid selling. Recently, Xi'an City cracked a block chain pyramid selling case

Zhang Yangqiu said that virtual currency, as a new thing, is often used to engage in illegal and criminal activities. It usually controls a small number of indivial or company accounts to absorb and transfer funds, and establishes a pyramid selling network through the Internet to expand the scale of fund-raising. It is difficult for ordinary investors to see the operation rules behind it. She reminded that various virtual currency platforms generally publicize technologies such as "blockchain" and "decentralization", and some of them are also named after international organizations and multinational financial groups, which is extremely confusing. Middle aged and old people must be cautious in investment, and it is better not to set foot in unfamiliar investment fields

content source: Xinhuanet

4. Bonus has been temporarily frozen, suspected MLM capital chain rupture, this is a very obvious sign<
the CBRC, the Ministry of instry and information technology, the people's Bank of China and the State Administration for Instry and Commerce suggest that in recent years, in the name of "financial mutual assistance", the behavior of promising high returns and luring the public to invest funds has appeared in many places in China. Its main characteristics include: 1
first, there are many names. Common are: "XX financial mutual aid community", "XX financial mutual aid platform", "XX financial mutual aid financing", "XX charity financial mutual aid platform", "XX financial mutual aid investment", "XX mutual aid community", "XX wealth mutual aid platform", etc< Second, it develops rapidly. Relying on the Internet, through the website, blog, wechat, QQ and other platforms, the publicity has a wide range
thirdly, it is confusing. Under the banner of "overseas celebrities", some claim to "destroy the unfair world financial system, break the control of financiers, and create a community for ordinary people" as the goal. Through the establishment of the so-called "fair, just, mutually beneficial and honest financial platform for people to help others", the public can get more help by subsidizing others. At the same time, he falsely claimed that "after market test, he has been mature in many countries for many years, and has hundreds of millions of members in the world" and so on
4. Strong incement. It claims that the investment threshold is low, the cycle is short and the income is high. For example, after free registration, the investment of RMB 60000-60000 can be withdrawn after 15 days, with daily income of 1%, monthly income of 30%, annual income of 23 times, and no handling charge. In addition, if participants develop others to join, they can also get extra income such as recommendation Award (10% of offline investment) and Management Award (the corresponding proportion is determined according to the membership level). There is no upper limit for development personnel and no upper limit for rebate< 5. Strong concealment. Most of them are controlled remotely by overseas personnel, and the investment funds are often transferred through personal bank accounts or through third-party payment platforms
this kind of operation mode violates the law of value, and it is difficult to maintain the capital operation for a long time. Once the capital chain breaks, investors will face serious losses. The general public is requested to raise their awareness of risks, invest rationally and prudently, and prevent their interests from being damaged. At the same time, we can actively report to the relevant departments the clues we have learned about crimes
bitcoin home and many mainstream media have reported similar virtual money pyramid schemes.

5. Colleagues are playing. What is a miner? To put it bluntly, it's the same as bitcoin. Get something by doing something on the Internet. We call this kind of behavior mining. The obtained minerals can be exchanged back and forth and wait for their appreciation to sell. However, we don't know how much it will cost to buy. I think it's OK to play as a daily leisure game, but don't put too much energy into it. At present, this thing is still very promising, but it may collapse one day. Anyway, it's all virtual procts. Since there is neither food nor specific value, it's very easy to turn it into waste. Just like the popular bitcoin in the previous period, there are few people playing it now.

6. The blockchain instry is now in the air, and all walks of life are involved in the blockchain instry. MLM is MLM, and blockchain is blockchain. It's true that there are companies that discount blockchain names to defraud. This also requires us to keep our eyes open. Investment is risky and we need to be cautious when entering the instry.

7. Whether blockchain is pyramid selling in disguise is not difficult to determine
for the purpose of developing personnel, pyramid selling is to seek illegal interests, disrupt economic order and affect social stability by calculating and paying remuneration to the developed personnel based on their number of directly or indirectly developed personnel or sales performance, or requiring the developed personnel to obtain the qualification to join in on the condition of paying a certain fee.

8. Blockchain itself is a technology, not MLM. However, many money fraud projects under the banner of blockchain may be pyramid schemes
you have to distinguish this by yourself and learn more about it. Password finance has blockchain information, you can understand the relevant knowledge.

9. The best way to deal with blockchain projects that we don't know much about is not to touch them. Many so-called blockchain projects are under the banner of "blockchain +" and then issue digital tokens to "earn money" to say that our projects can be implemented and have a very good prospect. In such cases, the best way is not to touch such things.

10. No, maybe some people mistakenly regard bitcoin, the key application of the first generation blockchain, as the blockchain itself, but in fact, it is only an application of the blockchain. At present, blockchain has developed to the third generation
the first generation of blockchain is exchangeable, mobile and encrypted digital asset authentication
the second generation of blockchain is essentially the first generation of blockchain + smart contract
the third generation blockchain is the instry wide application of the second generation blockchain + blockchain technology
what you said is just a narrow sense of application.