Hacash : An Open source Encryption Project with “Monetary” as its Core Target

Vaibhav C
15 min readJan 25, 2021

if you don’t know what “monetary” is, It is impossible to truly understand the revolutionary significance and value of cryptocurrency in essence. yes, the word “ monetary “ is indeed a new invention not long ago: with the community discussion of the Hacash project, the early participants gradually summarized and New words created.

Bitcoin was invented to achieve the goal of “peer-to-peer electronic cash”, and the original technology that came with it-the blockchain-has no definite evidence until now. Indicates that it has a particularly significant value and real purpose other than “electronic money”. From beginning to end, there is only one important direction: to achieve a more robust and efficient global currency . Ethereum’s success is also the success of its later changed “financial settlement layer”, which is the “settlement currency” rather than the success of its initial goal “world computer”

Although it is an exaggeration to say that all “public chains” except Bitcoin are pure scams, considering the fact that Bitcoin still occupies more than 60% of the market value of the entire industry, we cannot help but upgrade those “public chain technologies” “High concurrency and large capacity”, “Blockchain 2.0”, “3.0” and even “4.0” buzzwords, as well as the “major revolutionary project” claiming that Bitcoin is already an “outdated and inefficient antique” are invested in prudent Eyes and reasonable doubts. What needs to be considered is that in the past twelve years, there have been continuous new technical trials and new concept attempts, but why Bitcoin is still the largest market capitalization cryptocurrency, while all other technologies are more advanced and comprehensive, with better performance or more application scenarios. The countless projects that are rich and enjoy huge investment promotion have not achieved their goal of “surpassing Bitcoin” or “the next Bitcoin”?

It is generally believed that these coins are in competition with Bitcoin, and the best of them may one day replace Bitcoin. In fact, they cannot compete with Bitcoin because they will never get the money that makes Bitcoin digital cash and hard currency. If you want a digital system to perform the functions of digital cash, it must be free from the control of any third party, can fully realize the user’s wishes, and no third party can intercept the user’s payment behavior. Currently Digital currencies that imitate Bitcoin are emerging in endlessly, but none of them have learned the essence: pay attention to checks and balances of all parties and prevent any strong party in the system from dominating the system. The inventor Satoshi Nakamoto has disappeared, and now no one has absolute say in Bitcoin…The cost of copying code to generate a new digital currency is almost zero, so the number of imitations has skyrocketed unless a team is active Committed to cultivating the market for a certain new currency, managing the market value, and hiring a large-scale development team to continue to develop and protect the security of this system, otherwise, any post-bitcoin imitators are unlikely to experience any significant growth. Fundamentally speaking, it is precisely because imitation is easy, so for any imitation products, the real demand is very extravagant, so there must be a team to actively establish and expand the market’s own’demand’.This is why all altcoins have their own team. They initiate this project, promote it, design and edit marketing materials, and put press releases into various media outlets. At the same time, they have information advantages. Before people heard about their project, they dig a lot of tokens for their own projects. The information of team members is public, no matter how hard you try, you cannot believe that they are not the center of controlling this altcoin. In this case, if any other currency claims to be digital cash protected from the control of a third party, there is no credibility. In other words, if you want to create a substitute for Bitcoin, you must invest heavily in cultivating the currency, and this behavior turns the project side into an indispensable control center. As long as a certain project party holds the control, this digital currency cannot become digital cash. On the contrary, it is only a traditional intermediary payment form, and it is an intermediary payment form with low efficiency and safety. This puts the designers of’altcoins’ into a dilemma: Without the active management of the development team or the marketing team, their currency cannot break out of the more than 1,000 currencies and attract the attention of people or capital. However, If there is active management of the development team or the marketing team, it is impossible to believe that the currency is not under the control of these people. The deep and fundamental error of altcoins is that they cannot achieve true decentralisation

Through the 1CO project, the development team is highly public and directly associated with large institutional investors, so that the entire project is completely under central control. Any altcoin claims that its project is decentralized but It is untenable to need to manage the project as a team based on computing power and established rules. The distribution of currency, the distribution of computing power, and the development ability are all concentrated in the hands of the same group of people. These people are still the same team. I’m afraid that anyone with normal intelligence would not think this is “decentralized security”.Also, if the team behind it is exposed to the world, it’s hard to imagine such a private Issuing currency can achieve the status of global currency. If it greatly appreciates in value, the founding team behind it will become a huge wealth and gain the power to collect seigniorage. In the modern world, seigniorage is the monopoly power of nation-states, central banks and Governments will not tolerate provocations to their authority, and will definitely stifle and ban projects like this. Any team behind an altcoin who wants to change the currency’s monetary policy is easy, and the project party’s own feelings Yes technology. This flexibility may be good for other things, but it does not help to establish a global hard currency. People will eventually find embarrassingly that, in addition to making the founder rich, These various projects will not really achieve much.”

if you want to bring better money to the world, the more luxurious teams bring huge investments into the project, The more impossible it is to have real value . In other words, the more a “high-quality team” and a large amount of funds endorsed and promoted projects, the more likely it is to “fake a non-existent demand.” This seems to violate everyone’s intuition and long-term experience: the higher the input, the greater the value and output. For example, almost all high-quality companies in the world are controlled by themselves or a small number of institutions, and most of them have received large amounts of investment from various powerful institutions in the early stages of development. These “centralized companies” provide us with excellent products. And excellent service. So why can this powerful endorsement method produce almost all the products and services we need, but it can’t produce high-quality digital cash? The reason is that in the modern world, “production of money” and “production of goods” are two fundamentally different things. We go back to the era when precious metals such as gold, silver, or copper were used as currency, or even the ancient times when salt, sheep, and shells were used as the medium of exchange. Money was not special at that time, but was an ordinary commodity with its own value. Only, at this time, “production money” and “production of goods” are the same thing: both need to spend a certain cost, and the fierce competition in the open access market where anyone can participate in production will affect the “price of money” or “production”. “Money profit” is always limited to a level that is indistinguishable from the production of other commodities. However, the situation has changed after entering the industrial revolution. The increasingly large and rapid economic development has gradually made precious metals and other physical commodity currencies unable to meet the needs of people’s daily payments and long-distance frequent trade due to their physical properties. At that time, credit currency appeared in the form of accounting or debt such as gold bonds, precious metal warehouse receipts, checks, etc., to circumvent the cumbersome, unportable, uneven texture, and high circulation costs of physical currencies. But credit currency solves the shortcomings of commodity currency, but it still has its own shortcomings: the savvy money house owner or banker finds that people will not exchange all the gold back at the same time. At this time, if you secretly issue an excessive amount of gold People will not find some more exchangeable bills, and shameless bankers call these over-issued credit currencies “a gift for themselves.” From then on, “production money” (that is, the production of paper sheets) has become a costless thing, and there is no need to print paper sheets at all. You only need to move your fingers to modify an entry in the database software, and you can silently Create vast wealth out of nothing. The competition of bank commercial expansion has made this kind of credit over-issue increasingly bold. The entire credit system has gradually become fragile. In the end, some minor events caused “runs” and led to the credit collapse of the entire banking system. Financial crises in the modern sense have since recurred. And getting more and more out of control. Due to the inherent instability of credit currency, the power to issue credit currency was later nationalized, and the exchange relationship with any physical commodities was completely disconnected. In this case, people for decades seem to have fully accepted that money can only be credit and not what it is: commodities.

The tokens issued by projects controlled by the powerful team behind (especially those that claim that PoW wastes energy and adopt other cost-free token issuance methods) are actually The above is “issuing credit” instead of “producing goods.” Since credit is a representative of value, it does not have any cost. There are no hard constraints on the amount of credit issued by the project party or the total amount is capped, but the project party and a few Investors control the vast majority of the total credit. Once this token becomes a universal currency in the world, a small number of people will sit on most of the world’s wealth without a profit. This is actually usurping everyone’s wealth and wanting to make Everyone will always work for them. People will foresee this and perceive the great unfairness and great asymmetry risk, so any such token with the possibility of “cutting leek” cannot replace Bitcoin. As the author said: Those’altcoins’ will never acquire the properties that make Bitcoin digital cash and hard currency — and these properties are the “ monetary nature “ mentioned at the beginning of this article .

At this point, we have come to a simple and naive point: only those cryptocurrencies that do not have the risk of “cutting leek” can be assured and recognized by everyone and become a widely used digital cash. The PoW mining method adopted by Bitcoin is not only a consensus protocol, but also an initiative to raise the cost of issuance by opening currency production to market competition, so as to prevent anyone from being “scythe in hand” Location. Consensus agreements such as PoS and so on that “money makes money” are not essentially an open-access system: the distribution of new currencies in the future depends on who owns more currencies now, and the current distribution depends on earlier This system is essentially a closed power distribution system, not an open system. At present, only PoW can realize this kind of open system: the subsequent production of new currency can be completely independent of the current currency distribution status. It can be seen from this that the energy consumed in the mining process is not wasted unreasonably or unnecessarily. On the contrary, this is a necessary guarantee that has to exist-a law of thermodynamics to ensure that the entire system is always fair Hard physical constraints on sex and effectiveness. In the end, all this seems to make Bitcoin break away from the “credit characteristics” and return to the original form of currency: a commodity, a real commodity that can have endogenous value without any third party. However, any “credit” cannot exist independently of the credit subject to which it belongs.

The reason why “ monetary ” is difficult to achieve is that there is a very strict and major contradiction in it: if you want to become a currency, you must ensure that no one in the system can “sit and enjoy it”, and everyone must stand on the same starting line. To saturate the competition with the same expected cost, and those currencies that the luxury team spends a lot of money to cultivate are all for the purpose of “ value capture “-this is just another way of sitting and enjoying the benefits -after all, no one wants to lose money or is willing Make wedding dresses for others. This contradiction will inevitably lead to the result that “real money” can only grow spontaneously and savagely from the recklessness of life and death, and it is impossible to “carefully cultivate” success through any strong background or major actions. This also explains why Bitcoin, whose creators have retired, has always been an irrefutable hard currency for more than ten years, and even if all subsequent challengers are sitting on various huge advantages, they cannot replace Bitcoin after all. position.

The great difficulty of creating a higher quality electronic cash has never been in any “blockchain technology”, but in that the creator himself must not occupy any even a little bit of “sit and enjoy” status in the entire system. Such harsh conditions almost make this kind of creative behavior can only be a free obligation to contribute to the world-creators must have comprehensive and in-depth technical capabilities, a thorough understanding of monetary economics, and more importantly, return Must have great contribution and sacrifice. Therefore, anyone who creates a better currency, such as Satoshi Nakamoto, can become a “god” worshipped by everyone in a sense!

Strictly speaking, “cannot be cut leek” is just one factor in the complex and diverse “monetary”. It is generally believed that the functions of currency include three aspects:

  1. As a long-term store of value
  2. As a portable medium of exchange
  3. As a stable accounting unit

Origins of Hacash

In December 2018 (yes, it was the year when IEO was popular) Hacash released the white paper on Github , and launched the code to mine the first block on February 4th of the following year-but no one knew at this time all of these. Few people received a link to the white paper and the first version of the code in the mailbox left on Zhihu a month later. At that time, it did not arouse much interest, thinking that this was just “another mining currency”. From the WeChat group established by everyone at the end, we learned that about two dozen people on Zhihu received the white paper and the Github address of the code through private messages or emails. We still don’t know who created Hacash — he disappeared or was hidden as another ordinary person.

The only certainty is that from the author’s knowledge of the population who first started Hacash mining, this project entered the community’s open and free mining state within less than two months after the founding block was mined: there is a small The miner went to a certain domestic CPU mining forum to post a post, and then attracted dozens of miners to enter. Due to the low computing power at the time, they were often monopolized by “big guys” with dozens of servers. Some left afterwards. At that time, there were also people in the WeChat group buying coins mined by miners at prices ranging from 1 yuan to 5 yuan. However, the author learned that most of these earliest miners later stopped mining, and only a few persisted until now-two years later today.

Yes, Hacash survived like this “no life to support” and “self-fed”. No one came out to claim to invent or lead this project, nor did anyone make exquisite posters for it and put one after another bragging article into the mailbox of various media outlets. Of course, no one did it. Any “market value management” and put the tokens online on any exchange-all the mined coins are in the hands of everyone who joins the community in the early days, miners compete with each other for mining, and others are guaranteed by the group owner in the WeChat group. Hash power fluctuates, sometimes high and sometimes low, coins are sometimes bought, and sometimes no one cares. Everyone often looks at each other and wonders who is the “project party”.

This is Hacash’s extremely indifferent approach: even the creator has never owned a 100% fair mining start. No one has set any “target price” for this coin, and no project party has made a shameless call. Considering that IEO is prevalent and big capital generally endorsed projects in 2018, this is really rare and unique. Today, two years later, we look back at those “star projects” initiated by luxury teams under the spotlight, massive capital blessings, and well-known professors writing white papers. Almost all of them are filled with stacks of fresh and tender leek juice. The great mission has also become a joke for “the team is doing things”-in Saifedean’s words: In addition to making the founders rich, these various projects will not really achieve much.

Until today, almost two years later, Hacash has miners all over the world. The daily mining output is shared by dozens of mining pools and full nodes. Everyone buys and sells OTC with each other, and develops various tools and API interfaces. Participants spontaneously established various discussion groups and forum websites, and actively promoted the free listing of Hacash on exchanges. It can be judged that if a truly decentralized project can survive spontaneous word of mouth for two years without any investment in resources, and live better and better, we have every reason to believe that, It must be supported by some completely real value, and with a high probability that it will continue to survive and develop better and better.

This is Hacash’s first “monetary” guarantee: there is no project party-in fact there is really no, rather than claiming that there is no. This has also achieved the first very important goal: no one is waiting in the dark with a sickle in hand, and may cut everything with one wave at any time, and then leave a pile of real value equivalent to a pile of shit. Zero Token left with a smile on his face. After all, all existing tokens are produced through real PoW power-consuming mining, and so far there is still no online exchange. Everyone is private OTC trading.

After reading this, everyone will definitely be worried. Referring to the current so-called DeFi top mining projects, most of them basically lose the value of mining within a week, and even the survival time of some projects is calculated in hours. So Hacash has been online mining for two years, and most of the tokens must have been mined, right? Even if I don’t have a project party, I’m only entering now, isn’t it the only way to lift the sedan chair for the people in front? wrong. At present, Hacash has mined less than 200,000 coins, which is only 0.9% of its total output in the previous 66 years. Yes, you read that right. After two years of mining, the output is less than 1%, and the number of tokens rewarded per block will immediately increase from 1 to 2 which has been maintained over the past two years. Two years after the project went online for mining, the block reward has not decreased, but doubled. This is probably beyond the imagination of most readers. The mining output of a currency in two years is so small, and the more and more it is mined, who would recognize the value of such a currency?

In fact, in two years, Hacash is still in a very early initial position for a project with a grand mission. When you learn about Hacash in detail, you will find that it is fundamentally different from other fake projects that chant slogans that are actually sickles-this is a truly open and shared project, and there is no so-called “official” that controls most of the benefits and decisions. Power, true decentralization, all codes and algorithms (including nodes, wallets, browsers) are all open source. The development of the project relies on the free dedication of early development contributors and the support of the consensus community. Everyone is a contributor and a beneficiary at the same time. It has the most fair currency issuance algorithm, no founder rewards, no official holdings, no developer taxation, no node distribution, no institutional investment, no initial exchanges, no I*O, no pre-mining, no private equity, no funds Yes, there is no team, no consultants, no boss platforms, no professors to post, no media bombings, no community calls. Everything is fair mining from scratch. Hacash does not need to serve a certain team behind it to usurp value for them to get rich. No one will manipulate currency prices, manage market value, forge demand, perform community atmosphere, and invent non-existent application scenarios. This is bound to make Hacash go slower. Those who can’t see through the fog and see the true value can’t afford to wait, and seem to see no hope. If you read the first half of this article carefully, you will know that only such “slow projects” are qualified to become “real money” after a long period of time.

There are three currencies with different energy levels and heterogeneity on Hacash’s network: HAC, BTC, HACD. The relationship between these three coins and each other is The most important part of Hacash, and there is also a “channel chain payment network” for large-scale payment real-time settlement. Judging from the fact that Hacash includes BTC, you may guess that Hacash’s goal is not to compete with Bitcoin, but to be compatible with Bitcoin, and jointly assume the responsibility of promoting cryptocurrency as a settlement currency (if Bitcoin is compared to a programming language The original and revolutionary C language, then Hacash’s mission is to become C++).

Although Hacash has been launched for two years, it is not too late for you who have only read this article to participate. On the contrary, for most people, maybe now is the best time. Because the project has passed the test of two years and passed the most dangerous infancy, self-survival is enough to prove everything.

Read Hacash White Paper in English

HacashTalk Forum

Github

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