reflection The distributed computing model of individual model is mainstream. Bitcoin: The "distributed computing" model is more secure and reliable, but there are also some limitations. The UTXO model is currently mainly applied to currency, and its state model is relatively simple, with room for improvement in scalability. Although the UTXO model was originally designed for currency, its core concept can be extended to a broader field, generalizing the concept of "currency" to "everything," such as: Identity authentication: UTXO can represent the user's identity information and achieve decentralized identity management. Data storage: UTXO can represent ownership and access permissions of data, building a decentralized storage system. IoT: UTXO can represent the identity and status of IoT devices, enabling secure communication and data exchange between devices. Ethereum: The "distributed centralized computing" model is similar to the time-sharing operating system of early computers, where all users share the resources of one computer. This model has certain advantages in terms of efficiency, but sacrifices some individual freedom and safety. In the long run, the development direction that does not respect the 'individual model' may be difficult to become mainstream. Core concepts Before delving deeper, we need to understand several key concepts: Mirror world: human society and the computer Internet world are mirror images of each other, both composed of individuals and shared parts. Building principles of blockchain: building a blockchain world needs to follow the principles of individual freedom and shared communication of human society/computer Internet. The UTXO model of Bitcoin: The UTXO individual calculation model of Bitcoin follows the above principles, but it is too simple and only applicable to simple calculations and indexing of currency. Extended UTXO: UTXO is similar to the individual privacy of human beings or the individual terminal of computers. UTXO can be extended to expand the higher value world based on computer Internet. The significance of Bitcoin: Bitcoin, as the third most fundamental mirror world, provides us with the freedom to explore a broader world of value. The hierarchical structure of distributed computing To better understand the distributed computing of blockchain, we divide it into two levels: Network layer: the underlying architecture of blockchain networks, such as P2P networks, similar to the Internet. State layer: The storage and update method of state on the blockchain platform, built on top of the network layer. The centralized characteristics of Ethereum Even at the blockchain level, Ethereum's account model exhibits centralized characteristics. All accounts and data are stored on the Ethereum operating system, similar to a centralized system. The Distributed Characteristics of Bitcoin The UTXO model of Bitcoin allows each UTXO to independently compute and perceive, similar to a personal device with an independent operating system. This model is more in line with the nature of distribution. Construction of Distributed Value Internet Only based on a truly distributed computing model like Bitcoin can a more distributed Internet of Value be built. The process of argumentation Prove its viewpoint through a hypothetical scenario: Assumption: If early computer operating systems had only one centralized "Ethereum" system, and all users had to log in to the system to access the internet, what would our lives be like today? Conclusion: Such a centralized system will obviously restrict the freedom and development of the Internet. reasoning from analogy Analogize the UTXO model of Bitcoin to personal devices, where each device has an independent operating system. This analogy emphasizes the distributed nature of the UTXO model. Core argument The account model of Ethereum is essentially centralized, and it is impossible to build a truly distributed Internet. Only based on distributed account computing models like Bitcoin can higher-level distributed computing be achieved. Bitcoin: Distributed Computing Bitcoin has achieved decentralization at both the network and state layers: Network layer: Bitcoin adopts a P2P network, where all nodes are equal and there is no centralized server. State layer: Bitcoin adopts the UTXO model, where each UTXO is independent and contains transaction state information, which can be independently verified and calculated. This' distributed computing 'model endows Bitcoin with strong fault tolerance and censorship resistance. Ethereum: Distributed Centralized Computing Ethereum has achieved decentralization at the network layer, but exhibits centralization at the state layer Network layer: Ethereum also uses P2P network. State layer: Ethereum adopts an account model, where the state of all accounts is stored in a global state tree. Although this "distributed centralized computing" model improves efficiency, it also brings certain centralization risks. summary Features Bitcoin Ethereum Network Layer Decentralization (P2P Network) Decentralization (P2P Network) State Layer Decentralization (UTXO Model) Centralization (Account Model) Distributed Computing Mode Distributed Distributed Computing Distributed Centralized Computing ​ reflection The distributed computing models of Bitcoin and Ethereum each have their own advantages and disadvantages. Bitcoin: The "distributed computing" model is more secure and reliable, but there are also some limitations. The UTXO model is currently mainly applied to currency, and its state model is relatively simple, with room for improvement in scalability. Although the UTXO model was originally designed for currency, its core concept can be extended to a broader field, generalizing the concept of "currency" to "everything," such as: Identity authentication: UTXO can represent the user's identity information and achieve decentralized identity management. Data storage: UTXO can represent ownership and access permissions of data, building a decentralized storage system. Internet of Things: UTXO can represent the identity and status of IoT devices, enabling secure communication and data exchange between devices. Ethereum: The "distributed centralized computing" model is similar to the time-sharing operating system of early computers, where all users share the resources of one computer. This model has certain advantages in terms of efficiency, but sacrifices some individual freedom and safety. In the long run, the development direction that does not respect the 'individual model' may be difficult to become mainstream.