From the age of manpower to the age of algorithmic power, opening a new future for the digital economy

May 25, 2022·

15 min read

From the primitive civilized society to the intelligent society where all things are connected, with the development of technology and human needs for a better life, productivity has developed rapidly. As we all know, productivity is composed of labor materials, labor objects and laborers. Among them, people are the most active factor of productivity, and technology is the most critical factor to promote the change of productivity.


From ancient times to the present, the development history of human productivity can be divided into "four forces". The first is the age of manpower, mainly relying on man’s own labor to engage in production activities, and the level of productivity is completely limited by the size of man’s own physical strength; the second is the age of animal power, in which humans learned to use animals and livestock to engage in productive labor, and began Liberation of part of manpower; the third is the power era. Humans convert various energy sources such as steam and electricity into power to drive machines through the scientific and technological revolution. Machines are used instead of manpower to achieve large-scale production and a major breakthrough in productivity. Now, the development of human productivity Entering the fourth era - the era of algorithmic power, algorithmic power based on chips and Internet software applications has changed human production methods, living patterns and scientific research paradigms, and algorithmic power has increasingly become the foundation of scientific and technological progress and economic and social development,representing the development level of human intelligence.

The development stage of human productivity and the first law of algorithmic power

In the age of manpower, starting from the ancient Stone Age, the productivity was mainly manpower, and human beings mainly relied on their own physical labor and some auxiliary stone tools to engage in production activities. The productivity of the whole society mainly depends on the size of the population participating in manual labor and the physical fitness of individuals, and the improvement of productivity mainly depends on the improvement and upgrading of the stone tools used by laborers. Marx once said that stone tools are not only measuring instruments for the development of human labor (productivity), but also indicators of social relations through which labor is carried out. Therefore, the degree of cooperation between labor and stone tools determines the level of productivity in the human age. Due to the slow evolution of stone tools, the overall productivity is relatively stable, and the social development is slow. The role of productivity is mainly gathering or hunting, and its value is mainly reflected in meeting the basic survival needs of human beings.

In the age of animal power, that is, the feudal agricultural society represented by large-scale farming, the productivity mainly relied on animal power, and humans began to domesticate animals to obtain greater energy productivity. The appearance of bronze ware and iron ware accelerated the application of horse-drawn carts and ox farming, marking the beginning of the use of livestock power for human productive labor, rather than relying solely on human power itself. Historically, the technology of pulling the plough with oxen has been used as a representative of agricultural productivity for thousands of years until the emergence of the Industrial Revolution. The transition from hand-pulled mills to horse-drawn mills in Europe is also a process of gradually replacing human power with animal power. During this period, the means of production such as land, raw materials, etc., did not undergo essential changes compared with the human era, but the labor tools have undergone substitutional changes. In addition to farming and transportation, animal power has been used in warfare. Social productivity is measured in quantity. It has been greatly improved, but a qualitative leap has not yet been achieved.

In the era of power, that is, the industrial society between the middle of the nineteenth century and the middle of the twentieth century, all kinds of energy are converted into power, and machines are driven to participate in large-scale production, breaking the time and physical limits of human and animal power, and greatly improving the overall productivity of society. The innovation and wide application of the steam engine directly promoted the first industrial revolution (mechanization), which enabled the development of productive forces to get out of the handicraft stage of factories and enter the stage of large-scale machine production, which promoted the vigorous development of the industrial economy. The emergence of gasoline and diesel engines has made automobiles and construction machinery widely popular, and human beings have realized a great migration on a global scale. The emergence of electricity has brought the world from the "steam age" to the "electric age", that is, the second industrial revolution (electrification). widely used in life. At the same time, the great development of industrialization has further accelerated the emergence and adoption of new means of production, such as oil and steel. New productive forces and means of production have jointly promoted social development and achieved a qualitative leap.

In the era of algorithmic power, that is, the information society that began in the second half of the 20th century, productivity is mainly reflected in the efficient processing of data and other new means of production. The emergence and widespread use of electronic computers has provided the basic conditions for the development of global automation, informatization and networking, accelerated human beings' ability to mine new means of production, and expanded human ability to understand and explore unknown areas. The means of production have gradually changed from oil and steel as the core to data as the core, and have evolved into microscopic fields such as molecular atoms. At present, algorithmic power is no longer an exclusive service in the field of information technology in the electronic computer age, but permeates all walks of life and the entire production process of enterprises, and the participation and proportion of algorithmic power are getting higher and higher. algorithmic power can not only help enterprises reduce operating costs, but also provide intelligent decision support. algorithmic power has truly replaced human and brain power, and has become an extension of human capabilities and a transformative force that promotes social progress. As American scholar Nicholas Negroponte said in his book "Digital Survival", "Computation is no longer just about computers, it also determines our survival". algorithmic power is not only the core productivity in the digital economy era, but is also increasingly becoming an important factor in people's lifestyles. In short, algorithmic power is productivity, we call it the first law of algorithmic power, and the "era of algorithmic power" has truly arrived.

The wide application of algorithmic power and the second law of computing power

As the core productivity in the digital economy era, algorithmic power is widely used in various fields and levels of the economy and society, including the digital economy, digital society, and digital government. The rapid development of algorithmic power is not only driven by technological progress, but also benefits from the explosion of networking demand brought about by globalization, people's continuous pursuit of a convenient, efficient, diversified and personalized life, and their unremitting pursuit of the unknown world. Exploration and the efficiency improvement brought by intelligent production are the fundamental driving force for the widespread application of algorithmic power, thus promoting the increasingly rich application scenarios of algorithmic power.

From a macro perspective, algorithmic power, as the core resource of "new infrastructure", will become the technical base to support the development of the digital economy, digital society and digital government. First of all, algorithmic power supports the in-depth development of the digital economy, making the digital economy more and more important in various countries; specifically, algorithmic power accelerates the digitalization, networking, and intelligence of industries, agriculture, and services, and increasingly optimized high-performance Computing enables the value of data to be fully exploited and used, thereby promoting the upgrade of large-scale manufacturing to mass customization, the emergence of intelligent predictions in crop production, and the increasingly prominent personalized needs of thousands of people in the service field. Secondly, the application scope of algorithmic power in the digital society has been continuously expanded, and it has been involved in various aspects such as medical care, education, scientific research, employment, and community services. In China, by the end of 2020, the telemedicine collaboration network had covered more than 24,000 medical institutions in all prefecture-level cities, and a total of 360 million electronic social security cards had been issued, covering all prefecture-level cities. Increasing the construction of algorithmic power infrastructure and creating a smart and safe city have become the keys to improving the happiness of residents and the overall competitiveness of the country in the digital age. Finally, with the acceleration of digital government construction, governments and local governments continue to invest in government data centers and build national electronic databases, which promotes intelligent and intelligent applications, greatly promotes the application of algorithmic power in the field of government affairs, and maximizes service efficiency while improving service efficiency. Save office costs.

From a meso-level perspective, as the digital transformation of society continues to deepen, more and more organizations and individuals are accelerating their migration to the cloud, laying the foundation for the efficient integration and rapid development of algorithmic power. In addition, consumers have higher and higher requirements for digital service content and experience upgrades represented by social networking, entertainment, shopping,health management, etc. The continuous pursuit of the goal represented by bringing a better experience has greatly promoted the all-round penetration of algorithmic power in the industry. However, affected by key factors such as industry digital transformation maturity, cloud penetration rate, etc., the algorithmic power penetration and development index of different industries are different. On the whole, the higher the digital transformation of the industry, the higher the algorithmic power index. From a global perspective, the algorithmic power level of the Internet, manufacturing and financial industries ranks among the top three. The Internet industry is the industry with the largest algorithmic power demand because of its digital services such as e-commerce, games, payment, social networking, and as a service provider of ICT infrastructure. Provide users with real-time, intelligent and immersive service content and experience and enterprise cloud services through the blessing of algorithmic power. The application level of algorithmic power in various industries is very important. Internet algorithmic power accounts for nearly 50% of the total algorithmic power, followed by traditional industries with high digital transformation maturity, such as government, services, telecommunications, and finance. In the future, with the improvement of the level of intelligence in the industry, algorithmic power will radiate to many different fields such as modern agriculture, smart home, and smart power, and be applied to product sorting in modern agriculture, crop monitoring, and home security in smart homes. As well as scenarios such as power inspection in smart power. On the whole, algorithmic power will gradually penetrate into more traditional industries, and start to penetrate into more industry-specific scenarios from general scenarios.

At present, the application of algorithmic power is increasingly accelerated from the Internet industry to traditional industries such as transportation, industry, finance, and government affairs. The application scenarios are also expanding from general scenarios to industry-specific scenarios, and algorithmic power has played an unprecedented role. The large-scale deployment of 5G and the Internet of Things has greatly strengthened the underlying technical capabilities of algorithmic power, coupled with the widespread application of artificial intelligence, which has led to a substantial increase in intelligent algorithmic power, and the rapid breakthrough of quantum computing is expected, which will boost the scale of algorithmic power to show an explosion. growth trend. From the purpose of algorithmic power resources, the industry divides algorithmic power into basic algorithmic power, intelligent algorithmic power and other algorithmic power. According to the estimates of the Academy of Information and Communications Technology, the global algorithmic power scale will grow at a rate of more than 50% in the next five years, and the growth rate of intelligent algorithmic power will far exceed the total algorithmic power. 41% to more than 70% in 2023. CCID Research Institute believes that in 2020, China's general algorithmic power will be 77 EFLOPS, and the AI algorithmic power will be 56.23 EFLOPS. It is predicted that by 2025, the total basic algorithmic power and AI algorithmic power in China will exceed 300 EFLOPS and 1,800 EFLOPS, respectively, compared with 500 EFLOPS and 4,000 EFLOPS in the United States. Huawei issued a more optimistic forecast that in the next 10 years, mankind will usher in the YB era, and the global intelligent algorithmic power will increase by 500 times. Roland Berger estimates from the application side that the algorithmic power demand for popular applications such as autonomous driving, smart factories, and digital currency will increase by 390 times, 110 times, and 2,000 times, respectively, in the next decade. Based on the current development trend and future trend analysis, the global algorithmic power is expected to double every 12 months, which we call the second law of algorithmic power.

The economic value of algorithmic power and the third law of algorithmic power

The all-round penetration of algorithmic power has brought remarkable results and economic value to all walks of life, and has increasingly become a key driving force for the high-quality development of the digital economy and the national economy. According to relevant research, algorithmic power is closely related to economic growth. For every 1 point increase in the algorithmic powerindex, the digital economy and GDP will increase by 3.3‰ and 1.8‰ respectively; the higher the algorithmic power index, the higher the algorithmic power will promote economic growth. the more prominent the multiplier effect. In addition, from statistical data analysis, it can be concluded that there is a significant positive correlation between the scale of algorithmic power and the level of economic development in countries around the world. The larger the scale of calgorithmic power, the higher the level of economic development. According to research, the algorithmic power industry is increasingly driving the energy levels of other industries, especially for industries such as electronic components,computers,materials, software and information technology services. Every dollar invested in the algorithmic power industry will drive an average GDP economic output of 3-4 dollars, which we call the third law of algorithmic power.

In the industry field, algorithmic power investment has a more obvious role in driving economic output in manufacturing, transportation, medicine, retail, energy, agriculture and other fields. For example, in the field of biomedicine, the increase in algorithmic power has shortened the gene sequencing time from 13 years to 1 day, and the development and identification cycle of new drugs has been shortened from 5,000 days to 100 days; in the field of weather forecasting, the development of algorithmic power has reduced the accuracy of weather forecasting from the past 21.8% has increased to 90% now; in the field of industrial production, the entire production process is reconstructed in the digital world, and the optimization through simulation has increased the production efficiency by 30%. algorithmic power has become a key indicator to enhance the vitality of the digital economy and promote the transformation of enterprises.

Algorithmic power has been more and more widely used in many industries and business scenarios, but different businesses have different requirements for algorithmic power, which are mainly manifested in diverse needs such as low latency, high mobility, large algorithmic power, and tidal properties. Typical low-latency scenarios, such as VR/AR metaverse immersion scenarios, are highly user-involved, and the latency requirement mainly comes from the smooth interaction between people or between people and devices, which is the decisive factor affecting the user experience. Factors; typical high-mobility scenarios such as autonomous driving, in such scenarios, vehicles need to constantly switch the location of algorithmic power service nodes to achieve autonomous driving in order to sense and respond to changes in the environment in a complex traffic environment. The millisecond-level delay required; typical high-power scenarios such as weapon research and development, flight simulation, climate simulation, fertility simulation, and gene sequencing and other high-precision scientific research scenarios require intensive computing tasks and require extremely high accuracy; typical For tidal demand scenarios such as office building video surveillance, the computing demand will fluctuate significantly during the day and night as time changes. In the future, algorithmic power needs to rely on cutting-edge technologies such as networking, intelligence, greening, and credibility to meet the needs of business diversification through a service-oriented approach.

Algorithmic power promotes the development of the encrypted economy

Cryptoeconomics, in a nutshell, is the use of incentives and cryptography to design new systems, applications, and networks. Specifically, cryptoeconomics is about building things and has a lot in common with mechanism design (a field of mathematics and economic theory).

We learned from Satoshi Nakamoto's Bitcoin white paper that through a clever combination of cryptography, network theory, computer science, and economic incentives, we can build new technologies. These new cryptoeconomic systems can do things that these disciplines cannot by themselves. And blockchain is just one product of this new practical science. The algorithmic power is to support the safe operation of the underlying network of all other public blockchains such as Bitcoin and Ethereum.

With the passage of the Central African Parliament Act on April 21, 2022, Bitcoin was included in legal tender. This is also the second country in the world to date (the first being El Salvador on June 9, 2021) and the first country in Africa to adopt Bitcoin as legal tender. According to statistics, in 2021, the total market value of encrypted digital currencies in the world will reach 2 trillion US dollars, and the global Bitcoin mining revenue will be 6.8 billion US dollars per year, which has formed a global encrypted economy.


With the integration and development of blockchain, artificial intelligence, big data and other technologies, with the arrival of the next generation of value Internet of Web3, driven by the new revolution of Metaverse, GameFi, DeFi, NFTs and decentralized autonomous organizations. Leading the next generation of infrastructure with POWER DAO, and self-organizing and self-evolving organizational form based on the algorithmic power of algorithmic power productivity, it will solve the problem that the algorithmic power of public chains such as Bitcoin and Ethereum gradually falls into centralization and monopoly. At the same time, the next-generation infrastructure with higher performance, lower energy consumption, more decentralization, and more security that can support the development of the digital economy will be elected in a flexible manner by means of algorithmic power pledge voting. To solve a pain point in the current digital asset ecosystem: by providing powerful, low-latency, cost-effective and reliable computing resources so that developers can deploy dApps easily and in a decentralized manner to meet the Web3/metaverse Applications such as the growing demand for algorithmic power.

The future has come, how to accumulate data resources, improve the level of algorithmic power, and optimize the algorithmic powerindustry has become a common focus of enterprises, regions and even countries, not only benefiting the whole society, but also affecting everyone caught in the torrent of the times.