Cryptoeconomics
Cryptoeconomics is an evolving economic paradigm for a cross-disciplinary approach to the study of
Definitions and goals
The term cryptoeconomics was coined by the Ethereum community during its formative years (2014-2015),[4] but was initially inspired by the application of economic incentives in the original Bitcoin protocol in 2008.[5] Although the phrase is typically attributed to Vitalik Buterin, the earliest public documented usage is a 2015 talk by Vlad Zamfir entitled “What is Cryptoeconomics?”[6] Zamfir's view of cryptoeconomics is relatively broad and academic: “… a formal discipline that studies protocols that govern the production, distribution, and consumption of goods and services in a decentralized digital economy. Cryptoeconomics is a practical science that focuses on the design and characterization of these protocols”. Alternatively, in a 2017 talk, Buterin's view is more narrow and pragmatic: “… a methodology for building systems that try to guarantee certain kinds of information security properties”.[7]
According to Binance, the primary goals of cryptoeconomics are to understand how to fund, design, develop, and facilitate the operations of DeFi systems,[8] and to apply economic incentives and penalties to regulate the distribution of goods and services in emerging digital economies.
Cryptoeconomics may be considered an evolution of
History
The historical roots of cryptoeconomics can be traced to the rise of
Subdisciplines
Similar to how traditional economics is divided into macroeconomics (regional, national, and international economics) and microeconomics (individual and enterprise economics) subdisciplines, cryptoeconomics can be divided into crypto-macreconomics and crypto-microeconomics subdisciplines.
Crypto-macroeconomics
Crypto-macroeconomics is concerned with the regional, national, and international regulation of cryptocurrencies and DeFi transactions. The
Crypto-microeconomics
Crypto-microeconomics is concerned with the individual and enterprise usages of cryptocurrencies and DeFi transactions. A strong majority of USA adults have heard about major cryptocurrencies (Bitcoin, Ether), and 16% say they personally have invested in, traded, or otherwise used one.[14] More than 300 million people use cryptocurrency worldwide, and approximately 46 million Americans have invested in Bitcoin.[15]
Criticisms and controversies
Bitcoin, along with other cryptocurrencies, has been described as an
See also
References
- ^ "MIT Cryptoeconomics Lab". MIT Sloan. Archived from the original on 2022-06-22. Retrieved 2022-08-07.
- ^ "Cryptoeconomics - Wikiversity". en.wikiversity.org. Retrieved 2022-08-07.
- ISBN 978-1-78897-500-1.
- S2CID 242297787.
- ^ Nakamoto, S. (2008). "Bitcoin: A Peer-to-Peer Electronic Cash System" (PDF). Bitcoin.org.
- ^ What Is Cryptoeconomics?, retrieved 2022-08-06
- ^ Introduction to Cryptoeconomics - Vitalik Buterin, retrieved 2022-08-06
- ^ "A Beginner's Introduction to Cryptoeconomics". Binance Academy. Retrieved 2022-08-05.
- ^ "Who Was Adam Smith?". Investopedia. Retrieved 2022-08-05.
- ^ "UK regulatory approach to cryptoassets and stablecoins: Consultation and call for evidence" (PDF). HM Treasury. Retrieved 1 October 2021.
- ^ "Bitcoin legal tender in El Salvador, first country ever". Mercopress. 10 June 2021.
- ^ "Cuba's central bank now recognizes cryptocurrencies such as bitcoin". CNBC. 27 August 2021.
- ^ "China declares all crypto-currency transactions illegal". BBC News. 24 September 2021. Retrieved 24 September 2021.
- ^ Andrew Perrin. "16% of Americans say they have ever invested in, traded or used cryptocurrency". Pew Research Center. Retrieved 2022-08-06.
- ^ "Cryptocurrency Statistics 2022: How Many People Use Crypto?". 2022-08-04. Retrieved 2022-08-06.
- ^ Shiller, Robert (1 March 2014). "In Search of a Stable Electronic Currency". The New York Times. Archived from the original on 24 October 2014.
- ^ Costelloe, Kevin (29 November 2017). "Bitcoin 'Ought to Be Outlawed,' Nobel Prize Winner Stiglitz Says". Bloomberg. Archived from the original on 12 June 2018. Retrieved 5 June 2018.
It doesn't serve any socially useful function.
- ^ "Economics Nobel prize winner, Richard Thaler: "The market that looks most like a bubble to me is Bitcoin and its brethren"". ECO Portuguese Economy. 22 January 2018. Archived from the original on 12 June 2018. Retrieved 7 June 2018.
- ^ Krugman, Paul (29 January 2018). "Bubble, Bubble, Fraud and Trouble". The New York Times. Archived from the original on 4 June 2018.
- TheGuardian.com. 2 February 2018. Archivedfrom the original on 12 June 2018.
- ISSN 0362-4331. Retrieved 16 January 2022.
- ^ "Monetarists Anonymous". The Economist. The Economist Newspaper Limited. 29 September 2012. Archived from the original on 20 October 2013. Retrieved 21 October 2013.
- ^ Ball, James (22 March 2013). "Silk Road: the online drug marketplace that officials seem powerless to stop". theguardian.com. Guardian News and Media Limited. Archived from the original on 12 October 2013. Retrieved 20 October 2013.
External links
- Cryptoeconomics In 30 Minutes by Vitalik Buterin (Devcon5) on YouTube
- MIT Cryptoeconomics Lab
- Wikiversity - Cryptoeconomics
Further reading
- Chris Berg, Sinclair Davidson, Jason Potts. Understanding the Blockchain Economy: An Introduction to Institutional Cryptoeconomics. Edward Elgar Publishing, 2019.
- Jian Gong, Wei Xu. Cryptoeconomics: Igniting a New Era of Blockchain. CRC Press, 2020.
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