Cryptoeconomics for Dummies Part 0


“Practice safe design of protocols and systems without centralised ownership — practice cryptoeconomics”

Vanilla cryptoeconomics

“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.”

“the study of economic interaction in an adversarial environment”

“One of the things it does is helping to design a system of incentives and counterincentives in a way that when this system is implemented without any central authority to keep it in check it doesn’t all go to shit.” It is called crypto because the underlying protocols you build this system on use cryptography, not because it is cryptic”

When not to use cryptoeconomics?

“Do not use cryptoeconomics at home. Same as blockchains. If you have a houshold that needs cryptoeconomics, move out.”

Other possible ways of wrap your head around cryptoeconomics

Interaction in a shitty environment without relying on a shitty third party

Stick, carrot, carrot on a stick. Carrot on a carrot on a stick on a carrot on a stick.

“Size of sticks an carrots matters”

“there is no such a thing as a trusted 3rd party”

“In cryptoeconomics there might be such thing as a happy 3rd party and a scared 3rd party”




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