Cryptoeconomics for Dummies Part 0

From http://i.bittwiddlers.org/b/KOj

“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”

--

--

--

ping me&I tell you

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Bodega Blocks: The White Paper

AMA RECAP: BLOCKCHAIN INFINITY X SYNFUTURES

Apologia of Bargaining

Our Investors: MANTRA DAO

IOST Nodes Showcase | 7 New Nodes Join The Ecosystem, IOST Staking Ratio Exceeded 34%

TouchCon Economy & Governance

Topex.io

Darwinia Network

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
K

K

ping me&I tell you

More from Medium

Caesar — able to generate additional income streams.

Eye Catching Perks of Ethereum Blockchain to Enterprises

[Blockchain 101] The main concepts

What is a Payment Gateway and How Does it Work?

how does a payment gateway work