On Engineering Economic Systems

Michael Zargham
Apr 8, 2018 · 7 min read
4This video sums up my feelings on driving up the value of an ICO token.
  • Control Engineering
  • Signal Processing
  • Machine Learning
  • Any automated heuristics and other forms of mathematical engineering
  • A set of methods which operate on the data structure. In the simplest case this is a transaction sending tokens from one address to another, but more generally defines the set of legal changes to the data structure.
  • A consensus protocol: a set of rules for agreeing on the true state of the data structure, based on verifying the validity of transactions or more generally that the methods above were applied appropriately.
  • A community: the set of agents (human or machine) which are participating in the network. Lightweight clients may broadcast transactions but full nodes are required to participate in validation process (consensus protocol).
  • Decoders — ETL software that accesses, sub-selects and restructures blockchain data for use
  • Filters/Estimators — processes that remove noise and fuse signals to create useful signals
  • Controllers — software that computes decision variables from signals available, including state feedback
  • Actuators — smart contract code which defines the decision space and carries out decisions made by agents in the network
  • Actions — the actions that are taken by agents; the loop is closed as these actions appear in the Blockchain data structure making them observable
Example of a Feedback Controlled Physical System⁸
Local bots running in tandem with blockchain nodes implement closed loop systems

BlockScience

The Scientific Method & Robust Engineering Design applied to Complex Systems

Thanks to Markus Buhatem Koch.

Michael Zargham

Written by

Founder, Researcher, Decision Engineer, Data Scientist; PhD in systems engineering, control of networks.

BlockScience

The Scientific Method & Robust Engineering Design applied to Complex Systems