Foundations of Cryptoeconomic Systems

Shermin Voshmgir, Michael Zargham

Publication: Working/Discussion PaperWU Working Paper

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Abstract

Blockchain networks and similar cryptoeconomic networks aresystems, specifically complex systems. They are adaptive networkswith multi-scale spatiotemporal dynamics. Individual actions towards a collective goal are incentivized with "purpose-driven" tokens. These tokens are equipped with cryptoeconomic mechanisms allowing a decentralized network to simultaneously maintain a universal state layer, support peer-to-peer settlement, andincentivize collective action. These networks therefore provide a mission-critical and safety-critical regulatory infrastructure for autonomous agents in untrusted economic networks. They also provide a rich, real-time data set reflecting all economic activities in their systems. Advances in data science and network sciencecan thus be leveraged to design and analyze these economic systems in a manner consistent with the best practices of modern systems engineering. Research that reflects all aspects of these socioeconomic networks needs (i) a complex systems approach, (ii) interdisciplinary research, and (iii) a combination of economic and engineering methods, here referred to as "economic systems engineering", for the regulation and control of these socio-economicsystems. This manuscript provides foundations for further research activities that build on these assumptions, including specific research questions and methodologies for future research in this field.
Original languageEnglish
Place of PublicationVienna
PublisherResearch Institute for Cryptoeconomics
Publication statusPublished - 16 Nov 2019

Publication series

NameWorking Paper Series / Institute for Cryptoeconomics / Interdisciplinary Research
No.1

Bibliographical note

Earlier version

WU Working Paper Series

  • Working Paper Series / Institute for Cryptoeconomics / Interdisciplinary Research

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