Making sense of cryptoeconomics
The Ethereum community started to introduce the term cryptoeconomics in 2014. In most people’s views, the blockchain and cryptocurrency enable a new autonomous, self-sustainable, and self-sufficient decentralized digital world. In the decentralized world, the blockchain network exhibits all the basic elements of an economic system, which in broad terms is what people referred to as cryptoeconomics in the early days.
In his talk in 2020, Vitalik credited Satoshi for the creation of cryptoeconomics. In his view, Satoshi didn’t solve the consensus problem, as most believe. The consensus problem was already solved long before Satoshi invented blockchain. Cryptography, as a technology, had been applied everywhere to secure transactions, systems, and communications between parties. What Satoshi really invented was the incentive mechanism.
When Satoshi developed Bitcoin, the first decentralized digital currency platform, he implemented a...
