Emerging concepts

With the advent of blockchain and tokenization, several new concepts have emerged over the last few years. We will introduce some of them now.

Tokenomics/token economics

Tokenomics or token economics is an emerging discipline that is concerned with the study of economic activity, economic models, and the impact of tokenization. It deals with the goods and assets that have been tokenized and the entities that are involved in the entire process of token issuance, sale, purchase, and investment.

You might have heard another term, cryptoeconomics, which is a related but slightly different term. Cryptoeconomics is concerned with the same topics but it is a superset of tokenomics. In other words, tokenomics is a subset of cryptoeconomics. Tokenomics is only concerned with tokens and tokenization ecosystems, but does not include the broader blockchain networks, protocols, and cryptocurrencies.

With the use of the proof of work (PoW...