Cryptoeconomics

Cryptoeconomics refers to the combinations of cryptography, computer networks and game theory which provide secure systems exhibiting some set of economic dis/incentives.

• Cryptography is used to prove properties established in the past, such as account balances, identities and ownership.

• Digital representations of economic value become possible, accessible to all, assignable, exchangeable and immune to censorship, able to be relied upon in the future.

Bitcoin example

Desired properties of Bitcoin:

• create a chain of immutable blocks

• maintain a state in the blocks

• maintain a clock

• convergence: blocks can only be added to the end of the chain, never changed or removed

• validity: only transactions that satisfy certain rule expressions (validity predicate) should be included in the blockchain, i.e. transaction script and valid sender receiver and amount

• clock must always be increasing

• data availability: anyone can download all the blockchain data

• tx availabitity: transactions should close reliably and quickly if reasonable fees are payed

References

Introduction to Cryptoeconomics - Vitalik Buterin, https://www.youtube.com/watch?v=pKqdjaH1dRo

Source

http://theethereum.wiki/