CHAPTER 5

An Introduction to Cryptoeconomics

Cryptoeconomics is the merging of two scientific disciplines as old as civilization itself: Economics and cryptography. In a sense, it’s a natural progression of the benefits that a decentralized Internet can offer.

I’m going to assume that most readers are familiar with the fundamentals of economics. If you understand that the price of tea in China determines how many cups of chai you can drink per day on your current income, then you have a basic understanding of economics. If you don’t drink chai, you may relate to the price of petroleum in the Middle East and how it affects the price of gasoline in your home state. You know how many miles per gallon your vehicle gets in your commute to work and ...

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