Blockchains are a new settlement and ownership layer, one that’s programmable, open, and global by default, unlocking new forms of entrepreneurship, creativity, and infrastructure. Growth in monthly active crypto addresses is generally tracking the
Prediction markets are a hot topic again — even cartoon characters are talking about them (cf South Park). But beyond the buzz, what is a prediction market, exactly? How do they work, how are they designed, and what makes them work?
We answer all
How does crypto fit into a broader analytic and economic framework?
According to noted economists (and authors of the highly influential economics blog Marginal Revolution) Tyler Cowen and Alex Tabarrok, crypto is one of the economics ideas that has been discussed the most over the past decade… yet is still not a common topic in principles of economics classes.
So in this new chapter of their popular textbookModern Principles of Economics, the economists examine crypto through the lens of economic reasoning, and explain smart contracts, bitcoin, DeFi, NFTs, and the possible “tokenization of everything”. Cryptoeconomics not only combines cryptography and economics to produce new methods of communication, cooperation, and organization – but, the authors argue, “we might say that cryptoeconomics brings the invisible hand to computation”.