Blocknomics

Abstract

Blockchain offers a new economic organizational model that possesses the Hayekian co-ordination properties of a market, the governance properties of a commons, and also the constitutional properties of a nation-state. The revolutionary technology Nakamoto presented allowed for the creation of a decentralized and distributed public ledger. Whereas the debate on the technology, especially from an economic perspective, has been on Bitcoin, and on whether it can be considered as money, not enough focus was given to the economics of the technology itself. Whereas, like any other new technology, economics can allow us to study its disruptive potential and look at the effects of its adoption and diffusion, we believe that this approach alone does not do any justice to the technology itself. [excerpt]