Crypto ecosystem and its challenges
Crypto ecosystem has multiple players (developers, users, miners, etc.) and rules/incentives. Cryptoeconomics is how these different components interact.
Cryptoeconomics 101 and Making Sense of Cryptoeconomics
The Blockchain Economy: A beginner’s guide to institutional cryptoeconomics
Cryptoeconomics appears to be a game theory and decentralized consensus (follow the details of Cryptoeconomics: Introduction), while in usual economics, isn't it called a business model?
There seems to be two parts - usual external business "unit economics" and cryptoeconomics!
Decentralization
Why Decentralization Matters by Chris Dixon
Starts comparing blockchain and the internet. And entering into the third era of internet. The first era was open protocols, and in the second era Google, Apple, Facebook, and Amazon (GAFA) overpowered open protocols. Decentralization is about balance between competition and cooperation. Cryptonetworks do align interest to work for common goals, but multiple challenges (scalability and performance) remain. It is necessary to build the infrastructure too!
"Centralized systems often start out fully baked, but only get better at the rate at which employees at the sponsoring company improve them. Decentralized systems start out half-baked but, under the right conditions, grow exponentially as they attract new contributors."
The Long Game in Crypto: Why Decentralization Matters Decentralization matters because this is the competitive advantage, the differentiating feature, and what is trully special about the cryptoeconomics. But ... WHY DECENTRALIZATION MATTERS: A RESPONSE BY MYLES SNIDER
If humans were purely rational economic agents — the ideal of homo economicus — then perhaps blockchains systems could be perfected through crypto-economic design.
Quantifying Decentralization by Bulaji. The important research on how to describe quantitatively decentralization.
The Meaning of Decentralization by VITALIK.
three types of DEcentralization are architectual/hardware, political/human, and logical/protocol/software. Very good article.
Token network effects are front loaded, see Cris Dixon's article
What Do You Believe Now That You Didn't Five Years Ago? Centralized Wins. Decentralized Loses
There are certainly niche reasons to use decentralized systems, permissionless anonymity being the primary use case. Can you trust the likes of Facebook or Google? History says absolutely not. But most people don't care. What might constitute a turning point back to decentralization? I can think of several.......
Governance
There are important differences in the governance of startups and crypto projects.
The governance covers multiple resources (developers, data, physical infrastructure, etc.) and different approaches can be taken in governening different type of resources even in the single crypto project. That’s why we will start to decentralize the development of Aragon during 2018--- example
Blockchains should not be democracies the realities and the experementation - the commentary
Relevance of Blockchain
how and when is the blockchain a useful technology? There is a classification scheme which should be followed in the analysis.
Incentives of the developer teams, ICOs, and venture funding
Clearly, there are problems with sustainable development long after ICO. These problems include"short convexity" of HODLing own tokens and by inability to sustain the development.
Privacy
Privacy on the Blockchain posted by Vitalik Buterin on January 15th, 2016.
Identity
The essential problem is what the identity is. How is it defined and sustained?
Challenges and references
Fundamental challenges with public blockchains as of the end of 2017. And a critical discussion by Wilcox Fundamental Misconceptions opining that technical problems are actually sociological/political problems. He is also sceptical on PoS
repeated elsewhere Making Sense of Cryptoeconomics
Antifragile Cryptoeconomic Systems