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.
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 availability: transactions should close reliably and quickly if reasonable fees are payed
Introduction to Cryptoeconomics – Vitalik Buterin, https://www.youtube.com/watch?v=pKqdjaH1dRo