Non-maximalist cryptoeconomics


Cryptoeconomics is the production and trade of goods and services managed on blockchain through tokens that represent money or value.

It is a decentralised digital distribution system that facilitates the connection between parties (peer to peer) without intermediation and without the need for prior mutual trust.

Cryptoeconomics is not a branch of traditional economics but the use of incentives and cryptographic elements to develop it.

Although Bitcoin was the first token created, and its purpose is that of a digital means of payment, with Ethereum, the second generation blockchain, another concept was born, that of value tokens based on programmable smart contracts.

Thus, like so many others, Cardano was born (in 2017) as a third-generation blockchain, incorporating governance into its network in order to be self-sufficient from its community and without a central authority.

A well-understood economy implies a variety of products and services for different uses, qualities and costs.

Why should a single blockchain with a single token prevail?

There is a wide variety of tokens running on proprietary blockchains or even on third-party protocols.

The speciality that each blockchain is developing points to the market it can satisfy.

Smart contracts, distributed applications, digital identity, data oracles and many other uses define its purpose.

Moreover, the interoperability that some blockchains propose is the ideal of transversality between tokens, making the economy broad and moving out of separate compartments.

Cardano was designed to interact with non-native tokens by allowing programming on its platform.

The discussion that arises between fervent advocates of different cryptocurrencies, cryptoassets or blockchains arguing that it is a better technology is meaningless when what matters is that society has the variety to choose from.

Competition between multiple tokens and blockchains enriches and strengthens the cryptoeconomy.

Increasing digitisation will allow different cryptographic networks to coexist, complement each other and compete, where some will have better applications for logistics, others for health, education, entertainment, and for all economic and social needs.

The limit for the existence of tokens is twofold, firstly the honesty for which they were created, i.e. that they have not been designed as a scam, and secondly that they are developed on a sustainable and flawless technology.

The cryptoeconomics is in its infancy, with growing adoption.

Why stick with one blockchain, even if it is the best and most widely useful, when there are many that can meet demands?

A single blockchain would imply concentration of power, it would be a monopoly in the cryptoeconomics, and this is exactly the opposite of the decentralisation that drives this technology.