Cryptoeconomics

This book provides a clear overview of cryptoeconomics and explains how economic mechanisms are applied to secure blockchain ecosystems.

This is the first book on cryptoeconomics written from an academic perspective, reviewing research challenges and existing literature. It illustrates how game theory and algorithmic mechanism design applies to the analysis and design of blockchain network protocols, providing a vital resource for students and scholars of this budding field.The book offers a succinct overview of the technical components of blockchain networks, also known as distributed digital ledger networks. Written from an academic perspective, it surveys ongoing research challenges as well as existing literature. Several chapters illustrate how the mathematical tools of game theory and algorithmic mechanism design can be applied to the analysis, design, and improvement of blockchain network protocols. Using an engineering perspective, insights are provided into how the economic interests of different types of participants shape the behaviors of blockchain systems. Readers are thus provided with a paradigm for developing blockchain consensus protocols and distributed economic mechanisms that regulate the interactions of system participants, thus leading to desired cooperative behaviors in the form of system equilibria. This book will be a vital resource for students and scholars of this budding field.