Cryptoeconomics

Book description

Cryptoeconomics is based on protocols of decentralized digital economics used to manage the production, distribution, and consumption of goods and services. With a focus on China, this book systematically sorts out the structure and background of the economic model derived from blockchain.

Table of contents

  1. Cover
  2. Half Title
  3. Title Page
  4. Copyright Page
  5. Table of Contents
  6. Foreword
  7. Preface
  8. Authors
  9. 1 What Is Cryptoeconomics?
    1. 1.1 The Basics of Cryptography
      1. 1.1.1 Hash Algorithm
      2. 1.1.2 Key Encryption
      3. 1.1.3 Digital Signature
    2. 1.2 Basic of Economics
      1. 1.2.1 Incentives
      2. 1.2.2 Punishment
    3. 1.3 Supply and Demand
  10. 2 Mechanisms of Consensus
    1. 2.1 The Byzantine Generals Problem
    2. 2.2 CAP Theory
    3. 2.3 PoW (Proof-of-Work) Mechanism
      1. 2.3.1 Problem of PoW 1: Waste of Resources
      2. 2.3.2 Problem of PoW 2: Environmental Problem
      3. 2.3.3 Problem of PoW 3: Centralization of Computing Power
    4. 2.4 PoS (Proof-of-Stake) Mechanism
    5. 2.5 LPoS (Leased Proof-of-Stake) Mechanism
    6. 2.6 DPoS (Delegated Proof-of-Stake) Mechanism
  11. 3 Optimized Consensus Mechanism
    1. 3.1 Optimized Versions of PoW Mechanism
      1. 3.1.1 Litecoin’s SCRYPT Algorithm
      2. 3.1.2 Tandem and Dash
      3. 3.1.3 Parallel Algorithm and Heavycoin
      4. 3.1.4 Primecoin
      5. 3.1.5 Ethash and Ethereum
      6. 3.1.6 Equihash and Zcash
    2. 3.2 Optimized PoS
      1. 3.2.1 Byzantine General and Byzantine Fault-Tolerance Algorithm
      2. 3.2.2 Algorithm for Realizing Proof-of-Stake
        1. (1) Tendermint and POS Based on BTF
        2. (2) CFFG
        3. (3) CTFG
      3. 3.2.3 Trap of Proof-of-Stake
        1. (1) Relations with No Interest
        2. (2) Remote Attack
        3. (3) Cartel Formation
        4. (4) Future Work
      4. 3.3 PBFT Optimized Version: Federal Byzantine Agreement (FBA)
      5. 3.4 Other: Algorand Agreement
  12. 4 Game Theory and Cryptoeconomics
    1. 4.1 What Is Game Theory?
    2. 4.2 Nash Equilibrium
    3. 4.3 Schelling Point
    4. 4.4 Bounded Rationality Model
    5. 4.5 Game Theory Mechanism Design and Consensus Mechanism
    6. 4.6 Game Theory Mechanism Design and Blockchain Security
    7. 4.7 Prospect of Game Theory-Based Consensus Mechanism – Ethereum’s Casper Consensus Algorithm
  13. 5 Behavioral Economics and Cryptoeconomics
    1. 5.1 Behavioral Economics vs. Traditional Economics: Irrational vs. Rational
    2. 5.2 Behavioral Economics in the Blockchain World
      1. 5.2.1 How to Introduce Blockchain to Friends?
      2. 5.2.2 Why Are You Completely Indifferent to $10,000 Bitcoin, While Some People Are Crazy for it?
      3. 5.2.3 Why Do So Many Projects Like Airdrops?
      4. 5.2.4 DAO Is Really the Main Form of Organization in the Future?
      5. 5.2.5 How to Control Our Impulses? Maybe You Need a Smart Contract
      6. 5.2.6 Dilemma of Multiple Choices: Why Do We Want to Participate in All Projects?
    3. 5.3 The Intersection of Behavioral Economics and Cryptoeconomics
  14. 6 Cryptoeconomics and the Security of Blockchain
    1. 6.1 Sybil Attack
      1. 6.1.1 Cost of Sybil Attacks on Traditional and Blockchain Networks
    2. 6.2 Fork: Soft Fork and Hard Fork
      1. 6.2.1 Fork, Soft Fork, and Hard Fork Concepts
      2. 6.2.2 Main Characteristics of Soft Fork and Hard Fork
      3. 6.2.3 The Importance of Forks
    3. 6.3 P + ε Attack
      1. 6.3.1 What Is P + ε Attack
      2. 6.3.2 Protection from P + ε Attacks
    4. 6.4 DAO Attack
      1. 6.4.1 The Significance of The DAO Cryptoeconomics
    5. 6.5 Zero-Knowledge Proof
    6. Summary
  15. 7 Blockchain in China
    1. 7.1 The Power of Blockchain in Real Life
    2. 7.2 Real Use Cases of Blockchain in China
      1. 7.2.1 Financial Solutions
      2. 7.2.2 Police and Other Governmental Solutions
      3. 7.2.3 Food Safety and Supply Chain
    3. 7.3 Secret of Chinese Success
  16. 8 The Future of Cryptoeconomics
    1. Conclusion
  17. Index

Product information

  • Title: Cryptoeconomics
  • Author(s): Jian Gong, Wei Xu
  • Release date: April 2020
  • Publisher(s): Auerbach Publications
  • ISBN: 9781000062113