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Mark C. Ballandies - PhD candidate in DLT and IoT @[email protected]
Designing Cryptoeconomic Systems
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Blockchain
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Blockchain
Currencies
Distributed Ledgers
Bitcoin
Other (DAG, Hashrgaph)
Other(Smart Contracts)
Other(Ether, Ripple, Litecoin)
Other (DAG, Hashrgaph)
Other(Smart Contracts)
Other(Ether, Ripple, Litecoin)
M. C. Ballandies, M. M. Dapp and E. Pournaras, “Decrypting Distributed Ledger Design - Taxonomy, Classification and Blockchain Community Evaluation”. Under Submission.
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Distributed Ledger(e.g. Blockchain)
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Distributed Ledger
Consensus Network
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Distributed Ledger
Consensus NetworkActors
Transaction
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Distributed Ledger
Consensus NetworkActors
Transaction =
Smart Contract
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Distributed Ledger
Consensus NetworkActors
("Blockchain 2.0")Computer
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This is the trust part
Distributed Ledger
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Design system so that it is trusted
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Cryptoeconomics: Take 2
1) M. C. Ballandies, M. M. Dapp and E. Pournaras, “Decrypting Distributed Ledger Design - Taxonomy, Classification and Blockchain Community Evaluation”. Under Submission.
Token Unit
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Conceptual Architecture1
4 ComponentsAc
tion
Dis
tr.
Ledg
erCo
nsen
sus
1) M. C. Ballandies, M. M. Dapp and E. Pournaras, “Decrypting Distributed Ledger Design - Taxonomy, Classification and Blockchain Community Evaluation”. Under Submission.
Toke
n Token Unit
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Claim
Conceptual Architecture1
Components are connectedAc
tion
Dis
tr.
Ledg
erCo
nsen
sus
Toke
n
Action
Transac.
Token Unit
Claim
Transac.
Actor
Writer
1) M. C. Ballandies, M. M. Dapp and E. Pournaras, “Decrypting Distributed Ledger Design - Taxonomy, Classification and Blockchain Community Evaluation”. Under Submission.
Real
W
orld
Dig
ital
Wor
ld
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Claim
Conceptual Architecture1
Underlyings give value to tokenAc
tion
Dis
tr.
Ledg
erCo
nsen
sus
Toke
n
Action
Transac.
Token Unit
Claim
Transac.
Actor
Writer
Underlying
On-chain
Off-chain
1) M. C. Ballandies, M. M. Dapp and E. Pournaras, “Decrypting Distributed Ledger Design - Taxonomy, Classification and Blockchain Community Evaluation”. Under Submission.
Real
W
orld
Dig
ital
Wor
ld
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Claim
Conceptual Architecture1
Ethereum ExampleAc
tion
Dis
tr.
Ledg
erCo
nsen
sus
Toke
n
Action
Token Unit
Claim
Transac.
Actor
Writer
Underlying
On-chain
Off-chain
1) M. C. Ballandies, M. M. Dapp and E. Pournaras, “Decrypting Distributed Ledger Design - Taxonomy, Classification and Blockchain Community Evaluation”. Under Submission.
Transac.Transac.
Ethereum
Real
W
orld
Dig
ital
Wor
ld
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Claim
Conceptual Architecture1
What if we incentivize actors?Ac
tion
Dis
tr.
Ledg
erCo
nsen
sus
Toke
n
Action
Transac.
Token Unit
Claim
Transac.
Actor
Writer
Underlying
On-chain
Off-chain
1) M. C. Ballandies, M. M. Dapp and E. Pournaras, “Decrypting Distributed Ledger Design - Taxonomy, Classification and Blockchain Community Evaluation”. Under Submission.
Real
W
orld
Dig
ital
Wor
ld
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Claim
Conceptual Architecture1
What if we incentivize actors?Ac
tion
Dis
tr.
Ledg
erCo
nsen
sus
Toke
n
Action
Transac.
Token Unit
Claim
Transac.
Actor
Writer
Underlying
On-chain
Off-chain
1) M. C. Ballandies, M. M. Dapp and E. Pournaras, “Decrypting Distributed Ledger Design - Taxonomy, Classification and Blockchain Community Evaluation”. Under Submission.
Real
W
orld
Dig
ital
Wor
ldRe
al
Wor
ldD
igit
al W
orld
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Toke
n
Cryptoeconomics: Take 2Token Design
Token Unit
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Cryptoeconomics: Take 2Token Design
Properties
Mode of creation
Underlying
CappedSupply Uncap.yesTransferability No
MoneyType Data Reput.
ActionCreation NoneAllPre-mined Partial None
InfoSharing Token
1) M. C. Ballandies, M. M. Dapp and E. Pournaras, “Decrypting Distributed Ledger Design - Taxonomy, Classification and Blockchain Community Evaluation”. Under Submission.
Design Decisions1:
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Cryptoeconomics: Take 2Token Design
Properties
Mode of creation
Underlying
CappedSupply Uncap.yesTransferability No
MoneyType Data Reput.
ActionCreation NoneAllPre-mined Partial None
InfoSharing Token
Quality Token
Payment Token
1) M. C. Ballandies, M. M. Dapp and E. Pournaras, “Decrypting Distributed Ledger Design - Taxonomy, Classification and Blockchain Community Evaluation”. Under Submission.
Design Decisions1:
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Cryptoeconomics: Take 3Multi-Token Interaction
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Designing Cryptoeconomic Systems
Taxonomy
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Designing Cryptoeconomic Systems
Problem: Complexity of configuration space
Taxonomy
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1) M. C. Ballandies, M. M. Dapp and E. Pournaras, “Decrypting Distributed Ledger Design - Taxonomy, Classification and Blockchain Community Evaluation”. Under Submission.
Design Choices in Cryptoeconomic Systems Reduce Complexity
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Design Choices in Cryptoeconomic Systems How?
?
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Design Choices in Cryptoeconomic SystemsHow?
Taxonomy System Identification
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Design Choices in Cryptoeconomic Systems How?
Taxonomy System Identification Classification
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Design Choices in Cryptoeconomic Systems How?
Taxonomy System Identification Classification
Blockchain CommunityFeedback
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Design Choices in Cryptoeconomic SystemsTaxonomy System Identification Classification
Blockchain CommunityFeedback
Apply statistical methods
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Design Choices in Cryptoeconomic SystemsParticipation, Layering, Staking Capability, Cryptoec. Compl.
Aragon
Bitcoin
Ripple
Factom
IOTA
1) M. C. Ballandies, M. M. Dapp and E. Pournaras, “Decrypting Distributed Ledger Design - Taxonomy, Classification and Blockchain Community Evaluation”. Under Submission.
EOS
SingularityNET
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1) M. C. Ballandies, M. M. Dapp and E. Pournaras, “Decrypting Distributed Ledger Design - Taxonomy, Classification and Blockchain Community Evaluation”. Under Submission.
Design Choices in Cryptoeconomic Systems
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Thank you for your attention! Any questions?
Mark C. Ballandies - FuturICT 2.0 Forum @[email protected]