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Cryptoeconomics basics. Part 1

What role does the crypto economy play in solving the global financial system's problems?

There was generally considered to be no way that a peer-to-peer network could be created in which consensus could be achieved, that stood equal to or superior to any existing system and had no significant vulnerabilities to attack or failure before the advent of Bitcoin. 
 
There are many people who refer to this problem as the Byzantine General's problem because of its complexity. It is clear from this logical dilemma that it is crucial for various participants in distributed systems to come to an agreement in order for the system to function. As a result of the unreliability of some of the participants, the problem implies the network cannot properly function as a result of the inability to reach an agreement. 

 
Satoshi Nakamoto solved the problem of economic incentives by creating Bitcoin, which introduced them into the peer-to-peer network. 

 

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