Cryptoeconomics: Understanding It and Its Role In Decentralization
Cryptoeconomics is the amalgamation of cryptography and economics. Cryptography deals with data security, encryption and safe transfers across different systems and platforms. Cryptoeconomics, on the other hand, deals with protocols defining the distribution, production, and trade of various goods and services within a digital ecosystem. Cryptoeconomics attempts to solve the participant coordination problems in a digital ecosystem through cryptography and economic incentives.