1.1 Cryptographic Economy Created by Blockchain
Just as the current infrastructure is based on the Internet, the blockchain will be in charge of the infrastructure of the future world after the 4th Industrial Revolution and the Covid-19 crisis. In particular, in line with the philosophy and ideology of the blockchain, the economic ecosystem of the future world will have the characteristics of a decentralized ecosystem (P2P ecosystem) different from the current centralized ecosystem. In other words, the crypto economy, a new economic ecosystem created on top of the blockchain infrastructure, will be realized.
The Crypto economy consists of four basic functions of blockchain. Cryptocurrency issuance, smart contracts, digital assets, and P2P organizations.
The first is that cryptocurrency with various characteristics and functions can be issued, and the characteristics and functions of the issued cryptocurrency can be determined by the characteristics of the crypto economy that it creates.
The second is a smart contract. The definition of a smart contract means software that runs on a blockchain of decentralized characteristics. The nature of the smart contract is that it runs automatically when the execution conditions are met, and it has a compulsory force that cannot be stopped. Therefore, smart contracts are primarily aimed at controlling (ownership, transaction, etc.) digital assets.
The third is digital assets. Digital assets are digital assets that are digital-type assets, and they mean digital-type storage and cryptocurrency, and the target of digital assets is anything of value. In conclusion, all future assets will be converted to digital assets.
Finally, a P2P organization can be built as a decentralized organization even for participants in the crypto economy.
The most important characteristic of the crypto economy is decentralization, an innovative new P2P economic ecosystem that seeks to solve the problems of the centralized economy that bring the most irrationality to the current economic ecosystem. A summary of how the cryptographic economy is realized as a key function of the blockchain is as follows. First, the most important thing is digital assets. Of the many data, valuable data is implemented as digital assets, and when digital assets are implemented, they are traded as smart contracts.
In particular, in this case, cryptocurrency is used as a necessary means of payment for transactions when transactions occur, realizing an economic ecosystem in which cryptocurrency is used.
Cryptographic economy can be seen as a "real-time digital asset trading economy where cryptocurrency is used" (Figure 1)
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