Summary of Shermin Voshmgir's Token Economy

By IRB Media

Get the Summary of Shermin Voshmgir's Token Economy in 20 minutes. Please note: This is a summary & not the original book. Original book introduction: Tokens - often referred to as cryptocurrencies - can represent anything from an asset to an access right, such as gold, diamonds, a fraction of a Picasso painting or an entry ticket to a concert. Tokens could also be used to reward social media contributions, incentivize the reduction of CO2 emissions, or even ones attention for watching an ad. While it has become easy to create a token, which is collectively managed by a public Web3 infrastructure like a blockchain network, the understanding of how to apply these tokens is still vague. This book attempts to summarize existing knowledge about blockchain networks and other distributed ledgers as the backbone of the Web3, and contextualize the socio-economic implications of the Web3 applications such as smart contracts, tokens, and DAOs to the concepts of money, economics, governance and decentralized finance (DeFi).

• Language: English
• Publisher: IRB Media
• Release date: Dec 9, 2021
• ISBN: 9781669343356

IRB Media

With IRB books, you can get the key takeaways and analysis of a book in 15 minutes. We read every chapter, identify the key takeaways and analyze them for your convenience.

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Insights on Shermin Voshmgir's Token Economy

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 4

Insights from Chapter 5

Insights from Chapter 1

#1

The Web3 is still in its infancy, and while it has the potential to disrupt many industries, especially money and finance, it currently lacks best practices and substantial education around its socio-economic implications.

#2

The industry keeps referring to Blockchain as if it's different from Bitcoin, creating an artificial divide that is often misleading. The Bitcoin token can, therefore, be seen as the currency of a distributed Internet tribe, called the Bitcoin network.

Insights from Chapter 2

#1

The Internet we have today is broken. We do not control our data, nor do we have a native value settlement layer. The Web3 will change this by introducing a universal state layer, often by incentivizing network actors with a token.

#2

The Web3 is a backend revolution that combines the system functions of the Internet with the system functions of computers. The Web3 represents a set of protocols, with distributed ledgers as their backbone. Data is collaboratively managed by a P2P network of computers.

#3

The Internet today is stateless. That means it cannot easily transfer state, which is information, or the status of Who is who. Who owns what. and Who has the right to do what. In the Web3, values are represented by cryptographically secured tokens.

#4

The Bitcoin network introduced a mechanism for each node in a network to send and receive tokens, and record the state of those tokens, in a digitally native format. The consensus protocol of the Bitcoin network is designed in a way that the network can collectively remember preceding events or user interactions, solving the double-spending problem by providing a single source of reference for who received what and when.

#5

The third technological wave is the Web3, which is a collection of technologies that will change the way we interact and communicate on the Internet. It will be decentralized, and based on the blockchain.

#6

While decentralized architectures are more resilient than their centralized Web2 counterparts, they are also slower. Speed, performance, and usability are bottlenecks in the Web3 that will eventually be resolved.

#7

Decentralized applications run on a peer-to-peer network of computers. They have existed since the advent of P2P networks, and don’t necessarily need to run on top of a blockchain network.

#8

The Internet we have today is broken. We do not control our data, nor do we have a native value settlement layer. Every time we interact over the Internet, copies of our data get sent to the server of a service provider, and every time that happens, we lose control over our data. This raises issues of trust.

#9

The Web, as we know it, is a collection of protocols that allow for the communication between two