Blockchain’s Key Economic Impact: Verifying Transactions and Operating a Network

While many organizations are exploring the capabilities of blockchain technology, a pair of researchers argue that cryptocurrencies will affect two key costs in the economy: the cost of verifying transactions, and the cost of running a network, platform or marketplace.

Their 30-page working paper, titled “Some Simple Economics of the Blockchain,” explains that blockchain technology lowers the cost of auditing transaction information and allows new marketplaces to emerge by enabling market participants to perform costless verification. Read More...