💹 [Analysis] Cryptonetworks and the theory of the firm – Qiao Wang
Cryptonetworks can possibly fill the gap between markets and firms under the theory of the firm framework. They complement firms by bringing the meritocracy of markets, and complement markets by offering the transaction cost benefits of firms. The network effects of cryptonetworks solve the search and information problem, liquid token trading and open-source software proposals solve the bargaining problem, and decentralized consensus and smart contracts solve the enforcement problem. Cryptonetworks hold the positive characteristics of both markets and firms and thus bridge the two. As such, it’s likely that more economic activities will be organized using cryptonetworks.
Let us know what you loved about the report, what may be missing, or share any other feedback by filling out this short form. All responses are subject to our Privacy Policy and Terms of Service.