Maximal Extractable Value and the Blockchain Commons


Book Description

This paper shows how some MEV practices, resulting in unfair appropriation of the value created by all users, by a small set of blockchains actors is similar to free-riding. In particular we demonstrate that this new form of free-riding is made possible precisely by the design of blockchains that aims at preventing classical forms of free-riding. This also entails that non-cooperative game theory is not adequate to solve the issues raised by such MEV practices. We thus turn to cooperative games, in particular in the case of Commons goods. After recalling that blockchains are a specific type of Commons goods we dwell on Ostrom's theory of the governance of the Commons, in particular on her design principles to analyze MEV practices and their impact on users confidence in the network. We then go on proposing new avenues for possible solutions, based on collective participation and we note that a trust-based solution may be efficient to sustain confidence.




Blockchain and the Commons


Book Description

Recent years have seen a surge of interest in ‘the commons’ based on a simple yet radical idea: great improvements in production and management could be achieved by reducing barriers to knowledge exchange and power-sharing. Ranging from meadows, forests and parks to language, open-source software (FLOSS and Blockchain) and 3D printers, the commons are distributed or common property resources/infrastructures that are self-managed by their user communities. While acknowledging the significant contributions that can be made through commons-based peer production, this book provides a critical examination of the commons with the aim of contributing to their long-term sustainability. In particular, the book examines the relation of Blockchain to the commons by illustrating the case study of the Commons Stack. Drawing on a range of interdisciplinary ideas and methodologies, the book argues that there are a number of economic and social barriers that are obstructing the wider reproduction of the commons. Problems with access to capital and training, the lack of entrepreneurial and managerial skills and the absence of institutional support from governments, larger co-ops and NGOs are some of the external difficulties facing the commons today. Meanwhile, localism, gated communities, vested interests, atavism, traditionalism, ideology, conflict, neo-conservatism and techno-elitism represent some of the internal contradictions inherent in the commons. Through overcoming these contradictions, the ultimate goal is to transform capitalism into the postcapitalism of the commons: the creation of a social economy self-organised around the commons. This book provides vital reading for anyone interested in the commons, from economics, techno-politics and across the social sciences.




The Economics of Blockchain Consensus


Book Description

Blockchain technologies have been rapidly adopted for the creation of cryptocurrencies and have been explored for a myriad of applications. While this is of important economic interest, the computer science behind how blockchains operate to provide security and provenance has been largely inaccessible to economists. This book is a bridge between the computer science and the economics of blockchains. The focus is on the value and the achievement of blockchain consensus; that is, how distributed and independent nodes are able to reach an agreement on what the current state of digital ledgers, that are the product of blockchains, are. The book shows that the goals of computer scientists in designing blockchains place very high weight on security beyond what an economist trained in game theory and mechanism design would require. It shows how blockchains can be redesigned to account for key economic trade-offs, and will be of interest to researchers and students of economics, financial technology and computer science, alongside policymakers.




Mastering Crypto Assets


Book Description

A definitive, all-encompassing book on digital assets of all types for investors In Mastering Crypto Assets: Investing in Bitcoin, Ethereum and Beyond, a team of seasoned investors and digital asset strategists presents a comprehensive guide aimed at institutional and professional investors for integrating crypto assets into traditional portfolios. The book offers in-depth explanations of the structure of this new asset class and its impact on investment portfolios. It guides readers on using fundamental and quantitative criteria to select blockchain-based assets, grounded in a robust foundation of knowledge and evidence. The authors demonstrate how to apply quantitative valuation concepts to digital assets like Bitcoin, understanding their role as digital stores of value in a traditional investment portfolio. The book also delves into the unique risk and return characteristics of various digital asset sectors, adapting conventional investing methods to the digital realm. It goes beyond direct crypto asset investments, introducing related equities and strategies for accessing digital assets in restricted settings. It discusses both indexed and active strategies in the context of crypto assets. A key feature of the book is exclusive interviews with industry figures such as Jan van Eck (VanEck), Peter L. Brandt (Legendary Trader), and Fred Thiel (Marathon Digital), with these interviews accessible through QR codes in the book for extended video content. This provides a dynamic and interactive learning experience. Moreover, the book benefits from invaluable research assistance from Figment and CCData, enriching its analytical depth. It also includes insightful guest articles from digital asset experts like Matthew Sigel (VanEck), Marco Manoppo (Digital Asset Research), Marcel Kasumovich (Coinbase Asset Management), Timothy Peterson (Cane Island Digital Research), Gregory Mall and Rohan Misra (AMINA), and thought leaders from Token Terminal. Mastering Crypto Assets is an invaluable resource not just for institutional and individual investors, but for anyone keen on adopting a sound, evidence-based approach to digital asset investment.




Beginning with Web3


Book Description

Unlocking Web3: Build the Future of the Internet, Today! KEY FEATURES ● Easy-to-understand introduction to Web3 for beginners. ● Essential dApp building blocks for developers. ● Generative AI and Web3 insights for innovators. DESCRIPTION This book offers a clear, easy-to-understand introduction to the core concepts of Web3 and blockchain technology, setting the stage for anyone looking to dive into the development of decentralized applications (dApps). With a focus on Ethereum blockchain, node infrastructure, wallets, and key management, it lays the essential groundwork for secure and efficient Web3 development. This book explores Web3, a decentralized web powered by blockchain technology. Discover Ethereum's role and tools for building Web3 apps as you dive into DeFi, NFTs, and deploying apps across blockchains. After reading this book, you will be able to unveil the potential of AI integration in Web3. Imagine a web where control is not centralized but distributed across many computers. You will learn Ethereum basics, transaction processing, and node functions. You will be able to securely manage digital assets with crypto wallets and utilize tools like Truffle and Hard Hat for smart contract development. The book teaches how to deploy apps across blockchain networks and understand AI's role in enhancing Web3. Whether you are aiming to transition into Web3 development or looking to deepen your existing skills, this book offers invaluable insights into the latest technologies and trends. WHAT YOU WILL LEARN ● Grasp the fundamentals of Web3 and blockchain technology clearly. ● Develop secure, efficient decentralized applications using Ethereum. ● Utilize essential tools and frameworks for Web3 development. ● Implement advanced security measures to protect your dApps. ● Integrate generative AI, like ChatGPT, into Web3 projects. ● Explore DeFi and NFT markets for innovative dApp creation. WHO THIS BOOK IS FOR This book is tailored for aspiring Web3 developers, software engineers looking to transition into the blockchain space, and tech enthusiasts eager to explore decentralized applications. TABLE OF CONTENTS Section I: Foundations of Web3 and Blockchain 1. Introduction to Web3 2. Understanding the Ethereum Blockchain 3. Web3 Node Infrastructure 4. Wallets and Key Management in Web3 Section II: Security and Storage in Web3 5. Security in Web3 Development 6. Introduction to Decentralized Storage Section III: How to Develop Web3 Applications 7. Tools for Web3 Development 8. DeFi and NFT dApp Development 9. Building dApps on Popular Chains and Protocols 10. ChatGPT and Web3 Development




The Elgar Companion to Decentralized Finance, Digital Assets, and Blockchain Technologies


Book Description

This timely Companion offers keen insights into the challenges of valuing digital versus traditional assets, exploring how behavioural and social traits, states and actions can cause biased perspectives in over- or underestimating the value of digital assets. Innovative and comprehensive, the Companion first provides an overview of how decentralization can impact existing financial systems before delving into exploring decentralized lending and predicting the role of digital assets in future payments.




Ubiquitous Security


Book Description




Absolute Essentials of Ethereum


Book Description

Absolute Essentials of Ethereum is a concise textbook which guides the reader through the fascinating world of the emerging Ethereum ecosystem, from the basics of how its blockchain works to cutting-edge applications. Written by an experienced educator, each chapter is designed to progress potential students from class to class. Technical concepts are clearly explained for those new to the topic and readers are supported with definitions and summaries in each chapter. Real-life case studies situate the overviews in a contemporary context. Topics covered include the Ethereum Execution and Consensus layers, Ethereum governance and community, Decentralised Autonomous Organisations (DAOs), Decentralised Finance (DeFi), Non-Fungible Tokens (NFTs) and Layer 2. This book is the ideal text to support undergraduate and postgraduate courses on blockchain technologies, cryptocurrencies, Web3 and fintech, as well as for those who want to know how Ethereum really works.




Understanding Decentralized Finance


Book Description

Understanding Decentralized Finance demystifies DeFi, locating the integration points between decentralized and centralized finance to help finance professionals unlock valuable opportunities. DeFi - the next evolution of cryptocurrency - has brought a new wave of investors into the world of finance. As fintechs and financial institutions seek to integrate with DeFi, this book explores its history, its present context, and its future. It explains the world of DeFi by comparing it to the traditional finance sector, highlighting points of similarity, difference and integration. Understanding Decentralized Finance explores the technologies underlying the DeFi market and how they differ from those of traditional financial markets. It scrutinizes the difference between centralized and decentralized cryptocurrency exchanges, how NFTs fit into DeFi and how collectibles can be financialized. Readers will also find out how collateralized loans, derivatives, margin trading and liquidity provision work in a world where there is no centralized institution to coordinate these activities - and how regulators in different jurisdictions are ensuring that financial regulations keep up with these innovations. With examples from key actors in the field, including the movement of luxury organizations like Christie's and Sotheby's into the NFT space and the SushiSwap vampire attack, this is an essential read for anyone working in finance, fintech and technology who needs to understand the fast-moving world of DeFi.




Flash Boys: A Wall Street Revolt


Book Description

Argues that post-crisis Wall Street continues to be controlled by large banks and explains how a small, diverse group of Wall Street men have banded together to reform the financial markets.