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I've read Coase. The equivalent of cryptocurrencies in the economic sphere would be exactly what cryptocurrencies are: partially decentralized. Firms form due t
by darawk 8y ago
I've read Coase. The equivalent of cryptocurrencies in the economic sphere would be exactly what cryptocurrencies are: partially decentralized. Firms form due to the transaction costs of decentralization. Mining pools form due to the transaction costs of decentralization.
- cryptobeanbaby 8y agoMining pools form due to the transaction costs of decentralization. Better explained as a result of the mining protocol being winner takes all, and is granted write access authority (for guessing a increasingly larger random number), that by pooling everyone's lottery tickets together and paying the pool operator, the agree to take a small sum of each successful guess from the pool (assuming the pool fairly pays out participants). "decentralized" except not.
- darawk 8y agoVariance is a transaction cost.