Blockchain: Concepts, Issues, and Applications

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DOI :10.26650/B/T8SSc4.2024.041.005   IUP :10.26650/B/T8SSc4.2024.041.005    Full Text (PDF)

Cryptocurrency Economics and Its Monetary Policy

Gökçin Vural

Cryptocurrency economics, a fusion of blockchain technology and innovative economic models, is revolutionizing global financial landscapes. This exploration traverses fundamental blockchain principles, consensus mechanisms, smart contracts, token economics, fundraising avenues, regulatory challenges, and future prospects. The journey commences with an examination of the evolution of money, setting the stage for the emergence of cryptocurrencies. Blockchain’s pillars—decentralization, immutability, and consensus mechanisms—are pivotal in redefining trust in transactions. Proof of Work (PoW), Proof of Stake (PoS), and inventive Proof of Storage mechanisms elucidate their roles in securing networks.

Smart contracts emerge as pivotal tools automating processes across industries, while the nuances of token economics unveil factors shaping token value and supply dynamics. Fundraising methods such as ICOs, IEOs, IDOs, and STOs are juxtaposed with regulatory intricacies, showcasing both opportunities and challenges. Amidst the global regulatory landscape, the transformative potential of cryptocurrencies comes to light. Promising financial inclusion, streamlined cross-border transactions, and the advent of novel financial ecosystems, cryptocurrencies stand poised to reshape global finance.

In summation, this chapter underscores the transformative force of cryptocurrency economics and its enduring impact. Striking a balance between innovation and regulation, coupled with technological advancement and collaborative endeavors, is paramount to harnessing its full potential. As we embark on an uncharted trajectory, cryptocurrency economics illuminates the path to a reimagined financial future.


Keywords: Blockchain Technology, Smart Contracts, Consensus Algorithms, Cryptocurrencies, Monetary Policy, Token Economics

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