Future review on Blockchain Economics

Information management has been one of the key topics since inventing first computers. Still, our understanding of the topic has just begun to unrevealed itself. There have been many opinions what is the best way to manage information. Depending on what kind of metrics we decide to use, we end up with different solutions. If we take a pure financial perspective, we end up with platform economies. There are many good reasons for this such as the network effect and economies of scale, which alone bring many advantages to existing players. This ability to scale through technology has brought many new barriers for newcomers, who are trying to enter the field. At the same time same forces have increased profit margins and the dominance of existing players like Google, Facebook, Baidu, etc. Everything changed in 2009 when Satoshi Nakamoto introduced Bitcoin, the first blockchain based platform. This new General-purpose technology (GPT) opens up a whole new world for managing and utilizing information. Blockchain technology combined with Blockchain-based tokens forms an incredibly powerful tool to construct, maintain, share and create new platform economies. Currently, we are living the most interesting times in the history of information management. With the network effect combined with Moore’s law and blockchain tokenization, we are able to build new platform economies. Where at the same time as the value of the network goes up, the average costs of technology are decreasing, simultaneously making the network more secure. This thesis will review what kind of future networks or ecosystems will be created, and moreover, what kind of economics they will form. A basic framework will be used to illustrate sub-networks and other correlations between networks and ecosystems. An order to start comparing different networks and ecosystems new framework models will be needed, where different network levels and other connections will be shown more detailed. The summary will provide IoT use case of Smart Cities or grids, ‘hubs’ for one of the best implementations of blockchain technology, in a sense of economic value and growth