The economics of blockchain

Blockchains have brought a new phenomenon into the world: cryptocurrencies such as Bitcoin. We are interested in what we might term the microeconomics of a blockchain: how an economy can arise within a single blockchain which coins are spent for goods and services; the forces affecting the value of a cryptocurrencies and the control theory of stabilisation. The corresponding “macroeconomics” then raises the problem of the effect that cryptocurrencies and blockchain applications have on the wider economy. The latter will include the effect of competition from decentralised blockchain applications on traditional sectors.