The blockchain industry got two impressive academics to join its ranks.
On Monday, blockchain security firm Cryptic Labs announced that two Nobel Prize winners in economics will conduct research into economics of blockchain. Dr. Eric Maskin and Sir Christopher Pissarides will also join the Palo Alto, Calif. firm's advisory board.
"[They] will provide insights in incentive mechanisms, game theory and macro-economic policies, bolstering the institute’s mission to address the lack of blockchain industry expertise in both fields," Cryptic Labs said in a Sept. 10 statement. Their insights will guide clients' development and strategy of blockchain projects, bolstering the chance of disruption across industries.
Incentives In Blockchain Systems
"Dr. Maskin of Harvard University will focus on game theory and mechanism design, with an emphasis on how blockchain companies can guide user incentives at a company level." The professor and researcher won a Nobel Prize in 2007 for his work in mechanism design theory, and he'll advise the firm's clients on game theory and incentive structures in blockchain systems.
In short, the main objective in most cases will be to help clients increase adoption of their tech. Dr. Maskin is considered an expert in the fields of game theory, contract theory, social choice theory, and other areas.
"I think that blockchain technology is potentially important for a modern economy," Dr. Maskin said on Monday. "Most discussions of blockchain technology focus on technical issues. I am more interested in the ... value such technology can bring. I believe that my background in ... mechanism design should be useful for that purpose. Cryptic Labs is examining blockchain in interesting ways, and so I was glad to join the team."
Dr. Christopher Pissarides comes from London School of Economics who was awarded the Nobel Prize in 2010. He "brings an intricate understanding and expertise in macroeconomics, focusing on the effect of the labor and money supply at a macro level. Pissarides specializes in ... labor markets, [macro] policy ... growth and structural change," according to Sept. 10 statement.
Milton Friedman And Bitcoin
In the late 1990s, Nobel Prize winner Milton Friedman predicted that the internet would give rise to electronic cash. Thus, many cryptocurrency enthusiasts consider Friedman as having the foresight to anticipate the rise of Bitcoin. The late Friedman said in an interview that electronic cash would threaten governments' ability to collect taxes on its citizens as well as give people more freedom to conduct business privately and without interference.
(The story continues below.)
Macroeconomics Of Blockchain
"Blockchain is the most exciting development in financial markets in recent years, but we still don’t know enough about it to recommend a wholesale transition of all our transaction records to blockchain," said Pissarides. "Cryptic Labs impressed me with their mission to improve the service offered by blockchain technology, as well as the diversity and expertise of their team. I look forward to working with the team at Cryptic Labs to leverage my expertise [and] help companies improve the use of blockchain, make it more secure and more widely accessible."
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Disclaimer: The views expressed in this article belong solely to the author. Information contained herein should not be construed as investment advice.