With Bitcoin, cyberspace economies started as relatively simple economies with only limited classes of economic agents.
- The protocol serves as central bank and regulator of the economy
The blockchain protocol has a dual-function to serve as a central bank, enforcing monetary policy and to serve as a regulator, enforcing the rules of the cyberspace economy in the broadest sense.
- Accounts are simple economic agents
Accounts are the simplest of economic agents in a cyberspace economy. Accounts are externally enactable native economic agents capable of owning the economy’s native assets and transacting with those assets within the cyberspace economy.
- Miners are specialized economic agents
Miners are specialized accounts. Miners benefit as economic agents by producing the cyberspace’s native assets.
In the context of economies and their constituent economic agents, a significant number of technological innovations have been made in the blockchain industry over the past 10 years. More sophisticated and more specialized economic agents have emerged within cyberspace economies. Furthermore, cyberspace economies increasingly show characteristics of open-economies rather than the closed-economies they have been so far.