The internet of blockchains is in need of an economic model. Like all economies put to scale, an economy vitally depends on economic models developed within it. The models existing within the political economy today, are used to stimulate and measure growth. From these models we develop measurements like GDP and stimuli like monetary and fiscal policy. The Internet of Blockchains is on track to become the world’s marketplace. A place where all functions of human life are carried out. However, just as spoken of, every economy needs a model for stimulating and measuring it’s growth. At the MappoProject, we have developed the foundation of economic modeling for the Internet of blockchains space.The model consists of the following… All blockchains on the Internet of blockchains are divided into two variables. Human Coin (hc), this variable measures blockchain transacting of Human Capital. Defined as all products, production, and services used for Human Capital expansion and networking. The second variable is Capital Coin (cc), this variable measures blockchain transacting of Capital. Defined as all products, production, and services used for Capital expansion and networking. Examples of (hc) would consist of food production, medical, education, etc…, blockchains which have Human Capital traits. Examples of (cc) would consist of machinery, infrastructure, robotics, etc…., blockchains with no Human Capital traits. A function has been developed to measure each variable for its E.
E is defined as the measurement of energy for each variable (hc) and (cc). The function measures the following, C is defined by the number of “contacts”, or transaction between two parties. The purpose of C is to measure movement. M is defined by the number of inputs blocks. The purpose of M is to measure supply side mass. G is defined by the number of blocks used for data transfer. The purpose of G is to measure “fixed blocks”, blocks which are simply used for data structure. C is squared for the measuring of movement between two separate connecting entities, which requires the squared C. Further M is multiplied by C for the nature of this relationship gives the function it’s slope.
The function of E serves the Internet of blockchain with a measurement of growth. An ability to understand and model the economic behavior of the environment. As GDP and other methods use functions to measure the growth of a political economy. E is a measure of the energy used in the blockchains of a particular variable. This function of E was derived to give measurement perspectives on an economy of blockchains. These perspectives give understanding to the growth of the Internet of blockchains. Giving the opportunity to stimulate that growth. For this stimulus, the following policy model has been created.
BlockBase Demand has been defined as the total number of blocks used by the blockchains of a particular variable. C continues to be defined as above, “contacts”. O is defined as input blocks, or supply side mass same as M from above. I is defined as output blocks, or consumption side mass. G continues to be defined as above, “fixed blocks”. The measure of BlockBase Demand gives understanding to the demand for blocks in a particular variable. Similar to the way money supply ( M1 and M2 ) gives understanding to the demand for money in a particular political economy. The following policy tool can be implemented to simulate BlockBase Demand growth.
(hcRcc and ccRhc) are defined as exchange rates between the two variables (hc) and (cc). (hcRcc) is defined as the rate of exchange from Human Coin to Capital Coin. This rate is calculated by adding up I, O, and G blocks in (hc), divide by C in (hc) squared. (ccRhc) is defined as the rate of exchange from Capital Coin to Human Coin. This rate is calculated by adding up I, O, and G blocks in (cc), divide by C in (cc) squared. The function of these exchange rate always simulate growth in the variable with the weaker BlockBase Demand. It works as follows, if E(hc) is greater then E(cc) then, (hcRcc) will be less than (ccRhc). There for simulating incentive for Blockbase Demand to shift from (hc) to (cc). As the Demand shifts, E(cc) becomes greater then E(hc). (hcRcc) now becomes greater then (ccRhc), shifting the demand back towards (hc) in a continuous growth cycle. The rates of exchange sever as a policy tools for growth. Similar in context to the tools used by central banks such as interest rate and other monetary policy tools. Which are used to stimulate growth in a particular political economy.
To conclude, Human Capital and Capital were chosen as variables to represent the Internet of Blockchains for many reasons. These two forms of value have proven to be the foundation of human life. The means through which we carry, create, and expand. Capital has for long been a variable of representation, one everyone knows to measures and grow. While Human Capital hasn’t been represented all that well. The difficulty of it’s measurement has long stagnated it’s representation. However, as we enter the age of data its representation becomes not only possible, but vital. As the Internet of Blockchains grows into an ecosystem of human life functions. There becomes a necessity for the rise of Human Capital. In which case what better way to give rise, then through competition of usage between Human Capital and Capital. Using one to built the other, and vise versa when needed.
Economic Models are crucial to all economies, learn more about Internet of BlockChains Economics at the MappoProject Manifesto.
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