34 days ago • Posted by Jasper Lawler

Comparing the systems of digital vs. traditional assets

You need to think about where the incentives are plugging in. Per the diagram, some will be nested into the actual legal and economic system, or equivalently the underlying blockchain network.

We can think of this as monetary policy, or cooperation through capitalist competition, or the trade-offs between blockchain miners and software developers. Others will live at the equivalent level of the firm, and be structured as protocols or platforms.

Such projects will have incentives focused on particular digital assets, their adoption, and customer behaviors. Yet other digital assets will be self-contained products, like the art NFTs now coming to market, and power only the asset itself. While each layer can have financial flows, they require radically different design considerations.

Source: The Fintech Blueprint / Zerohedge

Comparing the systems of digital vs. traditional assets