Banking

Consensus as a Service: a brief report on the emergence of permissioned, distributed ledger systems

Distributed ledgers and cryptocurrency systems are fundamentally different. The key difference involves how transactions are validated: Bitcoin uses pseudonyous and anonymous nodes to validate transactions whereas distributed ledgers require legal identities – permissioned nodes to validate transactions. Consequently, distributed ledgers are able to legally host off-chain assets due to their authenticated, permissioned approach to validation. […]

The economics of digital currencies

Although digital currencies could, in theory, serve as money for anybody with an internet-enabled device, at present they act as money only to a limited extent and only for relatively few people. The economics of the schemes as currently designed, both in terms of individuals incentives and at a macroeconomic level, pose significant challenges to […]

Free Banking as Monetary Gauge

A generalized theorem involving nominal spending and total transaction number, which in turn suggests an econometric gauge that can assess current monetary policy by reference to a free banking-theoretic idea, with implications for cryptocurrency design and monetary policy.