bitcoin

Smart contracts and token economy without Blockchains

or: A token (even smart one) needs a blockchain, like a fish needs a bicycle.

Image above: Tokenizing assets on a Blockchain

Abstract

In this post, I explain why I believe Blockchains are just coincidentally associated with “token economy” and smart contracts, and how in essence they are not their enablers, but actually a hindrance. Then I propose an alternative: a concept of an open, federated smart contract system, that maintains all the benefits traditionally associated with blockchain platforms like Ethereum and can practically support a global scale token-economy, without all the problems inherent to blockchain-based systems.