BlockWorld 2018

Risk and behavioral analysis techniques used by traditional finance also apply, now even more so, to autonomous blockchain markets and their token economics. Markov Chains are used to create Bayesian probability models essential to financial systems. When combined with Monte Carlo simulation, model variable samplings using different distributions show all the possibilities of market behavior. By sampling all combinations of changes to model variables, system faults leading to market failures can be detected and eliminated. These models and simulators also serve as a comprehensive test harnesses for complex smart contract based economic systems. These tools are integral to future proofing the token economic model of autonomous blockchain markets before flipping the switch and hoping for the best. Tools, and mechanisms for simulating and verification testing token economies will be covered. Subutai’s Bayesian model MCMC simulation for its dual token structure based economy with an autonomous market maker and systemically important payment system (SIPS) that manages its currency reserves will be demonstrated. At the end of this talk, you will have access to free open source tools to rapidly start future proofing your own token economic model in a live network.