Digital Institutions Create Wealth by Increasing Economic Computational Complexity

8 Pages Posted: 28 Jan 2024

See all articles by Justin Banon

Justin Banon

Boson Protocol

Jason Potts

Royal Melbourne Institute of Technolog (RMIT University)

Date Written: January 13, 2024

Abstract

This paper proposes a theory of the global transition from an industrial economy to a digital economy by emphasising the importance and significance of digital institutions. This theory is useful for understanding how this transition will shape wealth and prosperity over coming decades. A full stack of digital institutions (including web3 technologies) facilitates development of a ‘computable economy’, which enables a significant increase in economic complexity and, from this, wealth. We explain why a critical transition will occur when this institutional computation can be extended from on-chain assets to off-chain real world assets.

Keywords: evolutionary transitions, institutions, digital economy, web3, real world assets

JEL Classification: B5, O33, P00

Suggested Citation

Banon, Justin and Potts, Jason, Digital Institutions Create Wealth by Increasing Economic Computational Complexity (January 13, 2024). Available at SSRN: https://ssrn.com/abstract=4693478 or http://dx.doi.org/10.2139/ssrn.4693478

Justin Banon

Boson Protocol ( email )

London
United Kingdom

Jason Potts (Contact Author)

Royal Melbourne Institute of Technolog (RMIT University) ( email )

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