The Onchain Economy refers to the aggregate economic activity, value exchange, and financial interactions that occur directly on a blockchain network, encompassing decentralized applications (dApps), smart contracts, digital assets, and various protocols. It represents a permissionless, transparent financial system.
Mechanism
This economy operates through verifiable transactions and smart contract executions recorded on a distributed ledger, enabling peer-to-peer value transfer, lending, borrowing, and derivative trading without intermediaries. Participants interact via wallets and dApps, with all actions and states being publicly auditable on the chain.
Methodology
Analyzing the Onchain Economy provides critical insights into market activity, capital flows, and user adoption trends, which informs institutional investment strategies. Understanding its structure, liquidity dynamics, and interconnected protocols allows for advanced risk assessment, the identification of emerging opportunities, and the development of strategies that leverage the unique properties of decentralized finance.
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