The book offers a succinct overview of the technical components of blockchain networks, also known as distributed digital ledger networks. Written from an academic perspective, it surveys ongoing research challenges as well as existing literature. Several chapters illustrate how the mathematical tools of game theory and algorithmic mechanism design can be applied to the analysis, design, and improvement of blockchain network protocols. Using an engineering perspective, insights are provided into how the economic interests of different types of participants shape the behaviors of blockchain systems. Readers are thus provided with a paradigm for developing blockchain consensus protocols and distributed economic mechanisms that regulate the interactions of system participants, thus leading to desired cooperative behaviors in the form of system equilibria. This book will be a vital resource for students and scholars of this budding field.

‘This book is a remarkable, well-needed narrative for the living oxygen behind distributed ledger technology: crypto-economics. With a fine balance between system/mechanism design and auction/contract theory, it serves as a fundamental textbook for any a senior undergraduate course or a graduate one in the computer science/engineering and economic disciplines.’

Andreas Veneris - University of Toronto

‘This is probably the first book that bridges the gap between blockchain and incentive mechanism technologies in that the economic tools including the contract theory and game theory can be utilized to study and regulate crypto-economy.’

Yan Zhang - University of Oslo

‘Blockchain has become the new paradigm for trust management and data security, which has impacted many fields of applications. Yet its theoretical foundation and rigorous analysis are still far lagging. Although there are many books on the topic, they either only highlight its diverse applications with high-level ideas or emphasize the technicality and procedures while losing insights. This book provides a novel comprehensive framework for blockchain from the perspective of the crypto-economy by balancing the mathematical rigor without losing insights. It would be a great read for both academic researchers and practitioners.’

Yuguang ‘Michael’ Fang - City University of Hong Kong