DGT DOCS
  • 1. INTRODUCTION
    • 1.1 Executive Summary
    • 1.2 Why DGT
    • 1.3 Distributed Ledgers Technology
      • 1.3.1 Decentralization approach
      • 1.3.2 Consensus Mechanism
      • 1.3.3 Transactions
      • 1.3.4 Layered Blockchain Architecture
      • 1.3.5 Tokenomics
      • 1.3.6 Web 3 Paradigm
      • 1.3.7 Common Myths about Blockchain
    • 1.4 The DGT Overview
      • 1.4.1 Platform Approach
      • 1.4.2 DGT Functional Architecture
      • 1.4.3 Technology Roadmap
    • 1.5 How to create a Solution with DGT Networks
    • 1.6 Acknowledgments
  • 2. REAL WORLD APPLICATIONS
    • 2.1 Case-Based Approach
      • 2.1.1 DGT Mission
      • 2.1.2 The Methodology
      • 2.1.3 Case Selection
    • 2.2 Supply Chain and Vertical Integration
      • 2.2.1 Logistics Solution for Spare Parts Delivery
      • 2.2.2 DGT Based Solution for Coffee Chain Products
    • 2.3 Innovative Financial Services
      • 2.3.1 Crowdfunding Platform
      • 2.3.2 Real World Assets Tokenization
      • 2.3.3 Virtual Neobank over DGT Network
      • 2.3.4 DGT based NFT Marketplace
    • 2.4 Decentralized Green Energy Market
      • 2.4.1 Peer To Peer Energy Trading
      • 2.4.2 DGT based Carbon Offset Trading
    • 2.5 B2B2C Ecosystems and Horizontal Integration
      • 2.5.1 KYC and User Scoring
      • 2.5.2 Decentralized Marketing Attribution
      • 2.5.3 Case Decentralized Publishing Platform
      • 2.5.4 Value Ecosystem
    • 2.6 More Cases
  • 3. DGT ARCHITECTURE
    • 3.1 Scalable Architecture Design
      • 3.1.1 High Level Architecture
      • 3.1.2 DGT Approach
      • 3.1.3 Unique contribution
      • 3.1.4 Component Based Architecture
    • 3.2 Performance Metrics
    • 3.3 Network Architecture
      • 3.3.1 Nework Architecture in General
      • 3.3.2 Network Identification
      • 3.3.3 H-Net Architecture
      • 3.3.4 Transport Level
      • 3.3.5 Segments
      • 3.3.6 Static and Dynamic Topologies
      • 3.3.7 Cluster Formation
      • 3.3.8 Node Networking
      • 3.3.9 Permalinks Control Protocol
    • 3.4 Fault-Tolerant Architecture
      • 3.4.1 Introduction to Fault Tolerance
      • 3.4.2 F-BFT: The Hierarchical Consensus Mechanism
      • 3.4.3 Cluster Based Algorithms
      • 3.4.4 Arbitrator Security Scheme
      • 3.4.5 Heartbeat Protocol
      • 3.4.6 Oracles and Notaries
      • 3.4.7 DID & KYC
    • 3.5 Transactions and Performance
      • 3.5.1 Transaction Basics
      • 3.5.2 Transaction Processing
      • 3.5.3 Transaction and block signing
      • 3.5.4 Transaction Families
      • 3.5.5 Transaction Receipts
      • 3.5.6 Smart Transactions
      • 3.5.7 Private Transactions
      • 3.5.8 Multi signature
    • 3.6 Data-Centric Model
      • 3.6.1 Data layer overview
      • 3.6.2 Global State
      • 3.6.3 Genesis Record
      • 3.6.4 Sharding
      • 3.6.5 DAG Synchronization
    • 3.7 Cryptography and Security
      • 3.7.1 Security Architecture Approach
      • 3.7.2 Base Cryptography
      • 3.7.3 Permission Design
      • 3.7.4 Key Management
      • 3.7.5 Encryption and Decryption
      • 3.7.6 Secure Multi Party Computation
      • 3.7.7 Cryptographic Agility
      • DGTTECH_3.8.4 Gateway Nodes
    • 3.8 Interoperability
      • 3.8.1 Interoperability Approach
      • 3.8.2 Relay Chain Pattern
      • 3.8.3 Virtual Machine Compatibility
      • 3.8.4 Gateway Nodes
      • 3.8.5 Token Bridge
    • 3.9 DGT API and Consumer Apps
      • 3.9.1 Presentation Layer
      • 3.9.2 Application Architecture
    • 3.10 Technology Stack
    • REFERENCES
  • 4. TOKENIZATION AND PROCESSING
    • 4.1 Introduction to Tokenization
      • 4.1.1 DGT Universe
      • 4.1.2 Driving Digital Transformation with Tokens
      • 4.1.3 Real-World Tokenization
      • 4.1.4 Key Concepts and Definitions
    • 4.2 Foundations of Tokenization
      • 4.2.1 Definition and Evolution of Tokenization
      • 4.2.2 Tokenization in the Blockchain/DLT Space
      • 4.2.3 The Tokenization Process
      • 4.2.4 Tokenization on the DGT Platform
      • 4.2.5 Regulatory and Legal Aspects of Tokenization
      • 4.2.6 Typical Blockchain-Based Business Models
    • 4.3 The DEC Transaction Family
      • 4.3.1 DEC Transaction Family Overview
      • 4.3.2 DEC Token Features
      • 4.3.3 DEC Token Protocol
      • 4.3.4 DEC Account Design
      • 4.3.5 DEC Transaction Family Flow
      • 4.3.6 DEC Commands
      • 4.3.7 DEC Processing
      • 4.3.8 Payment Gateways
    • 4.4 Understanding Secondary Tokens
      • 4.4.1 The different types of tokens supported by DGT
      • 4.4.2 How secondary tokens are produced
  • 5. EXPLORING TOKENOMICS
    • 5.1 Introduction
      • 5.1.1 What does tokenomics mean?
      • 5.1.2 Goals of Building the Model for DGT Network
      • 5.1.3 Tokens vs Digital Money
      • 5.1.4 The Phenomenon of Cryptocurrency
      • 5.1.5 Basic Principles of Tokenomics
      • 5.1.6 AB2023 Model
    • 5.2 Node & User Growth
      • 5.2.1 Node Ecosystem
      • 5.2.2 User Growth and Retention Modeling
    • 5.3 Transactions
      • 5.3.1 Transaction Amount Components
      • 5.3.2 Shaping the Transaction Profile: A Three-pronged Approach
      • 5.3.3 Calculation of Transaction Number
    • 5.4 Network Performance Simulation
      • 5.4.1 Endogenous Model
      • 5.4.2 Network Entropy
      • 5.4.3 Network Utility
    • 5.5 Token Supply Model
      • 5.5.1 Introduction to Supply and Demand Dynamics
      • 5.5.2 Token distribution
      • 5.5.3 Supply Protocol
      • 5.5.4 Token Balance and Cumulative Supply
    • 5.6 Token Demand Model
      • 5.6.1 Node-Base Demand
      • 5.6.2 Transaction-Based Token Demand
      • 5.6.3 Staking Part Modeling
      • 5.6.4 Total Demand
    • 5.7 Token Price Simulation
      • 5.7.1 Nelson-Siegel-Svensson model
      • 5.7.2 The Price Model
    • 5.8 Decentralization Measurement
      • 5.8.1 Active Node Index
      • 5.8.2 Node Diversity in Hybrid Networks
      • 5.8.3 Token distribution
      • 5.8.4 Integral Calculation of Decentralization Metric
    • 5.9 Aggregated Metrics
      • 5.9.1 Transaction Throughput: Evaluating Network Performance and Scalability
      • 5.9.2 Market Capitalization: A Dimension of Valuation in Cryptocurrency
      • 5.9.3 Total Value Locked (TVL): A Spotlight on Network Engagement and Trust
  • 6. ADMINISTRATOR GUIDE
    • 6.1 Introduction
      • 6.1.1 Administrator Role
      • 6.1.2 Platform sourcing
      • 6.1.3 DGT Virtualization
      • 6.1.4 Using Pre-Built Virtual Machine Images
      • 6.1.5 Server Preparation
      • 6.1.6 OS Setup and initialization
    • 6.2 DGT CORE: Single Node Setup
      • 6.2.1 Launch the First DGT Node
      • 6.2.2 Dashboard setup
      • 6.2.3 Nodes Port Configuration
      • 6.2.4 Single Node Check
    • 6.3 DGT CORE: Setup Private/Public Network
      • 6.3.1 Network launch preparation
      • 6.3.2 A Virtual Cluster
      • 6.3.3 A Physical Network
      • 6.3.4 Attach node to Existing Network
    • 6.4 DGT Dashboard
    • 6.5 DGT CLI and base transaction families
    • 6.6 GARANASKA: Financial Processing
      • 6.6.1 Overview of DGT’s financial subsystem
      • 6.6.2 DEC emission
      • 6.6.3 Consortium account
      • 6.6.4 User accounts
      • 6.6.5 Payments
    • 6.7 Adjust DGT settings
      • 6.7.1 DGT Topology
      • 6.7.2 Manage local settings
    • 6.8 DGT Maintenance
      • 6.8.1 Stopping and Restarting the Platform
      • 6.8.2 Backing up Databases
      • 6.8.3 Network Performance
      • 6.8.4 Log & Monitoring
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  1. 5. EXPLORING TOKENOMICS
  2. 5.1 Introduction

5.1.3 Tokens vs Digital Money

In the arena of crafting a resilient tokenomics model, grounding in established monetary theories to confirm the fundamental model of token issuance and their intrinsic usage restrictions becomes paramount. This section endeavors to traverse through the origin and elementary approaches of traditional monetary models whilst probing their relevance and applicability in the burgeoning era of cryptocurrencies.

Money, a term ingrained since childhood, has metamorphosed in definition and essence with the surge of technological advancements. Traditionally acknowledged as a universal equivalent, capable of being directly swapped for goods and services, money could assume various forms, from commodities and securities to tokens and account records, pivoting on its core functions:

  • Measure of Value: Facilitating estimation of commodity value by setting prices.

  • Medium of Circulation: Mediating in the exchange process.

  • Means of Payment: Engaging in transaction settlements, including credit transactions.

  • Means of Accumulation and Saving: Participating in the process of income generation and distribution.

  • Exchange Medium: Facilitating exchanges in relations between economic entities.

Though foundational, traditional and classical monetary theories exhibit substantial variability in interpretations and application (Grasselli and Lipton 2021). Digitalization, infiltrating our macroeconomic structures, necessitates a recalibration in our approaches towards money, extending beyond post-industrial society models to encapsulate online financial dynamics. Broadly, the classifications of monetary instruments are:

  • Fiat Money: Legal tenders issued by sovereign states, commonly referred to as 'money'.

  • Electronic Money: An issuer's monetary obligations in an electronic format, accepted for payments across various organizations.

  • Digital Currency: A digital or electronic form of currency, potentially linked to national currencies or alternative exchange bases.

  • Virtual Currency: Gaming currencies, utilized for transactions within online communities.

  • Central Bank Digital Currency (CBDC): Electronic fiat, issued and regulated by a central bank, for settlement or value storage, somewhat paralleling cryptocurrencies but backed by centralized authorities.

  • Cryptocurrency: A decentralized digital currency, varying in acceptance and categorization among countries (Yadav et al. 2022).

  • Private Money: Non-state fiduciary money, with issuance and utilization restrictions being country specific.

A token denotes a value unit, distinct from cryptocurrency, intended to signify a digital balance in an asset, albeit the demarcation between tokens and cryptocurrency can sometimes be indistinct. Tokens can typically be subdivided into:

  • Security Tokens: Primarily investment instruments, detached from network application access, purchased for receiving dividends or transaction fee portions.

  • Utility Tokens (Appcoins): Intended to unlock access to distributed network services.

  • Credit Tokens: Aimed at short-term borrowing with subsequent interest rate payments.

  • Non-fungible Tokens: Unique tokens representing ownership of digital artefacts or properties within a blockchain.

Pivoting from von Hayek's denationalizing money proposition (Hayek 2008) to the current global discourse on cryptocurrencies and tokens, the navigation through types, theories, and practical applications of monetary instruments becomes a complex yet integral aspect of developing and understanding tokenomics, especially in the context of technologies like the blockchain. This exploration not only lays a foundation for comprehending various monetary forms but also for constructing, adapting, and innovating within the dynamic world of digital currencies and tokens, setting the stage for further discourse and developments in the digital financial ecosystem.

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Last updated 1 year ago