Skip to content

Advaith Doosa

Cyber Economy

essay, crypto, cryptoeconomy1 min read

2020 vision

The Cyber Economy

Coming soon...Heres a preview

  1. Steam secondary markets: CSGO skins, LOL, WoW ...
  2. Online forums: build reputation tagged to an account.

Steam markets are highly illiquid, prone to impersonations and hacks, and hard to appraise. The solution? Built a tiny ecosystem around traders.

  • BitSkins.com / OPSkins manage a fleet of steam accounts (bots) to accept deposit of skins
    • Gives rise to a managed marketplace, with payouts in fiat and crypto
  • Find a medium of exchange. CS:GO doesn't have anything that can be pegged to $1 in a user's inventory. This led to bots where you could buy keys for $1.95- $2.05. A nice arb loop there.
  • Steam reputation systems. Users commented on their counterparts

Rough consensus on how to measure reputation

  • Reddit threads with confirmed buys/sells on r/GOTrade
  • Steam profile '+reps', although spammable
  • Escrow's / middlemen
  • in game swag (??)

Core Components

  1. Reputation
  2. Identity
  3. Marketplace
  4. Slashing mechanism
  5. Self fulfilling feedback loop
  6. Unified payment rails

Reputation

Trades made by a user on a platform slowly increment their reputation.

Identity

Ethereum addresses / ENS names

Marketplace

Smart contract suite (exclusively on L2?)

Slashing mechanism

agreed upon means of documenting a fradulent trade + reporting it. Proper consensus on who moderates disputes, and how they're resolved. Can we create a list of 'banned' addresses? Probably

Self fulfilling feedback loop

Obvious choices are to introduce a token and a DAO, align interests through them. However. I'd prefer starting off without a token and focus on PMF.

Unified payment rails

Ethereum, stablecoins.

Conclusion

The cyber economy has been around for a while, in a fragmented state. Crypto has the opportunity to unify all of the cyber economy.

© 2021 by Advaith Doosa. All rights reserved.