Keep The Market Thick

The essential job of a crypto protocol designer is to build what Alvin E. Roth, the Nobel Prize winner in economics, calls a “thick marketplace,” a critical mass of lenders and borrowers or buyers and sellers.

We can make the market thick by changing when and how long the market is open. For example, farmer’s market has a fixed time of the market. In this way they can make a transaction efficiently. If there were no fixed time, they have to stay at the market all day, which is a lot of work for them. If they have a fixed time, they can make a bunch of transaction with customers in fixed time. This is what New York Stock Exchange does as well.

Date

March 28, 2023

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Keep The Market Thick

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