Cryptoeconomic Systems

Modeling blockchain-based economic and governance systems through a systems science lens.

Bitcoin Network Model

Overview

BERT includes a comprehensive Deep Systems Analysis of the Bitcoin network, representing one of the first rigorous applications of DSA methodology to cryptoeconomic systems. This model dissects Bitcoin's architecture into four core interacting subsystems:

  1. Validation - Distributed network of full nodes maintaining consensus

  2. Mining - Proof-of-work security and transaction confirmation

  3. Protocol - Core rules engine enabling decentralized coordination

  4. Development - Controlled evolution through community consensus

Key Features

The Bitcoin model demonstrates:

  • Emergent Properties - How decentralization and censorship resistance arise from subsystem interactions

  • Boundary Definition - Clear interfaces managing flows of transactions, electricity, and code contributions

  • Measurable Flows - Quantifiable parameters for all system inputs and outputs

  • Hierarchical Structure - Recursive decomposition revealing internal dynamics

Model Specifications

  • Complexity Score: ~25-30 (High complexity reflecting Bitcoin's sophisticated architecture)

  • Subsystems: 4 primary components with detailed interfaces

  • External Entities: Users, GitHub contributors, power grid, environment

  • Flow Types: Energy (electricity/heat), Messages (transactions/blocks), Resources (code)

Research Foundation

This model is based on the working paper "A Deep Systems Analysis of Bitcoin" by Shingai Thornton (2025), which applies DSA methodology to understand Bitcoin as a complex adaptive system operating at the intersection of physical, digital, and social realms.

The paper demonstrates how DSA reveals Bitcoin's essential properties like decentralization and censorship resistance emerge from subsystem interactions rather than individual components.

Access the Model

The Bitcoin system model is available in the Model Browser and demonstrates BERT's capability to analyze sophisticated cryptoeconomic systems with academic rigor.

Future Examples

Ethereum Ecosystem Model

Coming soon - Analysis of Ethereum's multi-layer architecture including execution layer, consensus layer, and DeFi protocols.

DAO Governance Systems

Coming soon - Organizational structures in decentralized autonomous organizations with voting mechanisms and treasury management.

Why Model Cryptoeconomic Systems?

These systems offer unique insights for systems science:

  • Pure digital systems - No physical constraints on structure

  • Transparent operations - All state changes are observable

  • Rapid evolution - Fast iteration on governance and economics

  • Natural experiments - Real-world tests of system theories

Contributing

Interested in contributing cryptoeconomic system models? Join the discussion at github.com/Halcyonic-Systems/bert

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