Former Microsoft Chief Economist Preston McAfee and Nobel Prize laureate Oliver Hart are the new members on the advisory board of Blockchain economics and governance design startup Prysm Group.
Prysm group is known in the industry for assisting blockchain startups by providing “counsel in the complex economic fields of contract theory, game theory, market design and social choice.” Back in 2016, Oliver Hart and his colleague Finnish economist Bengt Holmström had won the Nobel Prize in Economic Sciences for their work on contract theory.
According to Hart, it is a need of the hour for the founders of blockchain startups to “identify the potential barriers” that could emerge from creating code to replace traditional institutions and power structures. Better systems can be designed to accomplish their motive if the complications are well understood.
It was reported that Hart was “intrigued” by the ways blockchain technology could permit developers to “devise healthier incentives and contracts.” Hart seems to be very excited by the prospect of working with Prysm Group. He is of the opinion that the group is dedicated to the idea of economic principles offering an influential tool for understanding the issues.
Moreover, Macfee is also pretty enthusiastic and “energized” to join the group. He said, “blockchain enables a variety of new business models by permitting decentralization and publication of digital records.” There is no other mechanism that simultaneously provides secure privacy, decentralization and verifiability remarks Macfee. He further added,
“Many blockchain applications involve creating groups of agents who interact in multiple ways, with distinct roles. The challenge in designing such systems is that they have many interacting parts — various incentives, policing, contract rules, information provision, prices — that need to be simultaneously optimized if good performance is to be achieved.”