Quantum crypto-economics: Blockchain prediction markets for the evolution of quantum technology

Our latest paper "Quantum crypto-economics: Blockchain prediction markets for the evolution of quantum technology", on using the forward price of blockchain-based assets to create prediction markets for trends in the development of quantum computing is now available on the arXiv here.

This is in collaboration with Gavin Brennen from Macquarie University, and Vijay Mohan, Sinclair Davidson, Chris Berg, Darcy Allen and Jason Potts from the RMIT Blockchain Hub.

This paper provides a next-generation, market-based alternative to the bullshit Quantum Bullshit Detector (@BullshitQuantum), and the equally bullshit Democratic Quantum Bullshit Detector Bullshit (@QuantumDemocrat).

Abstract

Two of the most important technological advancements currently underway are the advent of quantum technologies, and the transitioning of global financial systems towards cryptographic assets, notably blockchain-based cryptocurrencies and smart contracts. There is, however, an important interplay between the two, given that, in due course, quantum technology will have the ability to directly compromise the cryptographic foundations of blockchain. We explore this complex interplay by building financial models for quantum failure in various scenarios, including pricing quantum risk premiums. We call this 'quantum crypto-economics'.

Pre-print link: https://arxiv.org/abs/2102.00659

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