Managing Director, The Data Economics Company
In a traditional economic system, third parties generate demand for currencies by requiring their use for various economic “loops”—such as paying taxes or receiving wages. Data economic systems invert those loops, allowing individuals or organizations that perform work and create value to also generate tokens of value useful within the system.
If you, as a consumer, have a preference for buying food with an “organic” label, you’ve already accepted that data is an agricultural product; the data on that label conveys a higher value than a “conventional” counterpart. What happens when we connect small farmers directly to such consumer transactions, allowing them to contribute the data that helps consumers make determinations regarding the quality, value, and impact of the fruits, fibers, grains, or other goods that they grow? What if a consumer could pick up an apple and know which farm it came from? This is the future of data as an agricultural product.
A brief introduction to the science of Data Economics, the motivations behind the discipline, and the Lydion DEOS software engine that brings Data Economies to life through Lydion DENETs (Data Economics Networks). Also serves as a prologue to the Introduction to Data Economics series of papers.
Chapter 5 introduces the Lydion DEOS as an implementation of a Data Economics Operating System (DEOS) implementing the Data Economic concepts outlined in Chapters 1 to 4, and outlines the functions and methodology of the Lydion DEOS in implementing Data Economic Frames through Lydion DAMs (Data Asset Markets) and the Lydion DENETs (Data Economic Networks) that connect them.
Chapter 4 of Introduction to Data Economics dives deeper into the Fundamental Concepts introduced in Chapter 2 and explores such topics as Data Economic Frames, Data Asset Markets (DAMs) and their components, Data Economic Networks (DENETs).
In Chapter 3 of the Introduction to Data Economics series, we explore the “Mixed” and “Pure” Data Economies along with real-world examples for each type that help build intuitive understanding of Data Economic Frames and other key concepts.
In “Chapter 2: Fundamental Concepts”, we outline and summarize the fundamental concepts driving Data Economics and the Lydion DEOS as a starting point for further exploration of Data Economics and Lydion technology, as other more advanced papers will often refer back to concepts first introduced in this paper.
This chapter begins the Introduction to Data Economics series and explores the roots of Data Economics: the growing need for the expansion of the language of expressing and communicating value to address the “big” challenges and opportunities we face, and by extension the need to expand the frameworks offered by the field of economics.