Fidelity compares Ethereum’s network growth and activity to a real-world economy.
Fidelity, the third-largest asset manager in the U.S. with $5.9 trillion of assets under management, said in a report that native blockchain currencies serve as a unit of account and medium of exchange of a network, similar to the function currencies have in nations.
The report specifically looks at Ethereum (ETH) as an example, proposing that ETH acts like base money used to pay for transactions and secure the network. It also outlines how blockchain activity can be measured like a country’s gross domestic product (GDP).
“It is more appropriate to compare decentralized blockchains to sovereign nations and their economies rather than web2 companies or products because of the embedded currency,” report authors Paul Lang and Anais Rachel wrote.
Classic Economic Framework
Fidelity applies a classic…
