Abstract: This article studies blockchain's economic functions. First, by explaining blockchain technologies from an economic perspective, it introduces the Token Paradigm to summarize mainstream blockchain systems, discusses the true meaning of consensus and trust in the blockchain field, and analyzes the functions of smart contract. Next, it categorizes major blockchain applications according to how they use tokens and discusses relevant economic problems such as tokens' monetary features, tokens' impacts on platform projects, blockchain's governance functions, and the performance and security of blockchain systems.

Full report ： WP No.20184 What Blockchain Can Do and What It Can’t Do.pdf