Ancient decentralised exchange

You might enjoy this story I wrote recently for an exchange blog. I first came across the Rai of Yap in a book by Milton Friedman from the 1990s, but the comparison didn't come to me until 2018 🙂

https://blog.localcoinswap.com/the-rai-of-yap-an-economics-lesson-from-history/

Did you know that the biggest currency in the world was also the first distributed ledger?

It really makes you think, about what we mean by 'money'

Mind blown! Really great article, we need more like this as it makes the whole subject a little easier to understand and a LOT less intimidating. I'll look forward to your next one 🙂

Wow! Thanks for this article -- you just took me back to memory lane, 2005 in particular. I first learned about these stones in an AWAKE magazine issue.

Yes, the similarities are striking, but the most poignant one for me is that when iron tools became available to the Islanders in the 19th century and made the production of these stones easier and less painstaking, the Islanders still reposed much faith and value in the coins minted in the traditional painstaking way, so value was proportional to difficulty of acquisition.

So many similarities between the ancients and us modern people. I guess at the end of the day, concepts underlying mechanisms remain unchanged. The only thing that changes is the method of implementation.

@coin_raven said in Ancient decentralised exchange:

the Islanders still reposed much faith and value in the coins minted in the traditional painstaking way, so value was proportional to difficulty of acquisition

They really understood proof of work!

Thanks for that Awake link, that's great. I think I first came across a reference to this in an ancient (like 1990s) economics textbook from Milton Friedman, and I am sure it was the most interesting thing in it. For some reason it stayed in the back of my head anyway, until I hear about decentralized exchanges and finally joined the dots