Definition
An economy is the overall system that manages how goods, services, and resources are created, shared, and traded within a community, country, or global network. It includes all the activities of buying, selling, working, investing, and producing that connect people and organizations. In a broad sense, an economy describes how value moves and changes hands over time.
Economies can be studied at different scales, from small local communities to entire nations and international markets. They are shaped by rules, institutions, technologies, and cultural norms that influence how people interact and make financial decisions. In digital and blockchain contexts, the term can also refer to the economic structure around tokens, networks, and online communities.
Context and Usage
In traditional settings, an economy is often described using measures like growth, employment, and prices to understand its overall health. It covers both formal activities, such as regulated businesses and markets, and informal activities, such as unregistered work or peer-to-peer exchanges.
Within blockchain and crypto culture, people may talk about an economy to describe how value is created and circulated within a specific protocol, platform, or community. This includes how participants are rewarded, how resources are allocated, and how incentives are aligned to support the long-term sustainability of the system.