BANKEX advisor Michael Ostrovsky: researching the future economy

BANKEX advisor Michael Ostrovsky: researching the future economy Our series of articles covering the people helping BANKEX create a new blockchain reality continues.Next in the cycle is BANKEX advisor Michael Ostrovsky, professor of economics in the Stanford School of Business, with a PhD in business-economics in Harvard, research member of the national bureau of economic research and visiting scientist for Google. We are proud of counting Michael Ostrovsky among BANKEX advisors, helping the team develop innovative solutions and implement smart-contracts and other technologies in the banking sector. As a game theory specialist, Michael Ostrovsky simulates achievement of price equilibrium [1] in his research, as well as modeling the behavior of economic agents establishing two-way contracts of purchase and sale. [2] He adheres to a hypothesis wherein price equilibrium can be achieved and will remain stable only in the event of there being no restrictions to contract establishment. In his works, Michael Ostrovsky models a new digital reality, volatility of newly emerging digital assets, criteria and factors affecting formation of their price, as well as behavioral strategies of people — economic agents.Michael Ostrovsky simulates mechanisms of price formation [3] under the influence of blockchain technology and redistribution of economic connections, where contracts become possible to establish directly without third party involvement. Currently banks, stores or dealers act as the third party between buyer and seller, setting prices of goods and services and serving as a kind of regulator or stabilizer of price formation. Excluding the third party may lead to a market collapse or significant volatility, which is currently being demonstrated by the pricing of cryptocurrencies.In his early research, Michael Ostrovsky describes the influence so-called intermediary agents have on supply chain stability and price equilibrium. These agents are able to both purchase and sell or, as the model puts it “simultaneously be the student and the college” [4]. In his opinion a supply chain can only exist when besides various classes of agents (the selling and the buying side) a deal is conducted and intermediaries play an important part in this process.There are regulators today who don’t understand the consequences and effects of economy digitization, and are therefore in no hurry to approve new digital technologies on a legislative level. Michael Ostrovsky’s research will help develop mechanisms and evaluate implementation of smart-contract and tokenization technologies by regulators, which is going to bring the day they are used in business-models closer. Advisor Michael Ostrovsky has made a significant impact on creation of new models of banking products based on smart-contract technology. BANKEX expresses its heartfelt gratitude for his advice!