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Machine economies

This paper provides a foundational review of machine economies, examining the convergence of autonomous agents, distributed ledger technology, and the Internet

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Abstract

This paper provides a foundational review of machine economies, examining the convergence of autonomous agents, distributed ledger technology, and the Internet of Things. The authors categorize how machines can engage in economic transactions without human intervention, analyzing the socio-technical shift from human-centric to machine-autonomous financial systems. The study explores the architectural requirements for identity, trust, and payment rails necessary to support machine-to-machine (M2M) interaction. By synthesizing existing literature and empirical trends, the researchers argue that machine economies will redefine industrial efficiency by enabling granular resource allocation and automated service provisioning. The work highlights the systemic dependencies of these models on decentralized infrastructure and identifies barriers related to interoperability, legal liability, and computational overhead. The paper is essential for understanding the broader implications of automated agents participating in open financial ecosystems and the architectural prerequisites for scaling autonomous economic networks. Authors: Eduard Hartwich, Alexander Rieger, Johannes Sedlmeir, Dominik Jurek, Gilbert Fridgen Publication: Academic Paper Publication date: 2023-01-01

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Key findings

  • Autonomous machines require distinct identity and payment protocols to function in decentralized markets.
  • The transition to machine economies reduces transaction friction but introduces novel risks regarding legal accountability.
  • Blockchain infrastructure serves as the primary trust layer for M2M communication and value exchange.
  • Interoperability between heterogeneous IoT devices remains the most significant technical hurdle for mass adoption.

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Citation

Eduard Hartwich, Alexander Rieger, Johannes Sedlmeir, Dominik Jurek, Gilbert Fridgen (2023). Machine economies. Academic Paper. https://link.springer.com/article/10.1007/s12525-023-00649-0
Canonical knowledge ID: research:machine-economies