Part 1: The Limits of Human Choice
To truly understand Blockchain, deep research is obviously required. However, long before diving into the technicalities of blockchain, it is essential to first understand economics.
Humans are beings with unlimited desires, yet on the other hand, resources are inherently limited.
These "resources" aren't just about money, commodities, assets, valuables, materials, or jewelry; the concept is much broader. Even human cognitive ability—our capacity to think—is a finite resource.
The Primary Human Dilemma
The core problem lies in these limited resources, which compel humans to choose among finite options. Our unlimited desires force us to make countless "best possible" choices every single day.
There is an intriguing statement often attributed to Dr. Joel Gaudet from Roberts Wesleyan University, claiming that humans make about 2,000 decisions per hour subconsciously, and up to 35,000 in a day. However, it is worth noting that there are no peer-reviewed studies supporting this specific citation loop.
Regardless of the exact number, it is this human brain's capacity to navigate the best possible path among limited options that gave birth to the science of economics.
"Economics exists because humans live in limitation. Our needs and desires are almost unlimited, while existing resources are limited."
— Mankiw, 2021 (Bugeanu, A. Principles of Economics By Mankiw)
"Through economics, we learn to see the world as a series of choices and trade-offs—choosing one thing and sacrificing another."
— Ferry Irwandi (Prinsipil Ekonomi: Memahami Ekonomi Dengan Mudah)
"You said this was about blockchain, so where is the blockchain part?"
Well... here it is.
Let’s look at a simple example in Bitcoin that you might have experienced firsthand. When the market is skyrocketing (bull run) or crashing, a drastic surge of transactions floods the network.
When the network is congested, miners must automatically make a choice: "Which transactions should be processed first from the millions in the queue?"
Naturally, miners will "choose" the transactions attached to the highest fees first to maximize their profit.
If we dissect this further, the mechanics look like this:
The storage space in a single $BTC block is limited. Not all transactions in the queue (the "memory pool" or mempool—which we will discuss in future parts) can be processed simultaneously.
Therefore, as a user, if you want your transaction processed faster, you are forced to make a choice:
Do you sacrifice a higher cost (pay a higher fee)?
Or do you sacrifice time by waiting in line for your transaction to be processed later?
This example of limited choice within a digital ledger is precisely the same fundamental principle that shapes and gave birth to the science of economics.