# Economic space as runtime

## More than a ledger: economic space as active runtime

An economic space (a bounded environment governed by specific ESP-based protocols, like a PSD instance) is not just a data repository, but an active execution environment where the protocol's economic logic is computed, agent actions (via the API) are processed, state is managed, and coordination unfolds according to defined rules.

When we talk about the Economic Space Protocol (ESP) providing a Full Economic API at the Edge, where do these API calls actually execute? Where does the programmable logic live and operate? The answer lies in viewing each specific Economic Space as an active Runtime Environment.

### Beyond Passive Data Storage
Traditional ledgers or simple databases often function primarily as passive stores of historical data (transaction records, account balances). An Economic Space built with ESP, however, is computationally active:
* Executing economic grammar: It actively interprets and enforces the rules defined by the underlying ESP grammar and the specific protocols defining that particular space (e.g., its unique Network Utility (U) function, its specific PSD implementation).
* Processing agent actions: When an agent uses the Economic API to stake, issue_credit, or validate_performance, the Economic Space acts as the runtime that processes these requests, checks their validity against protocol rules, and computes the resulting state changes.
* Managing local state: Each Economic Space maintains its own relevant state – the status of stakes, outstanding credits, progress towards U goals, agent reputations within that space, etc. It manages the dynamic evolution of these economic relationships and value metrics according to its internal logic.
* Providing coordination context: It creates a bounded computational and social context. Rules, values (U), and histories within one space provide the specific environment agents operate within, distinct from other spaces (though potentially interoperable via ESP). This bounding allows for specialized optimization and coordination.

### Like an "Economic Operating System"
In analogy, if ESP is the core programming language or instruction set, each economic space is like a dedicated operating system or virtual machine instance. It provides the necessary services (state management, rule enforcement, API execution) for economic applications and agent interactions to run reliably and predictably according to the defined logic.

### Thinking of economic spaces as runtimes highlights their nature as living, computational environments. They are not just places where value is recorded, but active systems where value is computed, relationships are managed, and coordination is dynamically orchestrated via protocol – bringing Internet-Native Economic Agency to life.