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blockchain (misc.)

The next revolution: "company over the blockchain" or "blockchained company"

About why making a company live in a blockchain is revolutionary.

When the idea of proof of stake was released back in 2011 on bitcointalk, in the first 2 posts of the thread, we see the following sentences:

 

- "It could be used to provide stakeholders a means of making their voices heard (via the delegated voting system it establishes) when it comes to proposals for software updates and protocol changes."

- "Suppose I start a company and decide to issue its shares as a block chain."

 

And there you have it.

 

The real innovation of the blockchain is enabling people that do not trust each other to vote on decisions that their organization needs to take, based on the quantity of shares they own.

 

In other words, the blockchain enables people to create businesses over the internet, and to manage them remotely, fund ideas, transfer values between businesses, make payment and get dividends, based on their voting power, which is directly represented by the quantity of shares they own.

 

This is what I call a "company over the blockchain" or a "business over the blockchain".

 

In other words, companies (Co., Ltd.) that live at a physical address in the physical world will become companies over the blockchain in the digital world, what Julien Yuki Hamonic, partner at BunkerSofa, LLC calls Co., Blk for "Company, Blockchained".

 

I predict we will see an explosion of such Co., Blk ("blockchained company") over the next months and years, for 3 main reasons:

 

- Its cost of creation is virtually zero

- People do not want to work as mere employees, for the company's shareholders. They want to work for themselves, as shareholders of the company

- People want to be involved in several businesses as the same time

 

These 3 points are all enabled by Co., Blk .

 

In such a "blockchained company" or "company, blockchained", nodes, that is, shareholders, verify blocks based on their stake, that is, the quantity of shares of the company they own, which enables them to vote on any decision the company needs to take.

 

In other words, "owning shares" is equivalent to "blocks verification" and to "shareholders voting".

 

So far, there is only one blockchain that has achieved that. 

 

This is the Nu blockchain which issues NuBits and from which B&C Exchange has been derived.

 

It is fairly possible that other templates (other blockchain designs) will try to implement their own mechanism of representing shares as voting power but I predict the Nu template will be king in this new "real estate".

 

In other words, the only way to embed a company inside the blockchain is when owning shares corresponds to the voting power for verifying blocks and this is exactly what Nu has implemented in a very powerful way.

 

Note that Bitcoin can be regarded at the first Co., Blk as argued by Stan Larimer here.

 

However what a degenerated "blockchained company" it is!

 

For several reasons:

 

- Shareholders, that is, holders of bitcoin cannot vote on anything

- The company cannot take any decisions

- The company CEO, that is, miners, behave like a dictator

 

In my next post, I would like to talk about the role that NuBits and B&C Exchange will play in an ecosystem of Co., Blks.

 

This is only the opinion of Pascal Hideki Hamonic aka "uploada" aka "cryptog"

 

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blockchain (misc.)   2016/06/03   uploada
タグ:company

Building companies that live on the Internet is the killer app of the blockchain technology

Building companies that live on the Internet is the killer app of the blockchain technology.

(picture source: https://hyperborean.liberty.me/wp-content/uploads/sites/1553/2014/12/images141.jpg)

 

As I mentioned briefly here, I do believe that the killer app of the blockchain technology is the ability to create organizations that live on the Internet or in the Internet.

It is because the shareholders and the employees of such organizations are scattered across the world, with no ability to meet physically in the same room.

 

William Mougayar mentions here that the blockchain is the new Google but I think he missed the main point, which is the fact that the blockchain technology enables human organizations to live on the Internet without central authority, completely autonomously.

 

Very recently, the “the DAO” project has showed that the world has a huge interest in decentralized autonomous organizations (DAO).

 

In fact, Stephan Tual, the COO of SlockIt says here that “the DAO” is the third revolution after bitcoin (=decentralizing money), ethereum (=decentralizing smart contract):  the DAO project wants to decentralize organizations.

I think they are right on the money in the way they see the importance of DAOs in general, although I am very skeptical regarding their actual technical implementation of the concept of the DAO and their ability to execute their plan.

The main reason being that I see a big problem of scalability: why trying to build a platform that sustains every DAO that could exist in the whole world when you can create a dedicated blockchain for a particular DAO?

I think they are making the same mistaked as Ethereum...but this is probably the subject of another post.

 

Furthermore, I do believe personally that the blockchain’s technology is in fact very inefficient compared to traditional technologies when it comes to doing simple things like sending tokens over the Internet for example or even clearing settlements as the recent report for SWIFT alludes to.

 

Instead, we must focus on the new things that the blockchain can enable and that no other technologies so far could enable.

And I believe this would be building, operating and managing corporations that live on the Internet.

 

Of course there is a legal problem from there since corporations need to live in a jurisdiction and on the Internet such jurisdiction does not exist.

 

So that is why we should call them organizations but in essence they would be corporations or companies because the main motive would be the same: to make revenues and make money.

 

But why building companies on the Internet would be valuable, you may ask?

Well, I believe it is very valuable for at least 2 reasons.

 

One of them being that you may be able to avoid paying taxes legally.

But this reason is totally secondary, in fact. :)

 

The main reason is that with organizations that live in the Internet, we would see literally an explosion in the number of businesses created by people.

 

Imagine a physical bakery in Tokyo with some of its shareholders living in Africa or Antartica?

The impact on the world’s GDP would be tremendous.

People that did not have the chance to be shareholders would have the chance to become so.

It would break the barriers, enabling anybody to contribute to any business she or he likes, while sitting on a chair in front of a computer screen connected to the Net.

It would basically increase drastically the productivity of Humans.

People would be able to be involved with 10 businessess (DAOs) at the same time, getting revenues from 10 different sources, working only from home.

 

We would see 10 times as many businesses as now, at least. Probably much more than that, in fact.

 

So, the killer app of the blockchain is its ability to enable financially motivated human activities (businesses) to exist inside the Internet when shareholders and employees or any contributors cannot trust each other with the money involved.

So decentralizedness would not be enough as the one we can see in say open source projects.

This is trustless decentralizedness that is necessary.

And this is exactly what the white paper of Satoshi invented.

No other technologies has been able to enable such thing so far.

 

Last but not least, there are many financially-motivated human organizations or businesses in short.

It could be a bakery, a consulting firm, a lottery, a car manufacturer etc….a central bank….

 

So what needs to live on the Internet is the way the company is managed, rewards shareholders, assigns tasks and allocated budget, not the actual goods created by the organization, since it is still not feasible to digitize physical goods but one day that will be changed, I believe.

 

Nu (NuBits) is the first decentralized central bank in the world and the first real decentralized autonomous organization in my opinion.

Then we have B&C Exchange, the first really decentralized crypto assets exchange in the world.

 

B&C Exchange is a fork of Nu and Nu is a fork of Peershares.

 

With Nu and B&C Exchange you can vote for anything and get the consensus from shareholders for any motion.

Such consensus is decided by the blockchain.

In that sense, Nu and B&C Exchange are the real first 2 DAOs, in my opinion, that the world has ever seen.

 

I believe that Nu is the most solid template to build businesses that live on the Internet, right now.

I believe Nu is one killer app.

B&C Exchange will be one too, once realeased.

But there are countless of such killer apps that will be created over the next years.

 

As we have seen countless of static web pages built on top of HTTP be created over the years, we will see countless of DAOs be created on top of the blockchain, and most probably as a fork of Nu.

 

This is only my prediction.


 

Pascal Hideki Hamonic = cryptog = uploada

 

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blockchain (misc.)   2016/05/13   uploada
タグ:GDP