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