Crypto companies work differently. Instead of one figurehead, anyone can contribute. Why do they do this and does it work well?
Ever feel like your boss doesn't listen to you? It’s a common gripe at work. A new type of organization is changing that, with a flatter management structure. Decentralized organizations allow everyone to take part in discussions, encouraging teamwork. And they’ve created some pretty cool things.
A decentralized organization is a business structure where control is spread out, across the team members instead of being centered around one authority figure. Most cryptocurrencies are created by decentralized organizations. They are often distributed around the world and work from remote locations.
Cryptocurrencies are often created as open-source code in a development platform called Github. Team members are able to:
Did you know?
Microsoft acquired Github in June 2018, raising questions over the platform's independence.
There are several advantages to a decentralized organization:
Did you know?
Bitcoin Cash supporters wanted to raise the bitcoin block size above 1 MB. This issue was so divisive it split the community in two.
A DAO is a decentralized autonomous organization. Code is written by a decentralized organization which provides some sort of governance mechanism. A DAO could be used to award funds automatically based on a set criteria.
The DAO was one of the biggest and earliest examples of a DAO. It was created by Slock.it and was built on the Ethereum network. It’s code was open source, which anyone could contribute to. The DAO was designed to work a venture fund platform for crypto projects. A pitch would be made and anyone with DAO tokens could vote on projects to award funding. However, The DAO never made it to liftoff.
Did you know?
The DAO raised 12.7M Ether, worth around $150M at the time.
On June 17, 2016, a hacker managed to exploit a few lines of code allowing the move of 3.6 million Ether, worth $70 million. Yet the funds were moved to a “Child DAO” and couldn’t be moved for 28 days, giving the Ethereum community time to make a fix. They made a hard fork to the chain now known as Ethereum, leaving the old fork, Ethereum Classic, behind. During this fork, they re-wrote the blockchain so the hack never happened, meaning the blockchain was no longer immutable.
The cryptocurrency market cap has risen higher than $800 billion. That’s a lot of confidence in a market mostly created by decentralized organizations. Will it start to change the way that companies operate? Soon you might be working from home, having a discussion about the right way for your business to move forward without having a boss telling you what to do. The grass certainly looks greener.