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How Blockchain Could Change the Way We Work and Do Business

How Blockchain Could Change the Way We Work and Do Business
From Recruiter - August 3, 2017

Standard business models typically place power and decision-making capabilities in the hands of a few executives who then delegate responsibility down the corporate ladder. The blockchain movement seeks to change all that, even as the technology fights its way into the mainstream in the face of regulatory issues and a lack of public understanding.

One of the most imposing obstacles to the widespread implementation of blockchain models is that the technology is new and disruptive, leaving many in the dark as to how it works.

Blockchain technology is not as hard to get your head around as it seems, says Jack Du Rose, CEO of Colony, provider of a blockchain-based operating system. The way it works is complex, but what it does is fairly simple. A blockchain allows a whole bunch of people who dont know or trust each other to agree on what the state of an accounting ledger is. Nobody can change the ledger without everyone else agreeing. Importantly, this happens on a 100 percent peer-to-peer (P2P) computer network. There is nobody in charge. If people can be confident that the state of a ledger is accurate, then the balances within the ledger can represent value.

For Bitcoin, perhaps the most well-known incarnation of blockchain, the value of the balances within the ledger is defined in terms of money. Du Rose also points toEthereum, the second largest blockchain technology, by market cap, as an example of how blockchain works: It is a globally distributed virtual computer that runs smart contractsapplications that run without the possibility of downtime, censorship, fraud, or third-party interference.

These smart contracts favor P2P accountability over professional third-party involvement.

These apps run on a blockchain, and smart contracts allow us to move value around according to rules we define, Du Rose explains. [The values] represent ownership of property, like shares in a company or magic swords in a virtual world. This enables software developers to write software which performs the roles for which we currently need trusted intermediaries like lawyers, registrars, and accountants.

Through use of these contracts, companies can be built that are fully accountable to all stakeholders.

Decentralized autonomous organizations (DAOs) are one of the things which can be built using smart contracts, Du Rose says. A DAO is a kind of organization where the business logic which defines the rules of the organization is encoded in smart contracts. In its purest form, a DAO would be a completely autonomous entity which runs wholly on code, and people [would] not necessarily have a direct role to play.

Du Rose contrasts the DAO with a decentralized organization (DO), which he calls a more human-focused type of blockchain-enabled organization.

A DOs code defines the rules according to which people can interact, such as how labor is divided and under what circumstances payments are made, Du Rose says. Its conceivable that a decentralized version of something like Uber could be possible under this modality.



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