Hey Steem Community,
I'm a law student trying to wrap my head around blockchains, cryptocurrencies, and the many implications that these new technologies are going to pose. Not only do I find all of this incredibly fascinating on a personal level, but I feel like I work in a field (law) that will heavily feel the impact of these shifts.
I plan to use Steem as my personal research journal, and I welcome any suggestions or recommendations from you all in the community.
The first question I'm super interested in - and it's a big one - is when is it advantageous to operate an organization in a decentralized manner (i.e., open source protocol, like many crypto projects) versus a centralized manner (i.e., legally-recognized corporation, board of directors, etc.)?
From what I've read so far, decentralization gets a lot of love in the crypto community. And, ostensibly, for good reasons: more democratic corporate governance; fewer managerial missteps; quicker diffusion and adoption of ideas; the powerful motivation, strong sense of community, and opportunities for learning that come from working as a group of volunteers.
But my skeptical law student brain can't help but wondering, what are we trading off for these benefits? The traditional, centralized corporation has evolved over centuries, and while it does have its shortcomings, there are obvious benefits as well: centuries of precedent (read regulatory predictability); legal liability shields for individual managers or owners; tax benefits. I don't yet know to what degree decentralized companies offer these particular benefits.
In any case, there are spectacular examples on both sides of this puzzle (success = Bitcoin, failure = the DAO), and I'm excited to delve deeper. Please leave any recommended resources, and please don't hesitate to let me know if I should be thinking about this totally differently! Some sources that I've loved so far:
- Ronald Coase. The Nature of the Firm.
- Yochai Benkler. Peer Production, the Commons, and the Future of the Firm.
- William Mougayar. The Grand Vision of a Crypto-Tech Economy (video from Steemfest).
- Vinay Gupta. Crowdfunding on Blockchains/Ethereum (video).
Thanks!