Perhaps the most interesting idea of business is the DAO (aka. Decentralized Autonomous Organizations). In a ideal world a programmed business entity that, bootstraps itself, organises and facilitates itself independently of human intervention.
As more of the business mechanisms of a DAO are Internet and programic centric, a completely self regulating DAO becomes more and more possible to implement. With the idea of Artificial Intelligence agents that, learn and build neural networks, create and populate sophisticated databases, and build out blockchain mechanisms most likely smart contractible tokens for automatic contracts to be implemented in a incorruptible fashion, without any 3rd party intermediaries, lawyers, escrows, or auditors that will add unnecessary cost of transactions.
This will make the DAO much more efficient and considerably less reliant on conventional 3rd party intermediaries that were originally required to coordinate conventional business entities.
First Generation DAO
The first generation of DAO will be tethered in some way to a legal entity construct, such as a LLC or a C corp, to give the DAO a status as a lawful business entity. Enabling the DAO to buy, sell, and trade, generate income and pay expenses to operate itself, by itself. Initially beholden to its country of origin, subject to a tax authority and the additional expenses and legal liabilities that all businesses are beholden to.
The Artificial Intelligence agent of the DAO, will of course continually apply Machine Learning to build better and more robust strategies to refine the DAO, eventually shifting it efficiency to properly optimize profit margins and to eliminate or reduce expenses.
Second Generation DAO
Second generation DAO, will gravitate more and more to shedding monetary artifacts, relying less on old world fiat currency, dysfunctional banking mechanisms. Then the DAO will shift to shedding government artifacts, or finding regencies that are more adaptable to the primary directive of the DAO. Minimizing or elimination of tax liabilities, and eventually, as long as there is a network or Internet to work from the DAO could become its own self created city-state in a distributed cyberspace of nodes.
Governmental Backlash
There is no doubt in my mind that this will disrupt conventional mechanisms that are currently in place. The Banking system and the Governmental ties to the Federal Reserve will have very little control over people just opting to trade with cryptocurrency with their eWallet, instead of fiat currency with their bank card.
Transfers of fiat capital can be tied to you personal identity, through a w4 or 1099 from one’s employer or patron, also connected with your social security number or tax-id that is required, for KYC mandates.
eWallets are not, necessarily tied to a owner, it is more accurate to say int he world of software that eWallets are tied to a controller of the eWallet. Companies like Chainalysis and Bitfury are currently working on running analytics on the bitcoin blockchain by process of Automatic Bitcoin Address Clustering, to tie a measure of probability to the real identity of the legal owner of the eWallet, to correctly identify users for the tax authority.
The this would seem to be the nail in the coffin for privacy, but even the chainalysis and bitfury methods to run accurate analytics can be countered by exchanging on different eWallets, exchange for different alt-coins and other cryptocurrency types, trading off-chain would be a practical adjustment to adapt to cryptocurrency sleuths attempting to match the exchange trail to a human identity.
A.I. Agent, at your service
The end game is a Artificial Intelligence Agent that is able to learn, through Machine Learning, creating its own neural networks, to learn the game of human business, and recursively improve itself not only beating conventional business strategies, but reconfiguring the system in a beneficially masterful way…![DAO.jpg]