added by sari · updated 2y ago
The Slow Death of the Firm
- -Decision making power is not controlled by one person or group and there are checks and balances from a broad variety of market participants
from The Slow Death of the Firm by Nick Tomaino
sari added 3y ago
- In traditional firms, the incentives between users, employees, and owners are often not clearly aligned. When a token on a global blockchain is the business model, incentives are no longer muddled by legal entities, jurisdictions, and business models that conflict with the best interest of the users.
from The Slow Death of the Firm by Nick Tomaino
sari added 3y ago
- -Data isn’t controlled by any one entity
from The Slow Death of the Firm by Nick Tomaino
sari added 3y ago
- Bitcoin is the first example of an organizational structure that has the beneficial characteristics of the firm (minimizing transaction costs, aggregating capital and mindshare, and providing job security for contributors) combined with some new characteristics:
from The Slow Death of the Firm by Nick Tomaino
sari added 3y ago
- There are clear hurdles holding back decentralized organizations from broader adoption
from The Slow Death of the Firm by Nick Tomaino
sari added 3y ago
- It is difficult to accurately measure contributions in most types of work today. Bitcoin works well because labor contributed to the system can be measured objectively and is very difficult to game. Most labor still requires some centralized human judgement to effectively allocate resources.
from The Slow Death of the Firm by Nick Tomaino
sari added 3y ago
- My view is that some centralization of decision making is generally necessary in the early days of a project. The best projects will likely be designed to be decentralized across all facets of the org for the long-term, but not necessarily right from the beginning.
from The Slow Death of the Firm by Nick Tomaino
sari added 3y ago
- There is no firm behind Bitcoin; there’s simply code (rules for organization) and incentives (the BTC token) that brings together many different participants who are all incentivized to contribute their time and resources to maintain the service.
from The Slow Death of the Firm by Nick Tomaino
sari added 3y ago