Bitcoin and its underlying technology, the Blockchain, was the most innovative application designed in the first decade of the 21st Century. Following this new technology many alternative digital coins and other, non-currency applications also came into play. This gave birth to a new industry teeming with activity and a lot of competition. The competition kept the motor of innovation running and the concept of decentralized Autonomous corporations (DACs) quickly arouse interest between developers, giving a whole new direction for the Blockchain technology was set.
The disruptive potential of the Blockchain technology
The Blockchain Technology has enabled the development of decentralized applications, which came to express their own set of rules, known as Bitcoin 2.0 applications. These new developments allowed for a whole generation of business models to be built. Today we have a plethora of decentralized applications working on top of the Bitcoin Blockchain like Counterparty (XCP) while others have even built their own Blockchain.
As predetermined, decentralized corporations have no owner and run autonomously conducted by an incorruptible set of business rules. The rules are implemented as publicly auditable open-source software distributed across the participant’s computers. Participants become stakeholders either by buying these assets on a Token Sale or by being paid in that Token for having provided services for the company. In turn, these Tokens work as assets that may entitle its owner to a share of the profits of the corporation. This is giving rise to a whole new economy that escapes the normative local or federal legislation.
With this kind of business model, the only information users will need to provide is the address that in turn will result in increased privacy for consumers and we will most certainly see a lot of decentralized corporations in the future. This can raise some implications since DACs have no office or storage facilities for a government to shut down.
The new Blockchain economy these decentralized applications are providing can have a huge impact on the traditional economy. Now, we will need to wait to see what will be governments and the traditional Banking system reaction.