Why Use Blockchain [Quidli Version]

Build smart companies using smart equity

There’s no denying it — hype is building up around blockchain tech and cryptocurrencies. A lot of this is due to incredible ICOs and speculations on unfamiliar technologies. So I’ve made a diagram to familiarize you with why blockchain is integral for Quidli to shape the future of work.

Let’s Take a Look

Following the above diagram, let’s examine each point step-by-step.

• Does Quidli or its users require a database?

Yes. Quidli at it’s core is a protocol to transfer equity — our platform enables stakeholders to track company ownership structures, or equity; to split ownership into shares with different attributes; and to facilitate transfers according to rules specific to every company and each employee.

Storing and track volumes of classified data definitely requires a database.

• Are there multiple users updating this database?

Again, yes. At the beginning of any project, owners manage their structures by transferring equity to whoever they want — advisors, co-founders, employees, freelancers, etc. Subsequently, all shareholders will then have the right to transfer, which requires enabling multiple users to update the database.

• Should the system guarantee trust between users?

Absolutely yes. A transfer of equity is a transfer of value, which can occur between parties who don’t know each other (for example, hiring freelancers based in other countries). Trust is critical to working relationships, particularly in the 21st century. But we repeatedly see “traditional” web platforms for employment and payments do not and cannot build trust.

• Is it problematic for transactions on Quidli to go through third-party services?

Significantly yes. Equity for labor is not new. However, transfers must always go through third parties — mainly lawyers. Though their contributions (drafting contracts, ensuring legality, etc.) are valuable, they’re time-consuming and expensive, especially considering how standard the work is.

Additionally, the system today is highly inflexible — typical equity clauses consist of four years vesting with a one-year cliff. Yet changing this requires even more third-party involvement. Blockchain provides a transition to automate this process and remove friction caused by third parties.

• Do the transactions depend on or need to interact with each other?

Certainly yes. Equity transactions depend on each other as each transaction impacts a company’s ownership structure. No two transactions can occur at the same time, so it’s critical to have in place an immutable record. The entire process depends on previous states of ownership.

This is an ideal scenario for distributed ledger technology.

Rest assured, we’re hard ‘Yes’s’ on all five points.

In Conclusion

“Off-chain” solutions can no doubt be built. But such applications would only be digital alternatives to the current process with maybe some automation and still a lot of centralization.

Our review may not be exhaustive, by any means. But I believe this is a great starting point for better understanding the power of blockchain and why we’re utilizing that power here at Quidli.

Let’s rework work together. Follow us to learn more about equity-for-labor, blockchain protocols, and to stay updated on Quidli’s progress.