Starting a business can be very difficult nowadays. Juridical and financial difficulties, tons of paperwork, registrations, tolls, laws take enormous amount of time and energy. Many great ideas were downed just because people didn’t want to deal with terribly established bureaucracy.
The world is being slowed down due to the difficulty of entrance to any kind of modern market.
The efficiency gets lost.
But, don’t be so depressed. The world is developing with the business and the new ways are being created constantly. We are up to discuss one of them, most appealing to us and what we are doing. The discussion is going to be around smart contracts, so if you are missing out refer to our post about them.
These small pieces of technology can automate, secure and make good contribution to efficiency of some work processes you encounter. The flexibility is stunning. Let’s begin with the process of entrance to the market: we have already stated the problems. They don’t come because of the evil governors or someone having a bad mood. These are the security measures, which became really outdated now.
In the modern age, the security can be provided with the technology and we mean blockchain here.
With the power of the smart-contracts we can ensure common, logical rules for creating companies with the inner immutable rules of the regulation.
Sounds more effective isn’t it? Provide all the data set by the system creator and Voila you are in! No queues, no human factor and global freedom by the rules built on the community approval.
But what if you don’t stop on that, if you continue ubiquitously implementing the technology of smart-contracts in all areas of the corporation? Decentralized Autonomous Organisation (or Copmany) happens, DAO or DAC for short.
An organization that operates on the basis of smart-contract immutability and flexibility.
Records of DAO’s financial transactions and program rules of contracts are stored in a chain of transaction blocks. The absence of a central hierarchy is a common thing here, everyone invests into well-being of all on their own and gets what they deserve for it. Salary would be distributed according to the contract which checks activity on it’s own. One of the best parts is that using such method of organization allows you to hire best professionals from all over the world. Long and tedious search for candidates, endless interviews and refusals are now in the past. Who cares what their location is or what language they speak as long as they are ready to reach new heights. Giving opportunities for the community and for yourself.
What makes people choose to start a DAO/DAC instead of old school company?
Efficiency of this corporate structure of course!
As we’ve said earlier, smart-contracts remove the need for trust, increase global efficiency by automating bureaucratic and any other processes from adjacent areas involved. Thus, an employee of such company will be much happier and productive than one working for “standard”. He would forget about diverting attention to minor things, being able to focus on his actual job. And smart-contracts will take care of the observance of rights and productivity of employees work processes.
The existence of DAO itself wouldn’t be possible without such tool as oracles. Soon they would be able to process any kind of data for you, not depending on its origin or type. Remember our consumables example? Well, instead of teaching child a new language, you can simply give him an ABC-book. Compare now. No need to go full on-chain when you can just make on-chain accept kind of data you need.
What used to be beyond the imagination of sci-fi guys is know as close as it could be to the escape to the reality.
