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- Title
DECENTRALIZED AUTONOMOUS ORGANIZATION (DAO): UTOPIA OR EQUITABLE DISTRIBUTION?
- Authors
Ilievski, Andrej
- Abstract
Simultaneously with the fall of the Berlin wall, we witnessed the process of general acceptance of the Internet as mainstream. Opportunities created in the last 30 years by the Internet, and particularly in the last 10 years with the dramatic increase in the number of smart devices, created new business model. Namely, internet giants such as Google, Facebook, Uber or Airbnb have created on-line platforms through which they aggregate the potential resources of a large number of individuals to provide services to even larger and a group of consumers. The previous business model was based on centralized organizations, often with a dominant position in the market in charge of providing services to a group of passive consumers. The new type of "dematerialized" organizations doesn't rely on ownership of property. However, the profit generated by this new model is not fairly distributed - mediators who manage and own on-line platforms retain the profits. Recently new technology called blockchain emerged. The purpose of this new technology is to facilitating the exchange in a reliable and decentralized way without intermediaries. Blockchain technology allows substitution of hierarchical model of management with a computer system that is decentralized and distributed among individual participants. This concept can changes the way the profit is distributed, allowing people to work for creation of common good, whereby everyone will be appropriately rewarded for their labour and engaged resources. But when talking about new disruptive technologies we need to be careful due to the fact that at its creation the internet was intended to narrow the gap between small entities and large corporations, yet over time internet giants took control of the digital world. The aim of this paper was to give an overview of the possibilities and challenges of blockchain technology. The paper will make a theoretical analysis of the relevant papers in the subject area and will present concluding observations regarding the dilemma whether this new technology is utopia that is in advance condemned to failure or will succeed in the intention of fair distribution. The conclusions suggest that organisation without hierarchy is utopian, but our finding shows that DAO is possible with using blockchain technology, although it raises many questions (liability, tax payments, jurisdiction etc.). But we need to be careful due to the fact that internet giants took control of the digital world. Finally, social relationships are aspect that will be big drawback for DAO.
- Subjects
BERLIN (Germany); GOOGLE (Web resource); SUBSTITUTION (Technology); DISRUPTIVE innovations; COMPUTER systems; PROPERTY rights; TECHNOLOGICAL innovations; INFORMATION sharing
- Publication
Iustinianus Primus Law Review, 2019, p1
- ISSN
1857-8683
- Publication type
Article