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A Summary of

The slow death of the firm

Nick Tomaino
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Existence of firms

Firms exist for two reasons: 1. To minimize transaction costs 2. Aggregate capital and people

Bitcoin has thrived without a firm

People are brought together only by code and incentives (the token). There are three types of network workers: 1. Miners 2. Developers 3. Users As a result, their market cap is close to $100B and greater than that of Goldman Sachs.

Organizational structure benefits

  • Ownership is not exclusive
  • Data is controlled by multiple entities
  • Checks and balances on decision making

Widespread impact

  • Creates opportunities for people globally
  • Incentives align for all types of workers
  • Product innovation that would not occur with firms There are a couple of hurdles that deter broader adoption; however, the world will most likely see the increase in decentralized organizations in the future.
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