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:
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
- 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.