The two of us are pessimistic that totally decentralized, purely crowd-based entities like The DAO will ever be economically dominant, no matter how technologically solid they become. They simply can’t solve the problems of incomplete contracting and residual rights of control that a company solves by letting management make all the decisions not explicitly assigned to other parties. Smart contracts are interesting and powerful new tools and there will be a place for them, but they don’t address the fundamental problem that keeps companies, as it were, in business. Companies exist in large
...more
