Blockchain Revolution

THE DAPP KINGS: DISTRIBUTED BUSINESS ENTITIES
How do DApps infuse greater efficiency, innovation, and responsiveness into the
structure of the firm? What new business models can we make with DApps to
generate value? And if powerful institutions are capturing the benefits of the Internet
today, how can we move beyond “outsourcing” and “business webs” to truly
distributed models of innovation and value creation that can distribute prosperity and
the ownership of data and wealth? We mapped what we believe to be the four most
important innovations onto a two-by-two matrix.

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The Y-axis identifies the degree to which humans participate in the model. At the
left, the model requires some human involvement. At the right, the model requires no
people.
The X-axis describes the functional complexity of the model, not its technical
complexity. At the lower end are models that perform a single function. At the top are
models that perform diverse functions.
These are all components of the blockchain economy because they use blockchain
technology and often cryptocurrencies as their foundation. Smart contracts (discussed
in the last chapter) are the most basic form: they involve some complexity that
requires human involvement, increasingly in the form of multisignature agreements.
As smart contracts grow in complexity and interoperate with other contracts, they can
contribute to what we call open networked enterprises (ONEs). If we combine ONEs
with autonomous agents—software that makes decisions and acts on them without
human intervention—we get what we’re calling a distributed autonomous enterprise
that requires little or no traditional management or hierarchy to generate customer
value and owner wealth. And we think that very large numbers of people, thousands
or millions, might be able to collaborate in creating a venture and sharing in the
wealth it creates—distributing, rather than redistributing, wealth.

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