Technology

Optimizing Business Decisions With Blockchain Technology

When companies fail to make better decisions, they are doomed to failure. In fact, studies showed that most companies fail in formulating and executing strategy rather than in product development. In simple terms, a company can have the best product in the world, but if it does not make the right implementation decisions, it is doomed. Better decision making involves teamwork and for a team to be at its best, there is a need for leadership.

Leadership is needed at all levels and they must collaborate to share information and deliberate on each subsequent move. When companies are small, they have a manageable team and it is easier for management to make better decisions. However, they must grow faster to avoid competing with their competitors and must therefore increase the size of their teams.

But when the size of the organization and the team becomes large, decision-making becomes complex and erratic. This explains why the majority of large companies spend a huge amount of money hiring third party management consulting firms for strategic advice and implementation. Even with these measures in place, decision making is always subject to error given the fragmentation of the process.

How Blockchain Can Help

The number one goal of blockchain technology is to remove centralized systems, including centralized management. With technology, all decisions and implementation of the strategy are automated and enforced through smart contracts.

Decentralized Autonomous Organizations (DAO) is the name given to organizations where decisions are made electronically through the blockchain and smart system of contracts. When a company operates in such a system, it is governed by rules established by an open vote, the weight of each vote being determined by the number of chips held by the voter.

Tokens are earned based on the contribution made to the business either in finance or services. Here are some examples of how this concept has evolved since its inception.

The DAO Project

In 2016, a project based on Ethereum known as The DAO was introduced with the aim of decentralizing venture capital. The project was designed to allow investors to pool their funds and then vote on projects to invest.

Once an investor joins the platform, he receives rewards in the form of chips. The voting power of an investor would be determined by the number of chips in his possession. Similarly, companies would be required to write proposals on the DAO platform and token holders would vote on the projects they would like to fund.

Voting decisions would then be translated into rules and executed through smart contracts. As the project got off to a good start by collecting more than $ 150 million, it crashed after hackers identified a loophole in its code that allowed them to siphon more than $ 70 million from investors. .

Even though the attack was halted and the money lost is returned to the owners, the incident marked the beginning of the end of the project. The SEC hammered the last nail in the coffin on July 25, 2017, after the decision that the chips offered and sold by The DAO were securities and therefore subject to federal securities law.

A new project known as DaoStack aims to eliminate the security and compliance issues identified in the DAO while allowing for large-scale collective decision-making.

The DaoStack Project

Consider the DaoStack project as a blockchain-powered operating system that provides a comprehensive framework that makes the creation and maintenance of CAD easier and more feasible. The goal is to make decentralized organizations safer, more viable and more practical.

With the DaoStack project, parties in autonomous organizations can collaborate effectively without the need for technical expertise or intermediaries. Companies can easily create their own decentralized applications and create and manage teams in which the contribution of project members determines the value of each.

The goal of the DaoStack platform is to enable fluid decision making in organizations where teams can collaborate and make decisions on an open platform, at minimal cost and with great accuracy .

The Future of Business

With the advancement of CAD platforms, the future of decision-making in business is promising. Organizations in the near future will be able to choose where to place their projects from a variety of options, save on costs, promote transparency and drive efficiency. With more DAO innovation, companies will be able to offer a better work environment for employers and employees.

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