How Blockchain kills companies

Blockchain will very quickly change the world economy, and first of all I'm talking about a new form of doing business - without companies.

What was an American dream not so long ago, what allowed to increase the efficiency of production 200-300 years ago, those methods of relations of the creators and acquirers that we know almost all our civilization, all this will now rapidly change due to the blockade and crypto-currencies.

Blochein and the World Economy
Fundamentally there are two reasons why companies are created:

1. The relations of the participants in the process are formed,

2. The point of economic relations with the market is determined. One could also say the third reason - the tax base - but we know a number of legal forms, when taxes are not ultimately paid by the company, but by its founders.

In projects where blockage becomes the basis, the need for both shareholder agreements and the point of realization of economic benefits immediately disappears, because the rights of participants are formalized and managed by the network, and business is conducted with the help of smart contracts.

In order not to theorize, let's take as an example a block-project that provides a data warehouse, quite a popular topic these days. The developers who create and run this project immediately determine that 20% of all tokens will belong to them, and no one will ever dispute these rights.

And they decide to sell 80% to the market, to future users of the system, in order to develop the network for the received capital. Let's move forward for a year or two and see what happens to the tokens:

A) Owners of servers who want to earn, provide excess capacity, taking them automatically through smart network contracts (Business),

B) Developers fully own their tokens, de facto being in a shareholder agreement, implemented in the network. By the way, depending on the complexity of the block, some form of government or the board of directors can change the terms of the participants, but all the same, without going beyond the original mechanisms (Joint-Stock Company),

C) All participants, and first of all developers, have enough incentives for the network to become as competitive as possible, and thus attract more customers, creating pressure on the cost of the token, which is growing (Economy).

We descend from heaven to earth, and begin to disassemble the questions:

• How will the developers pay partners, and in general they are not in a vacuum? Maybe you will be surprised, but almost all high-tech players are already calmly accepting the crypto currency. And for everything else, you can use the simplest legal forms of companies, for example, LLP, which are not taxed even in jurisdictions like the United Kingdom or the United States, if they do not have income there. Let me remind you that our income always goes to the detachment.

• How to pay taxes? No way. First of all, it is worthwhile to understand that there is not a single country in the world that has updated tax legislation on crypto-currencies. But even if it appears, the simplest selection of tax-free jurisdictions, for example, the United Arab Emirates or the British Virgin Islands, can completely resolve the issue.

Most interesting, these companies may not even open a bank account, but only act as elements for registering rights, for example, hosting. This, if we complicate and go into details, but in reality the storage system will consist of thousands of participants with hundreds of thousands of servers, personalized, paid by a bank card, which is replenished from the exchange after the exchange of earned tokens to dollars.

Taking into account the most complicated decentralization, it will be a big problem to trace such topics for fiscal bodies.

• Still need a company, then what about the entire post? It is not necessary to confuse the simplest companies, the maintenance of which will require $ 1-2 thousand a year, without taxes to spend and earn, and full-fledged stories that require for international business a whole group of legal entities, bank accounts, accounts and so on.

Look at the process more broadly than the opportunities that the company gives today: all the rights and opportunities of shareholders, partners and customers are fixed in the block, there are no problems with payments due to the limitations of banks and different currencies, each of the parties directs the revenue, There are no taxes, and most likely never will.

Of course, not every business can be built with a block in the kernel. But like 20 years ago, not everyone believed that Internet companies could be independent stories, and not just sites of existing structures. Today we know that due to its effectiveness, the Internet business is the most expensive and profitable.

Recently, there was still a very interesting case: Iranian authorities blocked Telegram, but very quickly changed their mind. Because 100 000 businesses in this country keep in touch with customers through the messenger, which means they began to incur losses at the time of the ban.

And now imagine that in a year's time Telegram will offer these businesses to pay by domestic currency Gram? Who then will think of forming companies, if all your customers and partners are on the same page?