Ying-Ying Hsieh, Jean-Philippe Vergne, Philip Anderson, Karim Lakhani, Markus Reitzig
Bitcoin represents the first real-world implementation of a “decentralized autonomous organization” (DAO) and offers a new paradigm for organization design. Imagine working for a global business organization whose routine tasks are powered by a software protocol instead of being governed by managers and employees. Task assignments and rewards are randomized by the algorithm. Information is not channeled through a hierarchy but recorded transparently and securely on an immutable public ledger called “blockchain.” Further, the organization decides on design and strategy changes through a democratic voting process involving a previously unseen class of stakeholders called “miners.” Agreements need to be reached at the organizational level for any proposed protocol changes to be approved and activated. How do DAOs solve the universal problem of organizing with such novel solutions? What are the implications? We use Bitcoin as an example to shed light on how a DAO works in the cryptocurrency industry, where it provides a peer-to-peer, decentralized, and disintermediated payment system that can compete against traditional financial institutions. We also invited commentaries from renowned organization scholars to share their views on this intriguing phenomenon. © 2018, The Author(s).
Imperial College Business School, Imperial College London, South Kensington Campus, Exhibition Road, London, SW7 2AZ, United Kingdom; Ivey Business School, Western University, 1255 Western Road, London, N6G 0N1, ON, Canada; INSEAD, 1 Ayer Rajah Avenue, Singapore, 138676, Singapore; Harvard Business School, Morgan Hall 419 Harvard Business School Soldiers Field Rd., Boston, 02163, MA, United States; Department of Business Administration Strategic Management Subject Area, University of Vienna, Oskar-Morgenstern-Platz 1, Vienna, 1090, Austria
Research at a Glance
Register to unlock
Topics & SDG Alignment
Register to unlock
Collaboration
Register to unlock
Author Profile (Selected)
Register to unlock
References Overview
Register to unlock
Journal & Source
Register to unlock
Metadata & Integrity
Register to unlock