Crypto companies do not operate as the regular companies. Everyone can participate and have a deciding vote. Want to learn more for this organizations? If you answer is positive, make sure you read this article.

One of the common feelings among employees is that they are rarely heard by their managers about the things that they want to say. Well, now the decentralized organizations as opposed to the hierarchy management system, designed a flat model of management which enables everyone to participate in the debates and encourages teamwork.

Decentralized organization: What does it mean?

Decentralized organizations understand structures where there is no control by a single entity, but rather the control is distributed among the team members. The decentralized organizations designed the majority of the cryptocurrencies. The organizations are located worldwide and can operate from distant locations.

The manner of operation

Cryptocurrencies operate in a form of open-source code and they work in Github, which is development platform.Team members can:

• Design codes which is available for the public
• Draft proposals for project development
• Take participation in debates over related developments

An interesting fact

In 2018 in the month of June, Microsoft took over Github, and initiated some discussions in reference to the independence of the platform.

What are their pros?

There are a number of pros when talking about the decentralized organizations:

🔥 Bigger firepower – people worldwide can add codes and participate

💵 More affordable – Many developers work on the cryptocurrency during their free time that basically means there is no need of larger sums of money to create coins

👨‍👩‍👦‍👦 Joint collaboration – Since everyone can participate and share the opinion there are lots of suggestions and joint projects that work towards the common goal- developing the coin.

This type of organizations are great for people with self-initiative who are good at self-organizing and working by their initiative to develop new ideas.

What are their cons?

🏢 Flat structure – One of the major cons is the making decisions is time-consuming and thus these organizations are slower for operation as there is no one controlling entity.

😡 Disputes – As the community is growing larger it is not that rare for disagreements to appear which may cause splitting from one into two companies. Such example was with Bitcoin and Bitccoin cash.

Have you heard?

Those who supported Bitcoin Cash were for raising the block size of the bitcoin over 1MB. The matter became so big that it divided the community regarding this question in two groups.

What does DAO stand for?

DAO is an abbreviation where D stands for decentralized, A equals to autonomous and O is for organization. The Decentralized organizations write codes and they provide a kind of mechanism for guidance. One of the uses of this type of organization is to award funds in an automatic way which is established on a number of criteria.

The Beginnings of DAO

The start of a DAO and the earliest stage is the DAO. This was a product of Slock. The foundation was the same – Ethereum net. It was an open source code where contributions could be made by everyone who is interested in this. The idea was that this organization will function as a platform of venture funds in reference to crypto projects. All participants who owned DAO token have right to vote for or against funding of a certain project. Nevertheless, the DAO never developed.

Have you heard?

The DAO collected 12.7M Ether, with value of $150M.

Some issues that appeared

One of the major drawbacks that occured in this net is the transfer of Ether in sum of 3.6 million with value of 70 million dollars. This happened in the month of June 2016. The assets that were transferred to a place called “Child DAO” were frozen 28 days and this allowed Ethereum to try and fix things.What the community did is known as hard fork and designed the Ethereum leaving the Ethereum Classic. The blockchain was re-written as the hacking attack did not happen and this resulted in an immutable blockchain.

The issue had brought one good thing about the platform that comes from the need for decentralized organizations, and that is raising awareness that the platform exists.

What to expect

The value of the cryptocurrency market has increased to up to  $800 billion. That is a great deal of trust in a market for the most part made by DAOs. Will it begin to change the manner in which organizations work? Before long you may start your business from the comfort of your home, discussing the way for the business to advance and develop and without having a manager guiding you. There are certainly  lots of benefits in this.