<div dir="auto"><div>On Apr 13, 2017 7:44 AM, "Giulio Prisco" <<a href="mailto:giulio@gmail.com">giulio@gmail.com</a>> wrote:<br><div class="gmail_extra"><div class="gmail_quote"><blockquote class="quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">Thanks Adrian. Some advantages of blockchain-based DACs, from the<br>
perspective of participants / shareholders and compared to traditional<br>
shares, are:<br>
- Possibility to buy shares and participate anonymously.<br></blockquote></div></div></div><div dir="auto"><br></div><div dir="auto">Investors with serious money rarely care for anonymous participation - and those that do, already have means to (proxies, for example).</div><div dir="auto"><br></div><div dir="auto"><div class="gmail_extra"><div class="gmail_quote"><blockquote class="quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
- Self-enforced right to easily participate in all decisions.<br></blockquote></div></div></div><div dir="auto"><br></div><div dir="auto">With much money, and thus much shares, they get outvoted if their proposals run counter to the interests of - or they just can't convince - a majority, just like in normal corporations.</div><div dir="auto"><br></div><div dir="auto"><div class="gmail_extra"><div class="gmail_quote"><blockquote class="quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
- Possibility to offer services to the DAC as independent contractor (work 2.0).<br></blockquote></div></div></div><div dir="auto"><br></div><div dir="auto">They have this even without buying a single share: the DAC can work with anyone it collectively decides to.</div><div dir="auto"><br></div><div dir="auto"><div class="gmail_extra"><div class="gmail_quote"><blockquote class="quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
- More protection against fraud.<br></blockquote></div></div></div><div dir="auto"><br></div><div dir="auto">Less, actually, by trying to work around and shun so many of the protections in law.</div><div dir="auto"><br></div><div dir="auto"><div class="gmail_extra"><div class="gmail_quote"><blockquote class="quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">Concerning your point about payments, paying a contractor in dollars<br>
is not the problem. In a DAC this could work as follows. Suppose you<br>
are a contractor who doesn't want to have anything to do with<br>
cryptocurrency and I am a DAC member who interfaces with you.:<br>
- You submit a deliverable to me and invoice $100,000.<br>
- I request authorization to pay you $100,000.<br>
- The members vote on accepting the deliverable.<br>
- If the vote is positive a smart contract sends crypto funds to an<br>
exchange where the crypto is converted to dollars and the dollars are<br>
delivered to me.<br>
- I pay you.<br></blockquote></div></div></div><div dir="auto"><br></div><div dir="auto">Ha ha ha ha ha...</div><div dir="auto"><br></div><div dir="auto">Yeah right. If I am a contractor who is competent*, I am going to insist up front on a contract that guarantees payment on delivery. The DAC does not get to vote on whether to accept, save that the DAC votes yes. If the DAC votes no, the DAC can expect to be sued and lose quickly, with damages.</div><div dir="auto"><br></div><div dir="auto">(There are exceptions, such as work so shoddy that the judge would agree it is shoddy. But good luck proving that, and you would likely get a lawsuit anyway.)</div><div dir="auto"><br></div><div dir="auto">* I say this having been a contractor in kind of that situation. I still have the court order for payment somewhere in my paper files. The corp that tried this dissolved, and the one responsible fled the state and possibly the country rather than pay me. A space DAC would be routinely dealing with contracts for much, much higher amounts than the few thousand dollars in my case.</div><div dir="auto"><br></div><div dir="auto"><div class="gmail_extra"><div class="gmail_quote"><blockquote class="quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">The problem is: what if I don't pay you and steal the money instead?<br>
Smart contracts protect internal transactions against fraud, but not<br>
external transactions like this.<br>
<br>
This use case becomes easier if you accept to be minimally involved in<br>
the process. For example you could have an account on the exchange and<br>
receive the payment (in dollars) directly.<br></blockquote></div></div></div><div dir="auto"><br></div><div dir="auto">And most contractors competent to provide hardware for space stuff won't. They prefer the law, which is not subject to the hacking or other vulnerabilities that the DAO demonstrated.<br></div><div dir="auto"><br></div><div dir="auto"><div class="gmail_extra"><div class="gmail_quote"><blockquote class="quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">In general, the issues are at the interface between DAC and the<br>
external world. There is no pure DAC solution: I think a DAC that<br>
wants to operate as a real-world business needs a legal identity, a<br>
front company in a favorable jurisdiction with named individuals in<br>
charge, a bank account, ability to hold property etc. One of the<br>
articles that I listed has examples of how things could be set up in a<br>
specific jurisdiction (UK).</blockquote></div></div></div><div dir="auto"><br></div><div dir="auto">So your problem reduces to, what advantages does a DAC have over a traditional corporation, given that most elements of significant financial value will refuse to engage with blockchain et al instead of traditional means (such as the law & courts, seeing blockchain et al as less effective at protecting their interests), thus negating any benefits for their transactions that a DAC might have?</div><div dir="auto"><br></div><div dir="auto">You can't just think of benefits to the DAC. Blockchain benefits the DAC but disadvantages outside parties: despite what you say, it does - or at least outside parties will believe it does, which is enough to prevent them from using it. So how do you overcome that? Merely claiming benefits to the cryptosavvy & anonymity-preferring (which the outside parties you are likely to work with on a space venture are generally not) won't cut it, especially if you ignore the proven disadvantages.</div><div dir="auto"></div></div>