In this post, I will discuss the organization in the center of the blockchain technology and its potential legal liability.
The center of organization (DAO) is often described as a “smart contract” as “blockchain” is. The DAO is regarded as a new form of legal structure, in this structure, according to a series of regulations which are in a stage prior to adoption, ownership, management, and control, by individuals of the DAO will be restricted or canceled.
For a lawyer, this sounds more like a company, based on a legal fiction, of a corporate body created by a person (whether by contractual agreement or by law)
In addition, a company can sue or be sued, signed a contract to provide some security responsibilities and rights of way of incorporating their human owners and agents.
DAOs are regarded as a revolutionary form of organization which has completely abandoned the enterprise, in this framework, the signature of a person is replaced by a password and the organization is completed without human involvement.
DAO is a completely self-governing body it does not rely on outside forces to exist: the software will continue to operate autonomously and without any external control, the relevant regulations were pre-recorded in the blockchain and are immutable. DAOs is maintained by a group of individuals with specific roles, which were formed by the DAO.
The DAO can not itself create a product, write code or upgrade your hardware. In order to achieve that, it is required for a service agreement.
Interestingly, I’m not obliterated to an implementation of software usability autonomous enterprise architecture and for the possible benefits, whether with or without a functional blockchain and smart contracts.
” When I read about DAOs content it raises few questions and concerns. And it is the first to jump into the mind when reading words as ‘general partnership ‘and’ non-corporate community. ”
Even if the DAO is not an artificial entity created based on a legal framework, still the court might impose it. Most lawyers advise that a general partnership unless it was created in a proper formal and legal manner, is a very bad idea.
In addition, a co-member can also expect for joint and individual responsibility, based on the obligation to cooperate. One potential disadvantage of this architecture is that it may not have compensation from third-parties.
In my opinion, it seems to be wrong or beside the point, but for the DAO’s creators and participants, it is a big problem. In the case of lack of funds or legal form, I hope that the court will see this entity is not a fabricated entity and allows individual members to incorporate.
This article was written today by bitcoinsmaster