When people hear about cryptocurrencies, they think of alternative forms of currency.
But Lane Rettig, one of the former core developers of Etherium (ETH-USD), says crypto could change everything – from how companies are formed and run, to how tickets are purchased for events. sports and concerts, and how salaries are paid.
“This is the start of a new economy that creates value for people around the world,” Rettig told Yahoo Finance in an exclusive interview.
“Crypto will have a profound and lasting impact on our lives. What we have seen so far is relatively superficial. The social impact is just beginning. This is going to impact every corner of society in our daily lives,” he added.
Although sky-high volatility has become the defining characteristic of cryptocurrency, Retting believes it’s very early days – likely the first run – for the sector. He compared it to 1980, just before Apple introduced the Mac.
“So we’re a year or two away from being friendlier,” he said.
Crypto could spur a whole new generation of entrepreneurs and start-ups by making it considerably cheaper and easier to start a business. If small businesses are the backbone of the US economy, crypto could blow them up, fueling growth.
The promise of DAOs
Rettig pointed out that a decentralized autonomous organization (DAO) was the key to a potential entrepreneurial explosion. DAOs are blockchain-based organizations designed to be automated and decentralized, using smart contracts in place of traditional business structures.
The idea is for the organization to democratize, led by those who buy and hold tokens in the organization, as opposed to a CEO or board.
Admittedly, the sector has had its share of controversy. Last week, a high-profile organization called BadgerDAO was at the center of a Bitcoin (BTC-USD) heist that cost crypto lender Celsius Network tens of millions.
But according to Rettig, DAOs are the new limited liability company or joint-stock company – a social innovation from a few hundred years ago that completely transformed the world. “I think DAOs are the next step in the evolution of human organization and I think it’s a generational shift that will take decades to happen.”
Rettig has just created a DAO for a social investment assistance project in Africa, which has more than 100 stakeholders based in different countries, covering Europe, Africa and North America.
According to the investor, it would not have had the chance to take off as a company, given the logistical and bureaucratic obstacles. Rettig’s organization has a governance structure with nine directors, where five of the nine must vote on things to move funds and vote on projects.
“The whole thing took minutes to set up and cost less than a dollar,” he told Yahoo Finance. “There’s no way this happened using traditional companies. This is an example that shows that there are all kinds of projects and applications that are possible now that would not have been possible before.
The entrepreneur called it the classic definition of disruptive innovation, likening the sector to the cloud computing that revolutionized information technology and propelled Amazon and Microsoft to the top of the industry.
“DAOs have a lot of problems, but I’m betting my professional reputation that DAOs are going to take over the world,” Rettig said.
“So I think the metaphor here is that a DAO is to a business what a cloud server is to a physical business. You can spin them and tear them down very cheaply,” he added.
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