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Over the past couple of years, blockchain technology has become wildly more successful than most of us ever could have imagined as little as a couple of years ago.
So far it has been used for everything from potentially improving shipping systems for global companies like Samsung, to improving identification for homeless people.
However, as it stands, the technology remains very expensive and therefore is only available to large corporations. For everyday users, it is still very far out of reach.
For true progress to be made, it is important that we figure out how to scale Ethereum and other dApps (decentralized applications) in order to make them more accessible to the masses.
Coordination and Cooperation - The Two Key Elements of Scale
Since the beginning of mankind, we have constantly been coming up with new methods that will increase our efficiency and allow us to increase the scale of our cooperation.
Consider how we have organized ourselves into tribes, families, states, and more recently, corporations, as we have progressed through the ages.
The cooperation of these agents allows us to increase our efficiency, and hence to maximize our scale.
However, as an organization grows, and the number of agents increases, coordinating them becomes more difficult and ultimately costlier. This acts as a bottleneck that severely limits growth.
How Can We Increase Our Efficiency?
There are many small changes we can make to produce a small increase in our efficiency. However, more often than not, it takes a complete paradigm shift to produce a substantial increase in our efficiency and push the limits of our organizations to the next level.
As an example of recent inventions that have largely increased our efficiency, consider the invention of crowdsourcing platforms, and even the Internet itself, and the massive impact this has had on our productivity levels.
The Internet has introduced us to the value of real-time information exchange on a global scale. It is perhaps our most advanced organization thus far.
However, one of the most significant limitations of the Internet is that it does not have the economic means for general-purpose coordination and global peer peer-production.
One very recent invention, known as the blockchain, solves this issue by providing a reliable, open, programmable accounting system.
The rise of blockchain has ultimately led to the invention of the Decentralized Autonomous Organization (DAO) - open, self-organized collectives that are coordinated by economic incentives and self-executing code that cooperates around shared goals.
Does the Invention of Blockchain Technology Signal a New Paradigm Shift?
The buzz and excitement around blockchain technology are reaching an all-time high - and for good reason. This is one invention that has the potential to produce such a large increase in our efficiency that it could be the start of a brand-new paradigm shift.
However, blockchain technology does not come without its limitations.
As a result of this hype, the vast majority of blockchain startups experience huge initial growth. This means that they begin their life cycle with millions of dollars worth of assets and thousands of followers and community members.
While it sounds great in theory, this ultimately severely limits a company’s capacity to deploy their resources and utilize them to their full potential.
However, a solution is on its way. Blockchain companies like DAOstack are working to simplify the process of developing decentralized apps by enabling effective governance for self-organizing collectives.
Applications like DAOstack will ultimately enable the DAO to scale indefinitely while maintaining its current agility and coherence. In the near future, it is expected to be able to outcompete current corporate structures.
To make things as easy for developers as possible, the DAOstack platform will offer customizable tools for collective resource management, decision making, budgeting, and incentivization. It will essentially act as an operating system for DAOs.
Consider back in 1886 when the first car was invented. It wasn’t even close to gaining mass adoption until the correct infrastructure was invented. In the same vein, DAOstack is aiming to establish itself as the infrastructure that will finally make Ethereum and other dApps more scalable and usable by the masses.
It could be the solution we have been waiting for.
The Future of Decentralized Applications
As our organization and efficiency increases, we expect to see a significant boom in the number of decentralized applications available over the next few years.
With any luck, 2018 will be the ‘year of the dApps’.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.