The New Firm

<p>The rise of the firm in the 20th century paved the way for the industrial and digital revolution. Based on a legal structure that provided for limited liability as well as legally enforceable ownership structures, companies flourished. It allowed risk-taking and rewarded founders, investors, and others with their fair share in the endeavor. Enormous wealth, products, and services were created that would not have been dreamed of only a few decades earlier.</p> <h1>Beginnings</h1> <p>The firm was held together by contracts that were written on paper, notarized, wet-signed, and stored in the company&rsquo;s safe. The company&rsquo;s shares became tradeable on stock exchanges, together with banks that acted as custodians for the paper shares.</p> <p>Not much has fundamentally changed in this structure since then.</p> <h1>Web3 emerges</h1> <p>At the beginning of the 21st century, we witnessed the development and rise of blockchain technology. Using cryptographic signatures, hashes, and Merkle trees, a tamper-proof source of truth was created that enabled true digital ownership and directly executable financial contracts.</p> <p>Nowadays, technically, there is no need for third parties and custodians. Shared distribution and changes in ownership can be directly managed within a smart contract on a blockchain. Payments and other terms can be encoded and executed in smart contracts.</p> <p><a href="https://medium.com/corpus-ventures/the-new-firm-49a3df4c116b"><strong>Learn More</strong></a></p>