Crypto Equity

KOSMOS Crypto-Tokens

recent block chain projects like [1] made it possible for everyone to issue digital tokens/assets based on the (Bitcoin) block chain consensus network. This provides a whole new range of possibilities: from selling tokens for crowdfunding to describing equity in a token. In the following I've collected some background information on this topic.

Introduction

“A corporation is a company or group of people authorized to act as a single entity”

So if you think about it, a corporation is a group of people working together under a set of specific rules. From the board of directors to the employed personnel certain contracts are used to enforce these rules. Depending on the size of the company the releationship between the group of people is more or less personal and open. (for example: shares of a publicly traded company can be easily bought and sold on a stock exchange)

The basic idea behind a decentralized Organization (DO) is to take the set of rules and specify these in code enforced by the/a blochchain. Instead of having a hirachical structure managed by a set of humans controlled by a legal system a DO is decentralized and people are interacting with each other acording to a protocol specified in code with no single authority that enforces these rules.

Having these rules implemented in code brings a huge amount of flexibility and removes the need of trust that everyone involved follows these the defined rules. (think internationally, with people involved from different juristrictions that do not know each other)

Even though some of the ideas have beed discussed for years this is a rather new topic and a possible new capability that is emerging from the distributed ledger and consensus technology that Bitcoin introduced. And the rising popularity of Bitcoin allows the implementation of these ideas and a real world usage.

That said, the implementations are still very much at the beginning and here and there be dragons.

The following collects ideas and resources on how we could apply ideas of crypo-tokens to KOSMOS.