Abstract
Blockchain, as a newly-born application of computer technology, has unique advantages in data storage, point-to-point transmission, consensus mechanism and encryption algorithm, which could lead to innovation of corporate governance. The application of blockchain technology in corporate governance has attracted more and more attention as it provides new approaches to improve corporate innovation ability as well as operation efficiency. This paper will discuss three types of applications of blockchain technology in corporate governance, including operating based on DAO, creating employee performance appraisal and incentive mechanism and cooperating among Multi-departmental employees. There are three aspects that will be included in the discussion of each application, namely mechanism, preconditions and benefits, so as to show the potentials of blockchain technology comprehensively. Furthermore, this paper will provide detailed design of corporate governance model, including the structure of Blockchain-based platforms, design of operating system and design of appraisal and incentive system, which offers a guideline to corporations that intends to adopt blockchain technology in their corporate governance.
Highlights
Blockchain technology has been recognized as one of the most revolutionary technologies in the era of digitalization
This paper introduces three types of applications in corporate governance that relates to blockchain technology, including operating based on Decentralized Autonomous Organization (DAO), creating employee performance appraisal and incentive mechanism and cooperating among Multi-departmental employees
As for each application, there are detailed explanations about its mechanism, preconditions and benefits in order to certificate the potential of blockchain technology in the innovation of corporate governance
Summary
Blockchain technology has been recognized as one of the most revolutionary technologies in the era of digitalization. The most familiar application of blockchain is corporate finance, including Initiate Coin Offering (ICO) and supply chain finance. Blockchain technology could decentralize corporate structure and create a consensus-based operating system called Decentralized Autonomous Organization (DAO).[2]DAO could improve information sharing, performance evaluation and cross-departmental cooperation. This would ameliorate innovation ability and operation efficiency of corporations, and attracting business leaders, the decision makers of corporations, to make trials on the applications of blockchain technology and to explore the innovative models of corporate governance
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