Restoring Democracy in the Digital World: The Case for Decentralized Autonomous Companies

The Internet was born with an egalitarian vision of openness and inclusivity where its creators foresaw a new era of seamless communication, collaboration, and sharing of knowledge, making it a true force for good within the public domain.

However, over the past decade or so, this vision has been gradually overshadowed by the monopolistic tendencies of some Web 2.0 corporate behemoths who now exercise centralized control over a majority of the world wide web. As a result, the open nature of the internet has waned greatly, with the 'for everyone' mantra now relegated to a marketing gimmick.

As these centralized entities continue to dominate the internet, they exercise significant control over customer data, often using it for profit and wielding influence on user behavior. The increased prevalence of data breaches and privacy violations only further accentuates the erosion of the internet's ‘public good’ status. Users are left with little choice but to trust these corporations, even as their rights to privacy and control over their own data are compromised.

A Historical Injustice and the Promise of DACs

The current status quo is far from what the pioneers of the internet dreamt of, and it's a perspective that many would likely challenge. Critics might argue that the commercialization and privatization of the Internet has fostered innovation and given birth to tech giants that have revolutionized the global digital landscape.

That said, the corporatization of the internet has also resulted in control that is concentrated in the hands of a few, sidelining the interest of the public at large. As a result, the solution might lie with offerings such as Decentralized Autonomous Companies (DACs) since they promise a novel ownership and governance model that could reestablish the internet's democratic ethos.\

DACs, designed on the foundations of blockchain technology, aim to reinstate the internet's 'public good' status by dispersing ownership and decision-making. Furthermore, the transparency, immutability, and decentralized aspects of blockchain systems make the two technologies a perfect fit for one another.

A Shift Towards True Digital Democracy

Decentralized Autonomous Companies (DACs) represent a dramatic shift in how organizations operate in the digital space. They are not just a response to the increasing monopolistic control of the internet but are a significant departure from traditional hierarchical structures of corporations. DACs offer a radical new model of organization that is more democratic, transparent, and community-centric.

For example, as part of a DAC, there is no centralized authority. Decisions are made collectively, and every member has a voice, fostering a sense of community and shared responsibility. This empowers users, giving them control over the platform, the rules that govern it, and the data they generate. This is a stark contrast to the Web2.0 model, where users often have little to no control over their data or the platforms they use.

Furthermore, DACs are driven by smart contracts — self-executing contracts with the terms of the agreement directly written into code. This eliminates the need for intermediaries and allows for the creation of more efficient, autonomous, and transparent systems. Moreover, smart contracts enable DACs to operate in a trustless environment, which is crucial for maintaining integrity and fairness in a decentralized setting.

In addition, DACs' potential extends beyond correcting the internet's current centralized model. They represent a new way of organizing and coordinating human activity in the digital realm. To this point, DACs could revolutionize a variety of sectors, from finance and supply chain to social networking and content creation, paving the way for a more equitable and democratic digital economy.

And while critics might point out the challenges DACs face — such as legal recognition and potential governance issues — the benefits they offer make them a compelling solution to the problems plaguing the current internet landscape. The transformation won't happen overnight, but with ongoing technological advancements and increasing public awareness, DACs have the potential to significantly reshape the digital world.

Tackling Scalability and the Rise of Layer 2 Solutions

In addition to the possibilities outlined above, DACs also offer solutions to the internet's scalability issues prevalent in today's centralized Web 2.0 architecture. Ethereum Layer 2 solutions, such as Metis, are designed to overcome these limitations by offering scalability and low-code solutions for DeFi, NFT, and dApps. In fact, the platform offers an ETH transfer fee of <$0.01 and a token swap fee of $0.04.

To elaborate, Layer 2 solutions enable faster transactions, reduced gas fees, and enhanced user experiences by offloading computations from the main Ethereum blockchain. They represent a significant advancement in blockchain technology, aligning with the internet's initial vision of being open, inclusive, and user-friendly.

The Future of the Internet: A Decentralized, Democratic Model

While critics might argue that the current Web 2.0 model is necessary to maintain order and stability in the Internet's vast ecosystem, the rising popularity of DACs and the decentralization movement suggest otherwise. The public's growing awareness and demand for data privacy, ownership rights, and a say in decision-making processes are driving the shift towards a decentralized internet.

This transition could redefine the web as we know it, creating a digital landscape where users are not just passive consumers but active participants with a say in how platforms operate. In this decentralized model, the power dynamics shift from a few corporations to the users, restoring the internet's status as a public good.

Importantly, platforms like Metis are already functioning as fully functional Decentralized Autonomous Organizations (DAO), implementing Vitalik Buterin's vision for these digital organizations. By leveraging blockchain technology, Metis is taking concrete steps towards a decentralized and democratic digital world.

Thus, as we head into a future driven by various transparency-centric systems, DACs could be the key to reclaiming the internet's 'public good' status. The shift to a more decentralized and democratic Internet model might be challenging and time-consuming, but it is a historical rectification that is imperative for the future of the digital world.

About the author: Elena Sinelnikova, Metis co-founder & Decentralization Coordinator, holds a degree in Computer Science and is a former Government of Canada solutions architect. She has turned entrepreneur, co-founding Metis, a scalability and low-code solution for DeFi, NFT, and dApps on Ethereum, and CryptoChicks, an educational hub and accelerator for women in blockchain in 56 countries.