Colony Moves Organizations, Companies onto the Ethereum Blockchain
London-based startup Colony is building an infrastructure based on the Ethereum blockchain that aims to revamp the way organizations and companies work and collaborate, promising to make human resources and project management more open, fair and efficient.
Think of Colony as the merger of Trello and Upwork, but running on a blockchain. Colony essentially brings the organization and human capital together onto a decentralized and transparent platform, and adds a monetary system that rewards freelancers and contributors alike based on their contributions to the success of the organization.
“Colony brings about a new ‘Nature of the Firm’ by significantly reducing both the transaction costs of the market exchange mechanism for labor, and trust required for people to work together,” Jack du Rose, co-founder of Colony, told Bitcoin Magazine.
“We see Colony as infrastructure for the organizations of the future. We believe infrastructure should be reliable and impartial; one organization should not be reliant on the existence or permission of another to operate.”
Instead of being managed by fallible individuals, “colonies” running on the platform harness the wisdom of the crowd to make sure that things get done by the right people and at the right time.
Each colony has its own token that represents a share of the ownership of the organization. Smart contracts are programmed to distribute ownership tokens according to the value each individual contributes. Contributors can later trade their tokens on the open market for cash.
Colony also comes with a reputation system that allows people to review and grade others’ contributed work. This system allows companies to choose the best candidates while enabling freelancers and experts to build influence and demonstrate their skills.
Colony: The “People Layer for the Decentralized Protocol Stack”
While Colony is building a reference client for its platform, the team very much thinks of the Colony protocol as infrastructure upon which other developers will build applications.
The Colony protocol, which is built as open-source smart contracts on the Ethereum network, is designed to enable developers to integrate decentralized and self-regulating division of labor, decision-making and financial management into their applications.
Du Rose described it as “the people layer for the decentralized protocol stack” and said he expects many companies and products to be built based on the software.
In the future, he hopes to see the protocol being integrated into a variety of applications. It can be used, for instance, to form the basis of a decentralized ride-sharing service, to handle claims in an insurance decentralized app or to provide the framework by which a merchants' guild coordinates in a virtual world, he said.
Colony released its beta in February of this year. The Colony Beta allows teams to create their own “collaboration network” and combines task management with payments and tracking features.
These features include a Kanban-style task flow and board management system with cryptocurrency-enabled task bounties, although for now the beta is on a test network and cannot issue Ether or other main-net cryptocurrencies.
Du Rose said that the team’s immediate focus is to continue to build out the network and client library, and “get them in the hands of as many people as possible.”
He said that an ongoing part of Colony’s medium- and long-term goals is focused on polishing the platform and improving the software in order to increase blockchain adoption, “not just for developers building on top of the Colony Protocol, but for the Ethereum developer community as a whole.”
He continued, “We see many challenges to usability in [the] blockchain space, and we don’t believe we’re going to achieve mainstream adoption of blockchain technology until we are able to offer the same quality of experience as centralized services provide.”
Companies and organizations around the world are beginning to explore the use of blockchain technology in project management. Russian government–owned development bank Vnesheconombank (VEB) is reportedly looking to launch a prototype for such a platform.
Speaking to Sputnik at the St. Petersburg International Economic Forum in May, the bank's chairman, Sergey Gorkov, said:
“When we started to think about how to manage projects efficiently, we realized that there is no platform. Everything that we had became obsolete. We realized that the blockchain is a good fundamental and qualitative platform for the future. [...] We have established a qualification center and a pilot project was launched. We are launching the first prototype in terms of project management this fall.”