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Title: Share Registry Post by: Quant on July 08, 2013, 08:38:29 PM Problem: Startup wants to avoid the need for conventional company registration.
Share Registry is needed, to record %ownership of the company by each shareholder, e.g.: Total Shares = 100 shares Shareholder 1 = 60 shares Shareholder 2 = 30 shares Shareholder 3 = 10 shares The share registry must guarantee to each shareholder his share of company's ownership/distributions, and that the registry is secure against improper changes. Share transfer mechanism is also required. Could each shareholder be identified only by his public bitcoin address, which will receive any due distributions such as dividends? Solutions can exist at several levels. Level 1 (Inside the company). Shareholder database is maintained either by all shareholders or by their subset (e.g. company board). Level 2 (Outsourced). Trusted third party maintains share registry for the company. Level 3 (Decentralized). Blockchain is used to record share ownership. Smart property (https://en.bitcoin.it/wiki/Smart_Property) capabilities or colored coins could be used for this. Many startups and investors would benefit from solutions to this problem. Some approaches have probably been tried/implemented. Any thoughts or references? |