From: blanc <blancw@accessone.com>
Date: Sun, 19 May 1996 02:15:38 +0800
To: "'cypherpunks@toad.com>
Subject: FW: anonymous companies
Message-ID: <01BB444D.D20F28C0@blancw.accessone.com>
MIME-Version: 1.0
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From: 	Wei Dai

A company implies a particular kind of persistent structure, with a
hiearchy of owners, managers, and employees.  It is far from clear to me
that this is the most likely organizational form in an anonymous digital
economy.  One possible alternative is to have no persistent organizations. 
Teams form spontaneously to work on individual projects.  Each individual
member jointly negotiates a contract with every other member, and these
contracts are enforced through some arbitration system.
.........................................................................................

This "virtual corporation" is something that I've read about (about 2 years ago) which is an idea already in use -  someone has an idea for a kayak design, then he contracts out to other individuals all the different kinds of work he needs done to get it built.  As soon as the project is complete, the company dissolves.

But here is where I think the problems with an attempt at total anonymity will occur, as has been mentioned:  where the virtual meets the actual, where the anonymous electronic interaction must meet the solid real to complete the transaction.

The work of constructing physical things must be accomplished in an actual location.  If the place is rented, rather than owned, the renter will be able to identify the rentee.   Solid objects like kayaks need materials for construction.   Someone must 1) get the particular kind of material which the kayak design requires, and 2) make it available for distribution to those who will want to use it.   Material or parts buyers must be able to examine the stuff to make a purchasing decision.  These must be delivered to an actual physical location.  If large trucks are rented to deliver these things, then the drivers must know where that location actually is to deliver them.  

Once the kayaks are constructed, they also must be delivered to the owner or to a store or storage building.  They must be inspected for quality and meeting design specifications.  They must be sold where individuals can look at the kayak, perhaps sit inside, and compare it with other models elsewhere (I don't think just looking at a photo on a web page will do for every purchasing decision).  Back stock requires storage and probably someone to guard the building.   Perhaps the kayak purchaser will want lessons on using the thing, in an actual river.

In all these situations, decisions must be made which require a physical presence and interaction with the material of construction, with the object of attention.  This is a point where anonymity would be very difficult and loss of confidence possible (if someone reneged on their agreements).

I can imagine total anonymity used most successfully when it is limited to activities which are totally electronic in nature, like programming, web design or ecash transfers.  The more that a virtual company requires physical contact with the construction, storage, and movement of physical goods, and the more time that it engages the individuals involved, the more difficult it will be to keep away from everyone the knowledge of who is who in relation to those things and where everything is located in physical space.

I was thinking that I couldn't see purchasing groceries anonymously (if I made the purchases myself).  Perhaps with a certain kind of store design.....still, it would be difficult.  *Someone* would see me walking out with the groceries (why does this sound so funny).

     ..
Blanc