Aragon, a Spanish venture building tools on Ethereum, wants to make setting up and running organizations simpler. The platform handles the mechanics most companies need: shareholder registers, voting
Aragon, a Spanish venture building tools on Ethereum, wants to make setting up and running organizations simpler. The platform handles the mechanics most companies need: shareholder registers, voting rules, money management, hiring, and financial tracking, all without middlemen.
Luis Cuende and Jorge Izquierdo, who co-founded Aragon, believe blockchain technology has opened a new possibility. "After the dot-com revolution and the rise of cloud computing, a new type of company has begun to emerge: businesses without traditional corporeal and geographic forms," Cuende said. "The catalyst has been blockchain technology changing the incentive structure for companies."
The two want Aragon to serve organizations that don't fit the traditional mold. In their view, companies running on Aragon would operate with far less overhead. "Aragon companies will be more efficient. They won't waste time on paperwork or dealing with third parties. They won't waste a cent on tasks that don't benefit their product or service," they wrote in a blog post. "This will make Aragon companies more competitive than their traditional counterparties."
Aragon includes two main components: Aragon Core, a framework for building decentralized autonomous organizations on Ethereum, and a web-based dApp. The system can support custom modules that add functionality beyond the basics.
At the center sits the Aragon Network, which operates as what Cuende calls a "digital jurisdiction." Organizations join this network, where an Ethereum token called ANT handles governance decisions. "With Aragon Core, a minimally-specified organization will be able to run on the Ethereum network. A Module system will then be implemented so further functionality can be built on top," Cuende explained. "Fully decentralized organizations will also be able to take advantage of the Aragon Network, a token-governed digital jurisdiction, to resolve core governance issues and increase efficiency."
The project launched an alpha version in March. Since February, the number of test organizations on Aragon has grown from 130 to more than 770.
Cuende started Stampery, a blockchain data certification company, before founding Aragon. Forbes included him on its 30 Under 30 list, he holds an MIT TR35 designation, and he served as an advisor to the European Commission's VP on blockchain matters.
Aragon joins a small group of startups taking blockchain approaches to company creation. In Singapore, Otonomos built a different model: a platform where companies register on a blockchain. The company's Blockchain Chartered Company system treats ownership as cryptographic assets stored in digital wallets and handles share transfers as transactions between wallets.
Otonomos completed the Startupbootcamp Fintech Singapore accelerator. It signed an agreement with Dubai Economy to streamline licensing applications. The partnership aims to cut processing time by 80%.
