Innovation of Corporate Governance: A Discussion based on Blockchain Technology

Abstract

Blockchain, as a newly-born application of computer technology, has unique advantages in data storage, point-to-point transmission, consensus mechanism and encryption algorithm, which could lead to innovation of corporate governance. The application of blockchain technology in corporate governance has attracted more and more attention as it provides new approaches to improve corporate innovation ability as well as operation efficiency. This paper will discuss three types of applications of blockchain technology in corporate governance, including operating based on DAO, creating employee performance appraisal and incentive mechanism and cooperating among Multi-departmental employees. There are three aspects that will be included in the discussion of each application, namely mechanism, preconditions and benefits, so as to show the potentials of blockchain technology comprehensively. Furthermore, this paper will provide detailed design of corporate governance model, including the structure of Blockchain-based platforms, design of operating system and design of appraisal and incentive system, which offers a guideline to corporations that intends to adopt blockchain technology in their corporate governance.