4 ways blockchain technology will transform leadership

Blockchain technology provides a decentralized, secure way to store and manage data, enabling new levels of transparency and collaboration that transform strategy and operations. Blockchain technology allows businesses to create a shared, tamper-proof database to track transactions, assets, and interactions between parties. This provides a single source of truth that everyone can trust, eliminating the need for costly intermediaries and manual reconciliation. However, leaders must take a strategic approach to ensure their organizations can take full advantage of this transformative technology.

How we think about leadership is changing, and blockchain technology is playing a significant role. In the past, executives were responsible for centralized organizations with top-down decisions. But with the transition to the digital age, decentralized systems are becoming increasingly popular.

President Recep Tayyip Erdoğan recently stated at his government’s Blockchain Summit, “It is clear that we cannot ignore this potential as we prepare for Turkey’s century. We want to be the country that uses this tool.” Erdoğan’s comments underscore that leadership is changing and countries must evolve with the times or they risk being left behind. As such, leaders need to adapt as blockchains will impact their role in four ways over the coming years:

1. Increased transparency will lead to more accountable leaders

According to a recent study by IBM, executives believe that blockchain technology will greatly increase management transparency and make it easier for executives to be held accountable for their actions. “Blockchain allows all transactions to be stored in a public ledger that anyone can see,” agreed Serge Baloyan, CEO and founder of x10 Agency – a Web3 company – in an email. He believes that the transparency mentioned above will level the playing field between employers and employees. “Historically, information asymmetry has typically favored the employer,” Baloyan said. “But with a blockchain, employees can track their progress and performance, giving them a better understanding of career opportunities within their organization.”

2. Decentralized decision-making gives employees more power

In a decentralized system, power is shared among the many rather than concentrated in the hands of a few. A shift gives employees more power and control over their careers as there is no central authority controlling the network. Instead, decisions can be made by consensus. Research by Nadia Zahoor of Queen Mary University of London supports this view. “The decentralization of power will give employees more say in how their company is run,” Zahoor said in an interview. In the past, employees were often at the mercy of their superiors. But with a blockchain, she believes employees will have a direct say in decisions. “This will lead to a more democratic workplace where everyone has a voice,” Zahoor said.

3. Improved efficiency leads to more productive leaders

A study conducted by Deloitte found that blockchains improve business efficiency because the technology can automate many processes, giving executives time to focus on other tasks. This benefit aligns with the view of Bryan Ritchie, founder of Simba Chain, who said in an email, “The inherent transparency of blockchain gives large enterprises the visibility they need to streamline workflows.” Ritchie believes this operational improvement will increase efficiency. “By using blockchain, companies can remove third-party intermediaries that often create unnecessary costs and delays.” Provide resources they need to make better decisions.”

4. New leadership models will emerge

As blockchain technology evolves, new leadership models will emerge, such as the Decentralized Autonomous Organization (DAO) and the Holacracy. The DAO is a decentralized organization governed by a set of rules encoded on the Ethereum blockchain. Anyone can contribute to the DAO, and decisions are made democratically, meaning that “they are becoming a formidable force in empowering ordinary business stakeholders with decision-making capabilities and integrating unprecedentedly accurate market demand statistics into every step,” said Max Krupyshev, CEO from CoinsPaid – a payment gateway service provider – in an email. Holacracy, on the other hand, is a decentralized way of organizing companies and making decisions. It is based on the principle of democracy, which allows employees to have a say in running a company, which Krupyshev says is a significant advance in the development of corporate governance. “In the near future, we’re likely to see traditional companies implementing these new technologies into their corporate structure, helping them be more efficient, more agile, and improve transparency and communication,” he said.

In summary, blockchain technologies will lead to many changes in the coming years. We can expect new models of leadership to emerge, new skills required of leaders, and a more collaborative style of decision-making. Those who can embrace these changes will be in a better position to succeed. Therefore, leaders need to start preparing now, because that is what leadership is ultimately about: being prepared for what’s next.

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