I've heard many blockchain proponents arguing that blockchain technologies align interests better than ever. As a big fan of blockchain (but not cryptocurrencies), I kind of disagree on this account.
The rationale is that on a blockchain all the inputs, outputs, obligations, upsides, risk-sharing, etc, could be defined concretely and properly in an un-hackable distributed ledger. Therefore everything from revenue to cost to profit to dividends or interest payments will fall perfectly along the line in the future.
That could not have been any more wrong.
Any private equity investors will tell you: any mechanism of interest alignments is only as good as how well the stakeholders understand these interest mechanism.
For example, a founder needs to understand how re-vesting works for him or her to be incentivized to go for the upside and not worrying about short-term nominal ownership.
For example, a co-investor needs to understand why a first right of refusal term is added to the deal and that he or she needs to have enough coffer to handle that in a year or two for this particular situation. If he doesn't understand the implication, all hell breaks loose when it's triggered and the interest alignment set up initially is of no use.
For example, a founder needs to know why an earn-out exists when he or she sells the company to a big acquirer so that he or she continues to work to benefit everyone involved.
For example, a minority shareholder needs to know about the drag-along article in the investment contracts of the follow-on rounds and how that's good for him or her, otherwise he or she will be a meaningless pain in the ass if a drag-along situation is triggered.
So on and so forth..
Now that you know about this, imagine yourself in a blockchain deal, possibly via an ICO, where many stakeholders are anonymous and you have little idea how much they understand all the mechanism of interest alignments built into the grand design -- assuming there really is such a design and the ICO company is not just bullshitting -- do you sincerely believe that the interest alignment works here?
I very much doubt it.