4 Ways Blockchain Technology Will Change Leadership

Blockchain technology provides a decentralized, secure way to store and manage data, enabling new levels of transparency and collaboration that transform strategies and operations. With blockchain technology, organizations can 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. But leaders must take a strategic approach to ensure their organizations can reap the full benefits of this transformational technology.

How we think about leadership is changing, and blockchain technology is playing a significant role. In the past, managers have been responsible for centralized organizations with top-down decision-making. But as we move into the digital age, decentralized systems are becoming more 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 the century of Turkey. We want to be the country that uses this tool.” Erdoğan’s remarks underscore that leadership is changing and countries must evolve with the times or risk being left behind.As such, leaders must adapt because there are four ways blockchain will affect their roles in the years to come:

1. Increased transparency will lead to more responsible managers

According to a recent IBM study, senior executives believe that blockchain technology will significantly increase management transparency, making it easier for managers to be held accountable for their actions. “Blockchain means that all transactions will be stored in a public ledger that anyone can see,” Serge Baloyan, CEO and founder of the x10 agency — a Web3 company — said in an email. He believes the aforementioned transparency will level the playing field between employers and employees. “In the past, information asymmetry has typically favored the employer,” Baloyan said. “However, with a blockchain, employees can track progress and performance, thereby gaining a better understanding of opportunities for advancement within the company.”

2. Decentralized decision-making will give employees more power

In a decentralized system, power is distributed among the many rather than concentrated in the hands of a few. A shift will give employees more power and control over their careers because no central authority controls the network. Instead, decisions can be made by consensus. This view is supported by research carried out by Nadia Zahoor from Queen Mary University of London. “Decentralization of power will give employees more say in how the company is run,” Zahoor said in an interview. In the past, employees have often been at the mercy of their managers. But with a blockchain, she believes employees will have a direct say in decisions. “This will create a more democratic workplace where everyone has a voice,” Zahoor said.

3. Improved efficiency will result in more productive managers

A study conducted by Deloitte found that blockchain improves business efficiency because the technology can automate many processes, freeing up time for managers to focus on other tasks. This benefit aligns with a view that Bryan Ritchie, founder of Simba Chain, said, “Blockchain’s inherent transparency gives large-scale organizations the visibility they need to optimize workflows” in an email. Ritchie believes this operational improvement will improve efficiency. “Using blockchain allows businesses to remove third-party intermediaries, which often add unnecessary costs and delays.” He added, “The improved efficiency and reduced costs that blockchain technology offers will help empower leaders and give them the 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 Holacracy. The DAO is a decentralized organization run by a set of rules coded on the Ethereum blockchain. Anyone can contribute to the DAO, and decisions are made democratically, meaning “they become a prominent force in empowering ordinary corporate stakeholders with decision-making capabilities and integrating unprecedentedly accurate market demand statistics into every move,” said Max Krupyshev, CEO of 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 enables employees to have a say in how a company is run, which, according to Krupyshev, is a significant step forward in the development of corporate governance. “In the near future, we are likely to see traditional companies implementing these new technologies into their corporate structure, helping them become more efficient and agile, as well as improving transparency and communication,” he said.

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