What sets Aragon entities apart from their traditional counterparts

This is a post on the Aragon One thesis series:

Aragon entities run on smart contracts based on code. Therefore Aragon entities are programmable.

Being code, they can run autonomously on a blockchain. Therefore they are sovereign.

Being sovereign makes them be able to accept any participants into the entity. Therefore they enable participants to be pseudonymous.

Those three properties enable other sets of interesting properties that we will explore.


Before: Governments offer a limited number of rigid templates to organize entities.

After: Aragon entities unleash limitless innovation in organizational structures. Governance meets code.


Before: Traditional legal systems can seize assets and jail people. They ultimately own you and your organizations

After: Aragon entities are fully sovereign. Their owners truly own them. They can interact with other entities via Aragon Agent.


Before: Creation and participation in organizations always requires identifying its member’s identities.

After: Aragon entities can be fully run pseudonymously. They are open to everyone, which increases fairness and creates a more efficient market.


Before: Entities are bound to a specific jurisdiction. Interacting between jurisdictions is challenging.

After: Aragon entities are global by default.

Depends on: Sovereign, Pseudonymous


Before: Organizations need to abide by their jurisdiction's law.

After: Aragon entities abide by the smart contract code. Or to an external court such as the AN, but only if they want to.

Depends on: Sovereign


Before: Even with strict bylaws, some people are in charge of the execution and they can always go rogue.

After: Aragon entities can execute without the need of a single point of failure thanks to smart contracts.

Depends on: Programmable

Machine friendly

Before: Creating and participating in organizations needs physical persons.

After: Aragon entities can be used and even created by computer programs.

Depends on: Pseudonymous, Programmable

True limited liability

Before: People can be prosecuted and physically threatened for their actions.

After: Aragon entities create an environment where the worst thing that can happen to an individual or an organization is losing its assets or being slashed.

Depends on: Pseudonymous, Sovereign

Marginal cost

Before: Creating and maintaining organizations is an expensive endeavor because of the human labor involved.

After: Aragon entities can be deployed with the marginal cost of cloning a set of smart contracts.

Depends on: Programmable

Automatic record keeping

Before: Record keeping is a manual and laborious task.

After: Aragon entities come with built-in automatic record keeping.

Depends on: Programmable


Before: Creation and maintenance of organizations is done by lawyers, inefficient and expensive consultants that have no skin in the game in the organizations themselves.

After: Aragon entities can be created by anyone. Acquiring the skills to be an advanced user is possible in a matter of days, and not years like lawyers.

Depends on: Programmable, Alegal

This post was a collaboration between

Luis Cuende, Aragon One

  • Luis Cuende

    Luis Cuende

    Co-founder of Aragon and Chairman of Aragon One.

    More posts by Luis Cuende.

    Luis Cuende
  • Aragon One

    Aragon One

    Aragon One is a for-profit company that encompasses the foundational team working on the Aragon project. The company is currently established in Switzerland, although we want it to function as a DAO

    More posts by Aragon One.

    Aragon One