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: Government-based organizations can be customized by using legal documents and leveraging the legal system.

After: Aragon entities unleash limitless innovation in organizational structures. Programmability by code is superior than programmability by law. Governance meets code.


Before: Organizations depend on their underlying jurisdiction to work. If the jurisdiction malfunctions or gets corrupted, it may be able to interfere or even expropriate assets.

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 usually requires identifying its member’s identities for activities like opening a bank account.

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: In the meatspace, people can be physically threatened to comply with the law.

After: Aragon entities create an environment where the worst thing that can happen to an individual or an organization is losing its stake in the network.

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
  • Aragon One