Blockchain-Based Limited Liability Companies A New Tool or a False Innovation

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If limited liability companies were widely spread in the 1990s, limited liability companies based on blockchain technology have witnessed tremendous growth in the past two years due to digital globalization. These companies adopt decentralized autonomous organizations, known as DAOs, which operate on the blockchain platform through smart contracts and decentralization of control. Despite the many advantages of these companies, they face many legal challenges and regulatory risks. What increases the importance of this study is that the laws of commercial companies in the countries of Iraq (Kurdistan Region) and the United Arab Emirates do not include any regulatory rules in this regard, which raises the question of what are these newly created companies? What are the similarities and differences between them and traditional companies? What are their legal provisions? Should they be adopted within the legislative system or not? In other words, are the decentralized autonomous organizations that belong to these companies capable of displacing traditional organizational structures? In this study, we will highlight to what extent limited liability companies based on blockchain technology can be considered a new form of commercial companies or whether it is just a false idea confined to a narrow scope.