We often refer to Amazon, Google, and Facebook as “internet businesses,” but in truth, they’re more like traditional companies that use the internet. They rely on familiar mechanics—bank accounts, payroll systems, and HR departments. The internet is a tool, not the foundation of their business operations and structure.
Today, however, we’re seeing early signs of a new phase—one where the internet can become more than just a tool or distribution channel. It can provide the architecture of a business itself.
From Internet Money to Internet Work
When I first heard about Bitcoin, the concept of “internet money” didn’t immediately grab me. What truly drew me in was the idea of DAOs (Decentralized Autonomous Organizations—the first clear expression of an internet-native business). While DAOs haven’t yet lived up to the early hype, I still believe the core vision stands.
Each layer of internet-native infrastructure builds on the others: Improved infrastructure for internet money and finance is now enabling new things for internet business and work.
Redefining Finance: Open Ledgers Instead of Banks
In traditional finance, enormous sums are spent on intermediaries—banks, payment processors, and so on—to keep our accounts secure. By contrast, billions of dollars’ worth of internet money move through smart contracts each day in the world of internet finance. While exploits still occur, many of these contracts have been tested and refined, and they’re gradually becoming the cornerstones of global finance. This significantly reduces friction and fees, with the potential to boost economic productivity worldwide.
(For more on internet finance see Felipe Montealegre’s article "Internet Finance," which largely inspired this one)
Internet finance has come along way since the DeFi summer. What structures still need to be built and tested for internet-native business to really flourish?
Why Traditional Structures Matter
Current business infrastructure—legal entities, tax laws, employment law, equity structures, and bank accounts—serves real and important purposes. They provide the necessary guarantees for everyone involved in a well-functioning business:
Employees want to be sure they’ll get paid.
Banks want to be sure loans will be repaid.
Investors and customers want to have recourse if something goes wrong.
Everyone wants protection against fraud or theft.
These structures work reasonably well in countries with strong rule of law and robust banking systems. But they rely heavily on those systems. In regions where the rule of law is weak or banking is unreliable, businesses often remain small, operating in cash without attracting outside investors or large-scale collaboration. The risk of someone disappearing with the money is simply too high.
What if we could take the core assurances these legacy structures provide and encode them so that they operate natively on the internet?
What Does an Internet-Native Business Look Like?
At its core, a business is a system that creates something people value enough to pay for. Traditionally, that system depends on paper contracts, HR departments, compliance checks, and bank relationships. By contrast, an internet-native approach envisions many of these functions being governed by code—automating transactions and even enforcing certain promises without relying on a central intermediary.
Of course, not all obligations can be settled purely on-chain right now. Simple exchanges of digital assets (like swapping artwork for tokens) can be automated and trustless. But more complex commitments still need additional infrastructure. How do we handle a “promise to pay” when funds aren’t fully locked? How do we secure a loan? How do we offer benefits like equity, health insurance, or retirement savings to a global network of part-time contributors? And how might an internet-native business sell physical goods or in-person services?
These gaps highlight the need for things like oracles, novel forms of collateral, and innovative reputation systems. Though the tech isn’t fully there yet, it’s advancing rapidly—and pioneering projects are already experimenting with features like:
Global Capital Sources – Rather than fundraising locally, capital can frictionlessly come from worldwide contributors.
Smart Contract Treasuries – Funds live onchain, governed by transparent rules and automated distribution.
Open Work Proposals – Anyone, anywhere (even anonymously), can pitch ideas or tasks, and the community decides which to pursue and fund.
Automated Compensation – Payments automatically flow to contributors when milestones are reached.
Reputation on Display – Instead of hidden performance reviews, on-chain attestations of each individual’s work are open for all to see.
While these features might be fairly simple, and really robust business functions might not be universally viable just yet, they offer a glimpse into how internet-native businesses can operate far more openly—and differently—than their traditional counterparts.
Code Can Make Work More Human
If the business itself is powered by autonomous code, and even AI agents, how can people still contribute in a meaningful way?
Take Basepaint as one playful example. Participants collaborate to create a new digital artwork each day. Once it’s minted and sold, each contributor automatically receives a share of the proceeds. On the surface, it might look like a machine running on autopilot, but behind the code, human creativity, emotion, and collaboration are what make it all possible.
Far from being cold or robotic, removing bureaucratic layers can enhance our capacity for human connection. With sales and payroll handled automatically, people are free to focus on innovation, community-building, and other high-value pursuits.
The Dawn Has Arrived
We’re just beginning to see what happens when businesses are built natively on the internet. The result is an accessible, global, programmable framework, empowering entrepreneurs and creators to innovate faster and more flexibly than ever before.
Yes, the tools are still evolving. Yes, the legal landscape is still catching up. But the direction is clear: internet-native businesses represent a fundamental shift in how we work, collaborate, and create value.
The only question left is: How will you participate?
