> For the complete documentation index, see [llms.txt](https://docs.borderless.company/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.borderless.company/english/borderless/learn-about-parallel-entity/why-do-we-need-a-parallel-entity.md).

# Why do we need a Parallel Entity?

> ### The **way organizations are structured hasn’t fundamentally changed for decades—but the world has.** 

A 300-Year-Old Invention: The Corporation

The modern corporation's fundamental structure was invented 300 years ago, during the era of the Dutch East India Company. The "shareholder-owned, manager-operated" model was established at that time—and it’s still being used today.  

Surprisingly, this structure was created long before the invention of the steam engine, in an age when horse-drawn carriages were the primary mode of transportation.  

But what about today’s technology? We live in an era of globalization, digital transformation, AI, and blockchain. Why is it that only organizational structures remain stuck in the past?  

Parallel Entity is the answer to this outdated structure, designed to evolve organizations into a system that matches the technology of our time.

This dual-layered structure empowers organizations to: 

1. Ensure Transparent Ownership: Immutable tracking of equity or membership rights.  
2. Streamline Governance: Automate voting, decision-making, and compliance processes.  
3. Enhance Global Accessibility: Enable decentralized, borderless governance.  
4. Reduce Costs: Minimize reliance on intermediaries like registries or auditors.  

A Parallel Entity represents the next evolution in organizational design, blending the strengths of traditional legal entities with the transformative power of onchain technology. It’s a model built for the challenges and opportunities of a decentralized, interconnected future.