Decentralized autonomous organizations (DAOs) could be the next frontier for internet workers. And more.
The innovation of Decentralized autonomous organization can connect like-minded people all over the Internet. It’s useful to create jobs, companies, and charities. It’s a way to connect with strangers without having any trust issues. How is that possible? Let’s find out more.
Everything sounds good, but…
What is a Decentralized autonomous organization?
Through blockchain technology, users can create businesses and ventures. There is no CEO, but only members. People coordinate their decisions, govern their business, and make the rules. This is a decentralized form of governing and decision-making. And, it’s possible thanks to smart contracts.
What are smart contracts? Simply, they are contracts written in code. Once again, thanks to blockchain technology, the terms are clear and transparent. The code of a smart contract controls the transactions and the execution of the terms. There is no intermediary or outside authority. A smart contract is guaranteed by the code itself.
So, back to DAOs..
The owners of the business are the internet users who decide to join. All of them, no exception. There are no managers. It’s an internet democracy. Users didn’t want someone else to dictate the rules. On the contrary, they wanted to be autonomous. Hence, there is no hierarchy in a DAOs, only equal owners.
The rules are clear and transparent. They are embedded in the code of the organization via blockchain. Of course, there is a treasury. But no one has exclusive access. In fact, members have to ask for permission to the DAOs.
Why DAOs became popular
So, why should you prefer a Decentralized autonomous organization? In this case, it’s important to underline the differences between a traditional business and a DAO.
The benefits of DAOs include voting. In fact, nothing can change and happen in the organization without all the members agreeing. Once everyone agrees, there is no person in charge of implementing the changes. On the contrary, they are automatic and they happened via code. So, blockchain technology ensures transparency.
Plus, every bit of information is public, so no one can take advantage of the Decentralized autonomous organization. Which is also why these organizations are useful for charitable work.
Charity and DAOs
Users can come together to create a charity via blockchain. Since the members have the same mindset and goals, people know where the funds go. And, thanks to the transparency policy, there is no doubt that the money is going to charity. And not for personal profit. Members vote how they want to allocate their funds. And that’s where their money goes. Plus, there is no CEO who takes a cut for managing the business.
Of course, these organizations can also be useful for remote workers and to distribute grants. The possibilities are many and this world has just opened up.
Examples of DAOs
So far, it’s been all theory and explanation. Let’s take a look at some real examples of decentralized autonomous organizations, shall we?
- Augur. This prediction market DAO uses Ethereum code and blockchain to make predictions. Members can bet on any topic and their funds are safe.
- Jelurida. This platform allows users to create custom blockchain and tokens. Users can vote and make decisions.
- DAOStack. As the website states, it “is an open source project advancing the technology and adoption of decentralized governance.”
More organizations are bound to appear, as this trend changes the market.
Why it matters
This is another example of how blockchain technology and cryptocurrency are changing the way people interact. And it’s not just for fun, like the betting at Zed Run. This trend can also change the way we work and how we support our favorite charity. Finally, it’s a chance for everyone to be successful and participate. No more wealthy CEOs or nepotism. The Internet is a democracy.