DAO (Decentralized Autonomous Organization).
Have you ever imagined if there was a company where decisions are made collectively? No Central Authority ? Just a group of people governing themselves, Well there is something as you've imagined and it's not just any company it's a Digital Organization. Which brings us to the topic of today ; DAO's.
What is a DAO?
A Decentralized Autonomous Organization commonly known as DAO's is a decentralized organization that is collectively owned by its members, where decisions and opinion making are being voted upon. In a layman language, it's an organization where everyone's say and opinions matter. Being built on a Blockchain, the backbone of DAO's are Smart Contracts.
To understand the concept of Smart Contracts, kindly go through my thread about Smart Contracts
https://twitter.com/Keyboard_Guyy/status/1569320339339100160?t=TWmKmB0TDY3PZUZk5QVlEw&s=19 .
What is the purpose of a DAO?
The sole purpose of a DAO is to improve the centralized management of a company, instead of relying on a single entity or individual for decision making and proposals. A DAO gives every member of the organization an opportunity to express his/her opinion.
What are the benefits of DAO's?
•Decisions are made collectively through a voting process.
•It is trustless; In the sense that you don't need to trust anybody with decision making as your own opinion matters.
•Open source; Being built on a Blockchain, decisions that are made on a DAO are recorded on a private Blockchain for members of the organization to see.
How can you gain membership?
•By buying an Ether Token.
•By investing in Bitcoin.
•Creating smart contracts.
•By voting.
As simple as ABC.
With this I'm sure you understand the concept of a DAO. You can as well watch this video that was posted by @CamiRusso to get more ideas of what a DAO is and how it works.
https://twitter.com/CamiRusso/status/1569464456358526977?s=19 .
If this thread was educative to you;
•Kindly give a follow @Keyboard_Guyy to see more educative threads
Thank you!
