Part 1: What are Decentralized Autonomous Organizations (DAO)?
Updated: Aug 11, 2022
If you’re someone who keeps up with the ever-changing world of tech, you might’ve heard the term DAO, also known as a decentralized autonomous organization. Interestingly, these unique entities aren’t affiliated with a specific country and don’t follow a traditional hierarchy. Follow along for a bite-sized blog on an introduction to the world of DAOs.
What are Decentralized Autonomous Organizations (DAO)?
Most people are obsessed with decentralized autonomous organizations (DAO), much like cryptocurrencies, because they're decentralized. When it comes to a decentralized autonomous organization (DAO), they're pretty similar in that they work off the same model as digital tokens but for a group of people.
DAOs are just revolutionary terms for a group of people who agree to work together under a specific set of rules. With these rules, written using code from smart contracts algorithms, with a pre-set of the criterium, developers can get to the meat of the problem regarding projects.
Some great examples of DAOs in action are DASH, a cryptocurrency managed by its active users, MakerDAO, a software focused on maintaining a stablecoin, and Augur, a platform for market prediction. Then there's Steemit, a social media platform, and Decentraland, a metaverse running off cryptocurrency.
How do Decentralized Autonomous Organizations (DAO) Work
Initially, DAOs were a way to automate specific processes further, running off of the Ethereum network and creating a decentralized governing structure for institutions. What's so different with DAOs because it works off of an open-source code without a board of directors or a traditional hierarchy.
Hungry for more? Join me each week, where I'll break down complex topics and dissect the latest news within the cybersecurity industry and blockchain ecosystem, simplifying the world of tech.
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