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  • Writer's pictureMichael Paulyn

Part 1: What are Decentralized Autonomous Organizations (DAO)?

Updated: Oct 21, 2023

If you keep up with the ever-changing world of tech, you might’ve heard the term DAO, 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 introducing the world of DAOs.

What are Decentralized Autonomous Organizations (DAO)?

Most people are obsessed with decentralized autonomous organizations (DAOs), much like cryptocurrencies, because they're decentralized. When it comes to a decentralized autonomous organization (DAO), they work off the same model as digital tokens but for a group of people.

DAOs are just revolutionary terms for a group agreeing to work under a specific set of rules. With these rules, written using code from smart contracts algorithms, with a pre-set of the criteria, 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 to 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 is that they work off 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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