Decentralized Autonomous Organizations (DAOs) are revolutionising the way we think about governance and organizational structures.
At their core, DAOs are organizations that operate without a central authority, using smart contracts to manage their operations.
In this blog, we will delve into what a DAO is, how it works, its benefits and downsides, and explore some real-life examples to illustrate their potential.
Table of Contents
What is a DAO?
Benefits of DAOs
Downsides of DAOs
Real-Life Examples of DAOs
The Story of The DAO
Conclusion
Frequently Asked Questions (FAQs)
What is a DAO?
DAO stands for Decentralized Autonomous Organization.
This means that a DAO is essentially an organization run by code, which is agreed upon by its members.
Instead of relying on a traditional management structure, DAOs use smart contracts to facilitate decision-making and operations.
These smart contracts automate processes, enabling the organization to function autonomously.
How Do DAOs Operate?
To understand how a DAO operates, we can use the analogy of a vending machine.
Imagine a vending machine that, instead of needing human oversight for its operations, is entirely managed by code.
Read the full story - https://medium.com/thecapital/understanding-daos-the-future-of-decentralized-autonomous-organizations-460b39cbb845?sk=935f25727c912bdea4f0c7b0552f9ba1