DAO stands for Decentralised Autonomous Organisation. Decentralized means that no single institution can govern. For example, cryptocurrencies. No single institution like the government has power over it. In this article, we will discuss what is a decentralized autonomous organization. We also discuss its uses, examples, and more.
What does Decentralised Autonomous Organisation mean?
In this section, we will discuss DAO. it is a type of organization. It is like a traditional organization like Google. But, no government can control it. Only the members of the organization can control it. The rules are in the form of computer programing. These are then uploaded on Ethereum. It is free of human mediation. But, we can’t say it makes humans completely ineffective. Further, it is quite clear and aligned. All members need to vote to put in place a certain change.
A German start-up launched a DAO called ‘The DAO’. It raised $150 million worth of Ethereum in 2016. Although, it got hacked in May 2016. Ethereum stolen was worth $50 million.
Listed below are some examples and what you could use them for:
- Charity- With DAO, you can accept donations from anyone from anywhere. The members of the organisation can decide how to use those donations.
- Fundraising- You can use it to raise funds for your business. As mentioned earlier, it can accept donations from anyone.
- Investment- You can invest in a DAO token. Moreover, there are many crypto currency brokers. These brokers allow you to invest in DAO tokens.
These were some of the uses.
Examples of Dao
Cryptocurrencies are very popular nowadays. For example, Bitcoin. Bitcoin is the largest cryptocurrency by market cap today. No single institution governs Bitcoin. Instead, it has a set of pre-programmed rules. Thus, Bitcoin is a Decentralised Autonomous Organisation.
Dash is another example of it. Dash is a cryptocurrency quite like Bitcoin.
Advantages of Dao
Listed below are some of the advantages of a DOA:
- Needs less human input.
- It’s more time saving
- It is more planned and well ordered.
- The structure is more aligned.
- There are a lot of different uses of DAO.
To sum up, Decentralised Autonomous Organization is a type of organization. This organization has a set of smart contracts. These are for various processes that need automation. It requires less human mediation. Thus, it is very efficient as well. Rules are uploaded on Ethereum. It needs voting to put in place any change. Cryptocurrencies such as Bitcoin and Dash are decentralized autonomous organizations examples. In this article, we discussed about DAO in brief. You will learn about decentralized autonomous organizations meaning. Moreover, you will also learn about its uses and benefits.