However, with increased human intervention, corruption, and high costs, there is an imminent need to look at alternative governance. With DAOs, everyone in the organisation can take part in transparent decision-making on the blockchain, which represents a disruptive change. So, let’s dive into this revolutionary concept and see how DAOs are changing the way we do business.
How do DAOs differ from traditional organisations?
Traditional organisations are typically run by a centralised authority or management team. A Decentralized Autonomous Organization (DAO) on the other hand, is a type of organisation that operates according to a set of rules encoded as computer programmes known as smart contracts. The DAOs are designed to be self-governing and self-sustaining and are powered by blockchain technology. A DAO is run by a community of users or participants without centralized control and is managed by a set of rules that are agreed upon by all the members of the organization. Additionally, they are meant to be transparent and accountable, and their operations are open to public scrutiny. They are highly efficient, as they are run by computerized smart contracts, which can be programmed to execute complex tasks quickly and accurately.
The capabilities of DAOs have grown as technology has developed. Currently, there are more than 4,000 DAOs world over across various fields. DAOs are also used in decentralised finance (DeFi). These organisations power several decentralised crypto exchanges as well. DAOs are also gaining traction in India, with several entrepreneurs in the crypto and blockchain space showing keen interest towards this concept.
DAOs for crypto
Cryptos have become increasingly popular over the past few years, and they...