The world has changed completely, from creating fire with the help of stones to the creation of humanoid robots, we have come a long way and honestly, it’s fascinating as well as bewildering, how we have evolved over time. The technological advancement makes it more interesting, now we can do almost anything and everything with just a single touch from our hand. Life has become easier than one could ever imagine and it is also going to get more easier with the advancement of technology.
Now, this easy life sometimes can seem frustrating when you have an overbearing person over you and who consistently finds faults in whatever you’re doing. Unfortunately, this is very common in most work cultures. Imagine, working in a company, where you don’t have an ever frustrated boss continuously nagging you for doing your work. Sounds impossible, right?
Well, it is not impossible anymore, say thank you to the technology-friendly world we live in, for creating something that can get you rid of your scary boss and can give you an option to work freely. Here, we are talking about a company whose CEO is a computer. In this article, we will talk about DAO and how it’s making noise in the world with its unique ability.
“It’s not that we use technology, we live technology.”
What is DAO?
A Decentralized Autonomous Organization is also known as DAO is an organization that completely functions on computer codes. This organization is based on Ethereum blockchain technology, another cryptocurrency like bitcoin and smart contracts, this is making everyone go crazy with its unique concept.
A German company called Slock.it built a platform to launch and named it DAO and it was the first self-governing company. It was first launched in 2016 as a crowdfunding organization and made its place in the largest crowdfunding campaign in history.
The code for this is open source. By the end of May 2016, with the help of crowdfunding, over $150 million were raised from more than 11,000 investors.
How does DAO Work?
DAO tokens can be bought through Ethereum cryptocurrency. This thing mainly works with the help of some mathematical codes and transactions are possible without any involvement of a mediator. It has full-fledged security and looks after by the people who have stakes in here. Therefore, there is no CEO, boss, or hierarchy here, and is operated by only its stakeholders.
The token owners have their own system to operate and look after the organization and can be accessed by anyone at any time if they got a computer and internet.
How DAO is Different From Other Companies?
As mentioned before there is no board of directors or senior executives in DAO. Those who hold tokens are the shareholders and are presented with the right to vote regarding any kind of matter of the organization.
Apart from that, there is no employee kind of thing in DAO, contract-based projects are given, they are mostly called Contribution Contract and only after the stakeholder's discussion, if they give a nod for the project, then the work can get started.
While the project has been started, if the contract anyhow fails to deliver the named project on time, instead of a confrontation between the boss of the company and the contractor, the token holders who voted for the contractor will withdraw their votes. Therefore, then and there the project stopped and the contract ends.
Tips For Contractors of DAO
In any kind of company, one needs to be cautious and sincere with their work. In a company like DAO, one needs to follow some rules strictly and those are:
- The work needs to be done on proper time by the contractor.
- The quality of the work has to be top class and must not be compromised no matter what.
- Respect is one of the prime factors; one should treat people with the utmost respect.
- Here the best always gets chances to collaborate with DAO for the projects.
Use osf DAO
DAOs are being used in many ways such as:
- Borrowing NFTs
- Purchasing NFTs
Advantages of DAO
Some of the special advantages for DAO like companies are:
- As there are no significant employees needed, so there is no expense that has to be used for human labor.
- Contractors and stakeholders can be from anywhere from the world and can work together, there is no restriction related to locations.
- It is easy to create tasks and roles and is quite flexible.
- All the transactions are transparent and there are fewer chances of any kind of fraud.
Limitations Of DAO
There have to be some disadvantages as well, and some of them are:
- There is no legal personality in DAO everything depends on a computer.
- There are security issues, when DAO was launched, in a matter of few days it was hacked. Almost 60 million dollars of Ether were stolen at that time.
- There is a risk regarding DAO as everything depends on codes a single issue related to that, can lead to an immense failure.
Life has literally become a place where everything revolves around technology; in fact, we live and breathe technologies. We, humans, are evolving, so it is natural that with us every industry will also evolve and will witness a change that is worth watching for.
With cryptocurrency being the next big thing, it is just a matter of time that DAO will make a huge place in the world of business. Plus with its spectacular features, it is bound to be the talk of the world in the upcoming futuristic world.
What is the Full Form of DAO?
The full form of DAO is Decentralized Autonomous Organization.
Does DAO depend on Computers?
Yes, DAO or Decentralized Autonomous Organization is an organization that is controlled by computer codes and different programs.
How DAO Tokens Can be Purchased?
One needs to buy Ethereum cryptocurrency and can exchange it online with DAO tokens.
Was DAO Hacked?
Yes, Less than three months after its launch, The DAO was hacked and $60 million of ether was stolen.