DAO also known as Decentralized Autonomous Organization is an organization where the computer program records regulations transparently and is managed by its members rather than influenced by traditional intermediaries. Because the rules built in the code removes any bureaucracy or hierarchy barriers.
In the following, shows relevant facts and information about DAO:
1. First Fully Functional DAO
The first fully functional DAO is achieved by Bitcoin, which is named “The DAO” and it works like Airbnb but in a decentralized way and was launched by the German in May 2016. Security flaws is then found in the codes allowing the hackers to steal 50 million worth of Ethereum before the operation was halted.
2. Usage
Up until now, several types of organization that do charity, investment, fundraising, transactions for NFTs is using DAO structure.
3. Specialties
Continuously, the success of DeFi in 2020 influenced the DAO to become the next hit. The blockchain records rules and help eliminates third parties by providing transparency on financial transactions. This type of organization utilizes the special features of Ethereum, the “smart contracts”. This is because it has the use of defining the do’s and don’ts in an organization, and holding the organization storage. Because it is not only transparent but also publicly available, any changes going through the smart contracts are visible.
Furthermore, members around the globe can form a DAO. And based on structure of the organization, the members have to go through a voting session before making any changes. So, this provide each members their part to play.
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