In the cryptocurrency arena, DAOs are a fairly new concept and have the potential to be the disruptor of the year. Many of us are taken with the idea of new technologies and what they have to offer. Just in the last two years, NFTs and DeFi have seen enormous growth. The current technologies making waves in the digital world are Web3 and metaverses of all kinds.
The future with these disruptive technologies is not very clear, but one thing is for sure – there will be a lot of products with high value. Just at the convergence point of NFTs and Web3 are multiple platforms that can be used to leverage infrastructure and technologies. These platforms are making the NFT ecosystem a structured and decentralized space which is very community focused and driven.
Also called DAO or decentralized, autonomous organization, this space is higher on the scale for disruption. This invention is challenging the way the internet is governed. DAOs offer new insights into how organizations should be run, and this can be applied to systems as well. Credence is given to the idea that an optimal governance form doesn’t need hierarchical structures.
By its very name, a DAO indicates that there is a specific mission. Members coordinate based on a set of central rules which can be found on a blockchain. The purpose is to get rid of the issue of principals and agents, which are part of a conventional organization. When organizations have a lot of people, as is common, there is a divergence in goals, interests, and priorities. A DAO has rules and policies set up as a smart contract which is accessible on a blockchain. This removes the need for a central figure managing things and making decisions.
DAOs were not received well when they were created and introduced in 2016 but are
gaining traction as time goes by.