INSUBCONTINENT EXCLUSIVE:
DAO is an Internet-native organisation collectively owned and managed by its members.A big advantage with cryptocurrency, enthusiasts often
say, is that it is decentralised, meaning there's no central authority like a government or central institution that governs the industry
All transactions depend on the underlying blockchain technology and are available to be seen by anyone anywhere in the world
This decentralisation also offers a degree of security and privacy, typically not available with transacting in standard currencies
Inspired by this idea, a group of technology developers proposed setting up a decentralised autonomous organisation, or DAO
Thus, a DAO is an entity with no central leadership.What Is DAO?It is an Internet-native organisation collectively owned and managed by its
Decisions in a DAO structure are made via proposals the members vote on during a specified period
And these decisions are governed by a community organised around a computer-defined set of rules enforced on a blockchain
These smart contracts allow participants to take an equal part in the decision-making processes inside the organisation.The main idea behind
made by the community include how the company will use funding and resources
The DAO treasury can only be accessed by the approval of its members.First DAOInitially, Bitcoin appeared to be the first project to get
But when the Ethereum blockchain, with its smart contract capabilities, was introduced, DAOs started evolving and moved closer to offer
complete transparency and community governance.AdvantageDAOs have several advantages
One of them is the lack of trust needed between two parties to enter into a contract
A traditional organisation requires a lot of trust in the people behind it, but with DAOs, only the code needs to be trusted
community; the process is transparent and verifiable.CriticismHowever, DAOs also have faced criticism
In 2016, some developers pointed out several potential security vulnerabilities and asked investors to be cautious in voting on future
investment projects until those issues were resolved
Soon, hackers attacked the DAO and gained access to 3.6 million ether coins, worth about $50 million (roughly Rs 371 crore).
