Computer

What is a DAO?

DAO Development Services We already told you what DAO means, which in Spanish translates: Decentralized Autonomous Organization. But, to understand what exactly this concept refers to, let's break it down word by word:

Organization: A group of individuals who come together and work together to achieve a common goal.

Autonomous: having the ability to act independently of external agents.

Decentralized: having no central authority. The functions are dispersed and each of the members has the power to cast their vote.

As you can see, the main idea behind DAOs is to establish a company or organization that can function fully without hierarchical management. And this is where blockchain technology and cryptocurrencies are essential for an organization to be considered DAO, therefore, learning what blockchain is and how it works is a must to continue studying how DAOs work.

What is a DAO Source:

Characteristics of a DAO

Now that we know what a DAO is, let's see its main characteristics:

It is autonomous

DAO Development Company One of the characteristics of a DAO that best represents what this new concept means is its autonomy. A DAO can execute operations automatically and autonomously, without any external intervention. Goodbye, banks, private entities or governments!

It is decentralized

Decentralization means that anyone can be part of a DAO, as long as they comply with the established rules to be able to participate. In addition, each of the members enjoys the same rights and there is no favoritism or hierarchy.

This is also one of the most important features, as it eliminates governance corruption and prevents control of the network from being in the hands of a few. Are you wondering how DAOs guarantee their decentralization? The answer is that they are not affiliated with any particular nation or entity.

is organized

A DAO is characterized by having a structure that allows any member to propose changes through voting. These decisions range from small details to important steps the organization will take in the future.

It is based on Smart Contract

For a DAO to be effective, the first thing that is needed is to have a set of rules or norms that regulate how the organization will function. For these rules to be taken as valid, they must be encoded as a smart contract (Smart Contract).

According to Professional Review , a Smart Contract is made up of a series of digital agreements that must be complied with and that are based on specific rules.

They have a financing phase and Token:

Once the content of the Smart Contract is established, the financing phase proceeds. At this point it is important that the DAO has an "internal property", because this is what will have the true economic value and will allow subsequent financing, where cryptocurrency technology will play a fundamental role.

The economy of the future is definitely here , and this shows us that cryptocurrencies are its main base. Do you feel that you still have a lot to know about this topic? Don't worry! We have prepared a complete guide for you where you will learn

• Avoid scams by acting locally or paying with PayPal
• Never pay with Western Union, Moneygram or other anonymous payment services
• Don't buy or sell outside of your country. Don't accept cashier cheques from outside your country
• This site is never involved in any transaction, and does not handle payments, shipping, guarantee transactions, provide escrow services, or offer "buyer protection" or "seller certification"