A decentralized autonomous organization (DAO), sometimes called a decentralized autonomous corporation (DAC), is an organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government.
A DAO’s financial transaction record and program rules are maintained on a blockchain A blockchain is a digital ledger of transactions that works from a decentralized network.Learn more.
Decentralized autonomous organizations are typified by the use of blockchain technology to provide a secure digital ledger to track financial interactions across the internet, hardened against forgery by trusted timestamping and dissemination of a distributed database.
This approach eliminates the need to involve a mutually acceptable trusted third party in a financial transaction.
With cryptographic instructions that automatically execute when pre-established conditions are triggered, DAOs enable previously unattainable levels of transparency, cost savings, and decentralized decision-making.
Vitalik Buterin proposed that after a DAO is launched, it might be organized to run without human managerial interactivity, provided the smart contracts Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met.Learn more are supported by a Turing-complete platform.
Because DAOs embody a marked departure from the structure of traditional organizations and how they operate, there are numerous legal and operational challenges these organizations must overcome.
The good man is he who rules himself as he does his own property: his autonomous being is modelled on material power.