Understanding DAOs in 5 Minutes

What are DAOs?

Explaining DAOs in Simple Language

Why DAOs?

Comparison between Traditional Organizations and DAOs

  1. The majority of the time, it is hierarchical.
  2. The activities are private and limited to the general public.
  3. Requires human involvement, which is susceptible to manipulation.
  4. Companies are not always transparent and not always global.
  1. It is totally democratized.
  2. All the activities are entirely open to the public.
  3. The services are handled automatically and decentralized.
  4. DAOs are transparent and global.

Working and Structure behind DAOs

Tackling the Principal-Agent Dilemma

Famous Examples of DAOs-

  • The DAO” organization is one of the earliest examples. It was made up of a series of smart contracts that ran on the Ethereum blockchain. Hackers attacked the DAO in June 2016, gaining access to 3.6 million ETH due to programming errors.
  • Bitcoin Network- Bitcoin miners are incentivized to secure the network. It works in a decentralized manner and is not governed by any central authority.
  • Dash and Decentraland are other famous examples.

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