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DAO is the major concept for 2022 that will disrupt many industries

DAO is the major concept for 2022 that will disrupt many industries

 

What happened?

I'm sure you've all heard of Blockchain by now. It's the technology that allows for secure, transparent, and tamper-proof transactions without the need for a third party. But have you heard of DAO? Short for "decentralized autonomous organization", DAO is a new way of organizing businesses and other entities that eliminates the need for hierarchies or centralized control. 2022 is going to be the year of DAO, so get ready! The blockchain and cryptocurrency rave is not ending anytime soon. And as more people are being introduced to revolutionary technologies in the digital space, new improvements upon these technologies are also being introduced. In the last couple of years, the DeFi (Decentralized Finance) and NFT (Non-Fungible Token) industries have experienced immense levels of growth and, currently, metaverses and Web3 are the technologies making the digital space light up. It is not yet clear where these disruptive technologies will lead us, but we are sure that there will be much value up for grabs. At the convergence of Web3 and NFTs lie many platforms looking to leverage technology and infrastructure to make the NFT ecosystem more decentralized, structured, and community-driven.

 

Read the whole article: https://bit.ly/36Rj27W

 

Why is this important?

The DAO is one major invention that is challenging current centralized and hierarchical systems of governance. DAOs are changing our perspective of how organizations and systems should be run, and they put further credence to the idea that the optimal form of governance does not have to do with hierarchical structures. A DAO is an organization that is focused on a specific mission, and its members work in coordination according to a shared set of rules encoded on a blockchain. To better understand the principles behind a DAO here are some notable advantages of using a DAO:

  • The autonomous structure of DAOs makes them open to transparency. The concept of decentralization has fostered the idea of trust and, with DAOs, you don’t need to be worried about the people behind the organization and whether or not there’s an ulterior motive. The template everyone is judged by is the smart contract, and every transaction is immutably recorded on the blockchain.
  • There is no long, arduous process required to accept innovations with no central authority. With DAOs, innovations do not need to pass through different hierarchies before they get to those with the authority to make decisions. Anyone can make a suggestion, and the fact that these suggestions come at a fee encourages more well-researched and thought-out ideas, not just random, vague ones.
  • DAOs solve the principal-agent problem. There is no power play as members see themselves as equally responsible for the organization’s progress. Everyone is responsible for the organization’s direction, and if there is to be a change in the trajectory, it has to come with the consent of everyone on board.

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