Counsellor
What is the importance of DAOs?
We hear about DAOs all the time but what exactly are they? First off, DAO is an acronym for Decentralized Autonomous Organization; a sovereign organization governing independently without any form of centralized leadership, thanks to the ability of blockchain. This web 3 idea represents an area where technology trends such as artificial intelligence, blockchain, and the internetwork of things which are intersecting to create new possibilities. In simple terms, DAOs are similar to a true democracy — the members of the organization represent and control it, because if this unparalleled structure, DAOs offer the affirmation of enabling a focus on community.
The significance of these decentralized autonomous organizations range from not just from being autonomous and transparent but eliminating human errors and manipulation of funds to unlimited governorship and the absolute absence of hierarchy in organizations. With DAOs such as Joystream, businesses could run entirely without humans, with all decisions made by a series of smart contracts, a computer program that works on a blockchain network. Joystream focuses more on content creators and consumers; a place where people can stream video contents governed by DAO. DAOs grant users the power to vote on updates and proposals, proportional to the amount they hold. All services offered are handled automatically in a decentralized manner, activities are transparent and fully made public and it is guaranteed that everyone has a voice.
In traditional companies, there could be issues in the work place such as work-like conflicts and the regular workplace stress. DAOs help to mollify these minor problems as it gives people the opportunity and freedom to choose projects and jobs that align with their strengths and whose mission and vision genuinely resonates with them. People can work from anywhere allowing them to work on their own and their own terms with convenience and comfort as they are free to choose work hours and provide more opportunities for people who physically cannot leave home.
The technology-centric nature of DAOs allows users to attain levels of privacy and security. They are designed to concede investors, send and receive money world-wide anonymously. Financial transaction records and program rules are maintained on a blockchain and this technology enables decentralization of data which makes it more secure and hard to tamper with thereby preventing fraud and unauthorized activities. Information is stored across a network of computers rather than a single server making it uncooperative for hackers to view data. This technology establishes trust amongst members and reduces the need for third parties or middlemen to verify transactions.
A DAO’s goals are not limited only to investing or building better software, it approaches goals by means of tokenized governance, communities and smart contracts resulting to a highly flexible, inclusive and trustless organization, it is no wonder developers prefer them over traditional organizations. This new kind of organizational structure can also be involved in any kind of endeavor as there are various types with varying functions existing to aptly take advantage of decentralized finance and this will eventually revolutionize the way we use money. To sum it all up, Decentralized Autonomous Organizations is something people should definitely pay attention to as it is a breakthrough for businesses. dao.joystream.org