| dc.description.abstract | Blockchain has taken the digital space by storm. A blockchain is a shared distributed ledger or database between computer network nodes. It is an electronic database for data storage in digital form. The most widely known usage of blockchain technology is preserving a secure and decentralised record of transactions in cryptocurrency systems like Bitcoin. The blockchain fosters confidence without a third party’s intervention by ensuring a data record’s security. (Blockchain Facts: What Is It, How It Works, and How It Can Be Used, 2022) Many new technologies are being developed using blockchain to make various processes for a consumer and companies straightforward and transparent. One such technology is named decentralised autonomous organisation (DAO).
A jointly owned, blockchain-governed organisation pursuing a common goal, a decentralised autonomous organisation (DAO) is a new type of legal structure with no central authority and members who are all committed to acting in the organisation’s best interests. DAOs have gained popularity among blockchain technology enthusiasts and are used to make decisions in a bottoms-up management style. It enables us to collaborate with like-minded people worldwide without relying on a kind leader to oversee the finances or daily operations. You need to have a lot of faith in the individuals you are working with if you want to start an organisation with them that entails funding and money. Nevertheless, it is challenging to 2 | P a g e believe someone when high financial risks are involved. This is where DAO excels, as you only need to trust DAO’s code, which is entirely transparent and verifiable by anybody. No CEO or CFO has the authority to spend money at will or to tamper with the books. Instead, the organisation’s operations and financial decisions are governed by blockchain-based rules built into the code. They have internal treasuries that nobody can access without the group’s consent. To ensure that everyone in the organisation has a voice and that everything takes place in full transparency on-chain, decisions are made through proposals and voting. | en_US |
