Blockchain technology is all about Decentralization - which means no single source of truth, no concentration of power and authority in the hands of a few, and just as importantly, no single point of weakness. Decentralization can be applied to phone and computer applications - we call those DApps. It can be applied to Financial Service tool - we call that DeFi. And it can be leveraged in building monetary exchanges, which we call DEXes.
The concept of Decentralization, using Blockchain technology, can also be applied to the way people organize decision-making and work. And that is called a DAO.
DAO stands for Decentralized Autonomous Organization. In this new way of organizing, the arrangement of the participants is less like a pyramid, and more like a round table. DAOs move key decisions closer to the individual contributors, giving each person more power, agency, and stake in the outcome of the work. Any individual in the collective can propose change, and everyone gets the chance to vote, and participate in both the execution and management of work.
Once the work is defined and approved, a DAO enables the “Automatic” execution of certain tasks using smart contracts on the blockchain.
There are simple versions of DAOs already live in the world, but the vision for what they could grow into is much bigger. Cardano’s roadmap is leading us to what is dubbed the “Voltaire” era, when the entire Cardano Ecosystem will be governed by a DAO. As we grow toward that ambitious vision, there are experiments taking place, such as Project Catalyst, which allow us to try out pieces of Decentralized Autonomous Organization, and learn from them.
Read more about DAOs at LidoNation.com:
DAOs Demystified: Organization that puts people first