4/12/2023 - Technology and Innovation

What are the DAO?

By andrea navia

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Imagen de portada

Have you heard the word DAO? You have certainly heard if you are in the Web3 world.Allow me, before I begin with the explanation, to clarify that it is not the same concept of Web3.0, which refers to the evolution of the Web Web3, which was presented by Ethereum co-founder Gavin Wood in 2014 and describes a decentralized and tokenized web ecosystem based on blockchain technology.Now yes, basically, Decentralised Autonomous Organizations (DAO) They are a new type of organization based on blockchain technology, where by programming intelligent contracts, where the rules of the business are included, the functions of an organization are carried out.What about this?Imagine that Lollapalooza wants to become a DAO.To fund the festival, a new type of token is issued in the blockchain "X" called LPZ. The festival puts these tokens to the sponsors, singers and fans who will watch. As a rule, the holders of 1500 tokens or more obtain voting rights when making decisions about Lollapalooza, for example: when the event should be held, the price of the entries, etc. Each LPZ is worth a vote. So, smart contracts are used to track who can vote, vote and what results are.Although it is a very basic example, it denotes that the organization of the event can be decentralized and autonomous by giving the vote option to all participants, who acquire the minimum amount of Tokens to vote, and not only to a reduced group as for example to a directive joint.The interesting thing about DAOs is that everything you do is public. The rules of the organization are integrated into intelligent contracts that are public in blockchain so that anyone can inspect them and see how they work.There are people who think this can be a little utopian, because they consider that autonomy implies that the organization is left alone, without human intervention since business rules are seventy in the intelligent contract.I think that autonomy implies that participating people can make their own choices, decisions and take responsibility for the consequences of them. And that this is a conception that gives power to vote and consensus to people who may not know each other and, however, have the same interest, in our case of example, would be this super music festival.And what do you think? Did you buy the LPZ tokens if you could participate in the festival decisions?

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andrea navia

andrea navia

Hi, I'm Andrea, engineer in systems with more than 25 years in IT and currently immersed in the world Web3 and DeFi. From a very young girl, I am passionate about technology and photography. I was a developer, a functional analyst, a team leader, a project manager and for some time I dedicate myself to organizational agility.

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