Technology

What is a Decentralized Autonomous Organization (DAO)?

In short, a DAO is a financial institution based on and guided by computer code.

But understanding how it works can be quite complicated. This is an incident.

DAO is open source and available to everyone

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DAO is open source and available to everyoneCredit: Getty

What is a Decentralized Autonomous Organization (DAO)?

In basic terms, a decentralized autonomous organization is a way of organizing that is powered by artificial intelligence.

Its data is available to anyone with an internet connection, and all those who use the database make decisions.

They are designed around a set of rules that are enforced on a blockchain, which is a record of cryptocurrency transactions.

The earliest example of a DAO is bitcoin.

It has no leadership and the whole community contributes influence.

How do DAOs work?

DAOs are completely autonomous and transparent. Anyone can check the accounts and every transaction is recorded.

They work using blocks of code, called “smart contracts,” and automatically make decisions when a set of criteria is met.

Most read in The Irish Sun

These contracts establish the rules, and anyone with a stake in the currency will then have voting rights.

When a proposal is made, it is approved only after it has been approved by a majority of the members.

But how much is determined depends on the specifics of the contract.

What are the advantages of DAO?

Since it does not have any leader with responsibility shared by all users, it cannot have a single point of failure that creates stability.

Being completely open source and auto-returning means there’s very little room for human error, designed to create certainty and trust in the community.

Working as a collaborator, the user’s influence is equivalent to the number of tokens they buy.

However, this does not give them more rights or privileges.

What is The DAO?

The The DAO is a failed DAO based on the Ethereum blockchain that works using all the principles described above, written by Christoph Jentzsch in 2016.

Due to a bug in the code, users were able to transfer a third of its value, worth about $50 million, to a sub-account.

This marked the end of its prestige, with it being removed from major crypto exchanges.

But before that, it split into two currencies, one of which became Ethereum Classic and has continued to grow.

https://www.thesun.ie/tech/8312651/what-is-a-decentralized-autonomous-organization-dao/ What is a Decentralized Autonomous Organization (DAO)?

Fry Electronics Team

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