Web3 Overview Roadmap
Introduction to DAO's
A decentralized autonomous organisation (DAO) is an collectively-owned, blockchain governed organisation working towards a shared goal.
Different to traditional organisations who are managed by boards, committees and executives, a DAO has a set of rules, written in code (a smart contract) and enforced by a network of computers running shared software. The code is 100% transparent and verifiable by anyone. The rules can only be changed and the treasury can only be accessed following a successful vote.
There are a few limitation to DAO's. Decision making can be slower as you're not reliant on one person making a decision like some traditional organisations and a lot of time can be spent discussing changes and educating voters. And like all digital platforms, their security has to be flawless or there is a risk of exploitation resulting in loss of treasury funds and confidence/trust within the DAO.
What is a DAO?
A visual explanation of the meaning, working, benefits and risks of a DAO.
Core points
It's important to understand the following benefits of a DAO before moving on:
Question 1/2:
What is a DAO?