Good day to to the Hive Society. Today I am writing about an important aspect about the blockchain technology which I have learnt, it is all about Decentralized Autonomous Organizations(DAOs). Have a nice read!
Blockchain technology has opened countless possibilities on the internet, especially when it comes to decentralization, security, and privacy. It has offered power to users to participate in the governance process of the blockchain-based platforms rather than depend on the decisions of centralized bodies. This is made possible through the use of computer codes and programs. This has attributed to the rise to the development of decentralized autonomous organizations. In a nutshell, they are organizations without CEOs managing them, which may sound strange, but the blockchain has made it possible.Decentralized Autonomous Organizations (DAOs) are blockchain-based open source programs or organizations that use computer codes or programs for their governance so that power will not be vested in a few selected individuals, but rather, the general users of the organization are eligible to take part in the decision-making process of the platform.
Most large organizations have faced so many challenges in formulating trustless governance processes and security and privacy mechanisms. With the evolution of DAOs, all these challenges can now be resolved.
Opinions in DAOs are taken from the bottom to the top as users are given the chance to vote on proposals on the platform. This means that no final decision can be made in a DAO without the verification of the general user community.
The earlier DAOs were built on the Ethereum network, but now, as I am writing this, there are a vast number of them built outside the Ethereum network. Examples of some of the popular DAOs include: UniSwap, PancakeSwap, MakerDAO, AAVE, CURVE, Compound, SushiSwap, Alian Worlds, and many more. All these platforms are autonomous, and you can visit their governance sections to see the ongoing proposals they are voting on, and you can stake their native token to participate in the voting process. Almost all of them have their own Discord servers where they discuss the future plans of the organization. Transactions are also displayed publicly on the blockchain for transparency.
Another important DAO that I will want you to know about is the World of Xchange. It is built on the Tron network and has so many use cases. The mainnet is not yet launched, but you can provide liquidity in the TRX-WOX liquidity pool with your TRX via Sunswap through this link while we await the platform's launch.
DAOs have endless purposes in addition to what the current ones offer. For instance, a charitable organization that is built as a DAO will not require any central authority to autorise donations on the platform. From raising funds to distributing funds, all users will work inclusively under trustless governance. With this, there will be fairness in all activities as they can be monitored on chain.
The majority of the current DOAs offer a vast array of investment and financial opportunities for users. Users can stake their tokens or contribute to liquidity pools to generate LP tokens as rewards with higher APYs than centralized banks and venture capital.Transactions that occur in DAOs are fast and simple without the requirement of any form of user identity verification. This allows users to trade their favourite cryptocurencies privately.
The development of DAOs has increased steadily in the last two years. Over 500% of the current DOAs were built within these two years, and many of them offer different purposes but similar governance procedures.
How Do DAOs Work?
As you are aware, decisions are difficult to make, especially when the organization is large.DOAs have made it very easy with computer programs. These programs are known as "smart contracts." They are computer scripts or codes that are executed if certain conditions are met. The ethereum network was the first to implement the use of smart contracts, but now there are a lot of other networks that use smart contracts. Some typical examples include the Solana and Tron networks.
DAOs are mostly backed by tokens as users have to hold these tokens to be able to participate in the decision-making process. The smart contracts are deployed on the networks to be used to execute commands on the network. Before a change is made in the organization, it has to be posted in the governance section where users with higher stakes in the platform's tokens can vote on. Any user can suggest a proposal, and it will be voted on publicly for more transparency. With this, no alteration or spamming can occur on the platform. Every activity in a DAO is transparent as they are built on the blockchain, and we all know the blockchain is open source. The DAO codes are public and transactions are broadcast openly.
Decentralized autonomous organizations are very useful in this technological world due to the wide range of benefits they have to offer. The major drawbacks they currently face are their regulations and minor security issues. That is why it is good to do tight background research on a DAO when you want to participate in its activities, just like you do when you want to save your money in a bank.
It is good to be an early adopter of a DAO. You can do research about this outgoing DOA called the World of Xchange, and I believe you will never regret it. The mainnet will be launched very soon on the TRON network, although everything about the platform is already set and now undergoing some tests. As I indicated previously, you can provide a contribution to the TRX-WOX liquidity pool so that you will be able to mint some rewards when the platform is launched.
Thanks for your time.
MY TRX ADDRESS: TWx8vNT59ayc94fwVhvrxwVSnTqqzMWyAd