Decentralized autonomous organization (DAO) was originally a simple concept, conceived as an organization, created by an idea and driven by developers, to automate business functions and processes by leveraging all the basic principles of smart contracts and blockchain. The core idea is to flatten the complex business processes of various organizations in trouble, and to facilitate the transfer of assets to very future-oriented digital interactions, without intermediaries-promise faster, cheaper and more transparent transaction processing.
By replacing many intermediaries, the DAO itself acts as a digital intermediary that provides transparency and scale, giving them the status of an organization, without the need for entities, groups, management, charters, and other forms of collective action in the traditional organizational structure. While the traditional centralized organizational structure is being challenged, the key organizational elements that still exist are driving a new economic revolution. It is giving birth to a new creator economy and bringing artists, lawyers, developers, and creators from all over the world. People come together to create ideas and monetize them on a global scale in a permissionless encryption economy system based on blockchain and Web3 technology-and basically define the future of work.
Reduce reliance on trusted parties, Asset tokenization, And the new value store supported by blockchain technology itself can realize a new organizational structure and reduce the power of intermediaries.Celebrity Quotes by Ronald Coase prose exist Purpose For companies, “the essence of the company” explores the reasons for the existence of companies and the elements that make them up.
From the perspective of transaction costs, the company creates an economic structure that reduces transaction costs within its boundaries by better controlling standardized contracts with employees and resource ownership. As the cost of resource internalization increases, contractual arrangements with other companies in the professional field will arise. Decentralized verification and smart contracts supported by blockchain can greatly reduce transaction costs related to signing.
Although this is the original theme behind DAO, speed, efficiency and cost bring the main goals, but DAO now represents an important part of thought sharing management, and it is also the main reason behind extracting value from the basic layer or the first layer of the blockchain. Driving force platform. These first-tier blockchain platforms Represents the emerging Web3 A technology designed to provide participants with greater control rights by fundamentally decentralizing computing, storage, and interconnection. Many DAOs will appear that represent the ingenuity of the global talent pool, digital natives, and communities that share a common belief system—and bring the word “organization” to life.
DAO: the backbone of the creator economy
The broad definition of DAO is an organization that records its membership, rules, and responsibilities on an immutable ledger supported by blockchain technology. Its regulations and evolution are public and unchangeable. Generally, joining requires various resources in the form of tokens and community membership in order to participate or vote as a participant. Tokens are monetary assets (Fungible or non-fungible tokens), whether it is cryptocurrency or legal tender. In most cases, it takes time and talent to get tokens, or use fiat currency or cryptocurrency to purchase.
DAO provides a unique structure that naturally supports the creator economy, where the economic model supports a structure through which you can rent your talents and time, gain flexibility and benefits, and use it to promote community support and management Part of the ownership in the system. Blockchain and associated DAO embodies a natural governance structure for digital natives to conduct borderless online collaboration on encrypted native projects. By the way, traditional organizations that embrace these principles can Using this structure is similar to how physical enterprises find a digital equivalent into the Web 2.0 era.
Although issues surrounding regulatory clarity and investor protection frameworks remain, these digital entities embody a country’s digital reality—the country’s attempts to attract talent, capital, and innovation. Although governance and participation rules may not be perfect, they are a continuous innovation experiment designed to change our way of life and empower every willing community to participate. Although the arguments of autonomy and collectivization are used to justify the lack of regulation, the ability to purchase voting rights and the lack of protection provide a strong counter-argument to this argument. If DAOs become digital simulations of existing companies and organizational structures, will they continue to serve as a means or facilitator of the creator economy and support the principles of Web3?
The future of work
As a technological paradigm, Web3 aims to provide a track for the creation, tokenization and movement of value and assets. Web3 aims to solve content ownership issues and provide portability by tokenizing digital assets, which paves the way for trading this tokenized value with other alternative tokenized assets, thereby enabling creation Can monetize the results of their work. These work results may include (but are not limited to) mining and creation of content, such as art, music, and other forms of irreplaceable tokens, which represent shares in the ecosystem, much like game tokens.
In the future where there is no hierarchical dynamic and borderless organizations that can undertake most of the value creation, it is even more conceivable to provide services that connect these ecosystems through interconnected value networks, exchanges and bridges. These decentralized exchanges or asset bridges not only provide a way to exchange various asset classes, but also promote the global flow of assets, thereby creating a truly global economy and attracting digital natives and talent pools.
Innovation driven by a decentralized and transparent token economy model aims to provide an excellent end user and employee experience, while ensuring that organizations obtain cost savings and competitive advantages from an excellent participant experience. DAOs participating in DeFi, NFT and various other Metaverse projects provide this. A small number of developers or founders conceive plans and conduct decentralized development through platform projects or crowdsourced development, and through token incentives and participants are not only Consumers, but also benefit from their meaningful participation.
DAO represents an emerging trend that is driving a profound and lasting change in the workplace that combines cultural, digital, and philosophical belief systems. This is attracting investment from other token projects and talents from global digital natives, thereby creating an experience for all participants, resulting in a more flexible and empowered workforce and more community participation.
This article is created by Anant Natrayan and Niding Gower.
This article does not contain investment advice or recommendations. Every investment and trading action involves risks, and readers should research on their own when making a decision.
The views, thoughts and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Anant Natrayan With more than 18 years of global experience, he has held multiple positions including R&D, business acquisition, systems engineering, product development, construction management and project management. His startup is building Cybereum, a blockchain-based platform for managing complex projects in collaboration with multiple stakeholders. He holds a bachelor’s and master’s degree in mechanical engineering, an MBA degree from IESE, and a master’s degree in major project management from the University of Oxford. He is a professional engineer (PE) and a project management professional (PMP). He has led multidisciplinary teams in multiple complex projects and technical/product development work. Ananth holds multiple patents in offshore wind turbines and blockchain technology.
Niding Gower He is the founder and director of the IBM Digital Asset Lab, where he designs industry standards and use cases, and is committed to making enterprise blockchain a reality. He previously served as the CTO of IBM World Wire and IBM Mobile Payments and Enterprise Mobile Solutions, and founded IBM Blockchain Labs, where he led the work of establishing blockchain practices for enterprises. Gaur is also IBM’s outstanding engineer and IBM master of invention, and has a rich patent portfolio. In addition, he also serves as the research and portfolio manager of Portal Asset Management, a multi-manager fund specializing in digital assets and DeFi investment strategies.