But in order to properly convey the ideals behind this virtual world we need to actually understand everything about it, including one of the most important parts about it that many newcomers tend to gloss over, aka the DAOs.<\/span><\/p>\n\n\n\n So, if you\u2019re interested in reading more about this strange new concept then keep on reading because it will definitely help you better understand the inner machinations of the blockchain technology in the process. <\/span><\/p>\n\n\n\n Decentralized Autonomous Organizations, or DAOs for short, are entities that work in their entirety without any central leadership to reign them in and make decisions for them. <\/span><\/p>\n\n\n\n But without any actual leadership in charge, how can one such entity exist? After all, someone\u2019s got to be at the very top of the food chain, right? Wrong, that\u2019s the beauty of DAOs. <\/span><\/p>\n\n\n\n Instead of there being an overarching individual or group of people at the top, the entity is actually controlled and managed from the bottom-up, with the most important part of the community being the actual decision makers themself. <\/span><\/p>\n\n\n\n This community is in charge of the project while also always working directly under the blockchain itself. <\/span><\/p>\n\n\n\n The DAO system works without any hierarchical management and it can be used to cater for a plethora of different purposes depending on the goal of the community. For example, if the community is made up of freelancers, these individuals now have to put their funds together for the sake of paying for all of their expenses. <\/span><\/p>\n\n\n\n Another example of this is the case of charitable organizations working as DAOs. These communities need to approve every single payment and make sure that they venture with the capital firms in order to make the process safer and smoother as well. <\/span><\/p>\n\n\n\n DAOs work through smart contracts, which are deployed directly on the blockchains. The smart contracts actually work as a series of rules that everybody in the community must abide by. <\/span><\/p>\n\n\n\n So, in a way, it is similar to owning shares in a company, as in order for a decision to be made, the majority of the stakeholders need to approve it for it to take action. Similarly, everyone can make a proposal, as long as they are a stakeholder themselves. <\/span><\/p>\n\n\n\n It should also be mentioned that there is a huge difference between DAOs and the DAO. So far, we only really talked about DAOs, these being Decentralized Autonomous Organizations as a whole. <\/span><\/p>\n\n\n\n The DAO however is actually one of the very first organizations of this archetype that was ever launched. The sad part about it is that it was successfully founded back in 2016 but it eventually failed as a whole because of the Ethereum network split. <\/span><\/p>\n\n\n\n So, just for reference\u2019s sake, we need to clarify that throughout this guide we will be talking about DAOs not the DAO. As separate entities, although they share a similar nickname, they are different from one another in many ways.. <\/span><\/p>\n\n\n\n But alas, now that we know what DAOs are, we need to discuss why this information is important to us and most importantly, how we can take advantage of it in the near future. <\/span><\/p>\n\n\n\nWhat Are Decentralized Autonomous Organizations?<\/b><\/h2>\n\n\n\n
How DAOs may be of interest to you<\/b><\/h2>\n\n\n\n
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