What is DAO
I have always given credit to Hive for most of my knowledge acquired from using this platform. When I newly joined Hive I have seeen a lot of article talking about DAO, having a three letter symbol I thought it was a cryptocurrency but it’s intriguing to know that it’s beyond just a cryptocurrency.
DAO stands for Decentralized Autonomous Organization. In my view I guess you can see the DAO as a decentralized parliament where certain crypto decisions are made. It’s built on an open source blockchain protocol. Because of certain decisions aimed to be taken, it has some certain rules that it’s elected members created. These protocols execute certain decisions when the certain conditions have been met. So no intermediaries are needed.
This process and protocol was built to eliminate lots of human error. Venture capital fund is one of the earlier functions of DAO to crowdfund projects. This was there won’t be manipulation of investor’s funds. This also enables investors to transfer funds anywhere in the world without their identities revealed. Initially it was being done with ether.
The DAO also acts as a decentralized board of directors for investors. Whereby they can vote on some certain decisions they want to be executed. They are able to do this because the DAO protocol issued governance tokens to the investors.
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