What are Decentralized Autonomous Organizations (DAOs)?
In the simplest of terms, a decentralized autonomous organization known as a DAO, is a special type of organization that is native to blockchain technology. Structured groups with a common purpose or goal, self-governing DAOs are decentralized, meaning they are self-sufficient with no central authority or leader.
DAOs are powered by smart contracts, which are programs that automatically execute the terms of an agreement between two parties. This makes DAOs incredibly efficient and tamper-proof.
A DAO has the potential to completely change the way we organize ourselves both online and off. By eliminating the need for central points of control, they could make it possible for us to cooperatively manage anything from online communities to global organizations.
The possibilities are endless, but in order to realize the full potential of DAOs, we need to build them on top of blockchains that are truly decentralized. That’s why Ethereum is such an important platform for DAO development. Ethereum is a decentralized platform that runs smart contracts: programs that automatically execute the terms of an agreement between two parties. This makes it the perfect foundation.