As if the world of technology hasn’t evolved enough, DAOs are now here to fulfill people’s desire to organize with people across the world and create their own rules and decisions autonomously, all while staying anonymous – if they want to.
DAO is an abbreviation for Decentralized Autonomous Organization. Wikipedia defines them as “an organization represented by rules encoded as a transparent computer program. But controlled by the organization members and not influenced by a central government,” thus making it a potential-filled opportunity for those brave enough to capitalize on it.
One company that is new to arrive on the scene is called Trilicon Digital. What makes Trilicon Digital unique is that it is a startup that establishes DAOs to acquire and create corporations. It solves two problems that DAOs have. One, it is a company created in the USA requirements for corporations adding trust. Second, they add real-life value to NFTs.
The current and future generation and some of today’s internet users eagerly await the opportunity to establish their social organizations, searching for a trusted environment to exchange things or valuable information. It is all made possible by the blockchain through its ability to make automated trusted transactions. However, people still wish to organize themselves more comfortable while being open to looking for people with similar mindsets to work with around the world.
“We believe that Trilicon Digital will recreate the business world. When we create companies, they will all be decentralized and allow our community to leverage the IPs for a personal resource.” – Jermaine Vanryck ( CEO of Trilicon Digital )
Contemporarily, Bitcoin is generally seen as the first completely functional DAO because of its own programmed rules. It functions autonomously and is all done through a consensual protocol. However, the fact remains that other DAOs will not likely be as successful as Bitcoin, which is exemplified in May 2016 when the German startup slock. It launched a cleverly named DAO, “The DAO,” which aimed to support their decentralized iteration of Airbnb. However, it was a success that generated over $150 million worth of Ethereum. When inherent issues in its code arose, it experienced a hacker attack wherein hackers siphoned $50 million worth of Ethereum from the organization. At the same time, the fault was in the slock. Its code, not its concept as a DAO, the hacking caused trust issues towards using Ethereum coins and DAOs in general.
After a fluctuation of trust in DAOs, people’s interests were arisen in 2020 due to the sudden rise of Decentralized Finance. Since you are now more or less knowledgeable about what exactly DAOs are, it is also essential to understand the bigger side of things, such as the background and characteristics of it all, to truly grasp how DAOs are flipping the traditional forms of organization.
What Do DAOs Do Differently?
A Decentralized Autonomous Organization records its transactions and rules on a blockchain, thus eliminating the requirement of an external party in a transaction, making it much more simple through smart contracts. Smart contracts embody the organization’s regulations and are also in the hold of the organization’s storage. Given that DAOs are completely transparent to the public. They are companies backed by legal statuses. Suppose people will immediately notice any rule change. This is the opposite of what we are used to as a society. A DAO won’t need to function perfectly fine because of its concept as a general partnership between and amongst people on the internet.
Perhaps the most obvious difference DAOs have from traditional companies is that it has a democratised organization. That gives all members of a DAO the obligation to vote for any changes, as opposed to traditional organizations wherein changes are made by single parties, depending on their structure.
DAOs’ resources are almost all garnered through crowdfunding that issues tokens. This concept gives the community involved in DAOs an incentive to govern the organization. At the same time, more traditional companies mostly come from the higher-ups, such as the Board of Directors, investors, and executives. The transparency of DAOs to the world is also a glaring difference from traditional companies, whose operations are almost always confidential to the public, making them the only ones aware of what is happening inside.
Certain requisites or elements need to be fulfilled before a DAO is fully operational and capable. Such as Rules that will dictate operating funds, such as tokens that the organization can use to reward activities to their community and provide the right to vote for rules the community wishes to establish. It must also be a secure structure that allows early investors to configure the organization.
However, a potential problem arises from the voting system. If a security hole were suddenly spotted within the organization’s initial code, it would be impossible to correct it until most votes were cast. While the voting process takes place, the code is vulnerable to hackers because of the hole in its security.
How DAOs are Utilized Today?
Given that it is inherently a versatile tool for anyone, DAOs today are being utilized for various purposes such as investments, charities, fundraisers, and the purchase or borrowing of NFTs, all without intermediaries, unlike traditional organizations.
To simplify the concept of DAO, we can say a DAO can accept donations from virtually anyone across the globe, and its members can choose where to spend these donations.
DAOs can even make you an owner of a song through cryptocurrency, such as when Jenny DAO acquired its very first NFT, which happened to be an original song by the famous DJ/Producer Steve Aoki and 3Lau, thus making Jenny DAO a co-owner of the song. The Jenny DAO is a metaverse organization that gives people fractional ownership of NFTs, and it also gives them the ability to oversee any fiscal activity the NFTs go through.
Metaverse: Changing Everything We Know About Business
Unlike traditional organizations that mostly only follow orders and changes from the top, reiterate. DAOs aim for a collective organization owned and managed by all of the members within by allowing them to have a voice within the community and the right to vote for any changes that they see fit. The rise of DAOs is evident because the analysts acknowledge the emerging prominence of this type of organisation in the last few years, claiming that it can potentially replace some traditional organisations.
In the end
In the ever-changing and ever-evolving world of technology and the internet, it is only right for businesses, organisations, firms, and brands to stay aware of current trends that can impact the future of how consumers interact. Thus, the rise of DAOs is very relevant to the best interest of anyone who wants to embrace the future.
Feel free to contact Trilicon Digital via email at [email protected] if you like what we’re doing.
Our exclusive NFT collection will be released later this year as a digital asset. Become a member of our waiting list if you are interested!
If you want to read our previous article click here