Blockchain and governance
It’s my opinion that the consequences of blockchain technology will be more disruptive than those brought about by the internet.
I believe one of the innovations to come out of an immutable, decentralised system is DAO’s (Decentralised Autonomous Organisations)
In this article I break down what a DAO is, and the consequences they could have.
What is a DAO
The key premise of a DAO is that there is no central authority making decisions. There is no middle man. Decisions on how the DAO is run are made via the blockchain from nodes that make up the DAO. Remember, a blockchain is just a way to maintain integrity in a decentralised system.
DAO’s have become a popular way of running DAPPs (Decentralised Apps) on the Ethereum network and other blockchain protocols. One easy to understand use case is regarding venture capital. Rather than having investors pick projects in a venture fund, DAOs allow the investors in the fund to vote. Theoretically, this means you avoid human error, manipulation and bureaucracy. There’s no place for administrators in a DAO. Every decision and vote lives immutably on the blockchain, while individuals behind these votes have their identity protected.