What if an organization could run itself without a CEO, board of directors, or traditional management? Welcome to cSchool! Today we’re exploring DAOs – organizations that operate entirely on blockchain technology.
DAO stands for Decentralized Autonomous Organization. Think of it as a digital company where decisions are made by its members, not bosses. Instead of having a traditional hierarchy, DAOs use smart contracts – basically computer programs – to automatically execute decisions that the community votes on.
Here’s how it works: Members own tokens that represent voting power. When someone proposes an idea – like funding a new project or changing a rule – everyone votes using their tokens. If the proposal gets enough votes, the smart contract automatically makes it happen. No human intervention needed!
It’s like having a company where every shareholder gets to vote on every major decision, and those decisions are carried out instantly and transparently.
DAOs are already changing the world. Some manage investment funds worth millions of dollars. Others govern online communities or fund creative projects. There are even DAOs that buy real estate or support charitable causes – all run by their members without traditional management.
DAOs eliminate the need for intermediaries and give power directly to the people who participate. They’re transparent – you can see every transaction and vote on the blockchain. They’re also global – anyone with internet access can join and participate.
That’s DAOs in a nutshell – democracy meets technology to create truly decentralized organizations. Want to learn more blockchain basics? Check out our other cSchool videos and don’t forget to subscribe for more one-minute crypto education!
