🚀Exploring Web 3.0 — What are DAOs (Decentralized Autonomous Organizations) ? Part 1
There’s a new internet and its called “Web 3.0”
The internet is quite an interesting creature, I describe it as one because it keeps on evolving. First up was Web 1 (1990–2000), standard web pages. Then Web 2 ( 2000–2010 ), which gave us social media and amazon. Now we’re at Web 3 (2010-present), and it delivered us NFTs and decentralized autonomous organizations (DAOs).
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Breaking stuff down
Have you ever heard of a company/organization with no CEO? Well then, welcome to the world of DAOs.
A decentralized autonomous organization is a collective entity owned and operated by its community members. Funds are stored in their very own treasury and are governed by smart contracts, which means DAOs don’t have to rely on banks to store their funds. There is no central authority figure within the organization. Decisions are executed via proposals and voting, this ensures fairness and equality amongst its owners. Allowing everyone to have a voice within the DAO.
Popular examples today 🔥
- Bankless — Bankless DAO is a decentralized community driving adoption and awareness of bankless money systems like Ethereum, Bitcoin, and DeFi through media, culture, and education. https://www.bankless.community
- MarkerDao — an Ethereum-based protocol that issues the Dai stable coin and facilitates collateral-backed loans without an intermediary ( Loans without the need for banks and a bunch of legal stuff). https://makerdao.com/en/
- KilmaDao — A carbon-backed digital currency and algorithmic climate protocol ( basically fighting climate change ). https://klimadao.finance
- Yearn.finance — group of protocols running on the Ethereum blockchain that allow users to optimize their earnings on crypto assets through lending and trading services. https://yearn.finance
So how do these things even work? 🤨
DAOs, are built upon what is known as a “Smart Contract”. Fundamentally, a smart contract is a computer program that runs on the blockchain, it is executed once pre-determined conditions are met. Think of the smart contract as the by-laws of the organization. The rules set in the smart contract will govern the entity. This is why there’s no need for a management board, or third party to facilitate trust and execute decisions.
Some advantages of DAOs
- There is no need for it to store funds with traditional banks. Which means they can avoid any read tapes and regulation preventing them from opening bank accounts, because it already has it’s own bank ( treasury ).
- Decisions that impact the organization aren’t exclusively carried out by a small group of people. Each member of the collective has the opportunity to propose decisions that can shape the entire organization.
How do you join one? 👀
It’s not hard at all to join a DAO, in fact, anyone can. I recommend you get the following things before you get on board:
Web3 wallet — A web3 wallet is a tool that is used to allow access to a web 3 Dapps ( decentralized app ). I recommend that you get the industry standard, which is MetaMask (https://metamask.io)
Discord — Discord is a popular online community platform. You can, video call, audio call, and do all of the basic social media stuff. I recommend you get it because most DAOs are usually built on the platform.
I recommend joining the Bankless DAO if you really want to dive into things. Just head on over to their site for instructions https://www.bankless.community.
Thanks for reading my article! 😁✨. Feel free to post any thoughts or questions on my twitter thread below.
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🚀Exploring Web 3.0 — What are DAOs (Decentralized Autonomous Organizations) ? Part 1 was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.