basics of DAOs
when you hear anyone say "crypto is the future" this is what they really mean
Something important about Bitcoin
For the longest time we were told that "Bitcoin is the future!", but what does that even mean? How is Bitcoin the future? Future of finance, sure, but what about everything else? This is why cryptocurrency as a whole is so interesting, not just Bitcoin. See, Bitcoin was the first protocol ever released to decentralize something. From Bitcoin came the world of DeFi (decentralized Finance) and all kinds of answers to economic realizations people were starting to have, but I am here to say that decentralization doesn't just fix finance, it has the potential and capability to revolutionize and changes countless industries and platforms today.
We now know that "Bitcoin is the future!" not because it itself is the greatest thing since sliced bread, but because the ideas and principles of decentralization and autonomy that blockchain tech brought to the table showed the world that we as internet users can finally have freedom on the internet.
This is where DAOs come in.
what even is a DAO?
One of the hardest things about talking crypto with people is all the big mumbo jumbo buzz words that get thrown around that no one can ever even understand. I however also happen to believe that people as a whole are generally smarter than we think or even they themselves might think. That being said, what's a DAO?
A DAO is a Decentralized Autonomous Organization. To put it simply, DAOs are a business structure where control is spread out rather than hierarchal. These are platforms and protocols that work to solve a specific problem and/or provide utility that could not be solved or provided given the normal, centralized platforms we use today. Once a DAO is created, the creator(s) have no higher authority or control over the organization. Instead, there are specific programs and governance protocols implemented into all DAOs to ensure that the community has a say in how things are done and who has the most influence. These protocols are also called smart contracts and they are used to enforce these rules digitally.
Basically, rather than a central point of power making decisions, there are rules encoded into the DAO to give control to the users rather than the makers or owners of the platform. What's even cooler is that all of the code for each DAO is transparent to ensure that no sussy baka rules are at play.
utilizing blockchain technology
Any and all internet platforms that are DAOs are utilizing blockchain technology. This is what allows platforms to be safe, secure, for the people, and by the people. Implementing tokenomics into a DAO is just one way that DAOs are incentivizing people to use their platforms rather than their centralized competitors. There are a lot of technicals to the tokenomics behind any one DAO. Liquidity pools, staking, rebasing, airdrops, and like 12 other super complicated things that you don't care about and shouldn't have to care about mean that you play to earn, build to earn, use to ear, trade to earn, and much much more. This is why you can earn $SAND just by playing in their Sandbox Alpha that they are releasing. It is also why creators can use platforms like Audius to earn crypto with their music, even though they aren't some big shot celebrities in the music industry.
Besides play to earn, the more important aspect of crypto and blockchain tech behind a DAO is that members typically use governance tokens to vote on topics such as fund allocation. This is what gives DAOs their sense of community that drives the organization. Now more than ever, using DAOs, the most important thing that a business model must have and maintain is their community.
Invest in your own DAO today and most importantly, DYOR (do your own research). If you are looking for a safe and easy to use exchange that offers a wide variety of cryptocurrencies, tokens, and DAOs to invest in, then check out Coinbase for sure.
Click this icon to join Coinbase and in doing so receive $10 worth of Bitcoin for FREE
The possibilities are endless with DAOs. For the first time ever we are creating an internet of value. If Web 1.0 was the wave of information and Web 2.0 was the wave of communication, then Web 3.0 is the wave of decentralization, cyber security, and value. For more on what the future might hold check out the metaverse will make millionaires. Didn't know or understand some of the lingo used in this blog? Check out the basics of crypto lingo.
*i am not a financial advisor and this is not financial advise
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