The Role of Blockchain in Decentralized Autonomous Organizations (DAOs)

As the world of technology continues to advance and advance beyond what we can ever imagine of. There have been a massive remarkable transformation and that is to help to redefines what we used to see or know the traditional systems to be years ago. There have been a whole lot that have been happening and which I believe will continue to happen as it is just a matter of time.

It is no longer news that the world of blockchain technology have been introduced and not only introduced but whether we like it or not is here to stay and we will still see more of it to come actually. The fact that the Blockchain technology have been able to introduce what I will call the Decentralised autonomous organisations which we always called the DAOs. DAOs have been able to transform a whole lot of things beyond we can ever imagine.

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Decentralised Autonomous Organisations as we always call it works making use of smart contracts that helps to make sure that processes are been carried out automatically on the Blockchain network and even beyond. One of the major role that DAOs play is the fact that it helps to distribute authority so that there will be a collective effort in the decision making. By doing so, it makes sure that it is Transparent and not only transparent but also make sure that centralisation sense is removed away.

For every DAOs that you see thrive, I tell you that the major backbone is the Blockchain. Whether you like it or not. In fact it makes it possible for the functionality of the DAOs. There are some key attributes that Blockchain technology have that makes it to thrive and succeed which I will be discussing below. The first is Decentralisation. Decentralisation in the sense that there is no central authority in Blockchain space and that is also what operates in DAOs. It makes it possible to where stakeholders or members Participate in the decision making.

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The second one is in the aspect of transparency. Transparency in the aspect of creating decisions and transactions whereby every decision taken in a DAOs is been recorded by the Blockchain and making it transparent to be visible for every members. The second feature that the Blockchain technology have which helps it to thrive is in the aspect of Immutability. I will also break that one down.

The fact that every transactions recorded on the Blockchain can not be altered again make it possible for the financial records. The last feature I will like to talk about before concluding is the aspect of smart contracts. Every DAOs function on smart contracts and those smart contracts makes it possible that every transactions carried out are been done automatically.