DAOstack: Another Leap in Blockchain technology.
The history of business started with a group of people being organized into teams to achieve purposes. Every team had a team leader, who had a group of other lower-level shot callers below them, and thus hierarchies were formed and as years went by, the system continuously evolved.
Traditionally, organizations relied heavily on hierarchies, allowing decision-making ability to flow from top to bottom with the occupiers of the top-most level making the decisions that affect the organization while the occupiers of the lower levels are subjected to these decisions.
The traditional Organizations have been riddled with a lot of failures owing to its corruptibility as the interests of the more influential few are not in line with the interests of those below them, hence creating a system of loopholes.
Also, traditional organizations have low scalability; this means that the more such organizations grow, the more agents they will to coordinate, and the more decisions they will have to make. This causes an increases in costs and a decrease in efficiency.
The blockchain has poised a viable solution to the problems of traditional organizations. As a matter of fact it has created a shift from the traditional centralized system of organization to a decentralized system, and its awareness it continuously growing. The block-chain's aim is to create “super-scalable” structures —organizations that become more effective as they grow.
This is the basis upon which DAO is built.
DAO is an acronym for Decentralized Autonomous Organization.
DAO is a model of an open-source, decentralized mesh network of peers where decision-making is collectively done through the blockchain, using smart contracts (briefly: smart contracts are computer protocols which digitally facilitate, verify, or enforce the negotiation of contracts, enabling achievement of credible, traceable and irreversible transactions in the absence of middlemen.)
DAOs are meant to be super-scalable, getting stronger in coherence and agility as they grow, and eventually overshadow the traditional cooperate structures. It is the new form of human association which have captivated the imaginations of the best minds of the blockchain space. However, DAO, with its potentials and promises remained for most parts, an abstract idea, yet to be nursed into fruition. This is because it lacked the critical core elements needed to deploy it effectively, one of those being the lack of decentralized governance solutions that are both resilient and scalable.
And with the aim of facilitating this, bearing all the evolving technical complexities in mind, the DAOstack was built.
The DAOstack is a platform designed to habour a collection of inter-operable DAOs that can share ideas and talents within the ecosystem, creating a harmonious ecosystem characterized by compatibility and functionality.
It is more like a planet that houses several decentralized cooperation(DAOs), allowing even more DAOs to be built. It can be seen as a DAO of DAOs.
How does DAOstack work?
DAOstack uses a background of decentralized infrastructure, called Arc, at its lowest level. Arc is a library of smart contracts implemented on the Ethereum blockchain, which are implemented as a combined tool to create the governance protocol for any DAO. Developers are the only set of people who can interact with the Arc.
Also, using ArcHive, DAOstack creates a vast registry of offers and requests, a compendium of governance modules, and registered DAOs to enable efficient interoperability.
The layered combination of Arc, ArcHive, Arc.js, Dapps, and DAOs make up the DAO stack
POTENTIAL USE CASES>
DAOs enhance the decision-making processes in organizations, weighing the value of each decisions based on reputation of the participants(reputation is ONLY earned by one's active indulgence and value added on the platform).
Hence in DAOs collective decisions are always made in situations where there's a need to decide how much reward a service is worth, or what sort of project to embark on, etc.
Some real life cases include:*
- A book publishing project.
- An open-source software development project
- A collaborative news network of 100,000 journalists
- Curation projects
Why DItch Traditional Organizations for DAOs?
- Traditional Organisations are sub-scalable.
- DAOs reduce costs encountered due to centralization of influence and maintain increased efficiency as the organization grows.
*DAOs are incorruptible
*DAOs are based on the latest blockchain technology.
DAOstack is spear heading the shift in Organizational Management, making the concept of DAO come to fruition.
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