Thanks to the internet and social media, like-minded people can engage more efficiently than ever, regardless of their geographical location. In addition, a new type of social network has emerged due to the introduction of digitally native money and banking, allowing like-minded individuals to socialize and coordinate around the capital.
DAOs are software-enabled organizations, to put it simply. They enable individualities to pool coffers to pursue a participated ideal and share in the value created once those pretensions are met.
DAOs are preferred to be the organizational primitive for Web3 in the same way that the LLC( limited liability corporation) was for the artificial revolution. However, companies are based on the historical financial system and managed through legal contracts. DAOs are organized by tokens with rules recorded in smart contracts and run on open blockchain networks like Ethereum.
To understand Decentralized Autonomous Organizations (DAO) better, let’s try breaking the terms individually: