What is the meaning of #DAO in cryptocurrencies?
DAO stands for Decentralized Autonomous Organization or in layman terms “smart contracts” on the blockchain.
Its an organization represented by rules encoded as computer programs, its transparent, controlled by orgs members & not central governments.
A decentralized autonomous organization (DAO), sometimes called a decentralized autonomous corporation (DAC), A DOA is an organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government. A DAO’s financial transaction record and program rules are maintained on a blockchain. The precise legal status of this type of business organization is yet unclear and not framed as a set rule. This may change in the next few years.
A well-known example, intended for venture capital funding, was The DAO, which launched with $150 million in crowdfunding in June 2016, and was nearly immediately hacked and drained of US$50 million in cryptocurrency. The hack was reversed in the following weeks, and the money restored, via a hard fork of the Ethereum blockchain: the Ethereum miners and clients switched to the new fork.
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This article was written by Marius Landman
BitcoinTAF.com on Twitter @BitcoinTAF