DAO is seen as the future of organisations. A platform like YouTube is currently controlled by management but it could easily operate decentralized. The videos, ads, payments and controls could all be controlled automatically and it would get an innovation boost when everyone is allowed to suggest his/her ideas. A company where the operation works like this is called a DAO.
What is a DAO?
DAO stands for Decentralized Autonomous Organization and is a company that operates independently, without staff. The entire operation is written out in programming code and, through smart contracts, the company knows exactly what to do. You can compare such a contract to a computer program that gives your computer the right work instructions.
The idea came about right after the advent of Bitcoin. They thought, if money can be decentralized, why couldn’t this also work for organizations? The advent of Ethereum and its smart contracts has ensured that this is now possible. If we don’t need staff for a business, what can we do well?
° A list of programmed rules through which the organization knows how to operate. These codes are included in a smart contract.
° Tokens that the organization can issue, rewarding it for certain activities.
° Investors who want to buy the tokens, giving them a say in the fortunes of the organization. They can influence the way it operates and steer the organization to operate successfully.