DeFi and decentralized autonomous organizations, let's find out together what it is

DeFi and decentralized autonomous organizations, let's find out together what it is

By Roberto D. | CryptoFarm | 11 Dec 2019


We deal with DAO, an English acronym that stands for Decentralized autonomous organization and that translated into Italian sounds roughly like Autonomous Decentralized Organizations; these are essentially organizations whose activity and executive power are obtained and managed through codified rules, commonly known as Smart Contract. The legal status of this type of organization, at international level, has not yet been precisely defined and the presence of a regulatory hole is representing an obstacle to the growth of what is one of the most interesting sectors among those born around the blockchain technology. The concept is as simple as it is potentially revolutionary, the governance and the "cash" of the DAOs are managed collectively in a decentralized way through smart contracts and ad hoc created consent protocols, in a sense, therefore, we could define DAOs as cooperatives 2.0 in which, however, the directive orders are missing and the relationships between the participants are all equal and horizontal. Among the platforms already active in this field, the most successful is undoubtedly Aragon, which allows to freely and collectively manage organizations, companies and global communities, all without frontiers, intermediaries and, not insignificant, without the weight of an asphyxiating bureaucracy; created in November 2016 by Luis Cuende and Jorge Izquierdo with the aim of making the decentralized and shared governance of both corporate and non-corporate projects possible.

A very similar idea is the one that supports colony, which however is a platform oriented entirely to digital projects. Also interesting is the concept of DAOstack which, as can be read on the website, aims to make possible new forms of human association that combine the scale and efficiency of free markets with the alignment and consistency of startups; according to DAOstack The future of work involves self-organized networks around shared goals and interests and a new economy in which cooperation is the winning strategy. The ultimate aim of all these platforms is to allow the creation and growth of projects that have a supranational nature, that are not therefore linked to a specific territory but gather around them people and communities from all over the world who collaborate in a horizontal and equal not only to the structuring of a project (regardless of whether it has a corporate nature) but also to its governance. A way of conceiving the work completely different, which makes it possible to collectivize the ownership of an organization, putting everyone on the same level, untying people from the physical places of work and allowing them to collaborate on a project without uprooting themselves from their own land; an idea of ​​this kind, in a world characterized by enormous migratory flows due to poverty and lack of job opportunities, clearly represents a unique and revolutionary opportunity.

How do you rate this article?

0


Roberto D.
Roberto D.

Born, and still living, in Italy. Passionate about cryptocurrencies since I discovered ethereum in 2016 https://linktr.ee/robertod


CryptoFarm
CryptoFarm

All about crypto and airdrop

Publish0x

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.