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DAO (Decentralized Autonomous Organization)

A decentralized autonomous organization (DAO) is a set of computer-defined rules and smart contracts based on blockchain.

With the widespread use of blockchain technology, a new type of business or organization has gained popularity. A decentralized autonomous organization, or DAO, is a business that is managed decentralized through smart contracts built on the blockchain. The basic goal of DAOs is to enable a sizable contributor community to take part in its governance and long-term growth.

DAOs function as a result of a variety of smart contracts working together, enabling members to participate equally in internal decision-making. How the company will use financing and resources is one of the decisions made by the community of stakeholders. A certain proportion of the community must agree in order for the organization's plans and policies to be accepted. 

Extra reading:

What Are the Advantages of Tokenization? Real Estate Case Study

Find out all about the advantages of tokenization in blockchain, especially when applied to real estate assets.

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