The Decentralized Autonomous Organization (DAO) is the future. This, however, is a more expansive subject than most people realize.
In fact, much of what we are going to discuss in this article is still not possible. A lot of infrastructure is required. Thus, we might be looking at a 10-20 years timeframe before this fully evolves.
Another factor is human embracing of the transformation. DAOs rewrite the subject of trust. Actually, they are designed to operate in a trustless environment. This is contrary to the system we utilize now where entities work hard to garner trust. It is something that is enhanced by governments implementing regulation. Ultimately, we are suppose to trust governments to be the backstop when those institutions misbehave.
Unfortunately, we know that is not always the case.
The Ultimate Resource Manager
DAOs can be thought of as the ultimate resource manager. This is why many are projecting that they eventually are utilized for supply chain management.
Like much of cryptocurrency, DAOs were focused upon because of their monetary component. People want to buy a token in a DAO and see it explode. That is the level that 90% operate.
There are actually technical components that could make DAOs the standard for everything. With the advancement of artificial intelligence, DAO make the perfect host for these.
Many ask who is going to own the technology. A DAO could well be the answer. At the same time, we could see this as data centers for all information. In fact, there could be a time when the Internet is nothing more than a series of connected DAOs.
Since data is such a hot topic, let's look at that.
Data Management
Imagine all your information in a DAO.
This would be a personal DAO. It would contain all that is vital to you. This could be medical information, diet, interests, hobbies, etc. Whatever data is generated by you is logged in the DAO.
Of course, this is the foundation for a personal AI assistant. The DAO provides you with whatever information is required.
Here is where things can really explode.
This DAO will interact with hundreds of other DAOs. There will be ones within your family. Perhaps your spouse sends you a message, your DAO (personal assistant) can answer without you being involved.
Things such as dinner can be planned based upon the information provided by those in your family. The house has its own DAO. This includes all security, temperature, maintenance, and other information related to the physical surroundings.
We then extend this out to other ones. Your doctor's DAO obviously has access to some of the information. From this, it can constantly monitor your heart, kidneys, or whatever else is required.
As we scale up, we can see homeowners associations being replaced by DAOs. This can handle the necessary activities required for the community. Individuals can be rewarded in cryptocurrency for contributions. For example, perhaps your home provides some electricity to the community. Payment is made in a cryptocurrency. This can be used to pay to get your lawn done or your membership fees.
Cryptocurrency
DAOs are going to be major users of cryptocurrencies.
As they are interconnected, payments are sent back and forth between the DAOs. For example, let us say that I own an autonomous lawnmower. Not only does this cut my yard, but the entire community. Each time it does this, the homeowner pays my "tractor DAO" for the service.
These are tokens that I (my DAOs) can use to pay different bills. As mentioned, perhaps that is where my homeowners fees come from. Another possibilities is the need for extra energy. Perhaps I use more than my home generates, so I have to buy from a neighbor. Tokens are sent to that person's DAO.
We have to stress the autonomous nature of this. As we see with things such as ChatGPT and other advancements, things are moving quickly. In a decade, much of what we do is going to be automated. This will really get interesting once robotics starts to be factored in on a large scale.
This means that cryptocurrency is going to be related to all kinds of services. It is also why the idea of just one coin or token dominating is foolish. The DAOs are going to have many different ones they interact with. We are already seeing that taking place.
Another factor to keep in mind is that tokens are going to enable access. This is where we can interact with other DAOs. If information is required, a token has to be available to access.
For example, there might be a DAO that creators of ancient Irish music set up. They place all their songs in there. To listen to them, however, requires a certain level of tokens. These can come from purchase on the open market or as a result of activity done to the benefit of the DAO.
Public Ownership
DAOs will eventually replace governments.
The homeowner's association concept can extend outward. We can simply expand to the local town, state/province, and country. There will come a time where we can see global DAOs operating.
Here is where trust is going to be required. For now, technology aside, there is no way people will trust a global DAO. It will take time to work up to that level. We also need to experiment and design governance systems on smaller scales that are found to be effective. Heck, if Elon Musk gets people on Mars, perhaps there is a federation representing both planets in the form of a DAO.
That said, DAOs can serve as the basis for "public ownership". This can be anything that benefits society at large. It does not have to be in the traditional area of what come under governments.
For example, let us consider an automated trading program that someone wants to offer to the world. This can be done in a way where part of the code is available along with the use. It can be housed in a DAO with much of the programming hidden maybe using something like ZK smart contracts.
It then is something that anyone can access as long as they join the DAO yet is not controlled by any entity or individual. The application is simply released to the public. Here we see the expertise of a single individual (or group) utilized by wider society. Perhaps this application can consistently beat the market, providing individuals with outsized returns.
Collaboration
Blockchain is ideal for what is coming.
Again, the focus was on cryptocurrency while overlooking the potential of the underlying technology.
The DAOs will be established in a way that allows for collaboration and agreement regardless of the number of agents involved. These will be a combination of autonomous and semi-autonomous (humans involved in some way).
DAOs are also the solution to the deep fake problem.
Here we harken back to the idea of data management. If there is a celebrity with his or her DAO, each activity can be recorded there. This could mean that everyone online interact is effectively a NFT. The DAO contained all the different tokens of what the celebrity created or did. This could be tied to other DAO which also monitor what is taking place.
For example, the DAO for the media outlet and celebrity both consent on what was created. Viewers then know it is real. However, if someone posts a fake, the consensus goes out the window and the network pertaining to those entities rejects it.
This is no different than a rouge block producer trying to insert a fake transaction. The other validators will simply reject it.
People laugh when the saying "I am here for the technology" is espoused. We know they laugh because they cannot see passed the money. Nevertheless, this article is meant to express some of the potential of blockchain, cryptocurrency, AI, and DAOs. It also is designed to show how some of the ideas held by people out there are simply foolish.
One final thought:
On the week that Marc Zuckerberg gave an update on what Meta is working on, we can see how all this will eventually tie to what is being described as the Metaverse. DAOs are going to be a central premise of that world.
The merging of the digital with physical, sometimes called the spatial web, is where we are heading.
Step back and expand the viewpoint. This leads to a lot of interesting possibilities.
DAOs are going to be a lot more than simply the replacement for corporations
Posted Using LeoFinance Alpha
