The future of Decentralized, DAO?

What we can learn from the "DAO (Decentralized Autonomous Organizations)?"

As we enter the year 2022, cryptocurrencies and decentralized environments are being discussed everywhere. The search for a new market model that incentivizes new 'players' and allows for independent data exchanges, has intensified. Most importantly, people all over the world who have been left behind by the rapid changes in the world economy and are looking for alternatives, harnessing the power of new digital tools to try and reverse this trend towards inequality. This is where DAOs come into play.

In case you’re not familiar with ‘The DAO’, here’s a quick wrap-up: ‘The DAO’ was one of the first “Decentralized Autonomous Organizations” (hence the acronym), launched back in April 2016 after one of the largest crowdfunding campaigns in history. As with most big things in technology, it quickly became overhyped, generating major “buzz” amongst tech-enthusiasts, as well as among political and economic spheres. Sadly, the project was not successful and became defunct by September 2016, having a very short lifespan of about 4 months and a multitude of problems regarding privacy and web security.

But what was it in the first place? And can we learn anything from it?

Decentralized Autonomous Organizations are a type of organization controlled solely by the “organization’s” members, and not in any way influenced by central governments, making them “autonomous”. Finally, their rules are encoded as a fully transparent computer program. This accounts for the “decentralized” part of the name, as this program runs on multiple machines and codes distributed throughout the web. ?The blockchain technology used allows for financial transactions and the organization’s rules to be safely stored and tracked.

Since the failure of ‘The DAO’, other Decentralized Autonomous Organizations have appeared, most notably Dash (actually launched back in 2015, before The DAO, and still active to this day). Recently, a new DAO was created to try and purchase an original copy of the Constitution of the United States, called ConstitutionDAO. It quickly raised over $47 million in Ethereum cryptocurrency, and even though it wasn’t successful in its purpose, the effort was a demonstration of the power of DAOs and how new businesses, institutions, and communities can be built from the ground up almost instantly in this web-powered ecosystem of the XXI century.

As previously mentioned, “The DAO” managed to raise a huge amount of resources when the project was announced, but this was not enough to make it thrive. Major security issues appeared, most notably vulnerabilities that allowed hackers to gain access to 3.6 million ETH (Ethereum, The DAOs’ cryptocurrency of choice), raising doubts among investors who started to feel uneasy about giving their money to an ultimately unsafe environment.

This, alongside privacy issues, led to a loss of trust in the whole “Decentralized Autonomous Organization” ecosystem, as many began to doubt that an unregulated organization could ever work without interference – or oversight – from government authorities. So, what could we expect in the future for these organizations? Any new "DAO" that emerges must address the fears and insecurities brought to light by the old "DAO": better cybersecurity, data protection, and real deregulation, with full autonomy from government agencies and entities as a whole. For this to truly happen, it also requires the trust and participation of a large and active community, as has happened multiple times before – most notably with “The DAO” and “Constitution DAO”.

At Bizmoni, we believe that this is one of the most important changes we will see in the near future. As new technologies such as Machine Learning and Artificial Intelligence are harnessed and improved, the power of DAOs and similar organizations to alter the way we do business or lead our lives will only grow. Bizmoni's ecosystem is being created as one such model for DAOs, addressing the most common fears of investors, and the weaknesses of previous organizations. We want to create a true Metaverse Economy, where users can find access to resources, technology, and the knowledge required to leverage their business and build their own path to success. Not one maneged or monopolized by a single organisation.

Join Bizmoni in the New Way to Work and Play!

by Jose Graca 21/02/2022