Decentralized Autonomous Organization

What Does Decentralized Autonomous Organization Mean?

A decentralized autonomous organization (DAO) is an entity in a digital system facilitated by smart contracts. Smart contracts involve digital tools and protocols that help support specific transactions or other contract elements. The decentralized autonomous organization works with popular cryptocurrency and digital ledger operations that many world governments and businesses are moving toward for more transparency and for evolving anti-corruption innovations.

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Techopedia Explains Decentralized Autonomous Organization

The ledger technology called blockchain began as a component of the cryptocurrency bitcoin. In blockchain, a digital ledger system provides an immutable record and transparency of financial movement. Within this model, the decentralized autonomous organization utilizes the ledger and cryptocurrency tools through the smart contracts that help to abstract and customize its interactions with stakeholders. Practical examples of decentralized autonomous organizations have shown how these models can be used for the purposes of venture capital allocation and other kinds of business.

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Margaret Rouse

Margaret is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages.