Technology shaped history. How will web3, the metaverse, blockchain, and DeFi impact fintech? Today, we learn what makes a decentralized autonomous organization (DAO) a powerful virtual assets tool.
Technology has shaped history. The telephone, airplane, computer, and internet changed our life, respectively. How may the likes of web3, the metaverse, blockchain, and DeFi alter the course of fintech as technology develops? Today, we hear about what makes a decentralized autonomous organization (DAO) a potent instrument in the virtual assets sector from Custonomy, Async Labs, ShapeShift DAO, Global Mobile Group, and Injective Labs.
“Its special qualities and advantages”
Decentralized, community-driven, effective, open, and creative, a DAO is powerful in the virtual assets business, according to Custonomy COO and co-founder Annie Hui.
Hui thinks DAOs can help virtual asset initiatives build more transparent, secure, and inclusive financial systems that better serve consumers. “It is projected that DAOs will become considerably more common and influential in fostering innovation and expansion in the virtual assets sector.”
Hui also discusses what makes a DAO so powerful:
Decentralisation – A DAO is not controlled by any individual or organization. Instead, smart contracts on a blockchain codify its laws and regulations. “This can help to ensure that decision-making is transparent and fair, and can prevent any one people or organisation from having too much control over the network.”
A community of people interested in the platform or project drives a DAO. This can help make community decisions in the best interest of the community and make the platform or project more responsive to user needs.
Efficient – Smart contracts make DAOs more efficient and cost-effective than traditional organizations. This can cut administrative expenses, improve productivity, and enable more transparent and secure transactions.”
Openness—“A DAO is normally available to everyone who wishes to participate, regardless of geographic location or financial status. This can democratize financial services and increase virtual asset industry participation.
Innovation – “A DAO can drive innovation in the virtual assets market by allowing the community to interact and develop new ideas and products. This can lead to new financial products and services that better suit users.”
Can improve effectiveness
Luka Klancir, co-founder of Croatian digital agency Async Labs and Croatian Bitcoin website, believes DAO is a powerful tool since it supports blockchain and cryptoverse principles of decentralization and transparency.
Klancir argues DAO decentralizes decision-making and governance, improving openness, efficiency, and security. It lets participants administer and govern digital assets and platforms without intermediaries.
This allows for more community involvement and asset management. Smart contracts in DAOs can automate operations and decrease human participation, increasing efficiency and lowering costs.
Allows access to anyone
Willy Ogorzaly, head of decentralization at ShapeShift DAO, a decentralized, non-custodial cryptocurrency platform, says that giving a community direct authority over a treasury is powerful in any business.
The ability to provide access to everyone with a wallet, distribute ownership/control in the form of governance tokens depending on on-chain activities, and tap into blockchains’ composability, transparency, and immutability amplifies that power in the virtual assets business.
DAOs allow communities to organize and administer virtual assets without legal corporations, corporate directors or officers, or bank accounts.
DAOs allow stakeholders to engage in decision-making democratically in today’s market. Eric Chen, CEO of DeFi research and development business Injective Labs, says it includes fund management and open-source protocol governance.
DAOs are important tools in the virtual asset business because they are independent, decentralized, and immune to censorship, corruption, and external control. Smart contracts control DAOs, which increases their security and transparency.
Transparency and efficiency
Global Mobile Group marketing director Mike Blake-Crawford. The largest Cardano project is blockchain-based mobile network provider World Mobile Group. He thinks DAOs are powerful in virtual assets. They are transparent and efficient.
Transparency builds trust in a transactional industry. Large companies have developed complex and inflexible fraud prevention technologies, which have hurt the web.
“Anyone can check and inspect a DAO’s governance through smart-contracts. Smart contracts eliminate operational monitoring, lowering management costs and speeding up operations.