A quick introduction about Decentralized Autonomous Organizations (DAOs)

Sophia Casey
3 min readFeb 22, 2021


The surge of Blockchain technology brought forth so many changes; from being an integral part of cryptocurrency exchange, Blockchain now finds many use cases, and one such aspect that we are going to cover in this blog is the Decentralized, Autonomous Organizations.

What is DAO or Decentralized Autonomous Organizations?

The concept of DAO has two main features: autonomous and decentralization; however, with Blockchain technology’s aid, this DAO became a reality from being a concept. This works without any central governance. When integrated with Blockchain technology, they continue to work with a set of programmed rules granted via consensus.

One must not confuse the DAO application to be limited to complex issues; it can be used for simpler operations. The mode of use completely depends on the number of stakeholders and the complexity of processes within the organization governing the smart contracts, which brings the concept of DAO to real-world application.

In simple words, DAOs are open-source; these are incorruptible and transparent. All the exchange that takes place in the DAO is recorded on the Blockchain. The functioning of DAO is simple. The decision about a particular proposal is voted by a majority of the people’s consensus in the network. We can say that the DAOs have separate entities spread anonymously, but they rely on a smaller central authority to execute the task.

Why DAO?

The need for a new technology system arises when we need to transform the traditional governance and mode of operation. DAO also came into existence to overcome the conventional top to bottom governance approach. In simple words, governance means interaction between different entities on certain rules and norms and the same regulations. In the conventional approach of top to bottom, there is a lot of confusion and dilemma. Say an agent in the sequence makes a decision; this will impact the organization, not him. Thus, this working mode may be risky for business; the one who makes a mistake or a decision will impact the principal or the one who is at a higher position, but not the agent who is at a lower position. Now take this situation in the DAO scenario, the cost factor and the principal-agent issue is rectified, as the smart contracts and Blockchain technology are working at their core.

Some of the DAO examples are API3, DASH, dOrg, Colony, Aragon, and others. Advanced technology concepts like DAO are making their way into our lives, and they will continue to evolve as Blcockhain evolves.

Owing to this, the demand for Blockchain professionals will be on a high-rise, and if you are looking to make a good career as a Blockchain expert, you must enroll for Blockchain certification.

The future

The Blockchain Council is the best online learning platform for Blockchain and allied concepts. This comprehensive and industrial-oriented online certification is good for working blockchain professionals as well. So, if you are also planning to start your journey as. Blockchain expert, this is the time to enroll in the Blockchain certification program.



Sophia Casey

I’m a Blockchain Expert | I’ll help you to make a good understanding of Advance Technology —Blockchain.