What is a DAO (Decentralized Autonomous Organization)?


DAO stands for “Decentralized autonomous organization.”

Now what does that mean?

What is a Decentralized Autonomous Organization (DAO)?

Most people read through Ethereum’s website or see something called the “dao” and wonder what it means.

And well, it's a little more than most people would imagine.

A DAO is a completely autonomous organization.

That means that a DAO quite literally functions on its own, executes commands and utilizes information without interference.

No people, no trust required, just pure logic based code.

This means you could create a DAO that aims to make assembly lines faster.

If it has control of every part of the line then it would be able to change the order, hire, or fire people, etc…

Without someone going “yeah make that decision” or not.

Instead, the decentralized autonomous organization will operate based on the code written inside of it.

This becomes a network of smart contracts.

A Network of Interacting Smart Contracts Creating an Entity

Whether for business or personal use, these DAOs use smart contracts to create an entity.

This entity then executes based on exactly what is coded.

It means that you can create a succession of different items that the organization improves upon.

And every time it can get better and faster.

Although, we need to start with the coins most people know.

Let’s start with Bitcoin, Ethereum, and Litecoin as examples for a DAO.

Then we will move into Skynet, just because after this section you may be thinking about it…

Are Bitcoin, Ethereum, and Litecoin DAO’s?

Kind of.

A DAO is autonomous.

Bitcoin, ethereum, and litecoin are autonomous in nature.

They function without control, they execute without commands (besides the coding) and they ensure consensus and solidity.

In a sense, this makes them DAOs.

Despite that BTC, ETH, and LTC are not realizing the total power and capabilities of a DAO.

These become currency based DAOs that execute a simple code of transferring value, instead of executing a whole list of commands or other intentions.

Coding The Digital World with DAOs

The main point of a DAO is to create something solid that works on its own.

Just like A.I., they can work based off of their algorithms utilizing their coding to find and improve the systems they started with.

A DAO can be anything from computers figuring out how to find cancer better, to a group of computers upholding the law.

Yes, that is kind of like Skynet.

Yet, we program these DAOs so there is a chance of it being programmed without all necessary requirements.

But don’t fear yet.

As we talk about in hard and soft forks, DAOs exist on a certain blockchain.

By forking away from the blockchain, you turn power elsewhere and subsequently can maintain the sanctity of humanity.

Thus preventing a situation like Skynet.

Granted the concept of skynet isn’t necessarily bad and often times ethereum is equated to it.

But again it depends on power input/output, the code used to program, and the digital ledgers the code will execute on.

This means that we can have literal smart cars - cars that figure out how to charge themselves, maintain power, source clients, get direct routes, and get paid for rides (like uber).

It would be a DAO for smart cars.

Leading to this point:

Code a DAO correctly and they can create a marvelous future.

An Example Of A DAO - The Environment

One example that I play with in my head is a DAO executing on helping the environment.

This DAO could say free up waste and identify where to cut excess use of materials.

Over time it would get better and smarter helping to save waste.

It would execute, trade digital assets, and start its own virtual community where the machines and equipment work for energy and energy is provided by doing the work.

Creating an incentivized token economy for these machines.

Yes, it may sound crazy.

Although, it is the future we will be experiencing shortly.

This not only reduces waste but helps lower efficiency materials and machines to be repurposed.

How Do DOAs Fit Into The Legal System?

DAOs become a hard thing to fit into a current legal system.


  • Don’t need someone to run them
  • Can outlive their owner
  • Can source goods, services and anything they need
    • Even illicit materials (if proven to be better for them)
  • Operate based on their design

This means that the DAO itself has its own rules and laws.

Meaning it may not operate by the confounds of these huge rulebooks each country provides, instead of using what it sees as most efficient for itself.

And they are global.

Since they lie on the internet, they are global organizations that reside by the true properties of a blockchain.

Thus, there may need to be a whole new draft of laws to help control or qualm its design.

The Short on DAOs

DAOs are completely autonomous organizations.

They function for their purpose established at the formation of their code.

A DAO can create and sustain a full ecosystem freeing humans up to get rid of needless tasks.

Ethereum, Litecoin, and Bitcoin are a certain monetary form of a DAO.

This is what will allow us to create the digital world and smart economies with ease.

Thank you,

The GCA Team

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