(Venture Beat) We can get rid of bad bosses once and for all. At least that’s the promise of a radically new type of organization based on blockchain technology.
It’s called a Decentralized Autonomous Organization and it has no CEO, CFO, or VPs.
In fact, there’s no hierarchy at all. Of course, any time you bring people together in a group, there are bound to be politics, but it won’t be the “command and control” structure that most of us are used to.
Admittedly, the concept of a “DAO” got off to a rocky start. The first big one, appropriately enough called “the DAO” was hacked, and tens of millions of dollars were placed at risk.
While that was a very inauspicious start to a cool idea, let’s not throw the baby out with the bathwater. After all, the Wright brothers didn’t get very far off the ground on their first few attempts either.
What a DAO is
A DAO is a combination of computer code, a blockchain, smart contracts, and people. (Well, people, for now, at least, but that’s a topic for a different post.)
The founders of a DAO set up the basic governance rules of how it will work. For one example, see how Fermat explains it here.