Advantages and disadvantages of DAO’s are that DAOs have an incredible potential. To harness the power of decentralized networks of a like-minded community and people’s collective intelligence.
The world of crypto transactions is emerging as new ways of coordinating, measuring.
Rewarding contributions to ecosystems built outside the existing paradigms of work and money.
An obvious disadvantage of DAO’s is the complexity and user interface of the systems required to run a DAO.
That will not happen quickly. It will require new decentralized autonomous organizations (DAOs) that can coordinate all this new activity. Outside the context of existing corporate and social systems.
Earn income in non-traditional ways through DAO’s
The earning opportunities available in DAOs will function within the different types of contributions DAOs need.
This shift is already beginning to unlock new earning potential for individuals.
Leading to a growing transfer of value capture from organisations to people participating as individuals in crypto networks.
The shift will be that the average person will most likely not work for a company.
Or participate in previously understood social/legal agreements in the future.
Instead, the advantages of this possible new future of work will be that people earn income in non-traditional ways. Created by the networks around blockchain technology. One more advantages and disadvantages of DAO’s
DAOs are not structured to have centralized management
We ran a workshop here in Killarney over the weekend of the 8th and 9th of January.
It encompassed community elements and explored the need to harness the power of decentralized networks as a prepared community network.
DAOs are not structured to have centralized management. So new and decentralized ways are needed.
For determining how much value a person contributes.
And what worth is attached to actions and contributions.
Meanwhile, as the new economy based on blockchain technology rolls out. Trade vehicles such as non-fungible tokens (e.g., NFTs) are creating new business models.
Centered on collectibles, rewards, achievements, and more.
The digital push based into blockchain technology.
Is into new ways of tokenising items to exchange goods, store value, and make collective decisions.
Digital push based on blockchain technology
What is a token exactly?. At the most superficial level, tokens are just code that lives on a global peer-to-peer network called a blockchain.
Unlike other forms of exchange value, they are digitally native, programmable, and secured by one’s crypto wallet and private key.
Cryptocurrencies are just one type of token.
There are two main categories of tokens: fungible (e.g., interchangeable) and non-fungible (e.g., unique).
As more creators and communities seek to build unique crypto-based economies.
Fungible tokens will be part of the new commerce structure that take advantage of the advantages and disadvantages of DAO’s
Most organisations are simply legal fictions
45 years ago it was noted by economists Jensen and Meckling, who famously wrote:
“It is important to recognise that most organisations are simply legal fictions which serve as a nexus for a set of contracting relationships among individuals.”
According to contractual terms. Required by individuals and the movement of resources to facilitate these contracts and operationalize functions. The “nexus,” being a corporation, LLC, non-profit, or government.
The use of smart contracts in the crypto economy is where the movement of resources is by code rather than enforcement by an intermediary relying on a legal layer.
Smart contracts mean that individuals can now collectively form complex contracting relationships without a legal fiction serving as the coordinator.
This ability of essentially cutting out the middle man can be a game-changer for human organisation.
Decentralized Autonomous Organization (DAO).
A mechanism used to facilitate smart contracts is a Decentralized Autonomous Organization (DAO).
A DAO can be considered a shared treasury governing funds utilisation among the members, with hard coded rules .
DAOs for any number of collective pursuits, much like an LLC, can be formed to pool resources for any number of objectives.
Members rely on smart contracts as the primary method to manage member-to-member transactions. Smart contracts define tamper-resistant rules that structure and facilitate the organisation’s operation.
This code forms a cohesive network of hard to change rules that establish the standards and procedures of anyone interacting with, or taking part in, a DAO.
What NFT technology is for
With these capabilities, blockchain technology enables organisations where members collaborate on a peer-to-peer basis—and, if desired, transact value—with less need to rely on a centralised entity or intermediary.
However, the reality is that this is just scratching the surface of what the advantages and disadvantages of DAO’s and NFT technology are for.
A simple example is tickets to an event. It is normal to use electronic tickets that we display using our phones today.
We purchase tickets online, receive an e-mail for our tickets, and scan them when we get to the event.
Nevertheless, that is just a barcode with a seat number… That is not an NFT.
Things get very interesting with NFTs. Because NFTs are smart contracts, they can contain specific attributes.
The NFT can include both access to the event, access to a special meet and greet with the actor, singer, or athlete, and some physical goods (a t-shirt, hat, jersey).
Those that hold the NFT are members
For a good example NFTs are used as a way to denote membership.
Those that hold the NFT are members. ( think community structure)
You can use or sell the membership at any time.
and comes with a specific set of rights or attributes with the ownership of the NFT. For example, this membership model could be a co-op membership, a private organisation, season tickets to a team’s games, or other perks.
We have already made the leap from analogue/paper to digital. For example, our airline tickets are now on our phones, as are our credit cards, frequent flyer/stay programs, and other digital identification.
Furthermore, NFTs are the next technology that can bring additional functionality to goods and services that we use throughout our daily lives.
Most people will continue to operate with the existing systems and will not have to use the technology and the advantages and disadvantages of DAO’s if they do not want to.
Until the push comes to shove as the centralization of capitol and trade takes place through Central bank digital currency and the members of central world governance ideologies roll out the plans that are behind organizations promoting the great reset and its end goal to track, chip, and trace all activities.
Alternative to centralized organisational control
It is a perception of mine and others that are watching this space, is the majority of people will hear about the blockchain crypto and flock to the proposed central bank’s digital currency.
A trap set for the unwary is the digital cashless structure. Falls right in step with the world of medical tyranny passports needed to be part of the existing control networks.
As freedom lovers seeking an alternative to centralized organisational control.
It is essential to understand these technologies and how other people are using them.
Furthermore, now there is the chance to benefit from a similar misunderstanding in the market about NFTs.
In the earliest days of new technology, dismissing its real value is far too easy. One of the biggest mistakes is having the thought, “I would never use something like that,” and then discounting the idea.
It does not matter whether we like it or would use it personally,what matters is how many others will
and what opportunity it holds to build a decentralised system based on blockchain technology.
Big picture growth of blockchain technology
That is why NFTs, Blockchain, tokenisation, and central bank cryptocurrency going into mainstream vernacular will be a big deal.
Bigger picture, NFTs will play a critical role in the growth of blockchain technology as they serve functional purposes in this environment.
Furthermore, they will find their way into our daily lives. They will not just exist in digital worlds for our entertainment and productivity.
As such, this tech will impact everything about how we earn money, transact, and interact in the future.
That is not something any freedom-loving person should dismiss without examining how this space can ( even if it is a stepping stone)be utilized to get away from centralized power structures that continue to erode freedoms and choice.