What is a DAO? - ALL You Need to KNOW

What is a DAO? How does a DAO work? Who makes a DAO? What are some of the most popular DAOs?

These are some of the questions we will try to answer on this very special episode of CoinMarketCap.

DAO stands for Decentralized Autonomous Organization
But why are they needed and how could they ever compete with a traditional business structure?

Well you're all familiar with one, if not the first DAO - Bitcoin. Bitcoin is generally considered to be the first fully working DAO because it's a fully running operational protocol without the need for one person or a collective to keep it running. It's been over 10 years and Bitcoin continues to function autonomously.

To understand DAOs, first you need to understand the technology that's behind them.
DAOs rely on smart contracts which are collections of code that run on the blockchain.

Now if you think of a company that you work for, there's typically a hierarchy that looks something like a pyramid. There's a board of directors, executives or upper management. And these are the key decision makers. And those at the bottom of the pyramid really don't have much power to make changes or to propose new ideas. If you compare that with a DAO, the rules and governance of each DAO are coded in smart contracts on the blockchain and those rules cannot be changed, unless voted on by the DAO members. But there is much, much more:

0:00 - What is a DAO?
01:09 - The Difference Between DAOs and Traditional Businesses
01:50 - DAO Smart Contracts and How to Join a DAO
02:29 - Improving Business Models with DAOs
03:55 - What are the Cons with a DAO?
04:30 - DAO Categories
06:39 - What is the Biggest DAO?
07:01 - Shapeshift DAO
07:37 - Incorporate DAO in Wyoming
08:02 - Mark Cuban on DAO's

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