Watch Out! DAOstack ecosystems disrupting companies and governments

sciencevienna (59)in #daostack • 6 years ago

In case you never heard of DAOs (Decentralized Autonomous Organizations), how they work, the functionalities of DAOstacks could appear abstract and complex at the beginning. Envisioning DAOs in a first definition to understand DAOstacks in further steps can help. Encyclopedia of everything, everipedia is providing the following explanation:_{_[1]}

_{A decentralized autonomous organization (DAO), at times labelled a decentralized autonomous corporation (DAC), is an organization that's run through rules encoded as computer programs called smart contracts. A DAO's financial transaction record and programme rules are maintained on a blockchain. There are several examples of this business model. The precise legal status of this type of business organization is unclear […] Buterin proposed that after a DAO was launched, it might be organized to run without human managerial interactivity, provided the smart contracts were supported by a Turing complete platform. Ethereum, built on a blockchain and launched in 2015, has been described as meeting that Turing threshold, thus enabling DAOs. Decentralized autonomous organizations aim to be open platforms where individuals control their identities and their personal data. _{_[2]}}

DAO in context of Ethereum had a formidable calling as first decentralized crowdfunding platform where investors were characterized by proportional decision-making ability on the investment of funds which have been held by a decentralized organization. A theft back in 2016 led to split of Ethereum Community into a hardfork, today well known as Ethereum and Ethereum Classic, but could not stop innovative developments of further DAOs in general. _{_[3]}

From smart contracts and DAOs to the DAOstack architecture

From a historical point of view as you can see in the video above narrated by Shermin Voshmgir this kind of diversification was, is and will be necessary: In comparison to how the internet is growing, how disruption is taking place, how blockchain technology is thriving, how DAOs are evolving, DAOstack as an ecosystem which consists of DAOs and many more, is a gantry catalyzing this evolution. To understand DAOstack on a basic level, one has to bring DAOs and applications into mind. The following architecture makes the complexity at least a bit accessible:

DAOstack structure-.jpg

How will DAOstack change the way corporations and organizations are run?

A DAOstack is a symbol for socio-technological revolution within organizations. As complex the architecture might appear, it also has the potential to change complex organizational entities, to scale corporations towards a more fair and ethical organization by not only decentralizing trust, but rely on its protocols and switch off humane fallibility to a certain extend. The process of designing complex systems depends on the design of its elements, dynamics and initial conditions. _{_[4]}

The bigger an organization gets the more inefficient it gets to handle. The bigger a network or a free market gets the more effective it becomes. This has to do with scalability. The scalability of corporations or organizations is a tough nut for every entrepreneur, however these entities can usually accomplish certain missions in comparison to networks and free markets. DAOs have the advantage compared to traditional organizations that they become more effective when they grow. Matan Field’s long term vision is characterized by a shift of huge entities: The entire work space, whole societies won’t be dominated by corporations or governments anymore, but by networks from bottom to top. Decentralized networks will run entire economies. _{_[5]}

How does DAOstack's method of vote power distribution promote incorruptibility?

Tackling organizational corruptibility is one of the main aspects of DAOstack which can be ad libitum extended via DApps and DAOs. Not wealthy people run the system but reputation holders, which have proved oneselves within the system. Reputation cannot be traded, it can only be earned via active participation within the certain network/project. If for instance 70 % of reputation holders vote to approve a transaction, then the transaction is going to be executed. Every possible governance can be coded into the system (smart governance)

What are some potential use cases?

DAOstack is offering certain use-cases_{_[6]} distinguishing between collaboration, shared ownership and curation. Keeping the discussion in comment section alive and inspire each other, I would like to take the aspect of potentiality seriously. Do you think the following cases have potential being brought together with the offered DAOstack system? Particularly the climate initiative of 50000 scientists seems to be very ambitious, due to the fact that scientists in German speaking world not even manage to organize themselves to fight for better working conditions. Anyway very promising to have a closer look. For the more techy driven Steemians, what kind of problems would arise in case of practical realization?

How can DAOs improve the cost, efficiency and structure of organizations?

Especially last aspect of curation would in the DAOstack eco-system become incentivized and built up in a fair way: Whereas google as curation engine keeps its most valuable contributors “curators” out of the business cycles, such a system disrupted via DAO would at least pay its curators back.

What advantages does a DAO has over traditional organizations?

A small group of people within traditional organizations might be prone to influence by others who want to play the system. DAOstack aims to deliver judgment into non-corruptible protocol within a system structure of modules. Arc as a gov-tool not only contains the library for fixing its own organizational problems, but provides the modules/plug-ins for a better scalability. System actors are distinguished in internal ones (tokens, reputation, voting power) and external ones (avatars). It is possible that a unity votes as a single agent. Old and traditional organizations compared to achievements of superscalability by DAOstacks won't be able to compete.

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