The past few years have seen the crypto and blockchain space impact just about every industry in one way or another. However, one innovation in particular is leveraging blockchain or distributed ledger technology (DLT) in order to “fundamentally disrupt how organizations are structured, codified and governed,” according to an update from digital assets firm Kraken.
In Kraken Intelligence’s deep dive, the team has taken an in-depth look at the unique history of decentralized autonomous organizations (DAOs) and how they’re set to drive innovation in several different industries.
As explained in the update from Kraken, a DAO is an Internet-native entity that is “fully owned and managed by its members.” DAOs have their own treasuries that are “often secured by a distributed multi-signature wallet.” As noted in the report, ‘multi-sig’ wallets are able to split the ownership of a treasury’s private key between various parties in order to prevent unauthorized use of funds while ensuring access to funds is granted via collaboration and consensus.
As mentioned in the report, DAO’s assets may be “accumulated from a variety of contribution sources and members vote on how to best utilize these funds to accomplish the organization’s mission.”
Unlike traditional organizations, DAOs create “low-barrier” opportunities for individuals throughout the world in order to “coordinate assets and ideas, to accomplish a mission with minimal startup costs.” The report also mentioned that DAOs’ transparent and trustless activity “records foster and support an highly collaborative organizational culture.”
The team at Kraken added that DAOs are “revolutionizing traditional organizations and driving Web3 expansion on an exponential scale.” DAOs are able to “mobilize members to accomplish anything that they put their minds to, including the steering of a $20B decentralized finance (DeFi) protocol like Curve Finance, purchasing plots of land through CityDAO, or funding large-scale development of projects for the broader Web 3 community through Gitcoin.”
In a new report, the Kraken Intelligence team has looked into why DAOs actually exist, how they’ve been structured, and which DAOs are presently gaining traction.
