DAOs, Blockchain, and the Potential of Ownerless Business
It is inspiring to see how far the business has progressed since bitcoin’s introduction approximately ten years ago meanwhile Blockchain technology may change direction swiftly. Prior to bitcoin, the financial industry was characterized by its reliance on banks as reliable third parties, who protected the security and fungibility of our money, albeit at a sluggish and expensive pace. Decentralized technology has shown that, instead of working via banks, for instance, the interests of several organizations may be coordinated in a single system.
DAO is the Next Step
Smart contracts are helpful in terms of streamlining input requirements for relatively simple operations and automating transactional procedures. A Decentralized Autonomous Organization (DAO) seeks to completely do away with human contributions instead of merely reducing them. A DAO is essentially a company that employs a linked web of smart contracts to automate all its necessary and non-essential procedures, even if it is still mostly an on-paper concept that has not been perfected in reality. An ambitious model with DAO-like goals might be advantageous for any organization. A novelty keychain shop that maintains its inventory on the ledger can develop a smart contract that activates based on previous consumer demand at the precise reorder point for each item. The smart contract will automatically generate, submit, and define the delivery date on an invoice to the necessary supplies for the shop. Using scanners or IoT beacons linked to the ledger, the smart contract will be informed when the package has arrived and will then carry out the release of a bitcoin payment. When orders are received, it may then access customer data from a CRM system, print labels automatically, and speed up the shipment.
DAOs on the Horizon
DAOs are the most economically sensible and ethical business model yet developed. They support both blockchain initiatives and traditional centralized enterprises, the former of which are vulnerable to central points of weakness, intermediaries, and divergent stakeholder interests. A real DAO only has one interest to safeguard, which is the business’s own. It does not need workers or executive management; thus, it may provide a service without taking into account wages, middlemen, or even profits. Businesses do not need to make any more money. They may thrive on the smallest possible profit margins.
An Autonomous Future?
Companies may quickly scale and become leaner without compromising service quality by employing DAO platforms to automate and compartmentalize specific elements of their operations. A real DAO is currently challenging to construct due to a few roadblocks. An organization that deals with tangible things will always need human labor until robots become more affordable and accessible. Access to technologies like IoT beacons is currently limited. Additionally, the concept of a self-governing system necessitates rising levels of complexity over time. Businesses are not getting any easier, therefore a truly self-governing DAO has a lot more factors to consider for efficient, equitable functioning
DAOs will benefit from the development of more approachable artificial intelligence. An AI-based DAO will one day be preprogrammed to automatically weigh the preferences of millions of individual stakeholders concurrently, in contrast to organizations that have already come close to being deemed DAOs yet still require users to vote on protocol modifications, for example. While total autonomy for DAOs is still years away, shrewd enterprises may already spot areas where inputs are excessive before using DAO-component technologies to simplify processes without worrying that their livelihoods would be destroyed.
