DAO’s; Fatally Flawed or Production Revolution?

The first version of the Internet was no faster than a local DMV branch, simple in approach, and mostly used for communication. Internet 2.0 is comprised of the programmable Internet that you see today, including everything from content and networks to search engines and browsers. Decentralized Autonomous Organizations are Blockchain 2.0, the “programmable version”; allowing all participants to exchange information and data on an irrefutable and distributed ledger. In doing so, it disintermediates many traditional middlemen. DAO’s have the potential to create peer-to-peer networks, utilizing self-executing smart contracts, independent of interpretation from outside influences.

While DAO’s represent a novel opportunity to disrupt existing legacy systems, Decentralized Autonomous Organizations should also be viewed with skepticism and much of the excitement surrounding them can reasonably be described as fraudulent. Decentralized matching economies for example, promise to create an economy the likes of which the world has never seen before, but the vast majority of these organizations are neither decentralized, used for disintermediation, or ready for the complicated real world use cases they claim to solve.

One example of a problem facing a Decentralized Autonomous Organization is fixing issues/passing updates along. While many advocate for the security provided from many points of failure, a DAO’s lack of centralization could also lead to increased vulnerability. For example, when a project runs on code…