When Ethereum was introduced in 2014, new terms were added to the decentralized world. It was the first time we were facing words like blockchain, tokens, smart contracts and DApps. These new terms and words are practical results of a paradigm shift from Bitcoin which is merely a payment system with coins to Ethereum that is a world computer and considers Bitcoin as a single DApp among its millions of other possible DApps.
DAOs and in particular BlankDAO claims to bring about yet another paradigm shift from Ethereum and a world computer to organizations that can include world computers as a single part of their vast possibilities.
Now, Ethereum’s ability to describe and elaborate on Bitcoin with its own terms and words as a DApp made it eligible to be called a paradigm shift. BlankDAO, similarly, needs to be able to define its previous generations with its organizational terms.
In this brief story, let’s take a look at the benefits of Bitcoin and Ethereum as organizations and see where they get their security from. Bear in mind that security of organizations and where their benefits are streamed to are two of their most essential factors to analyze.
Bitcoin as an Organization
Bitcoin, as you might already know, works based on proof of work or POW which means its security in face of Sybil and double-spending attacks is achieved through miners who provide their processing power in hopes of receiving newly generated coins and transaction fees.
But do they really receive much?
In order to enjoy the handsome benefits of Bitcoin, miners are required to purchase processors and feed them with electricity to play their part. These processors aka mining devices aka ASIC devices are produced by not so many companies. Bitmain is known to produce the majority of these devices.
A closer analysis of miners’ and mining pool business models leaves no doubt that at least for the first year of starting the mining business most — if not all — revenues are spent purchasing devices and paying electricity bills.
Long story short, Bitcoin is secured by its miners and their processors. Its benefits, however, are indirectly streamed towards mining device producers and electricity companies.
Ethereum as an organization
EthSuisse raised $18 million in bitcoin during its crowdsale. Sixty million ether were exchanged for approximately 31,000 bitcoin. As is known to blockchain enthusiasts, most of the tokens in ICO events are usually sold to a limited number of early buyers which more often that not, will play major roles in the future of projects. If we suppose that the same sequence of events has happened for Ethereum’s ICO — which is very probable considering the facts and prominent active players in Ethereum’s ecosystem — we can logically get to the conclusion that a limited number of early investors and token buyers have bought most of the tokens.
Even after 5 years now, more than 60% of all the ETH available in Ethereum’s $17B market cap are the tokens that were sold in the early ICO. That means that most of the benefits of Ethereum as an organization have been streamed towards a handful of early investors.
As you can see, most — if not all — the benefits in Ethereum’s network belong to a limited number of early token buyers.
BlankDAO as an organization
BlankDAO’s security is based on proof of uniqueness aka POU which is robust using BrightID and its capabilities.
BrightID has different algorithms to analyze people’s connections with each other and the groups they create with their friends. The more crowded BrightID’s network gets, the better it gets in preventing Sybil attacks.
With all that in mind, we can clearly conclude that the security in BlankDAO is based on people and their network of connections.
The benefits in BlankDAO, on the other hand, are distributed among all people equally as is mentioned in the whitepaper. This is done regardless of the processing power they provide or even the number of stakes they own in the system.
To sum up, BlankDAO claims to gain security from people and stream its benefits among all people equally.
Make sure to visit Blankdao.org and read the whitepaper.
Join our community at https://riot.im/app/#/room/#BlankDAO:matrix.org
Check out BrightID and awesome new possibilities at brightid.org
