Blockchain technology is gaining significant traction across industries. Before blockchain, the financial sector was reliant on banks as intermediaries, like trusted third parties. They safeguard our money, however, the processes are slow with hefty fees. Blockchain is a type of distributed ledger technology. It demonstrates that multiple entities can use a single secure, shared system of records with rich features.
The concept of developing DAOs with blockchain may be a cost-effective and fair business model. They address the challenges of traditional centralized businesses with blockchain features. Traditional centralized systems involve middlemen and complicated stakeholder requirements.
However, a completely decentralized autonomous organization built with blockchain platforms like Ethereum can protect the interest of the business itself.
Decentralized blockchain solutions development can eliminate the need for having employees or executive managers working in offices. It can provide services regardless of salaries, third-parties, or profits. It enables businesses to survive even on unimaginable margins and only requires them to pay the price for existence.
With several notable projects coming into the DAO domain, Aragon is one of the popular instances. It functions as a ‘plug-and-play’ company that provides services to automate initial steps of building a replacement business.
Also, DAO blockchain companies like Colony are providing solutions to tackle various aspects of DAOs, including corporate governance. These DAOs work toward enhancing the hierarchy of corporates. They facilitate team members’ rewards on a ‘systematic peer review’ that takes completed work and its reputation and quality into consideration to incentivize them with tokens.
It was the Ethereum project that used the idea to use blockchain outside of finance. It proposed to eliminate the utilization of banks as middlemen between individuals and businesses transacting across borders, Ethereum blockchain application development with smart contracts and tokenization model has disrupted intermediaries across virtually every industry. In cloud storage, as an example, Ethereum smart contracts enable decentralized network participants to be paid in tokens for sharing their unused disc drive space. Participants can then use these tokens to get hold of anonymous, distributed cupboard space from the network itself, thus surgery cloud monopolies like Amazon Web Services or Google.
With DAO-like projects based on the blockchain can benefit numerous business types. The distributed ledger as the underlying infrastructure can facilitate the execution of a smart contract. A smart contract triggers based on coded business terms. For instance, it creates an invoice for a shipment autonomously. Upon the arrival of the shipment, it notifies with scanners or IoT sensors connected to the ledger. Further, it executes the payment in cryptocurrency to a receiver. What is more interesting, it extracts customer information from a CRM system upon the arrival of an order, prints labels, and accelerates shipping automatically with a blockchain platform.
Also, Read | Decoding DAO | Ethereum Smart Contracts at Work
The above instance only highlights a few operations. However, it can significantly prove to be cost and time-saving. A DAO with blockchain and smart contract development can automate tracking of inventory, creating and payment of bills, incoming shipments’ scanning, and much more. The aim of a DAO means reaching a point in operations where human inputs are not required whatsoever. Automation must also be able to make necessary changes to its structure without human intervention.
Automating parts of a business can enable businesses to achieve scalability and be leaner operation with the enhanced quality of service with Blockchain DAO. Yet, a few significant obstacles for a complete DAO is difficult to attain, Limited development of IoT sensors needs to be expedited. It denotes that a company that deals with physical products always need human labor. We need to make robots cheaper and more accessible. Also, the self-governing DAO’s concept needs to accommodate the increasing complexity that might occur in the future. Put simply, for a completely self-governing DAO, we need to consider many aspects. We, at Oodles, have experience in DAO blockchain development, reach out to us if you are thinking of developing a similar project.