What is DAO?
A Decentralized Anonymous Organization (DAO) is a type of company on the blockchain whose processes and activities are automated using smart contracts. Investors in the company do not disclose their identities, and they manage operations through real-time consensus.
The idea of a DAO was first implemented by the Germany blockchain startup, Slock.it, on the Ethereum blockchain in April 2016.
A Closer Look at This Term
All the DAO decisions are made in real-time by the investors through the voting system on the blockchain. Similarly, all actions of the company are undertaken by contractors hired by the investors through balloting.
However, in June 2016, the organization came under attack, and some unknown person or persons attempted to steal the funds from its wallets.
To roll back the transactions that the attacker had initiated, the Ethereum community resolved to undertake a hard fork, resulting in the birth of Ethereum Classic, a separate blockchain.
← Back to Dictionary
