What is Decentralized Autonomous Organization (DAO)

A Decentralized Autonomous Organization (DAO) is a peer-to-peer organization that operates independently of an organizational ladder. DAOs are built on blockchains to protect organizations against falsification, enable trustless distribution, and improve security. Furthermore, DAOs enable the construction of collaborative, self-governing environments among peers. DAOs use crypto tokens to indicate network stakes and democratic powers. The DAO approach is built around automated smart contracts. These smart contracts communicate independently with one another using "if-then" code statements, enforcing the organization's laws. In theory, these automated contracts might replace the need for human employees by triggering anytime customers place orders, things run out of stock, or any other quantifiable input-based reaction is necessary.

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