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Why Is Decentralized Autonomous Organization (DAO) Vital For Web3

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  • A DAO is based on crystal clear rules, inscribed in code and elucidated by smart contracts, and is controlled by its participants, and is decentralized.
  • A Decentralized Autonomous Organization does not need an unconventional central system, which is prone to deception, failure, and human error.
  • Web3 is considered as the evolution of the internet, and was previously known as Semantic Web. Web3 breaks the barriers of its predecessors, Web 1.0 and Web 2.0.

What Is A Decentralized Autonomous Organization (DAO)?

As mentioned in the prime points, a DAO is an organization with no central authority and crystal clear rules. It is considered decentralized only if it has no roots going towards a particular nation-state or central authority.

It is customized in a way that offers a decentralized and autonomous kind of governance without conventional bureaucracy and hierarchy restrictions.

Smart contracts are the pillars of any DAO, which determines the entity’s regulations and clasps the treasury of the group. Community members forward recommendations to transform or better the protocol like technical updates or allocation of treasury and give votes to such suggestions.

What Is Web 3.0?

Web 3.0 is considered as the next era or evolution of the internet. Web 1.0 and Web 2.0 are its predecessors. Web 3.0 was previously known as Semantic Web.

Web 1.0 gave us the read-only rights, which allowed the internet users at that time to grasp the information displayed right in front of them.

Web 2.0 offers the folks a chance to interact with things provided on the internet, whether it’s people or information.

The notion of Web 3.0 will include all the things that Web 1.0 and 2.0 holds, but it will give the folks a chance to own their stuff on the internet. Right now, everything we post is owned by the service providers.

For instance, if you make a post on Facebook, then it will be owned by Facebook. But in Web 3.0, you will be the sole owner of that post, not FB.

In short, you will be rewarded for giving your precious time on the internet, so cheers, your leisure activities on the internet are going to be monetized.

ALSO READ: Crypto bear markets are welcomed by developers like Vitalik Buterin

Why Does Web 3.0 Need DAO (Decentralized Autonomous Organization)?

DAOs’ network structure perfectly complements Web3’s basis, igniting a new creative market and the future of employment.

If we view decentralization as one of the critical characteristics of the future internet, DAOs can already be considered Web3. DeFi, for example, leverages Decentralized Autonomous Organizations (DAOs) to enable networks to become truly decentralized. DAOs play an important role in Web3.0, as seen by decentralized exchanges like Uniswap and SushiSwap.

NFTs, decentralized autonomous organizations (DAOs), and the metaverse are all products of Web3, and they may all be grouped together. They share a number of characteristics, including user autonomy and ownership of assets through the usage of cryptocurrencies, community governance, and innovative funding methods that do not require the involvement of conventional venture capitalists.

JennyDao’s Unicly is the initial DAO’s metaverse that allows for partial ownership of NFTs. Members can monitor the acquisition and storage of NFTs using the DAO system’s smart contracts.

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