Decentralized Organization vs Decentralized Autonomous Organization

The world of blockchain technology and cryptocurrency allows for some interesting innovations. Two of these innovations come in the form of decentralized organizations, and decentralized autonomous organizations. As both names suggest, these structures are completely decentralized. However, there are some big differences between these two ideas, especially when it comes to governance.

2. Decentralized Organization

To many people in the world of blockchain and cryptocurrency, every organization should be decentralized. That is a lot easier said than done though, as not every company or enterprise is comfortable with this idea. A decentralized organization has no centralized leadership, which means there is no CEO or manager running the show on a daily basis. In the current business world, such a concept is virtually unthinkable.

Do not be mistaken in thinking a decentralized organization has no governance, though. Such a business structure relies on formal democratic voting processes and an increasing level of self-organization. Some employees will feel safer with one leader above them, instead of being directly involved in the decision-making and voting process. That is understandable, even though traditional business structures allow for very little self-organization whatsoever.

It will take some time until more businesses adopt the decentralized organization structure. It is certainly possible particular enterprises may never see the benefit of this solution. Larger companies without one central authority could dissolve into chaos rather quickly. Then again, one should never underestimate the value of input provided by all employees, rather than just those of the upper management. A democratic voting process could elevate businesses to the next level, reduce costs, and improve turnover.

1. Decentralized Autonomous Organization

For the people who see the benefit of a decentralized organization, but are wary of the voting process and self-organization should look into decentralized autonomous organizations. More specifically, this business model “automates” the governance to a certain degree. It frees up more time to actually spend on getting work done, although it also requires a much larger leap of faith by all parties involved.

More specifically, a decentralized autonomous organization has a governance model not overseen by a committee. Nor is there a discussion process involved. All of the rules are encoded in the form of smart contracts, which will automatically execute once specific thresholds are met. Financial transactions related to a decentralized autonomous organization are maintained on a blockchain, which provides a transparent record that can’t be altered.

One major hurdle preventing the use of a decentralized autonomous organization structure is how the legal status of such a business type remains very unclear right now. Moreover, the first major decentralized autonomous organization to be created eventually failed due to a lot of its money being drained by a hacker. This was made possible thanks to a flaw discovered in the smart contract code. It will take a few more years before DAOs can become even relevant to the mainstream, that much is certain.

If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.

119 Comments

  1. zortilo nrel February 7, 2021
  2. Europa-Road February 9, 2021
  3. Barry House Clearance February 9, 2021
  4. House Clearance Barry February 9, 2021
  5. redraw to vector February 9, 2021
  6. Compra imóveis em São Paulo February 10, 2021
  7. rateio pra concursos February 10, 2021
  8. http://180.210.204.54/ February 11, 2021
  9. joker123 casino February 12, 2021
  10. https://businessf.com February 12, 2021
  11. scrap book February 13, 2021
  12. folder February 13, 2021
  13. Afiliados February 14, 2021
  14. toalha de criança February 15, 2021
  15. gym shop February 15, 2021
  16. تحدي الفضاء February 15, 2021
  17. google news February 16, 2021
  18. you can check here February 16, 2021
  19. Asiaklub February 16, 2021
  20. TS911 February 16, 2021
  21. Hot Tub Cover February 16, 2021
  22. Couple Counselling February 17, 2021
  23. solar power malaysia February 17, 2021
  24. solar company in melaka February 17, 2021
  25. indoor hot tub February 17, 2021
  26. computer shop near me February 17, 2021
  27. Free Fire Names February 18, 2021
  28. Best online deals February 19, 2021
  29. amazon fba February 19, 2021
  30. website February 19, 2021
  31. Aubrey Heckart February 21, 2021
  32. judi online February 21, 2021
  33. Gocengqq February 22, 2021
  34. wellnesswochenende February 22, 2021
  35. hovercraft February 23, 2021
  36. Stock Market Trends 2020 February 23, 2021
  37. teach English online February 23, 2021
  38. maplestory เถื่อน February 24, 2021
  39. how to use elementor February 24, 2021
  40. free logo maker February 24, 2021
  41. Luxury cars on rent February 24, 2021
  42. solar panel in malaysia February 25, 2021
  43. solar energy in malaysia February 25, 2021
  44. auto transmission repair February 25, 2021
  45. imoveis a venda em sjcampos February 26, 2021
  46. riserva golf February 26, 2021
  47. 氣墊船 February 28, 2021
  48. blog platform March 2, 2021
  49. Information About Health March 3, 2021
  50. view publisher site March 3, 2021
  51. Biquíni Fio Dental March 4, 2021
  52. Daftar Idnplay ovo March 4, 2021
  53. Blog gratis March 4, 2021
  54. anneau de nombril March 5, 2021
  55. east side meier March 5, 2021
  56. Blog gratis March 6, 2021
  57. Situs Slot March 6, 2021
  58. piercing oreille helix March 6, 2021
  59. african grey for sale uk March 6, 2021
  60. บาคาร่า March 7, 2021
  61. joker March 7, 2021
  62. Blog Gratis Terbaik March 7, 2021
  63. หนังโป๊ March 8, 2021
  64. Judi Slot Online March 8, 2021
  65. ufabet March 8, 2021
  66. Idnplay Online March 8, 2021
  67. Blog gratis March 8, 2021
  68. Daftar Idnpoker Ovo March 9, 2021
  69. Idn poker March 9, 2021
  70. daftar slot online March 9, 2021
  71. Situs Domino Online March 9, 2021
  72. https://180.210.204.77/ March 9, 2021
  73. Judi Vivoslot Online March 9, 2021
  74. website tutorial March 10, 2021
  75. Iklan Judi March 10, 2021
  76. Daftar Poker Ovo March 10, 2021
  77. Vivoslot online March 11, 2021
  78. como conseguir cytotec March 11, 2021
  79. Daftar Domino Ovo March 11, 2021
  80. Judi Joker123 Online March 11, 2021
  81. Pg March 12, 2021
  82. 7M live March 12, 2021
  83. ยิงปลา March 12, 2021
  84. Daftar Idnplay Online March 12, 2021
  85. Free blog March 12, 2021
  86. yoururl.com March 13, 2021
  87. stimerex bula March 13, 2021
  88. rasqq March 13, 2021
  89. situs poker idn March 13, 2021
  90. planet fitness March 16, 2021
  91. Aufstellpool March 16, 2021

Leave a Reply