DAOs are virtual entities that pool resources together in a decentralized and democratic fashion, but after all, they are merely computer programs, so how do they interact with the physical world?

Decentralized Autonomous Organizations, a concept that has been recently on everybody’s minds. We have been covering the news and events of the first DAO to be ever released, The DAO has received 10.5 Million Eth at the time of writing this article, and it represents more than $100 million. The money will be locked until a suitable proposal is submitted to the DAO for voting.

It is expected that the first proposal to be considered is the Slock.it

one, if this ends up being the chosen one, the investor will look forward to profit from this. There are two critical concepts/actors that will play a role in all of this, we are talking about Contractors and Curators.

DAOs are computer programs, therefore, their ability to directly take actions in the physical world is limited, that’s why Contractors exists, they deliver the tasks and accomplish the milestones set by the DAO, in return, they receive funding. A DAO can have as many Contractors as it needs, and it is possible to have another DAO as a contractor, so in the future DAOs may work together in complex use cases.

Small or tech-savvy contractors can directly take Ether to fund itself and deliver the product or services that the DAO requires, however, Slock.it announced the creation of DAO.Link (site under construction), in their own words:

DAO.Link is an initiative which makes brick-and-mortar business interactions with blockchain-based organizations a practical reality.

This means that bigger companies will have the possibility to interact with DAOs in a more traditional way for them, as Stephan Tual from Slock.it put it:

Businesses which work within the classic established legal framework shy away from what seems like an impenetrable wall of regulatory limitations. Corporate invoices and purchase orders need a physical address and — let’s face it — “The DAO, Ethereum blockchain smart contract address 0x93139adb39alf…dd031” just isn’t going to cut it with your local tax office.

This fun remark is blatantly true, bigger corporations may find it difficult to legally operate as a Contractor. Few details about DAO.Link have been made available, according to this blog post from Slock.it  DAO.Link will be built in partnership with Bity the Bitcoin and Ethereum exchange, Slock.it co-founder Simon Jentzch will be the President of DAO.Link.

DAO.LINK has set up the legal framework to give real world companies the ability to work for DAOs while still being able to fill out the necessary documentation required to stay compliant.

On the other hand, we have the Curator role, Curators are oracles chosen by the DAO token holders, their mission is to add Contractor addresses to the whitelist, authorizing them to receive ether from the DAO, Curators also prevents that 51% attacks take place, as is not enough to have the majority of tokens in the DAO to steal the remaining 49% of funds.

Curators will also help in the reviewing of source code submitted by the Contractors, this step is also responsibility of the Community as a whole, it is important to establish that the DAO is a decentralized entity, and as such, everybody plays an important role, there is no hierarchy and investors are asked to make their due diligence and to take part in the decision-making process.

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