Is the crypto-winter over? DAO and its role in the development of blockchain technologies.
The multiple growth of trading volumes on decentralized exchanges in the last half a year has become a springboard for the summer growth of the crypto market capitalization.
Of course, there are other factors that contribute to increasing interest in the blockchain economy. However, the phenomenon of decentralized financial instruments DeFi, implemented in blockchain networks using smart contract technology, showed an example of the capabilities of digital financial instruments, which caused a very short period of vertical growth in demand for the purchase of DeFi tokens. This has resulted in a tenfold increase in commissions on the Ethereum network, which is currently the most developed from an infrastructure point of view and has the largest number of ready-made products that are experiencing a powerful flourishing and attracting tens of thousands of new users.
One of the early DeFi experiments of our team, on the use of Depository repositories with flexible conditions for freezing XSAT tokens, was launched in March 2019 and during the year paid out more than 1.5 million XSAT rewards to participants. We have gained experience with personal wallet racks and feedback from the community. And later we conducted a series of experiments with XSAT staking based on the Saturn Black bot in Telegram «Way to Saturn».
What is the DAO?
DAO – decentralized autonomous organizations.
The massive launch of DAO – decentralized autonomous organizations in the last two years has become another reason for the increase in trading volumes of Ether, since companies based on the DAO model are mainly implemented in this network. In the ecosystem for managing decentralized companies, Aragon, whose architecture is also implemented on the Ethereum network, from the launch of the service to today ~1.5 thousand organizations have been registered.
Despite the difficulties of using it due to the fundamental features of blockchain technology, there is a growing demand for a new way to control and manage your business share, together with the General Council of partners. With the help of an encryption key generated in the blockchain and accessible only to the owner, you can easily confirm ownership of anything that has the form of a digital immutable smart contract. Simply put, it is a unit that represents a share of any agreements within the community of people – a token. This can be property rights, collateral obligations, commodity obligations, intellectual property, voting rights – anything, if this is stipulated in the agreements of a group of interested persons.
In a number of important features decentralized control of a company, it is possible to distinguish two main:
1. Direct access of owners to their digital assets;
2. Lack of a regulatory center that can change the contract rules unilaterally.
In other words, a group of partners stores their shares in a digital safe that cannot be opened without general consent. And if the security measures for using a private key are properly observed, they can’t be hacked or confiscated.
Blockchain company management, which is based on the above principles, has a number of advantages, thanks to which attention to the DAO and decentralized technologies, as such, is growing.
The ability to transparently manage financial obligations secured in the blockchain by a smart contract between partners on the principle of equity participation, by confirming the digital signature and voting for the proposed initiatives, is transformed from an experimental technology to a generally recognized way of establishing digital rights. While this is still a narrow circle of experts in new technologies, but it is expanding day by day. The DAO is a new coordinate system for interaction between co-owners of an asset that guarantees consensus.