DAO, or decentralized autonomous organization, is a digital system or group that was created by incorporating blockchain technology into an organization, represented by rules encoded as a series of smart contracts that is transparent. As a decentralized platform built on multiple chains, HyperDAO aims to utilize the power of DAO to unite its members, aligning their focus onto a common long-term goal.
DAOs possess the following characteristics: transparency, open-source, community governance, token incentives and progressivism. The biggest difference between traditional enterprises and DAOs lies in the fact that DAOs only exist on the internet and has no physical entity. They do not need to be registered within any country, nor are they limited to any one jurisdiction. In fact, DAOs can even be created by artificial intelligence.
The Purpose of DAO in the Metaverse
Blockchain technology has ensured the continuity of the ancient rule – code is law; meanwhile, HyperDAO guarantees that the organization operates through smart contracts that are collectively decided upon by the community. By combining both blockchain technology and DAO together, we find the secret recipe that can make the metaverse a much safer and secure place.
Blockchain technology serves to use cryptography to protect the security and privacy of its users, which is what the metaverse desperately needs. Cryptography makes decentralization possible, and makes it possible for the network to deter malicious actors by using the power of incentives. So long as a user does not reveal his own private keys, it is almost impossible for hackers to gain access to his wallet. Thanks to these characteristics of blockchain technology, users have the confidence to perform transactions using cryptocurrencies.
Cryptography is an invisible yet impenetrable castle wall; its safety comes from its transparency of its source code. Since it is open-source, anyone can attempt to seek out exploits or examine the codes, making it so that these blockchain networks can test out its defenses in real time. A network can only be considered secure that way, making it safe for wider commercial use.
Meanwhile, the hash and asymmetric algorithms commonly used in blockchain has truly stood the test of time, and are provably secure. They can ensure the validity of the information within the blockchain network, and makes it so that the network can operate trustlessly and without any third-party intermediaries. These algorithms are indispensable for the security, privacy and identification of business processes online.
DAO represent yet another big step forward and shows that a good project cannot simply rely on cryptography to succeed, incentives are needed to align the community together towards a common goal. DAO constitutes a new way of organization, a mechanism implemented only through code, which condenses organizational consensus and makes completely open collaboration possible.
The rise of DAO will accelerate the implementation of the metaverse. We expect that in the next 5 years, there will be more metaverse projects, and HyperDAO will continue to focus on the development of blockchain, gaming, networks and hashrates, so that more users can enter the blockchain industry. In the future, there will not be a single metaverse run by a centralized entity; rather, there will be a series of interconnected metaverses that everyone can access freely.
By adopting the principles of decentralization and community governance, HyperDAO has managed to garner a cohesive community with no controlling authority or leaders and will promote an open space where all members can bear witness to, and contribute to the development of the platform by submitting proposals and voting on them.