The Need of DAOs

 Why Do We Need DAOs?

Launching an organization with someone who involves funding & money needs a lot of trust in the people that you decided to work with. Trusting someone who ever interacted with the internet is very hard. With DAOs, when you start an organization, you don't have to trust anyone in the group. Since DAO's code is completely transparent & verifiable by anyone.

Thus, this DAO creates a new way for global collaboration & coordination.

DAO Vs Traditional Organization

There are some important difference between DAO & traditional organization which includes,

1. DAO is basically flat, fully democratized whereas traditional organization is hierarchical.

2. For any changes to be implemented, the DAO requires voting & in a traditional organization, it depends on the structure.

3. All activities are transparent & fully public in DAO & it is private & limited to the public in a traditional organization

4. In DAO the services offered are handled automatically in a decentralized manner whereas in traditional firms it requires humans.

5. In DAO votes are tallied & outcomes implemented automatically but in traditional organizations, votes are handled manually.

What Are The Benefits Of DAOs Over Legal Contracts?

DAO smart contracts are likely a legal agreement written in code by software experts. These blockchain smart contracts add an element called automation to the legal agreements. 

In addition, these DAO smart contracts are shorter, smaller, and more quickly produced than standard legal contracts.

Apart from these by using cryptos registered on the blockchain, it is highly possible to raise money more than using fiat via traditional banks.

We Bitdeal - Leading Metaverse Development Company has experts who can help you in starting their own DAOs and make huge money with the implementation of cryptocurrency.