What Is a DAO?

The video introduces decentralized autonomous organizations (DAOs), explaining their structure, benefits, and challenges. DAOs automate organizational processes using blockchain technology, offering transparency and decentralization. However, they face security risks due to open-source code. Real-life examples like Dash and The DAO illustrate their potential and pitfalls. The video concludes with a discussion on the future of DAOs and their impact on economic organization.

What is a key characteristic of a Decentralized Autonomous Organization (DAO)?

• It is managed by a central authority.

• It relies on human decision-making.

• It automates processes using code.

• It operates without any rules.

How do DAOs benefit from blockchain technology?

• By being immutable and transparent.

• By being completely private and hidden.

• By being controlled by a single entity.

• By being easily manipulated.

What is a potential risk associated with the open-source nature of DAOs?

• Lack of transparency.

• Exposure to hacking vulnerabilities.

• Increased centralization.

• Difficulty in accessing the code.

Which cryptocurrency was the first DAO?

• Litecoin

• Dash

• Ethereum

• Bitcoin

What was a significant event in the history of The DAO?

• It successfully raised $1 billion.

• It was hacked, leading to a loss of funds.

• It became the largest cryptocurrency.

• It was banned by all governments.

What is a unique feature of Dash as a DAO?

• It offers dividends to masternode owners.

• It has a central governing body.

• It does not use blockchain technology.

• It is completely anonymous.

What was the outcome of the hack on The DAO?

• The hack was ignored by the community.

• The DAO became more popular.

• Ethereum executed a hard fork to restore funds.

• The DAO was permanently shut down.