A DAO (Decentralized Autonomous Organization) is a Web 3 entity that is held together by decentralized community consensus which is codified in a collection of smart contracts.
In comparison, a corporation in the Web 2 world is a centralized entity run by a board which is governed by a collection of legal agreements. As an example of Web 3 transparency, all DAO rules are written in code, thus removing the need for a management layer where bureaucratic hierarchy reigns supreme. In Web 3 social consensus is part of the code that governs the DAO.
As an extension of trustless Blockchains where global transactions and value exchanges happen on the Web 2 internet; Web 3 extends that capability where people want to organize themselves with like-minded people working toward a common goal.« Back to Glossary Index