The blockchain alternative for organizations, where decision-making rights are distributed among shareholders rather than appropriated by a central authority.

A decentralized autonomous cooperative (DAC) is the offshoot of the concept of decentralization for organizations. It effectively removes the need for overly powerful central authorities by distributing decision-making rights among the shareholders of the organization. As a result, corporate interests do not reflect the ideas and preferences of any one person, but the choices of the entire board of shareholders.

Apart from the abolition of central authorities, DACs are also characterized by widely accepted rules that are coded into an accessible and transparent computer program. These rules serve as the guiding framework for the organization and ensure that there is no successful abuse of power at any point.

A corporate organization that operates on hard-coded rules and uses the decentralization decision-making model from top to bottom.

A decentralized autonomous organization (DAO) is any corporate organization that follows the decentralization principle of traditional blockchains, with hard-coded rules that underlie the organization’s operations. Regarding leadership and management, DAOs do not adhere to any particular hierarchical system and instead use smart contracts, rewarding accomplishments based on contribution.

DAOs essentially function as a meritocracy, with the organization better described as a community of active and equally motivated members than a corporate institution solely driven by a desire for profit.

Computer applications that run on a blockchain network and outside the control of any single authority.

A decentralized application (DApp) is a computer application or program that is native to a blockchain network. This program is different from typical digital applications in the sense that it does not run its processes on a single computer but on a network of computers. Secondly, even though DApps exist on multiple systems at the same time, they are not managed by any single or separate computer or user or group of users. Instead, these applications follow the traditional blockchain model of complete decentralization, effectively taking control of the applications away from a central authority.

DApps are among the foremost characteristics of the blockchain and crypto revolution that is credited with disrupting the typical business model. Apart from triggering a retrofitting of the finance sector, the use of DApps has also revolutionized gaming and social media.

Decentralized Autonomous Cooperative (DAC)

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