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.

A crypto-centered platform where traders can exchange crypto assets without relying on or reporting to a central authority before they can engage in trading and investment activities.

A decentralized exchange (DEX) is a crypto exchange platform that adheres to the traditional blockchain model of financial decentralization. A DEX is distinguished from a centralized exchange (CEX) in the sense that its operational structure is decentralized, so users have greater freedom with regards to the purchase, investment, and sales of their crypto assets.

One of the main characteristics of DEXes is that they do not require users to register to trade on the platforms. Therefore, the KYC (Know Your Customer) protocol that CEXes use as a condition for registration or trading is not required. Also, users operate directly from their wallets instead of using a custodial wallet provided by the platform.

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.

Decentralized Autonomous Organization (DAO)

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