The Study of Decentralized Autonomous Organization (DAO)in Social Network

Abstract

In the past, the term “Decentralized Autonomous Organization (DAO)” was used to refer to a loosely organized network of autonomous entities, such as a corporation, a cooperative, or a non-profit party. Since Ethereum pioneered smart contracts in the blockchain, the Ethereum Virtual Machine (EVM) can connect public nodes scattered throughout the network into a virtual machine to execute Turing-complete programs. The EVM can also run other applications such as decentralized autonomous organization (DAO), which is a new type of blcokchain-based organization that uses smart contracts to perform tasks on a distributed scale. The smart contracts have organizational rules and operational logic embedded and automatically execute organizational decisions and proposals making it highly decentralized and more democratic. The DAOs are organizations that are not subject to legal, physical, or economic constraints, as well as the ability to operate outside the control of a single central authority or a single governing body. Because DAO is formed by many smart contract that operate together, which makes it highly decentralized and has a strong democratic system. This paper discusses the pros and cons of DAO, and the potential of DAO in community development, especially in non-profit organizations. It is hope to provide an overall picture of DAO, and the roadmap for future development of DAO on the right track.