The crypto space has been bubbling for it’s decentralized potential offerings. Everyone would love to send funds without an intermediary or a central authority, and it has brought many decentralized innovations to life.
Ethereum has been known for the different positive features it brings into the crypto space. From the launch of Defi (decentralized finance), the world has taken a better view of what decentralized organization is or can be all about.
Defi has made financial transactions to be secured and be done without financial watch dogs or intermediaries.
This has made financial transactions like staking, loaning, insurance possible through the help of smart contracts and without a central body.
Decentralization has become the core foundation of a successful business or organization. This has raised several questions over the internet. Questions like;
What is a centralized company?
What is a decentralized company?
What is a decentralized autonomous organization (DAO)?
What are the list of decentralized organizations?
This article will answer the above questions in a layman terms.
What is a centralized organization?
A centralized company or organization is an organization where the rules guiding the organization is made from a central authority(head of the organization). This has been the paramount type of organization in the world today, where there are levels and ranks ranging from the CEO to the employees. Although, this type of organization has it’s importance and advantages, but right from the unleashing of decentralized finance, decentralization has become the talk of the day.
With decentralization, people feel free and safe to invest as they fear corruption in the centralized organization. This bring us to the second question, what is a decentralized organization?
What is a decentralized organization?
A decentralized organization is the opposite of the centralized organization. It is an organization where the decision making is shifted from a central body to the general body. In this type of organization, there is a computer programmed rules and regulations that guides the firm and thus leaving decision making to everyone and not a central body or authority. This type of organization will run business transactions automatically and not from a central body. Now we understand what is a decentralized organization, let’s discuss what a decentralized autonomous organization is.
What is a decentralized autonomous organization (DAO)?
Before we can understand DAO, lets understand what autonomy means.
For something to be autonomous, it means that the program or event is intelligent and can perform on it’s own. In an autonomous program or event, the human you see only helps or support the activity while the computer program(AI) remains the central factor.
With this, the human is not the decision maker but a supporter of the decision made.
So we are right to say that, DAO’s are decentralized organizations built on blockchain for autonomous financial decisions and transactions.
In the crypto space, DAO’s are closely functional in web3 and the metaverse. This has made the crypto space known for the decentralized autonomous organization network.
Now we understand the meaning of Decentralized autonomous organization, let’s see some web3 organizations working with DAO standards.
What are the list of decentralized companies?
Some Web3 crypto companies are basically using decentralized autonomous organization protocols. They include,
UNISWAP DAO
Uniswap is one of the decentralized cryptocurrency exchange built on ethereum blockchain. Their network protocol is used in validating transactions of ethereum-based cryptocurrencies through smart contracts.
Smart contracts are self executing(autonomous) codes on blockchain that automatically functions when some certain criteria are met.
Their protocol permits decentralized financial transactions, as people can trade without intermediaries. This makes them unique and seen as a decentralized autonomous organization or company.
METACARTELS DAO
This is one of the prominent DAO’s that makes use of the whole decentralized systems. Metacartels is a decentralized autonomous organization that was built for non-profit and for the creation of Decentralized applications(DAPPS).
Metacartels have the decision making from codes and laws, with the use of smart contracts to facilitate the company’s activities. This makes metacartels technology to be built on the ethereum blockchain.
The role of the members of metacartel’s DAO (MAGES), is to support the smart contract. This means the job that the smart contract cannot solely do, will require their support. The activities for members includes;
- Finding investments
- Carefully proposing the right investments and
- Voting on the right investment to venture in
Being a member requires permission but exiting their membership doesn’t require permission.
The main reason why they uphold the decentralized nature is that they can work with someone who values anonymity.
PHOENIX DAO
Phoenix DAO is a power pack network for application centered on decentralization, Defi protocols, and NFT’s.
Their decentralized governance mechanism works through authentication, payments, and linked identity.
Phoenix DAO standard is almost like Metacartels, and will allow DAO members to vote and choose any spending to be done. Although, being a member will require you owning 1,000 PHNX to be eligible to vote.
Phoenix is an open source development that creates room for everyone around the world to join and bring innovative ideas to push the firm forward.
Lastly, they offer staking and reward members with PHNX. PHNX is PHOENIX native token, and it is trading $0.01598 as at the time of this post, with a market capitalization of $1,061,638Â and a circulation supply of 66,429,104.29 PHNX, source coinmarketCap.
Conclusion
As the world is getting to the digital main stream, every project is driving to the digital decentralized level. We have centralized organizations and decentralized organizations, and some company combine both for the success of their administration. It is important to note that no matter how easy the decentralized organization can be when reading about it or seeing it, the whole mechanism and funding will be at the high side than that of the centralized network. And since the decentralized framework is still evolving, there are still room for shortcomings and innovations.
Just like NFT’s, as their trading marketplaces keep closing their loop holes, internet fraudulent persons are still on the watch to take advantage of any fault in the system. As NFT’s at their infancy stage had shortcomings, so will decentralized autonomous organization likely have.
