If you are learning blockchain then there is one world every and always come's while your learning journey that is DAO. Today in this blog we are going to understand what the hack is DAO and why one should learn and familiar with this topic . So let's start !!
Dao basically stand for the Decentralized Autonomous Organization.So lets break these word and try to understand in simple word . Here, Decentralized means there is no one or any central authority controlling this , Autonomous means which is self governing , able to do work and capture by own and organization means the NGO or any companies which built on the concept of blockchain. Let's understand the dao in more details.
The first dao launched in the late 2016 named "The DAO" on Ethereum Blockchain , and surprisingly it get hacked and fails due to which in todays era we are seeing the two types of splits Ethereum that is "Ethereum classic" and "Ethereum". hey why this happens ? uhmm we are going to see this in other blog
In web2 the main problem is the centralized entity (the one who controls all the funds , transaction , and all other things like stake holders) and to remove this Here web3 comes into the game .The dao is just similar to web3/ blockchain , Dao majorly focuses on the smart contract which maintains all things , rules are defined in the smart contract which manages the ledger of the contract .Then who maintain the smart control ? Smart contract is maintained by the public who owns the token of that organization .
There are various project built on dao like :-
Lets understand some DAO organization structure
First let's understand what is Maker (MR->symbol for maker coin) , Maker is an open source projects deployed on the Ethereum blockchain based on the dao. The main aim of this is to stabilize and support DAI stable coin value . It tries to keep the DAI value closer to the 1 DOLLER .
The main aim of creating this MKR token is to make the dai as a stable coin and it holds the market rank 50 and it has $990.38 current Market price which is insane.
Dash is a cryptocurrency that focuses on instant and private transaction and is therefore referred to as Digital Cash. It uses a combination of both the proof of work and proof of Stake algorithms .