Decentralized Autonomous Organizations (DAO)
Decentralized Autonomous Organizations or simply DAO pertains to an organization that is run through the rules set within smart contracts.
The DAO is not controlled by the organization members and is not, in any way, influenced by a central government. The financial transaction records and program rules of a DAO are maintained within a blockchain. The only thing that remains questionable with these kinds of organizations is the precise legal status of such.
The DAOs are typified by the usage of blockchain technology in order to provide a safe digital ledger that would effectively track financial interactions across the worldwide web. It is highly secured against forgery through timestamping and the distributed database. This eliminates the need for third parties.