DAO can do that the capital of the Metaverse is not virtual

DAO is the abbreviation of Decentralized, Autonomous, and Organization.

There is a famous running scene in “Forrest Gump”. Every time I see it, I think of the word run company.

“The reality is so convoluted, let’s run a company on the blockchain, I think this is DAO.” Emily took a sip of Macchiato (caramel macchiato, known as “the soul of coffee”). Technological appearances come in all shapes and sizes, and without the caffeine of capital, the Macchiatos wouldn’t exist. Before I met Emily, I might have been confused by various blockchain technology posts, but after this explanation, I suddenly felt a refreshing dose.

The earliest DAO on the blockchain is a collective investment tool, which appeared in 2016. It is based on Bitcoin and realizes decentralized management through code. It aims to become a rationalistic form of crowdfunding, a decentralized Venture Fund and showed the world for the first time how such a decentralized organization running through code should govern itself. Participants provide ETH (Ethereum) to “TheDAO” and receive DAO Token. Raised $126 million in 18 days. In the end, it raised US$150 million, with more than 11,000 participants, setting a record for the largest amount of funds raised at that time.

As the non-fungible token NFT market matures over the year, digital art creators’ ownership of collectibles is better protected. At the same time, it also means that players can safely make long-term and short-term investments, and can also jointly collect and (or) operate NFT works that have the same string of codes with anonymous people in the organization through DAO. The maintenance, bidding (or trading) of NFT works enhances the cohesion of organizational (community) activities and members, and participation in community autonomy has become a compulsory course for every player.

DAO can do that the capital of the Metaverse is not virtual

Taking Pranksy trading NFTRaidParty Fighters as an example, the overall transaction cost is around 0.5ETH.

DAO can do that the capital of the Metaverse is not virtual

Source: Guosheng Securities

From Bitcoin to Ethereum

Looking back at the rules set by Bitcoin, Emily said, is particularly like looking at a model of a “labor commodity.” Rewards for currency rights by solving complex mathematical puzzles (mining). Then it is used to buy various virtual assets, or simply short, or change hands in various formed exchanges. After that, in order to avoid the systemic risk of the demonization of decentralized Bitcoin, various token exchanges were derived. The main body of token issuance is various token DAOs – self-organization based on smart contracts. You can’t tell how big a cauliflower should be. Anyway, a small flower and a large flower seem to be based on the same set of logic. Famous, very famous. As long as the currency is tradable, the appearance of the currency itself is not so important.

“Commodity of labor force” is an important concept in Marxist economics. It is precisely because labor force becomes a commodity that money can be transformed into capital, and the law of ownership of commodity production can be transformed into the law of capitalist possession. It can be said that the entire capitalist production system presupposes that workers sell their labor power as commodities.

Compared with Bitcoin, Ethereum belongs to the category of blockchain 2.0 and is currently the most widely used public blockchain system that supports complete application development. Why is there Ethereum? Because the design of Bitcoin is only suitable for encrypted digital currency scenarios, it does not have Turing completeness, and it lacks the concept of an account that saves real-time status, and there is a PoW mechanism (PoW refers to the proof that the work side has done a certain amount of work) with problems of efficiency and waste of resources. The most critical issue is thatin a commercial environment, there needs to be an efficient consensus mechanism, Turing completeness, and support for multiple application scenarios such as smart contracts. So, Ethereum came into being in this situation.

Iteration from Web3.0 to Metaverse

The traditional Internet is a global network of servers that use protocols such as TCP/IP to focus on the transfer of data between specific device addresses. Web 1.0 emerged in the late 1980s, was read-only, lacked user management, and was mainly used to share technology and knowledge. Web 2.0 ushered in an era of online connectivity, and engineers developed cookies and APIs to track user behavior, collecting data about users’ shopping cart contents, interests, browsing history, and previously viewed ads. As ethical questions about the collection of personal data were raised, leading to the introduction of the General Data Protection Regulation GDPR (ie, the new data privacy and security law) in the European Union in 2018.

The GDPR states: “Everything that helps to identify a person, whether referring to a person’s professional, private or public life” counts as personal data. Users have the right to block the collection of certain data and forcibly delete it, but not all companies fully follow the rules.

Web3.0 uses the blockchain network as the underlying infrastructure, which can run without a server controlled by a centralized entity. The security and immutability of personal information are guaranteed through complex cryptography, and it is almost impossible to forge or change the stored data, allowing users to Being able to truly own information and create something more exclusive value. On this basis, the smart contract wallet is used to process blockchain encrypted tokens, and DAO changes the process operation through the process voting set by the community (token holders), so that the DAO co-governance can be realized, and the Metaverse is solved in steps. governance structure issues .

DAO can do that the capital of the Metaverse is not virtual

As the technical realization of the Metaverse, Web3.0 determines that the Metaverse is inherently autonomous, autonomous and open. No matter the public chain or the alliance chain, whether Meta or Roblox, the core of the Metaverse always revolves around digital creation, digital assets, digital transactions, digital currency and digital consumption.

Emily finished drinking the glass of Macchiato and turned around to take a picture of NFT. Meaning is an assumption; happiness is a real feeling.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/dao-can-do-that-the-capital-of-the-metaverse-is-not-virtual/
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