Blockchain technology for decentralized autonomous organizations

With continuously changing operational and business needs of the organizations, Decentralized Autonomous Organizations (DAO) is the current need of the organizations. Centralized Autonomous Organization (CAO) lack transparency and are managed by few efficient managers whereas Decentralized autonomous Organization's (DAO) is novel scalable, self-organizing coordination on the blockchain, controlled by smart contracts and its essential operations are automated agreeing to rules and principles assigned in code without human involvement. In this chapter we discuss the needs for Decentralized Autonomous Organizations (DAO) and key efforts in this field. We then introduce a prospective solution employing blockchain Ethereum, which incorporates a Turing complete programming language with smart contract computing functionality. A solution is elaborated that permits the formation of organizations where participants preserve straight real-time check of contributed collects and governance policies are formalized, automatized and imposed using software. Basic code for smart contract is composed to make a Decentralized Autonomous Organization (DAO) on the Ethereum blockchain. We also explain the working of DAOs code, centering on fundamental establishment and governance characteristics, which includes organization, formation and voting rights. DAOs are considered to agree to the expectation of the business work in the future. But there is still lack of operational base for DAOs in the blockchain community.