The blockchain organized business bitcoin continues to make headlines for various reasons, including it is the currency used for the Colony Pipeline ransom.
El Salvador recognizes bitcoin as legal currency, and everyone’s favorite – it is up/down 50%. While many still wonder if bitcoin, or some other cryptocurrency, will become the standard payment of the future, another use of the blockchain technology is coming to the forefront.
There have been many proposals to create a business organized by blockchain. These are called decentralized autonomous organizations or DAOs. A quick explanation of blockchain before continuing on to DAO.
Bitcoin, as most cryptocurrencies, relies on the blockchain concept to ensure security and trust. Each bitcoin is encrypted with the history of transactions. To prove an individual owns a particular bitcoin, the system queries everyone else in the network. If they all agree on the history of the transactions, then one can prove they are the current owner.
‘Distributed ledger’ is at the heart of the matter
This is why bitcoin is said to operate on a “distributed ledger.” The power is rather than needing a centralized ledger for trust, such as a bank, the network itself servers to authenticate