The User Owned Decentralized Internet Of Tomorrow

The User Owned Decentralized Internet Of Tomorrow

What is a decentralized internet? If history is any indicator, there will soon be a convergence in the creation of the Metaverse, Web 3.0 technologies, the DAO, and the new and improved Internet of Things. It is possible that there will come a day in the not-too-distant future when the Metaverse is standardized.

Once that occurs, it will be possible for Avatars to travel freely from one metaverse to the next without having to constantly sign in and out. It is also very likely that these locations will be user owned and decentralized.

In such a system, the users themselves determine the rules, applications, and “laws” of the metaverse in which they are partial owners. This form of governance is known as the Decentralized Autonomous Organization or DAO.

In a Tokenized DAO, the DAO is formed under a smart contract that is registered or minted on the blockchain. A determination is then made as to the number and value of the tokens that will be created. These will become what is known as Governance Tokens, with each one representing a certain number of votes.

The number of votes for any individual will depend directly on how many governance tokens they have managed to acquire. The daily operations of the DAO will then be determined based on a vote of the governance token holders. The voting process will depend on the Smart Contract under which the DAO is founded, and according to the rules set forth within that contract.

What Is Decentralization

In Web and Web 2.0 systems, websites are hosted on a single server, and under the control of a single entity or individual. This makes it easy for user-generated content to be edited, deleted, censored, or even to be deleted.

The Web 3 environment places a strong emphasis on the decentralized computer networks in addition to decentralized blockchain technologies. Decentralization of the computer servers facilitates the storage of individual data packets in numerous, “random” computers around the globe.

These individual computers are known as nodes and each node can be used to store unique or duplicate information depending on how the data is distributed along the network. This prevents any single user or entity from being able to tamper with the data and greatly increases both security and privacy for the end users.

This process of decentralization in the Web 3.0 environment has now extended to the ownership of websites, online enterprises, and into other areas of e-commerce and the monetization of the internet. This type of “corporate” decentralization has resulted in the formation of the Decentralized Autonomous Organization or DAO.

The formation of the DAO requires a group of like-minded individuals to get together and determine the rules under which the company will be run. What may otherwise be seen as the Corporate By-Laws or the Corporate Charter are registered and minted on the block chain and this forms the backbone of the DAO, and allows for the uninterrupted continuation of operations, restricted only by the limitations set forth therein.

What Are The Benefits Of A DAO Enterprise

The DAO is part of what will create the user owned decentralized internet. One of the easiest ways to differentiate the DAO from more traditional business interests is in the potential for the continuation of operations. In a more traditional business, if the owner were to sell out, or otherwise leave the company, operations would likely cease. Even in the event the business did not fold, there would still be a great deal of disruption.

In the case of the DAO, all of the people remaining who were in possession of the governance tokens, each representing one vote in the most common scenario, could continue to bring operational or DAO goals up for a vote. The vote would then proceed and decisions would continue to be made and implemented by the remaining members with the governing tokens.

Such a process may also ensure a continuity of purpose for the DAO. This is subject to those holding the governing tokens remaining of a similar mind and focusing on the best options that will help to increase the value or worth of the DAO.

What Are The Detriments Of A DAO Enterprise

There may be instances wherein a party with malicious intent will discover some means to gain a controlling portion of the governing tokens, in which case there may be some conflict of interest. However, such a transfer would also be recorded on the block chain and would be relatively easy to spot, ostensibly at least.

It may also be surmised that after such an investment as would be required to take over a DAO, the individual may in fact have the best interests of the DAO in mind and seek to improve the returns on their investment. The votes are evenly dispersed among those holding the governance tokens, which ostensibly at least, have been purchased with a real cash value.

If there is any downside to the DAO, it may be the voting process through which DAO decisions are made and from where the direction of the company will be guided. There are currently five separate and unique voting processes for the DAOs in existence. It should be noted though, that the voting process may be wholly unique depending on how it is set up in the DAO Smart Contract.

This process may not always be forthright or efficient. It can be challenging to persuade or otherwise engage the members of the DAO in order to ensure immediate actions. This can result in delays which could potentially render the DAO incapable of operating at peak efficiency, or from rendering time-sensitive results.

The DAO And Metaverse 2.0

The DAO is currently in its infancy and there is plenty of room left for improvements as new methods are tested and proven. Likewise the Metaverse is not yet standardized, but may become a much more interactive and interconnected realm.

As these Web 3 technologies continue to evolve, look for an increasingly user-owned, decentralized internet experience where the participants can determine the path to the future.