What is a DAO and what makes it trendy | Newsverso Glossary

The acronym DAO gained notoriety with the popularization of web3. With the purpose of taking power away from entities or individuals, and handing it over to the community or collective, these organizations operate on the borders of the metaverse. That's why the term is so linked to the new moment of the internet.

What is a whitepaper? | Newsverso Glossary

Within web3, several concepts are new to most internet users. Even the term web3 is unknown, as well as metaverse, cryptocurrencies and everything else. With that in mind, Newsverso brings you a series of explanatory notes with those complicated terms that appear here. It's the Newsverso Glossary! Today we will explain, in a few lines and efficiently, what a whitepaper is.

As an example we will use a fictional metaverse. Consider that you and some friends have decided to invest in virtual land and need to make an administrative decision about what to do with the space. Since you are organized into a DAO, and everyone has acquired equal shares (tokens) on the ground, you will be able, together, to choose the best collective option without the intervention of any regulatory body or institution. If the same were done outside the decentralized organization, the decision would have to be communicated to a notary or something similar. 

The DAO emerges as an alternative to reduce bureaucracy

As it is a virtual environment, agreements between parties are based on digital documents, or smart contracts, which memorize and store information in a transparent way so that everyone has access. Therefore, the main proposal behind DAOs is to reduce bureaucracy and make decision-making processes more decentralized. 

Obviously there are more complex technical details behind these organizations, as it takes place at the digital limit, based on codes. But, in theory, the tendency is for more and more groups to adopt the administration method.  

Newsverso Glossary: ​​a space to explain web3 and metaverse terms

Just like web3 and metaverse, the terms surrounding this new moment in the internet are still complex. Many are unknown to most of us, who are having contact with this new environment for the first time. With this in mind, Newsverso presents its Glossary. A reserved space to make web3 accessible to the population. We will constantly bring updates with the meanings and applications of metaversonic terms.

The topic came into focus last year after the boom in cryptocurrency trading. Bitcoin, for example, is organized into a DAO, as, when trading the asset, the presence of entities or banks regulating transactions is unnecessary. Everything is done using smart contracts and the blockchain network.