DAOs are decentralized autonomous organizations that are represented by rules which are encoded as computer programs. They are transparent, monitored, and controlled by the members of the organizations. In this case, no central government is required. They are fundamentally centered on blockchain’s existing decentralized feature. It makes use of blockchain technology to set up a complex network of nodes, capable of handling tasks faster and more intelligently.
Many DAO platforms are widely available, each one solving problems that are plaguing its sectors for years. Examples include UK-based Nexus Mutual, the first decentralized mutual insurance driven by a DAO; La Suite du Monde, the first French initiative to plan to use DAOs to manage its funds; Kover.ai, an American company providing income protection for gig workers using a DAO, and a whole host of others.
In many ways, the introduction of this technology has changed the way business is conducted. DAOs have efficiently and effectively cast aside slow and hefty fees that financial institutions, such as banks, unnecessarily impose on customers. Today, DAOs can easily be set up for any type of business.
But What Does This Mean For The Gig Economy And Workers?
The gig economy is characterized by short-term contracts, flexible jobs, and an unconventional method of hiring. What draws people to the gig economy is reliability and effectiveness. That is what DAO is all about – efficient services unlike no other. With a technology like this, it is bound to expand and become widely accessible and adopted.
The future of the gig economy can be improved if companies like Uber, DoorDash or Instacart, implement this new technology. On one hand, it will save time and people will be able to pay more easily for services using cryptocurrency, which is growing at a fast pace. On the other hand, it will help save employment costs. Since everything will eventually be automated, simple tasks that ordinarily require human input can be replaced by a DAO. Therefore, human action may be less required.
As for workers, it is a positive system. DAOs are extremely efficient, there will be no way companies can cheat you. In the case of companies like DoorDash, where tips are misleadingly deposited into the company’s account, DAOs will easily correct that. Furthermore, you have the chance to earn in cryptocurrency which, in the long-term, is more profitable.
It is undeniable that DAOs will greatly impact the gig economy and prepare it for other technologies to come.
