Decentralized = Online, global, uncensorable.Autonomous = Self-governing.Organization = Coordination & collaboration around shared objectives.
In the early stages of Web1, publishing became democratized and anyone could code a simple website and start blogging. Web2 scaled these activities worldwide through giant platforms such as Google, Facebook and Squarespace. Web3 is the next wave, where service providers are replaced by open-source software and globally-distributed individuals working together on common goals.
Web3 began with Bitcoin's credibly neutral monetary policy taking aim at fiat currency and central banks. Out of this movement - and especially Bitcoin's cousin, Ethereum - have evolved 'Decentralized Autonomous Organizations' (DAOs), which are open-source software that enables shared control of a crypto wallet to pursue collective objectives.
DAOs are the future of organization and work, so you'll be hearing a lot more about them in the near future. Let's begin at the end...
O is for... Organization
(noun) / ɔːɡ(ə)nʌɪˈzeɪʃ(ə)n / - A group of people with a unifying purpose.
To get things done, humans have always organized themselves into groups, tribes, squads, gangs, crews, teams, companies and other forms of collective action. DAOs are no different. Some DAOs are groups of developers or investors, others are pressure groups, companies, charities, local initiatives, etc.* In fact, almost any existing organizational form can be reimagined as a DAO. So far, so familiar.
Membership of a DAO is determined by ownership of some of the DAO's 'token', which is issued on a blockchain like Ethereum and acts much like a digital membership card, enabling access to gated content, voting rights and other benefits.
A is for... Autonomous
(adjective) / ɔːˈtɒnəməs / - Having the freedom to govern oneself or control ones own affairs.
This is where DAOs diverge from traditional organizations. Usually, an organization derives its legitimacy from a government agency, such as the tax department, business bureau, charity commission, etc. Even for organizations where this is not the case, most will need a regulated bank account.
In contrast, the infrastructure of a DAO is software that can be run on any computer, anywhere in the world, with no need for the blessing of a government department. Even the money they use is global, open-source and beyond the control of any government. (More on this in the next section).
DAOs may be unregulated, but they are not lawless. Like any organization, DAOs can set their own rules on purpose, membership, voting, etc. It is also good practice for a DAO to have a written constitution or founding document so that, if a dispute arises, it can be settled by a Web3 dispute resolution service such as Aragon Court.