DAO this old woman also came to ask?

How much does it cost to buy an NBA team? Two years ago, Alibaba co-founder Cai Chongxin bought a 100% stake in the Brooklyn Nets with a total investment of $ 2.35 billion. Now a new path has opened up for ordinary fans who cannot make a lot of money.

In November 2021, the Decentralized Autonomous Organization (DAO) called "Krause House" started offering NFTs (Our Trusted Virtual Tickets) with the aim of raising 1,000 ETH (market value of approximately US $ 4 million). NBA teams - even if the money equals the value of the team's annual charter.Quick fundraising is great and initial fundraising at ETH 200 takes 15 minutes.

3 types of NFT tickets issued by Krause House 丨 Krause House

“Crowdfunding to Buy Teams” has been inspired by many DAO fundraising events in the past. An organization called "ConstitutionDAO" wanted to buy the first copy of the US Constitution of 1787, which was sold to the public.

Only 13 copies of the First Edition of the US Legislature remain, the first to be released to the public is one of the publications. Sotheby's estimates the value at $ 20 million. But on November 18, the Page finally sold for $ 43.2 million with a hammer, setting the world record for the highest prize for a historic one-run record.

US Constitution promulgated 235 years ago: Wikipedia

The desire to see the ConstitutionDAO fail and ultimately fall into the hands of rich Chicago man Ken Griffin on the wrong side.One of the main reasons for the failure is that ConstitutionDAO fundraising is open and transparent, and candidates are aware of the consequences of the pre-election campaign.The DAO has since opened a request for reimbursement of funds.

The New York Times, the BBC and other media focused on the ConstitutionDAO-focused campaign.Over 17,000 internet users around the world donate and collect over $ 40 million in ETH in just 72 hours.A key member of the DAO legislature said: "The museum police were shocked. He said, 'I asked him why he could fundraise in three days,'" he said.

People are turning to ConstitutionDAO not only because it continues to 'make money', but also because it is a historic phenomenon for crypto with real impact around the world.These 17,000 foreigners had the sole task of purchasing copies of the historical documents, and then jointly voting where the documents were to be published.

“We made history ... even the old ladies came and wrote, 'What is Ethereum?' on Twitter.

talk to participants

It all started a week before the publication of “American law” was put into public debate. “Do you want to join our campaign? Some people in the cryptocurrency industry suddenly think. Contest for copies of 'U.S. The Law' starts at $ 10 million, and it is difficult to get 'tickets' with a donation. The leader starts the video conference and comes up with a simple plan.

First, the DAO must solve his "personal problem".This "decentralized autonomous organization" is not registered with the decision under a sort of governing body and therefore has no legal number.At first, Sotheby's didn't even know how to "DAO" and didn't know how to follow.

In fact, DAO is a type of public computer code written on a blockchain that can be understood as an electronic contract, but how the contract is determined by a number, not by the person.

DAO can be thought of as a type of power contract, the success rate is determined by the rules, not by the people. Ns Unsplash

Key members of the DAO legislature are now seeking the best knowledge of legal matters, establishing a legal entity that can do business with Sotheby's, and establishing a useful Endaoment for discussing issues such as data collection and competition; Selected The third platform, Juicebox, is the gateway to fundraising.

Soon after raising $ 14 million, you'll have ticket sales, collecting $ 30 million will allow you to compete against others, and raising $ 40 million or more will soon open a fundraising page. of funds. , there will be several ways to win.The notice also pointed out that distributors are not members of the lottery, but the rule of thumb is where tokens are presented as a gift certificate, depending on the investment comparison. And these vouchers can be used to initiate approvals and votes and determine what the total investment will be going forward.

“Then when visitors look at these publications, they will remember that they were involved in that historic moment. You can indicate the location of the information. Learn more than visiting the National Archives. Said the agency.

We caught up with Z, who is involved in fundraising, to discuss this exciting experience.

"Everyone has a different mindset. I think it's fun, and I think there are people who make money like that." Z first saw a reposted ConstitutionDAO ad on Twitter. “A lot of people think this is a historic event. Some people think there's Big Vs and Small Vs on Weibo, so you can buy them and advertise them. Then a lot of people go into the Discord chat room and see it's fair. Don, know, I'm thinking a lie. "

When Z click enters the fundraising page, the promotion reaches 27%. Photo courtesy of Respondent Z

When Z first entered the fundraising page, the fundraising increased by 27%. Clicking on Donate will transfer you to another fundraising service called Juicebox, then click on “Connect Wallet” to allow ETH Z to be placed on MetaMask.

Once the donation is made, Z receives the "$ PEOPLE" token, which is not only proof of his participation, but also proof of his own membership in DAO where nature appreciates this latter policy.

The question is, will the project staff run out of money? DAO organizations have announced that they will transfer the funds to an account similar to the "blockchain vault". A president's fee is required to use the funds (only the organizer, not the jury), to approve and sign.Z said earlier that he appointed 13 executives as executives, and 9 of them had to sign electronically at the same time to transfer funds.

Establishments between 13 and 9 "are to preserve tax tradition and history". On June 21, 1788, the “Constitution of the United States” was passed in 9 of the first 13 states, becoming national law.

“Even if the final auction fails, most people think everything is fine. It has a story. But it also reflects the fact that blockchain prediction is not good for the money because someone else knows your map slot. There are people ... it's better to keep your coins auctioned off cheaper copies of the United States Bill of Rights instead of throwing them away. "Z.

Can you trust the DAO? for

ConstitutionDAO has over 17,000 grants, and they come from all over the world. Why would they trust "organizations" that have no law?

The belief of people in this situation is not due to written contracts and did not rely on the police to interpret the contracts. , not because of them, but because the promise was kept, because it became public computer code and its execution was not subject to human intervention.

The basic process is first and foremost a digital signature.

Digital signing devices are based on "public key cryptography" that emerged in the 1970s. Public key cryptography allows the user to access information (called a "public key") for encryption and to confidential information (called a "private key") for decryption. It is considered to have individual communication with the private key, but the private key cannot be considered a public key. In communication, the sending side encrypts the data with the public key of another person, and the receiving side decrypts it with its own key, it is also the basis of the internet communication.

The public key includes a method with a private key and is a communicator, but the private key cannot be counted by a public key.

Then, public key cryptography extended digital signature technology. After using your private key to create a signature on your message, others can verify if the signature is yours as long as they know the language, your public key, and your signature name.

In systems such as banks, digital signatures are used as personal identification systems, such as bank USB cards. However, with open access to blockchains such as Bitcoin and Ethereum, digital signatures have become an account system. Your password is the same as your account number (which may be made public) and your personal account number is the same as your password (which cannot be made public). open). The property is locked directly in all major public names, and when you transfer assets, you must present the signature of this private key. Your signature cannot be forged, so no one can steal your assets directly.

As a result, the theft or loss of personal keys results in loss of control of the property.

This process solves many problems: you can deposit money without a bank or institution. A public and private key pair is an account, a private key is a long string of digits, and software can be used to generate multiple numbers. as requested.

Likewise, since such a process is borderless and inaccessible, the ConstitutionDAO can enable people from many countries and regions of the world to participate.

But how do you know the truth when you ask how much money is in your public key? This requires another technological release, the blockchain.

In a narrow sense, blockchain technology can be thought of as a means by which multiple untrusted computers connect to each other to create shared information and commands.

Blockchain is a technology that allows multiple computers that are not dependent on each other to come to a consensus about what is happening on the network.

In blockchain networks such as Bitcoin and Ethereum, computer sharing is the story of messaging and signing - that is, information about the flow of money between different public keys. As long as the computer completes the data from the blockchain and interprets and analyzes the data according to the same rules as the other computers, the results obtained should match those of the other computer in the same blockchain network.

Since the exchange of public key information has been made public, even without a third party, the revenue from each public key is a long-term commitment, especially as final data sharing is withdrawn. real time.

Thus, ConstitutionDAO can confidently accept donations without needing a bank to verify income.

The ultimate component design, ConstitutionDAO, originates from the segmented design realm of the blockchain smart contract (distributed computing services that must be executed once certain conditions are met).

When each public key wants to change money on the blockchain, it must have it signed, on the one hand, the computer receives a message to check the balance with the name of the public key, and on the other hand, to do a sign. Signature - this key is the process of performing the calculations listed above. Can computers in a blockchain network do other counts?

Ethereum is a blockchain protocol layer that implements this concept. On the Ethereum blockchain, users can directly upload their numbers and pay special fees that require it to run on any computer. Just as messages are killed (deleted) on all computers, those messages that require transaction numbers will still run on every computer on the Ethereum network.

The law itself is public and visible to all. Once the number is displayed, it runs on all computers in the Ethereum network. This achievement can be seen as interference with human technology. Finally, if you want to trust the advantages of others, you can run the computer software yourself using the Ethereum protocol and identify the advantages of other attacks.

So while DAO organizations have stated that at least 9 signatures out of 13 public keys must be written for investment decisions, the openness of blockchain and Ethereum's status made a reliable promise.

The code says it all.

The type of computer code that can create human business problems is called a “smart contract”. It was claimed in 1996 by computer scientist Nick Szabo.

As of this writing, the Ethereum network has 5,006 public computers (ethernodes.org data) and the Bitcoin network has 14,921 public computers (bitnodes.io data). The operator of this computer can run software and participate in these networks ｜ Unsplash

Not DAO? for

The founders of the ConstitutionDAO also created another "restriction".They do not invest money for themselves and cannot determine the purpose of the money. The initiators simply name the project and upload the number to the blockchain.

The reason this event received so much attention was that it was time to reflect on the existing business organization and capital allocation.

Throughout the fundraising process, the ConstitutionDAO did not fund its organizations and donors. These benevolent groups came together to achieve his goal of "buying a copy of the Constitution of the United States." This unprecedented combination has called into question the unique operations of the “company”.

DAO decentralizes the power of control to all participants, the organizational structure is flatter than the company normally, decisions of some leaders can be changed with token based voting. All distributions and outflows of funds are recorded on an open and transparent "chain".

In addition, DAOs can only represent and authorize work with digital signature technology. Money does not contain any real personal information. So organizations like this are global and open to everyone. Many people can get multiple DAO management tokens. This means that all employees will be able to retain company members based on their duties, and the company's skills and revenue efforts will go in the right direction.

DAO is difficult for traditional business organizations and the capital allocation process

However, not all DAOs work well, they are computer code. And human-written code can be good or bad, and the business models it supports can vary in functionality.

DAOs currently have two restrictions.The first is that there are not many governments that recognize DAOs and most countries are still in the gray area for legal interpretation of DAOs. Security is almost entirely determined by your numbers. If the smart contract is not written correctly, it can be counterproductive and participants can lose their money.

In early April 2016, the first DAO "The DAO" appeared, with $ 150 million in crowds to raise capital. But in two months, a third of the money was stolen by hackers because of a loophole in the code.

In September 2021, 10 departments and directorates, including the bank, met to publish the "Notice of protection and regulation of public information. Distributed in virtual currency ”. Clarify the law.

In today's environment of “currency discoloration,” one doctor says, “I hope we don't demonize technology, technology that recognizes self-identification. Second, deify technology and do not expose the benefits of technology. more impacting on everyone's understanding and recognition. "

The industry asks endless questions about the safety and security of DAOs, but recently DAO “out of the loop” has surprised many outsiders as well."How can I use it? "

Today, there are over 100 large DAO organizations (including social DAOs, author DAOs, media DAOs, service DAOs, etc.) that manage over $ 10 billion in assets.

Thinking back to the DAO case, the direct reason the agency was able to operate effectively was that it was able to distribute and put resources up quickly within a week. The deeper reason is that technology has already become a major source of trust, that deeper and perhaps even better relationships have emerged over time, and people are focusing more on using the internet. People call it Web 3.0.

Partner Z said, "Some members of ConstitutionDAO, even if we don't intervene even if the contest is not successful. Web 3.0 laws can be implemented," he said.

Applications

[1] https://www.theverge.com/22820563/constitution-meme-47-million-crypto-crowdfunding-blockchain-ethereum-constitution

[2] https://learnmeabitcoin.com/

[3] https://decrypt.co/86601/krause-house-dao-has-quickly-raised-1-7m-aims-to-buy-nba-team