|Organizations are structured in a way that is generally flat and allows for a democratic process.||Usually, hierarchical.|
|In order for changes to be implemented, members must vote on them.||Depending on the organizational structure, changes can be demanded from a sole party, or voting may be offered.|
|Votes are tallied automatically through smart contract, and outcomes are implemented without the need for a trusted intermediary.||If voting is enabled, votes are counted internally, and the result of the vote must be processed manually.|
|The services offered by the DAO are handled automatically through smart contract and in a decentralized manner. (for example, distribution of philanthropic funds).||Organizations usually require human handling or controlled automation that is prone to manipulation.|
|All the activities are transparent and completely public on blockchain.||Activities in an organization are generally private and inaccessible for all individuals.|
DAOs offer an alternative to the traditional centralized decision-making models that most organizations employ. In a DAO, authority is distributed amongst a large group of users rather than being centralized within a small group of individuals (e.g., a CEO or Board of Directors). This decentralized approach has several advantages, including increased resilience to attacks and improved responsiveness to the needs of the users.
The decentralized nature of DAOs means that anyone with the appropriate tokens can participate in governance. However, because a small group of investors can hold a large number of tokens, they may have a disproportionate amount of power when it comes to voting. This could lead to problems if they vote for unreasonable proposals. Therefore, DAOs may not completely eliminate the problem of hierarchy.
DAOs have the potential to improve a number of processes, including voting, contract preparation and submission, contract execution monitoring, bidding, auditing, and more. By automating these processes and making them more transparent, DAOs could help to improve the efficiency and accuracy of these important functions.
DAO provides a way for people to receive donations anonymously and to accept members from anywhere in the world. This allows individuals to receive donations without disclosing their identity, and it also allows the members to have a say in how the money is used.
DAOs can improve auditing by automating project management, improving tracking, and increasing security. This can help organizations save time and resources by reducing the need for manual oversight. Additionally, DAOs can provide transparency into the decision-making process, which can help build trust among stakeholders.