On Ethereum based start-up has highest crowd fund amount to date within

May

18

2016

A Ethereum-block chain start-up called DAO has more than $ 127 million to ‘Ether’ retrieved with a crowd-fund action. Participants DAO buy tokens with ether. The DAO aims to help set up decentralized organizations.

The DAO is a group whose acronym stands for Decentralized Autonomous Organisation which means that the organization runs down a set of rules into computer code. The group started with a crowd-fund action on April 30, 2016, leaving the fund-raising total of 28 days running until 28 May. Raising funds is through Ethereum, the token that is in use at the Ethereum-block chain.

The organization serves as a hub that spends funds to other startups and projects. The funds are disbursed in ether and this crypto currency is divided into DAO tokens, which gives participants the right to vote.

The organization consists of a set of contracts existing at the Ethereum-block chain, a distributed universally ledger. The organization has no physical address or appointed directors. If the link with the physical world, the organization uses a Swiss company, DAO.Link. It is thus an autonomous operating organization. Owners of digital tokens DAO can thus make their voices heard in the organization. Thus have DAO joint owners total control over the assets and operations of DAO.

The DAO is built by people who are close around the Ethereum developer group. The start-up that wrote the code for The DAO, called slock.it. Slock.it designs locks that can be opened through contracts in the Ethereum-block chain. A ‘smart working’ down in Ethereum can by paying ‘gas’ also perform calculations, or function as an Ethereum Virtual Machine, in fact, a decentralized computer that basically has no single point of failure.

The DAO

Source : The DAO, principles

Part of Ethereum is also a built-in programming, also referred to as a Turing complete -scripttaal. People can write programs and that script can be sent to the block chain through a transaction. If the transaction is confirmed by the network, an address is generated. That address is a type of account, or a ‘contract’. To interact with to get the contract, can someone send a transaction to the contract, after which an action is performed.

The goal of The DAO is to find a new way of organizing businesses and institutions. By organizations to function on the basis of code can not be tampered there. In addition, the platform offers advantages for investors by providing a return on investment.

To stay in the real world: think of renting electric cars on the block chain, which completely autonomously, without the intervention of a rental car can be hired. All rules regarding rent are stuck in the block chain.

The DAO framework is open source and can be used by anyone to create them dao tokens. The DAO wants to stand between the organization and give everyone the opportunity to use dao’s. The DAO is a value representing the equivalent of $ 125 million, the best-financed crypto-currency start-up so far and has thus 21 Inc., which managed to converted $ 116 million together scrape , more than in. The group hoped to $ 20 million to disassemble, writes The Wall Street Journal. Other flyers in the steam hitting FinTech industry as Coinbase, Digital Asset Holdings and Block Stream, took respectively 75, 60 and $ 55 million of funds within, but that happened over the ‘normal’ fundraising. Ethereum himself managed to get in with a crowd-fund action than $ 18 million in September 2014.

All Ether that arrives at The DAO is visible in the public Ethereum-block chain. Each Ether provides 100 Dao tokens that act as a single digital currency. The DAO is an experiment, and at present there is no clarity about the ‘normal world’ status of such smart contracts. EU decided to start not to start this year to regulate virtual currency because it is easy to make mistakes with regulating something that is not yet clear what direction it is heading.

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