Basics of the Blockchain

Takadao is built on a number of blockchain technologies that require consideration.

• Decentralized Autonomous Organizations (DAOs)

• Cryptocurrencies, stablecoins and tokens

• Smart contracts and oracles

The DAO in TakaDAO stands for Decentralized Autonomous Organization. It refers to a group of people working together for a specific purpose. To do this in the off-chain world, people would incorporate a legal entity (a company) with a set of bylaws enforced through a nation’s courts. A DAO on the blockchain is organized by its members through the use of smart contracts: computer code that is publicly visible, auditable, verifiable and that ensures that whatever needs to happen, happens. Smart contracts are both the bylaws and the enforcers of the bylaws.

To represent membership and ownership of the DAO, DAO tokens are issued. Suppose the DAO is financial in nature, participants would contribute cryptocurrencies such as stablecoins to the DAO and receive DAO tokens in exchange. The type of cryptocurrency accepted and how many tokens will be issued by the DAO are determined at the time of DAO creation and coded into smart contracts.

Smart contracts control and regulate the behavior of the DAO, including how financial assets are managed. In most cases, what action a smart contract takes requires additional information that may be dynamic in nature and require constant updates. In such cases, data oracles are called upon by the smart contracts to provide this information. Oracles can be machine or human and their impact on the smart contract is limited to the data they provide.