Is a DAO a smart contract? Is a DAO a DApp? Vitalik Buterin has described the decentralized autonomous organization as an entity that lives on the World Wide Web and has its own set of rules. DAO also heavily relies on hiring individuals to perform certain tasks that the automaton itself cannot do.
Grasping the concept of DAO can be bit tricky. From a software developer's perspective, a DAO is just a piece of code, specifically a complex smart contract, or an interacting module comprising many simple smart contracts, which are abstracted as an organization. From a trader's perspective, the closest analogy of DAO is a Limited Liability Company (LLC). Let's try to understand a bit about LLC. Suppose Susan has a great business idea and wants to open a start-up with her life-savings. Rather than going through the venture capitalist route to fund the rest of the money for doing business, she chose to go the LLC route. That way, she invites shareholders to own a...