DAO — the Decentralized Autonomous Organization — An organization autonomously run by it’s members to pool resources and achieve a common goal. What an exciting concept!
While this might seem like a new idea, a very similar organization already exists… it’s called the coop, or cooperative, check out this definition… For those that have heard of Ethereum, I want to give a frame of reference for existing capital markets to grasp the true potential and raw power the world now has at it’s hands, and you better believe it’s more than just cryptocurrency, tokens, and coins! Fedwire is a system used by the Central Bank in the United States (the Fed).
This serves as bottom level infrastructure to facilitate transactions among financial entities and the central bank, as well as within each other. All banks in the states are built on top of this layer, adding services to consumers — or consumer facing tech — on top.
Pretty powerful stuff. Swift is another ‘network’ or protocol enabling interbank transfers across the world, each bank is essentially a node.
It’s how wire payments work, and the banks take a cut on the sender and receiver end of every transaction. These systems manage accounting through proprietary, or another third party’s, accounting software, you get a nice little stock ticker and amount – on — you guessed it — yet another proprietary system (brokerage platforms like E-trade or your bank’s or broker’s ‘proprietary’ or white label version) that displays it to you, the end user. Read more from hackernoon.com…
thumbnail courtesy of hackernoon.com