What does DAO mean in Bitcoin (Bitcoin Terminology)

08/17/2023 09:47 • NFT Newsflash • 94 views

What does DAO mean in Bitcoin? Editor’s note: This article is from Caicloud Blockchain (ID: cybtc_com), authorized to be reproduced by Odaily Star Daily.

What does DAO mean in Bitcoin? In English, it refers to an entire organizational structure, a self-governing, mutable, and transparent collection of data. When a company or group needs to participate through various means, the decisions of the company will go through various processes and result in conflicts of interest or conflicting interests. This is what is called “DAO”. However, this concept is not entirely accurate because it refers to a group of independent individuals deciding the finality of specific businesses and projects. (as shown above) If someone wants to purchase a product from within a company, they must submit a written application to its board of directors. This practice is designed to allow other shareholders to vote in support of their investment projects and receive rewards. Therefore, we translate it as “collective”, which can be understood as a group that collectively forms a company’s board of directors. However, such a distribution method also has some flaws, such as not guaranteeing that anyone can join; not allowing everyone to own their own shares. Additionally, “individual” can also be considered a legal person form rather than a true entity form.

Bitcoin Terminology

Bitcoin is a term that was first used and is widely known in the field of computer science. Although the definitions of cryptocurrency and digital assets are different, they also have different meanings: something related to all forms of ownership or value storage; and another as a means to replace everything.

Bitcoin usually consists of two main parts. The first part is called the “base unit”, which includes the term “bitcoin”; the second part is called “token”.

When people consider Bitcoin as a medium of exchange, they often represent the same meaning and indicate its scarcity and scalability. For example, “miners” refer to entities with certain computing power that have the ability to mine and extract cryptocurrencies. This means they do not need to pay any fees to mining companies to verify if each node on the network has completed a transaction. “Staker” refers to those who wish to obtain BTC from exchanges. However, this may not always be the case. Additionally, in most cases, many investors are unable to fully understand this process due to the complex technology and decentralized protocols on the blockchain. Therefore, a question arises when it comes to certain specific functions – how do users purchase goods through Bitcoin? What exactly is Bitcoin? Let’s take a look at its full English name:

Bitcoin Cash

Bitcoin is the first electronic cash system used as a medium of exchange, unit of account, and other types of data. It is the only non-custodial wallet designed to eliminate the need for private keys and to ensure security. Bitcoin is not a digitized version of financial services such as bank deposits, credit cards, or loan accounts. If you want to obtain funds without selling, you need to provide support in legal tender. However, if you want to deposit fiat currency in a bank, you have to find your own bank account (because you don’t know how to keep your Bitcoin safe), and you can withdraw your Bitcoin at any time and exchange it for stable coins. This is the simplest method.

To solve this problem, Bitcoin has created a smart contract. Smart contracts allow Bitcoin to be minted as collateral instead of requiring customers to keep their private keys (as you are doing now). Instead, smart contracts provide a direct way to generate Bitcoin blocks without the need for trusted running nodes and maintaining the blockchain. That’s why we often hear people discussing topics about “Bitcoin”, “gold”, “silver”, “precious metals”, and so on.

In fact, some people believe that Bitcoin is not a good investment but rather speculative and even has no practical use. In fact, one of the use cases of the term “Bitcoin” was when the Bitcoin price reached its peak in 2017. At that time, only 21 million Bitcoins were stolen, and today there are fewer than 10 million left. With the passage of time, more and more companies are adopting Bitcoin and incorporating it into circulation.

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What does DAO mean in Bitcoin (Bitcoin Terminology)

Bitcoin Terminology

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