Blockchain 2.0 (V): Dapp builds a decentralized autonomous society

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The early applications of blockchain were currency transactions and financial transactions, followed by smart assets, including physical assets such as real estate and cars, and virtual assets such as intellectual property, judicial certification, and public archives. In the future, as smart contracts develop, they will become extremely complex and autonomous, and various forms will appear: Dapp (decentralized application), DAO (decentralized autonomous organization), DAC (decentralized autonomous company), DAS (decentralized autonomous society).

Smart contracts will have increasingly complex concepts, such as automated trading networks, which will greatly improve the ability of society to govern itself. A simple example of a smart contract: two people bet on a football match, and the chips will be temporarily saved on the network. After the match, the pre-set smart contract in the network will verify the online results and then transfer the money to the winner's account.

What is Dapp?

1. Running on a distributed network;
Second, the information of participants is stored securely and their privacy is well protected;
3. Decentralized operation through network nodes.
An application that meets these three conditions can be considered a decentralized application.

Three characteristics of Dapp:

1. The program is open source, and the data is encrypted and stored on a public and decentralized blockchain.
2. Applications must generate tokens through standard algorithms. Tokens are used according to application needs, and users who provide contributions should be rewarded with tokens.
3. Improvements based on market feedback must be unanimously agreed upon by the majority of users.

Dapps should have a constitution-like setting that publicly outlines the functions and operating mechanisms on the blockchain. This forms a decentralized organizational network that automatically operates through pre-set business rules without human intervention, thus forming a more complex form of decentralized applications such as DAO/DAC, a decentralized organization.

In DAO/DAC, smart contracts run on the blockchain, and according to pre-set rules, they can also automatically execute pre-approved tasks according to changes in events and conditions. Organizations built with smart contracts operate just like real business societies. A real-life example: Western Union provides global remittance services. It needs to set up offices in various countries to deal with local affairs, involving administrative and legal affairs such as business licenses and taxes, which will incur a lot of costs. If international remittances are built on the blockchain, these links can be omitted. The blockchain is naturally globalized, and everything needed for transfers can be completed through smart contracts.

As DAO/DAC matures, the entire society will enter the DAS stage, a fully autonomous intelligent ecosystem, and human civilization will enter a new stage.

About me: My online name is Blue Lotus, my real name is Wang Xiaoming, WeChat/QQ: 263305605. I am a partner of Zhaoxi Network (zhaoxi.co). I am committed to promoting the development of the blockchain industry and promoting blockchain solutions.

Original text: http://wangxiaoming.com/blog/2016/03/18/blockchain-2-dapp/