Technology has been revolutionizing our lives over the decades. The travel industry has gone through a lot of changes due to the digital transformation. With the development of websites, apps, and software, travel has become a nearly hassle-free experience.
Now people are more aware of the benefits of innovative technologies and the younger population is keen on improvising their lifestyle with these advancements. The craze of NFTs a while back was proof of how interested the new millennials and zoomers (members of Gen Z) are in enhancing their life with digital alterations.
Here you will know all about DAO and how it will go on to reshape the tourism industry. But before we start divulging the details, let’s understand what DAO exactly is.
What is DAO?
DAO stands for ‘Decentralized Autonomous Organization’, it is basically a community-led entity that has no central authority. It is transparent and completely autonomous in which smart contracts generally lay foundational rules, implement the decisions that have been made, and at any point, voting, proposal, or even the code can be audited publicly.
The first ever DAO was called ‘The DAO’, it was an organization created by some developers in order to automate decisions and facilitate various cryptocurrency transactions. Today, DAO has been popularized by the new generation of cryptocurrency enthusiasts and with the advent of blockchain technology. Here’s a breakdown of its key takeaways.
- DAO is an entity where token holders take part in the management and decision making process of an organization.
- As there is no central authority to control DAO, power is instead distributed among token holders who cast votes collectively.
- Any activity and vote on DAO gets posted on a blockchain, which makes every action of the users publicly viewable.
- Security is a priority with DAO because even a single exploit or loophole can lead to a loss of millions of dollars from its treasury savings.
Pros of Decentralized Autonomous Organization
- Multiple individuals from various work spheres can work together collectively as a single entity.
- More than a single individual can work in planning, operations and strategy development of the organization.
- Token holders act more responsibly as the votes on the blockchain are publicly-viewable.
- The members of DAO might also feel a sense of empowerment to get together with individuals of similar thinking and setting goals within the same community.
Cons of Decentralized Autonomous Organization
- It often takes longer for decisions to be made as there are more voting participants.
- There’s a burden with a constant need to educate the users as the voting population has a varied range of educational qualification and knowledge.
- Gathering users or casting votes needs more time as the entity is decentralized.
- Huge losses can be incurred due to the theft of treasury in case the security of DAO is not maintained or established properly.
Impact of DAO on the Travel Sector
Intermediaries and centralized promotional efforts are need of the hour in the travel industry. Decentralized solutions by DAO bring everything related to travel into the hands of the tourists without the hassle of any middleman. With these decentralized solutions by various crypto and blockchain spaces, new interactions between people and places would be possible. As mentioned earlier, payments via DAO will become risk-free with blockchain technology. NFTs will also play a major role along with DAO in the coming future. Although many believe that the world of traditional finance would be a little shaken with the adoption of blockchain ecosystems and cryptocurrencies, it could be revolutionizing for a lot of industries including tourism.
It is just the beginning; DAO, and blockchain technology are still under developmental stages within tourism and time will tell how this will be helpful for businesses in this industry and especially for the travelers.
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