Decentralized autonomous organization (DAO) is a distributed entity whose ownership and governance are carried out by activities and participants in the chain. With the launch of filecoin, we can see that the product market of Dao is very strong; In particular, it supervises and governs the Dao of defi products and protocols. Filecoin has the ability to store deep and rich data sets, so that Ethereum and other Dao on the chain can provide and use this information to support more flexible applications.
With the launch and operation of filecoin network, we can see the strong product fit of Dao with the market. For the first time in our history, we have a native Internet based management structure on the chain that supports defi projects and protocols. Compound, uniswap, year and other protocols are not operated by traditional enterprises, but are governance tools determined by Dao. Its income belongs to Dao, which manages finance, upgrades contracts, pays open source developers, etc.
So far, Dao is mainly regarded as the main application of investment funds or venture funds. These types of Dao have appeared and proved to be successful, but we can see that these types of on chain organizational structures fit very well with defi products. One of the limitations of the defi products developed by Dao on Ethereum is that Ethereum is actually limited to mathematical logic. Because of the design of the network, you don’t have the ability to provide more complex data to end users. Generally speaking, these contracts are performing mathematical problems, so they serve the transaction, lending, custody and other basic financial units very well. Over time, we have seen more advanced applications of these basic financial components, but still very limited to mathematical logic.
Nowadays, no Dao has the ability to do more than these basic financial behaviors. With the launch of filecoin, eco is exploring what types of business Dao can build on filecoin. We can call these types of organizations data Dao.
Take a huge data set as an example, such as the massive data of genome or research database. The location of filecoin is very good. It can store these datasets for a long time and has a lot of redundancy. We can imagine that these datasets on filecoin can be owned and provided by Dao in many different ways. We are likely to see these data Dao applications in niche, specific industries, they have a lot of market data, and provide a very rich data set to people who want to trade on them.
The emergence of more flexible and efficient systems like filecoin indicates that people can obtain data through smart contracts, which was almost impossible before. Before the launch of filecoin, there was no effective way to embed this information into Ethereum and build a smart contract system around it, let alone Dao.
Filecoin has a lot of opportunities to implement smart contract based applications and expand the possibilities of various implementations. This is not to compete with defi, but to expand the implementation possibility of all kinds of applications that can be embedded in the smart contract system through the use of data storage and data access.