Know what is DAO, Decentralized Autonomous Organization (acronym in English for Decentralized Autonomous Organization). It is not a new concept for the cryptocurrency community, as it has been part of the market since 2015, when it was created by… Software Tester of Ethereum, Christoph Jentzsch.

In order to be a shared investment fund, where all contributors would have the right to vote on which actions would be taken, DAO continued to gain strength until the moment they opened the sale of their Governance Tokens to new investors and the model became a reference of transparency and corporate management.

Since then, Decentralized Autonomous Organizations have received increasing prominence and are already considered one of the main trends to transform the management model of large companies in the crypto market.

Want to know in depth what DAO is and how this innovative technology works? Check out this complete content that we have prepared to answer all your questions.

What is DAO, Decentralized Autonomous Organization?

To understand what a DAO is, we need to understand, first of all, how traditional collective organizations work.

Currently, the most common way of managing an organization is through hierarchy, where the highest positions define what actions will be taken in the company and, only then, is it passed on to the rest of the employees – following a pre-established organizational chart.

In turn, the DAOs or decentralized Autonomous Organizations do not depend on this hierarchy. This is because its governance is done by the owners of the governance tokens of a given platform, and each person belonging to this group has voting rights in decision making.

This autonomy ensures that the organization can function independently, without the need for the existence of positions and even the structures of companies as we know them today.

The purpose of DAOs is precisely to guarantee the management of the company through smart contracts (known as smart contracts) and algorithms, which thus allow the decentralization of operations.

To ensure that decisions are in the common interest, DAOs have their rules based on blockchain and built into their code.

In other words, this means that no one can take action based on their own wishes, giving the assurance that no important measures will be taken without the group’s consent.

How do DAOs work in the cryptocurrency market?

As we said earlier, DAOs use rules based on the blockchain network to create the structure of their digital organization that is 100% transparent, as anyone in the group can verify the programmed code.

In its creation process, the group meets to establish what the rules of the decentralized autonomous organization will be, in addition to the platform that the structure will be made and hosted – being a structure that mandatorily supports smart contracts.

What started to be done only on Ethereum, now has several options such as Kanna itself, which still aims to bring an environmental impact by recovering soils contaminated with the use of hemp.

After the creation of the DAO and the rules that will determine its mission and principles, blockchain assets, known as governance tokens, are generated, which will be made available to its investors and taxpayers.

Everyone who has their Token will be able to vote, with equal weight, in the DAO’s decision-making, helping to direct what their next steps will be in the cryptocurrency market. This principle is what we call decentralized shared governance.

Basically, the most important decisions will be made together, following the automation rules defined in the DAO code.

What is DAO in the crypto market and why is it important?

Usually the DAO is created by a community that sets its rules in the code that is applied to its blockchain structure, but that doesn’t mean those rules can’t be changed.

Most of the time a change needs to be made, it must be voted on and agreed upon by all group members.

However, each group can establish the rules of its organization and, in some cases, some “leading leaders” can be elected who have greater decision-making power to carry out day-to-day actions of lesser impact and that can be resolved quickly.

Therefore, one of the most important points of decentralized autonomous organizations is transparency in business operations. Everyone knows what will be done and what the DAO rules are.

Another positive point for this new organizational model is its independence from the bureaucracies of countries or governments, since people from different parts of the world can contribute.

These aspects of DAO not only optimize complex processes that demand a lot of time and resources from the company, but also create greater security for working on financial actions with people you don’t know.

With this, it is now clear how DAOs impact the crypto asset market and why they are considered one of the most important. s major trends in the reformulation of organizational governance for the coming years. But how does it work in practice?

Examples of what DAO is.

As I said at the beginning of the text when I talked about what DAO is, this Organization model is not something new in the market and there are already autonomous groups working based on this structure.

According to a survey by DeepDAO, the number of active DAOs grew by 660% in just one year, from 10 to 76 organizations in 2020. According to the website of the same analysis company, today this number already adds up to 4,830 active DAOs in companies from the most varied segments.

Some examples of DAOs applications are:

• Charities: By creating an autonomous decentralized organization for a social project or NGO, it is possible to allow everyone to see the actions that are on the agenda and to be able to vote on those that should be funded.
• Collective ownership: In addition to voting on which physical or digital assets should be purchased, it is also possible to create a vote to define how they should later use them.
• Ventures and investments: As soon as they accumulate a certain amount in funds, it is possible to define with the group which venture they will invest. The profits from the shares can be divided among the taxpayers.
• Network of self-employed professionals: Although rare, some DAOs may want to invest in physical spaces for employees to meet. This decision can be taken through a vote that will define the relevance of this investment.

Autonomous organizations such as MolochDAO, a group focused on funding projects on the Ethereum network, are already operating and allow the association of interested parties who have experience in the market.

But she is not the only one. Many DAOs are yet to come, and one of them is Kanna: a socio-environmental impact company that uses Blockchain and Hemp technology to recover the environment.

Want to know how you can invest in the crypto market and make an impact on the planet through cannabis applications? Check out our website and secure your KNN Token.

Decentralized Organizations vs. Traditional Organizations

Now that you understand what DAO is, I want to highlight its main differences from traditional organizations that, in most cases, follow a hierarchical management system.

And by the way, this is the main differentiator of DAOs, because because they are decentralized, they tend to be flat, allowing everyone to contribute with their votes and define the direction of the organization.

Votes are automatically counted and do not run any risk of being altered, ensuring the security and democracy of the group.

Traditional organizations, in turn, carry out changes according to what is decided by the highest positions in the company. In addition to being a less democratic practice, it limits the action and power of choice of other parties involved in the company.

In this case, the risk of approval of changes that displease some of the people involved is great, since some determinations that favor only investors or even individual interests may be prioritized. core/heading

How to invest in a DAO?

Currently, there are several active DAOs on the market and you can find the one that makes the most sense for your investment.

However, a point of attention that must be considered are the rules that each one determines for its group of contributors. In some cases, you must fulfill a series of prerequisites to be able to participate in the DAO, such as having experience in the financial market, NFT trading, among others.

What can we expect from DAOs?

As we discussed in the text, the creation and use of DAOs in the cryptocurrency market is growing every year.

With the increase in interest and constant improvements made in technologies, it is expected that many companies will find in the decentralized organization system a new form of management for their businesses – especially those linked to the financial market.

Therefore, trends such as Metaverse, NTFs and even Web3 are already targets of DAOs for risky investments in innovative projects that should impact the market in the coming years.

But that’s not just how decentralized organizations are being used. Companies like Kanna are creating their own ESG Token called KNN, which will promote asset appreciation while generating social and environmental impact through land reclamation using cannabis.

In addition, the project still aims to improve the local economy with the use of CBD in medicine and other industrial applications of hemp.

To learn more about Kanna Coin and how to pre-order your KNN token, visit our website at this link.

If you don’t know what is blockchain and don’t have crypto-actives in your investment portfolio yet, you are missing a great opportunity. The kind that doesn’t knock on your door twice. So, read this article to the end to understand how disruptive the technology behind this great innovation is.

What is Blockchain?

You may have already heard the term blockchain, but if you haven’t, you can be sure that in the next few years it will be present in our daily lives, especially in the area of technology.

Translated from English as “blockchain,” the concept of blockchain emerged in 2008 in the paper known as the bitcoin white paperwhich explains in detail the proposal for an electronic currency that is built on a reliable, decentralized network that does not allow duplication of spending and can be made peer-to-peer at any time and to any place in the world, requiring only internet access. Bitcoin is the pioneer and the best known, but there are several assets with similar characteristics. These digital assets are called cryptocurrencies.

The big revolution behind the whole bitcoin system is actually the blockchain, because it is this technology that makes the network reliable. But don’t worry! In this article you will understand how it works, and also the possibilities of using this technology that goes far beyond cryptocurrencies.

Think of a public ledger, where all transaction history is recorded and everyone can access it whenever they want. A big database. In this book, information such as the amount of coins transacted, who sent, who received, when this transaction was made, and where in the book it is located, are registered through cryptography, that is, anonymously.

These transactions are stored within a block, and each new block that is generated carries all the information from the previous block plus its own information, thus forming a chain of blocks.

As you can see in the image, each block generates a so-called “hash”. The hash is basically a code of letters and numbers that represents the information imputed in the block. As if it were a “fingerprint”, unique. Understanding that each hash contains all previous hashes, any changed information generates a new hash, and if it does not agree with the entire network, it is invalidated.

This is exactly how Kanna’s ballast works. Each token carries the date, time stamp, and coordinates of the impacted space. This process involves 4 actors: the buying stakeholder, the selling stakeholder, the miner/validator, and the local community that is responsible for verifying and guaranteeing the real impact of the land.

That is why this system provides transparency and immutability, after all, to make any change it is necessary that more than 50% of the network (of thousands of people spread around the world) validate the veracity of the information. This is called blockchain network consensus and is done by the computers belonging to this network.

The blockchain explanation above brought up aspects of currencies as an integral part of the information that will be generated in a block. But this system allows other types of information, not necessarily just financial transactions. In addition to cryptocurrencies, blockchain technology can also be used for document validation, intellectual property, public transparency, medical records, diplomas, real estate records, and so on. We can already see that the possibilities for using technology are promising, can’t we?

The Smart Contract Revolution

And from this universe of technology and blockchain, the so-called smart contracts have emerged. They are contracts capable of being executed by themselves, formalizing negotiations between two or more parties without depending on the intermediation of a third party. Then rules, conditions and consequences can be established and blockchain helps this kind of software to verify and record this information providing reliability for all involved.

In addition to transparency, another benefit provided by smart contracts is cost and time savings related to business transactions and process efficiency. Another factor that does not enter into the account would be possible human error.

Understanding how smart contracts work is of utmost importance to ensure Kanna’s reliability and operation.

Technology is a tool that has definitely been improving our lives. But, as with any other aspect, you have to be careful. Studying and understanding how it works is essential to have security and success in this type of transaction. For example, the code that makes up the contract must be perfect, without any openings or bugs. Otherwise, you will become vulnerable.

So always research the projects, companies and people involved. There are many people – like us – who value transparency and information, but unfortunately we can’t say that they are all.

How to invest in cryptocurrencies

Now that you have understood how all the revolutionary technology behind bitcoin, Kanna coin and other cryptocurrencies works, you must be wondering what the first steps would be to start investing.

The golden tip is: study before anything else. There are more than 11,000 assets in the crypto market, and obviously there are good and bad projects. There is no point in choosing where to invest your money because of a name, a promise, or a pretty website. It is necessary to understand the fundamentals of that project, and then make a speculation.

Look for ideas that you identify with, projects that you believe in the solution that the proposal brings. Don’t forget: well-founded projects have a lot of added value, and regardless of the price at the moment, their value tends to grow in the long term. Don’t leave fundamental analysis aside.

So be sure to check out our white paper before investing in the project.

There are a few ways to get exposure to the cryptocurrency market. You can trade them on an exchange, accept them as a form of payment, or do a P2P deal, i.e. directly with another person who wants to sell. The latter can also be done via a DEX (decentralized exchange).

In 2018 the CVM (Comissão de Valores Imobiliários) allowed Brazilian funds to make indirect investments in cryptocurrencies abroad by buying derivatives or shares of other funds. In 2021 the first fund was launched on the Brazilian stock exchange, allowing investors who are “not qualified” by the CVM – read lower purchasing power – to also have this opportunity. So it is possible to get exposure to these kinds of assets in a more traditional way as well.

Speaking of “traditional investments”…

It is already known that the banking system is responsible for most of the payments made in the global economy. This system is also responsible for issuing new currencies, technically, through the control exercised by its state economic organs.

The result of a lack of control and planning results in sky-high inflation and a gradual loss of purchasing power over the years. To give you an idea, the 2021 minimum wage has the lowest purchasing power since 2005. A survey done by mathematician José Dutra Vieira Sobrinho for Invest News points out that the real has lost 84% of its purchasing power in the last 26 years, since the beginning of the real plan.

It turns out that the effects of inflation are not the same for the entire population, and food expenses end up weighing much more heavily on the lower income classes, who need to use most – or all – of their earnings on food. And the effect that this causes everyone already knows: the top goes up and the bottom goes down.

According to an article published by El País, studies and specialists say that segregation increases in correlation to the growing inequalities caused by the current economic model.

And knowing that ̶e̶s̶t̶á̶ ̶t̶u̶d̶o̶ ̶e̶r̶r̶a̶d̶o̶ the current economic model is not efficient, much less the financial education of the population, the proposal of cryptocurrencies is precisely to subvert the currency issuer, without being controlled by an inefficient regulatory body. Thus creating a valuable monetary system, giving the power of value decision to people in the famous and simple supply and demand model.

Exchange is not a wallet

The motto of the crypto community is: if you don’t have custody of your assets, they are not yours. But how so? The most important thing to understand about this digital currency universe is that the idea around this whole financial system started by bitcoin, is primarily, the protection of your capital and it is only properly protected when it is in your custody. Technically we should not trust the big companies and brokerage houses as they are susceptible to problems, regulations, and a host of attacks. This is why enthusiasts of this market, for the most part, will not recommend the aforementioned traditional investment model in the form of funds and derivatives.

The recommendation would not be to leave it on an exchange either. Think about it: if there is a problem with your clients’ money, banks and funds can – or at least should – reimburse them for their monthly fees and charges. That’s the idea. The exchanges, on the other hand, do not charge any custody fees and their revenue comes exclusively from their trading fees. In other words, there is no guarantee or protection regardless of the size and reliability of the company. Exchange is not a wallet!

What to do then? Basically what the community advocates is that you can quietly use exchanges to trade your cryptocurrencies, but if your goal is to hold (term for holding an asset for the long term) the best thing to do is to have a cryptocurrency wallet.

Have custody of your assets

Known as wallets and of various types, digital wallets are responsible for storing security keys. There are two types of keys: the public ones, which are like a kind of address to send and receive, and the private ones, which resemble the password to a safe and should not be shown to anyone – even because the market is very digital, it is recommended that this password not be accessible online.

When you make transfers through the wallet, the transaction is registered in the blockchain and it is precisely through the blockchain that you can allow access, consult, and control your assets.

Now that you understand how the cryptocurrency universe and even the much talked about blockchain work, I bet you are surprised by the growth potential of this market because of its revolution and technology.

Exploring this potential, our project was born. Check out Kanna’s White Paper to understand how we will make a difference by generating social impact. If you have any questions, please contact us and we will explain. And the next step is to invest! 🙂