Course Progress
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Web3 and DAOs: The Future of Coordination
Chapter 5. Web3 and DAOs: The Future of Coordination
We have reached the final chapter of this phase. We’ve seen how blockchain handles money (Bitcoin), logic (Ethereum), and finance (DeFi). Now, we look at how it handles People and Organizations. This is the era of ==“Web3”==—the read-write-own internet.
1. The Evolution of the Web
To understand Web3, we must look at where we came from.
The Three Eras of the Internet
| Feature | Web1 (Read) | Web2 (Read-Write) | Web3 (Read-Write-Own) |
|---|---|---|---|
| **Nature** | Static pages / Directories | Social Media / Platforms | Decentralized Protocols |
| **Power** | Decentralized (Open protocols) | Centralized (Big Tech) | Decentralized (User-owned) |
| **Data** | Public information | Owned by platforms | Owned by users (Digital Sovereignty) |
| **Identity** | IP address / Email | OAuth (Login with Google/FB) | Crypto Wallets (Self-custody) |
2. Deciphering DAOs: Organizations Without CEOs
A DAO (Decentralized Autonomous Organization) is a group of people who coordinate toward a shared goal using smart contracts instead of traditional management hierarchies.
Rules of the organization are written into smart contracts
The DAO raises funds (Treasury) through token sales or donations
Any member can submit a proposal for a project or expense
Token holders vote on the proposal (On-chain/Off-chain)
If passed, the smart contract automatically executes the fund transfer
3. The New Sovereignty: Digital Identity & Ownership
In Web3, you are not a product; you are a participant.
- Digital Sovereignty: You control your data and your assets. No platform can “ban” your wallet from the blockchain.
- Incentive Alignment: In a DAO, the “Shareholders” are also the “Workers” and the “Users.” Everyone wins when the network succeeds.
- ==“From Platforms to Protocols”==: Instead of using Uber (as a platform), a Web3 future might see us using a “Rideshare Protocol” owned by the drivers and riders themselves.
The Governance Paradox: Fully decentralized voting can be slow and subject to “Whale Manipulation” (few rich people controlling the vote). Modern DAOs are experimenting with “Quadratic Voting” and “Delegation” to make systems more fair and efficient.
4. Conclusion: A New Social Contract
Web3 is not just about technology; it is a new ==“Social Contract.”== It represents a transition from a world of “Don’t be evil” (Web2) to “Can’t be evil” (Web3). By moving control from centralized humans to decentralized code, we are building a more resilient and equitable digital future.
📚 Prof. Sean’s Selected Library
- [Read Write Own] - Chris Dixon: A comprehensive manifesto on why Web3 matters for the future of the internet.
- [The DAO Handbook]: A practical guide to building and managing decentralized organizations.
- [Token Economy: Web3] - Shermin Voshmgir: Deep dive into how tokens enable decentralized coordination.
Congratulations! You have completed the first five chapters of the Crypto & Web3 series. You now have the foundation to navigate the most exciting frontier of the 21st-century economy. Stay tuned for more!