Are government regulations what DAOs are trying to solve? In Part 2 of an analysis of Australia's regulatory efforts, a blockchain researcher discusses the current issues in DAO operations and how they can work alongside regulation.
Lawmakers in Australia want to regulate decentralized autonomous organizations . In this three-part series, Oleksii Konashevych discusses the risks of stifling the emerging phenomenon of DAOs and possible solutions.
Now let’s see what a blockchain is. This technology can ensure an unprecedented level of protection for electronic records. Once a record is published on a reliable blockchain, there is no way to tamper with it. Besides, users publish and manage their data on a blockchain without an intermediary.● The registrar does not need to make records — users can do it themselves.And this can be the most concerning part for bureaucrats and retrogrades.
So, the role of the government is to introduce regulations and standards, to make sure that people understand that when they publish a record — say, on Ethereum — it will become immutable and protected by thousands of running nodes all around the globe. If you publish it on some private distributed ledger network controlled by a cartel, you basically need to rely on its goodwill.
There are two ways to create a company: You can tailor your own company constitution, a charter, and other documents. But you do have to do this if you opt into replaceable rules . Moreso, the problem is that records on a blockchain are immutable; you cannot change anything in the history of transitions, revoke a transaction or change a deployed code. I will touch on this problem in Part 3. The problem is in the discrepancy. Having equal legal force in both, the code and the text will potentially create a legal conflict. If lawmakers establish unconditional supremacy of a written text over the machine code, they will kill the whole idea of DAOs.
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