Kopalnie Krypto Team - Saturday 14 January 2023
Taichia - your DAO on the Chia blockchain
The guiding principle of the cryptocurrency world is decentralization. Ultimately, all network users should be equal to each other. Utilizing peer-to-peer blockchain technology effectively supports the implementation of this idea. This means that within the entire network, there is no central point (server) on which network members would depend.
In the course of creating subsequent blockchains, it quickly became apparent that decentralization does not have to be limited only to cryptocurrencies. Consequently, solutions based on existing blockchains began to emerge. This gave rise to, among others, decentralized databases, which contributed to the concept of the new generation Internet - Web3.
At this point, one may wonder about the practical aspects of decentralization. Why go through all the effort to implement blockchain technology in such a broad spectrum? The answer to this question lies in security and privacy. Decentralization positively impacts anonymity, reduces levels of surveillance from authorities, and provides certainty that no central entity can manipulate the data sets.
Do blockchains solely revolve around financial matters and data storage? Far from it. The level of blockchain technology adoption has enabled the creation of the first Decentralized Autonomous Organizations (DAO).
What is DAO?
A Decentralized Autonomous Organization (DAO) is an organizational structure operating on the blockchain network. From a technical standpoint, it means being based on open-source software. As a result, these organizations can function autonomously without the need for central management bodies.
DAOs operate like corporations but with a more decentralized approach. Traditional organizations have a hierarchical structure and pervasive bureaucracy, whereas in DAOs, these aspects are entirely eliminated. Instead, members of decentralized autonomous organizations generate proposals for voting. Once voting is completed, the blockchain automatically enforces the decisions made.
As the name suggests, DAOs (Decentralized Autonomous Organizations) are characterized by decentralization and autonomy. These organizations are decentralized as they cannot be controlled by individuals; decisions are made by the entire community of DAO members. Autonomy means that these organizations operate on their own. If the governing rules defined in the protocol are well-designed, they should lead the DAO towards the maximum benefit for the entire network.
Challenges of DAO
In the world, nothing is perfect, and that includes blockchain technology and DAOs. The levels of decentralization in various blockchains differ, while they should, in principle, be 100% decentralized. Similarly, with DAOs - in theory, they should be both decentralized and autonomous, but in reality, most DAOs fall far from this ideal.
The level of decentralization is a crucial factor in determining the value of a DAO. In many decentralized autonomous organizations, this level is quite low. This is because they rely on blockchains with weak decentralization or don't use blockchains at all. Additionally, some organizations are controlled by small groups of people who deprive other DAO members of voting rights. The voting process doesn't take place on the blockchain and can be manipulated by organization administrators.
Most DAOs lack complete autonomy. In many aspects, human intervention is still required. Some organizations have built dedicated systems to counter this issue. However, this has led to problems when modifying the software. Every change in the code should be understood by all DAO members and supported by a vote. This approach is impractical because non-programmers would have to study the code, consuming significant time and resources. The reason for this is that operational aspects of the organization are often closely linked to the process of creating managing software. It turns out that there is no good way to develop DAOs in a fully autonomous manner.
DAO creators have to develop redundant infrastructures, such as voting and revenue distribution systems. Each organization has its own implementation, and its quality and security may be low. Furthermore, members have to handle these infrastructures on their own. All these additional activities increase the costs of creating and managing DAOs.
DAOs require external regulatory platforms to ensure that DAO administrators cannot make critical changes without the knowledge of other members. If such a platform is abandoned, the decentralization and autonomy of the DAO will collapse.
All the above problems led to the creation of the Taichia project, aimed at addressing and eliminating them.
What is Taichia?
Taichia is a platform operating on the Chia blockchain. It offers decentralized autonomous organizations as a service. It provides a set of tools for DAO creators and communities that enable easier and more autonomous management of organizations. Taichia was designed and developed based on a new voting concept. It means that the services offered by this platform are not centralized; each is controlled and secured by programs operating on the blockchain.
The mission of Taichia is to simplify the process of creating DAOs and remove technical barriers. The project aims to reduce operational costs and provide additional security. Taichia seeks to enable organizations to build genuine, autonomous business logic and workflow.
Security of Taichia
In designing their services, Taichia creators took into account the possibility of the platform executing operations unauthorized by the DAO. Therefore, all Taichia services are based on the Chia blockchain. The predicted or actual results of operations can be verified by anyone, anytime, anywhere. All critical operations are protected by a dual-key mechanism. This means that without the consent of the DAO, the platform cannot implement any significant changes.
What is the new voting concept of Taichia?
Taichia has built its platform based on its proprietary version of the voting concept. DAOs registered on Taichia are managed through voting. Any critical modifications to an organization must be approved by its members. Voting is the main principle according to which Taichia designs various services and manages them.
Asking all DAO members to verify and understand the code before voting is impractical. Therefore, Taichia transformed code editing into configuration changes. All DAO members can easily visualize the scope of modifications using a list of parameters and values. The platform implements the proposed changes in metadata if they are approved. This eliminates the need for organizations that have integrated their solutions with Taichia to modify the code.
How much does registering a DAO in Taichia cost?
Currently, registering an organization is completely free. The Taichia platform has been in operation for a short time, so additional fees may be introduced in the future. For more information and the DAO registration form, visit the official Taichia website.