DeFi, dApps and DAOs: The Key Differences

2. Smart contracts are an important building block for DAOs, De-Fi, and D-apps.

3. D-apps are a nexus of smart contracts backed by nodes across the spectrum. The difference between smart contracts and D-apps is that D-apps are open-ended on all fronts.

Smart contracts are pieces of code that have in them a set of criteria for a transaction to take place, and when these criteria are met, the transaction goes through without any human intervention. A smart contract has two major components, digital assets, and two or more participants.

DAO DAOs are simply a group of people with a common interest that come together and contribute toward a shared objective. DAOs need a community of contributors that can take care of tasks like managing the tasks, onboarding new members into the DAO, assisting members in their tasks, and communicating strategies with members of the community and tak... See more

8. DAOs and De-Fi are different in terms of their objectives and fundamentals. De-Fi organizations pursue financial objectives while DAOs aren’t necessarily financial in nature. De-Fi organizations integrate DAOs into their structure to manage communities.

DeFi De-Fi is the branch of Web3 that is pushing the boundaries of financial services by making them more inclusive, secure, and decentralized. The primary objective of De-Fi platforms is to remove all middlemen from financial services and transactions.

4. DAOs are trust-less organizations owned and governed by community members. DAOs have smart contracts for decentralization and humans on the periphery for governance.

6. De-Fi and D-apps differ on two major fronts. First, De-Fi projects are necessarily financial in nature while D-apps are not. Second, D-apps lack a comprehensive governance structure, that is an active component in De-Fi.

7. D-apps and DAOs differ on one major front, i.e DAOs have internal capital while D-apps don’t. DAOs without internal capital are simply D-apps.