DeFi, dApps and DAOs: The Key Differences

Another iteration of companies exists in the web3 world: DAOs. As Lisa Xu writes, DAOs combine both “community-led businesses” as well as “communities as businesses,” as DAOs create an infrastructure for communities to manage internal processes, formalize tasks and ownership, and create products and experiences for both community and non-community ... See more

Decentralized finance, or DeFi, is the ecosystem of financial applications being built with blockchain technology and without banks.  Characteristics:  Non-Custodial, o pen, t ransparent, d ecentralized

DAOs advance web3’s benefits by enabling decentralization. They allow developer companies to hand control of the developed networks and protocols to users, most commonly through the distribution of governance tokens. This process effectively turns the networks and protocols into public utilities that users can then build on top of, knowing that the... See more

The term “DAO” is applied to so many different organizations that it has become close to meaningless. Whatever DAOs are, they must fall under 3 clear and distinct concepts: 1) be decentralised, 2) be organisations and 3) be autonomous.

---------CONCLUSION DeFi's decentralized governance allows stakeholders to influence protocol development. Decentralized governance with DAOs can replace traditional firms' transaction costs, allowing crypto projects to welcome more diverse ideas and beliefs. To achieve these benefits, operational efficiency does not have to be sacrificed. Incorpor... See more

1. DAO (Decentralized Autonomous Organization)2. DeFi (Decentralized Finance)3. CeFi (Centralized Finance)4. NFT (Non-Fungible Token)5. Metaverse6. Guild7. CBDCs (Central Bank Digital Currency)8. dApp (Decentralized Application)