Imagine a company with no employees, no managers, no board of directors. Imagine a company that ran as a piece of software guaranteeing a democracy of shareholders.
Distributed Autonomous Organsation, or DAO, promised this to its investors:
It didn’t quite go as planned.
We’ve invented ‘sandboxing‘ – your smartphone apps can’t steal data from one another, nor can the websites you visit.
Enabling ‘smart money’ – money that can think for itself – Ethereum has proven among the most useful of all coins – and as a result is now worth more than any cryptocurrency other than Bitcoin.
EtherScripter is an amazing tool that lets you drag-and-drop the design of smart contracts. It draws heavily from the SCRATCH programming language used to teach children as young as 6 years old the essential skills of programming. So EtherScripter is easy to understand – and fun.
Here’s a simple EtherScripter smart contract that performs a coin flip:
Get your hands dirty with EtherScripter here!
As we learned in our interview with CryptoFlip‘s Max Kenny, there’s a lot more to doing a coin flip well – that is, with truly random results.
The DAO failed because of bugs – and hubris. Smart contract pioneers wanted to run before they’d learned to walk.
This WIRED article explores the failure of the DAO in detail.