Why are blockchains and wallets needed?

Well, technically they are not needed for general Decentralized Organizations, there’s even examples of factories run by employee/owners through paper voting. While similar in spirit, in the world of Decentralized Autonomous Organizations, two technologies are needed to make everything work smoothly: blockchains and wallets. You might wonder why we need these digital tools, so let’s break it down into simple terms.

Blockchains

Think of a blockchain like a giant, public notebook that everyone can see but no one can erase or change what’s been written. Whenever someone makes a decision or transfers something valuable, it gets noted down in this notebook. This is super important because it means everyone can trust that what's written there is the real deal, no funny business allowed. It’s like having a referee that never misses a call, making sure every play is fair.

Community Owned

This means you can propose changes for your Organization, and know that the voting process will be fair and trustworthy. Each vote and decision is transparent to the community, unlike traditional organizations, powered by technology that everyone supports but nobody can take command over.

Wallets

Now, wallets are a bit different. Imagine a wallet not just for storing your money but also for proving who you are. In the world of Decentralized Organizations, your digital wallet is your ID card and your bank account rolled into one. It lets you vote on decisions, send or receive money, and basically be a part of the community. It’s like having a magic key that lets you into the clubhouse and lets you have a say in what the club does.

Financial + Voting Power in Your Pocket

Unlike a normal wallet, which can hold actual cash, crypto wallets technically don’t store your crypto. Your holdings live on the blockchain, and can only be accessed using a private key. Your keys prove your ownership of your digital money and allow you to make transactions. If you lose your private keys, you lose access to your money. That’s why it’s important to keep your wallet safe, or use a trusted wallet app provider or hardware wallet.

More than financial tools

Together, blockchains and wallets create a space where everyone can play fair. You’ve got the blockchain making sure every move is recorded and trustworthy, and wallets that let people take part in a safe and secure way. It’s all about building trust and making sure everyone has a shot at pitching in, without worrying about the rules being bent.