What is Decentralized Finance

Web 3 is considered the next generation of the internet. Decentralized autonomous organizations (DAOs) are considered the next avatar of organizations run digitally over blockchain-led technology platforms. Business logic and rules for running the organization are programmed in distributed applications (dApps) and executed using smart contracts. Token-based rights allow owing members to vote, participate in governance, and direct how the organization will be run. While DAOs are facing several legal and regulatory challenges on one side and fighting with technical vulnerabilities and hacks on the other side, future research in this field appears promising. There is an enormous need for education and awareness of the functioning of these emerging models, which can be dealt with using a multi-faceted approach. Decentralized governance can have a massive societal impact and lead to an equitable world. It drives financial inclusion and puts automatic decision-making at the fore.