DAO Against Corruption. How to defeat society's worst sin?
Corruption is one of the most destructive problems in the world. This means that resources intended for public good are often used for personal gain. It is a mistake to think that corruption is only prevalent in countries with weak economies. It exists everywhere.
Humanity has been trying to combat it for hundreds of years. Various methods have been devised, including regulations, accountability, and criminal responsibility. However, we understand that this hydra has yet to be defeated. But in reality, the solution exists - maximum transparency. And we believe that this can be achieved through DAOs.
In the new series of materials from DAOism, we will talk about how DAOs can change our lives: from changing governments or large corporations to everyday things. The first article talks about the "greatest disease of humanity" - corruption.
What is corruption?
We all know what it is, but let's go back to the textbook definition of the disease of modern society. Corruption is the abuse of power for personal gain. Corruption can take various forms, including bribery, embezzlement, lobbying, and the use of state resources for personal gain. Corruption leads to inequality, poor quality of service, and unfair distribution of wealth.
According to Transparency International, the most corrupt regions are Africa, the Middle East and Asia.
However, corruption problems exist in all countries, regardless of the political system.
How a DAO can change the fight against corruption
The DAO is a decentralized, autonomous organization that is governed by smart contracts on a blockchain platform. In its theory, the DAO is an ideal mechanism for fighting corruption because all transactions take place on a public blockchain platform that cannot be altered or tampered with.
In addition, DAO uses a voting system that allows participants to make decisions collectively, without the possibility of manipulation or bribery. In this way, DAO can create a transparent and trustworthy governance system.
Below we point by point the main pros and cons in using DAO to fight corruption. We want to say that all arguments are based solely on our opinion, experience, as well as on the study of real cases (which we will talk about later).
The benefits of using DAO to fight corruption:
DAO works on the principle of decentralization, which means that decisions are made collectively, not just by a couple of individuals. This reduces the likelihood of corruption and interference by one person or group of people.
The DAO provides transparency in decision-making. All decisions are made openly and available to the public. Openness and transparency are key tools in the fight against corruption.
DAO can use smart contracts, which means that all decisions made by DAO are automatically executed without the possibility of interpretation of decisions in their favor.
Disadvantages of using DAOs to fight corruption:
DAO is not a panacea for all types of corruption. In some cases where corruption involves personal advantages or bribes, the DAO cannot prevent corruption.
DAO can be targeted by attackers and hackers.
However, apart from theory, there are also examples of real corruption at the DAO. Our colleagues from DAOTimes wrote an article where they had a conversation with real crooks who bribed people to "promote their interests.
Ultimately, the DAO, in our opinion, is the end product of the transition of states to the blockchain system. After all, we are talking about states (especially democracies) where every movement must be agreed upon by the people.
How does it work now?
Although the concept of DAO (as well as blockchain in general) is relatively young, but we can already find several successful examples around the world. Most often the principle of decentralization is used in more developed countries. But not always. Some examples below come to us from countries that are developing. For example, Ukraine.
Below we will try to give not only examples of the fight against corruption, but also the work of the state in general in the decentralized sphere.
Governance 2.0 in South Korea.
Governance 2.0 is a new system of government in South Korea. The country back in the 90s of the last century set a course for the full digitalization of state institutions.
It is based on the idea of effective use of information technology (primarily blockchain) and digital solutions to improve decision-making processes, resource management and communications between government agencies and citizens.
One of the main goals of the Governance 2.0 concept is to establish transparency and openness in public administration, in order to increase citizens' trust in government structures.
A few aspects worth highlighting:
E-government: The digitalization of government services and processes allows citizens to access government services through online portals and mobile applications. This simplifies interaction between citizens and government agencies, speeds up processes and reduces bureaucracy.
Open Data: Government data is becoming increasingly accessible to the public. This allows citizens to use data to create new services and apps, as well as to analyze and monitor government activities.
Citizen Participation: The government is actively engaging citizens in decision-making processes through e-participation and feedback tools. This allows citizens to express their opinions and make suggestions on important issues.
Innovation and startups: The South Korean government actively supports any new technological solutions.
Blockchain City Zug
Switzerland's 'Crypto Valley' Zug Ranked 'Fastest-Growing' Tech Hub in Europe
Zug is a small city in Switzerland known for its progressive initiatives in decentralization and the use of blockchain technology. Zug has developed a set of decentralization-oriented principles to make the city a leader in the application of new technologies in public administration. Here are some of these principles:
Transparency and citizen participation: Zug emphasizes transparency and openness in decision-making. Citizens are able to participate in decision-making processes through electronic voting and consultation on important city issues.
Blockchain registration: Zug was the first city in the world to adopt the use of blockchain technology to register civil statuses. Thanks to this solution, citizen authentication and registration processes have become simpler and more efficient.
Use of cryptocurrency: Zug has also decided to accept cryptocurrencies as a means of payment for public services. This allows citizens and businesses to use digital assets for payments, which promotes innovation and financial technology in the city.
Support for blockchain startups: Zug actively attracts blockchain startups and provides them with favorable conditions for development. The city offers special tax incentives and legal support for blockchain companies to attract innovation and create jobs.
Ukraine. Service Diia.
Diia is a Ukrainian electronic service of public services, developed by the Ministry of Digital Transformation of Ukraine. It is a mobile application with digital documents and a portal with various public services.
The service was launched in 2019, at first with a small number of functions (for example, electronic documents from registries). But the concept quickly evolved and now a huge number of services are available within the service: business registration, covid-certificates, driving licenses and even a passport.
By the way, Ukraine was the first country that equated a digital passport to its paper analog.
During the Russian-Ukrainian war, the Diia portal went even more decentralized and free. Now the service collects donations for the Ukrainian Army, as well as allows you to play a mini-game to destroy Russian equipment.
In addition, there are more and more elements that are similar to the DAO. For example, various important social issues are now put to a public vote. One example is the legalization of short-barrelled weapons.
Yes, this is still far from the ideal "decentralized and free" state. But it is already a big step forward. And a clear exam
ple that technology will help us become cooler in all directions.
What do we have in the end?
The process of decentralization of the state is the natural evolution of the development of life in society. We believe that this is our common future.
Openness, transparency and honesty are the guarantee of a healthy state. And our goal is to get closer to it.