Crypto Research

DAO The Way Part 12

“I think; therefore I am” – René Descartes

Is it a chicken-egg question or is it an appeal to self-evident truth? In fact, the process of doubling your thoughts is proof of the existence of your thoughts.

In part 12, let’s talk about trust in DAO. How does trust work in the trustless-based system?

TL;DR

I discuss how trust can work in the DAO when the system depends on the trustless-based.

Table of Content

Begin with Trust

The Trust Triangle

Corporations

DAOs

Animal Kingdom 

? Ants

? Bees

? Monkeys

What Can We Learn 

Forming Trust is Difficult

Self-Sovereign Identity

In Conclusion

Begin with Trust

Everything starts with trust. At least, that was a social norm back then. Only if you had a trust, people would exchange their hard-earned paychecks for goods and services. Building trust is also necessary for a leader to cultivate. However, the study found that 70% of professionals don’t trust their managers. So what is up with that! How to build trustworthiness is undermined in many people’s behaviors. 

The Trust Triangle

Image credit: https://hbr.org/2020/05/begin-with-trust
Image credit: https://theblockchaintest.com/uploads/resources/SEBA%20-%20The%20Blockchain%20Trilema%20-%202020%20-%20Oct.pdf

Similar to the blockchain trilemma with decentralization, scalability, and security, the trust has its own trilemma – authenticity, empathy, and logic.

Authenticity – It is the real you

Empathy – I care about you

Logic – I understand you 

Then, to verify the three characteristics above, one should consistently portray such characteristics. Even then, how to prove those three characteristics are really what they are?

Corporations

The corporations expected employees to be:

Connect -> Trust -> Collaborate 

However, the process works very badly for employees. Nobody is likely to trust each other in the corporate world and the trust they formed likely is fake.

In reality, it works like this:

Collaborate -> Trust -> Connect 

But, how can a company without hiring someone start to work together before they actually get hired?

Thus, collaboration in the corporate world is a myth.

DAOs

In a decentralized system, it is:

Learn -> Collaborate -> Verify -> Connect 

There is no need for a trust that exists to work together. You start learning your way to getting your understanding of the DAO you joined. Then you collaborate to work on tasks. The more work you have done, the more likely you will be verified and accountable. The more connections you will get from the community.

Let us examine how the animal kingdom works together.  

Animal Kingdom 

? Ants

Image credit: https://kids.britannica.com/students/assembly/view/144467

The society of ants works as colonies. A top-down structure that works toward the same goal: to survive together as long as possible.

Structure 

The society structure is hierarchical with queens on the top and worker ants on the bottom. The older ants move either farther or closer to the queens while younger ants protect their home or attack others. It is not necessary to have only one queen, there are structures with multiple queens.

Resources

Since the goal is to survive, food is the sole resource that ants work toward to gather as many as possible. Surprisingly, when a famine occurred, they used a decentralized response to quickly spread food. They make independent decisions or in small groups to allow more quick responses. Their society is hierarchical but their operation is decentralized.

Roles

Despite being biologically different from ants, they selected their roles based on their personal preferences! 

Communication

They used simple and straightforward directions to communicate between them. Communication among higher rankings does not command orders to lower rankings. 

? Bees

Image credit: https://knowablemagazine.org/article/sustainability/2017/whole-food-diet-bees

Similar to ants, bees also established their colonies with a hierarchical society.

Structure 

Queens are at the top of the organization while workers serve many other purposes. The difference is bees have only one queen to serve. The rest of the female bees lay eggs for drones to spread their kingdoms.

Resources

Bees rank by their experience. The more trips one bee can carry to collect food, the higher the ranking the bee is. They will recruit to become an elite team to carry out high-performance tasks compared to a non-elite team. How do they get resources? They receive food along the way to work, and they carry the majority of the food back home to feed younger bees and queens. 

Roles

Their roles are identified by biology. That means they work as they are born to become. However, their collaboration between them is highly efficient and they take care of each other.

Communication

They communicate with each other through dancing. A way that is repetitive and concise. Despite their hierarchical structure, the higher-ranking members do not order or command lower-ranking members on their job.

? Monkeys 

Image credit: https://ca.pbslearningmedia.org/resource/nat14.sci.lifsci.hierarchy/the-social-hierarchy-of-snow-monkeys/

Monkey’s society is where individual members coordinate activities and communicate with one another. 

Structure 

By our observation, the monkey is a dominant hierarchical social structure in that top-ranking monkeys control more resources than the button ones.

Resources

Monkeys compete with individuals to get more resources. However, they also collaborate to gather more resources. 

Roles

Their roles are specifically defined through competition with high rankings who control more resources than lower rankings.

Communication

They communicate with each other through voice. Also, sometimes they fight to enforce their message.

What Can We Learn 

When it comes to resilience ideas to resolve emergencies, a decentralized system works best through examples from ants. All members voluntarily work toward the community as a whole, they can be efficient under a hierarchical system. Otherwise, competition and coercion are a way to make the hierarchical system more efficient. But such a hierarchical system will constantly be under stress and fear. One important note is that there is no trust within any of the animal kingdom examples above mentioned.

Forming Trust is Difficult

It is a long process to form a trust. And it is not guaranteed to be a trust. However, you can build accountability that is verifiable trust. The concept of verifiable identification can make one accountable through a decentralized system.

Self-Sovereign Identity

Image credit: https://en.wikipedia.org/wiki/Self-sovereign_identity

Self-Sovereign Identity or SSI is a digital identity that gives individuals control over their digital identities and through issuers. A peer-to-peer identification system that can selectively disclose information of a credential through Zero-Knowledge Proof without revealing privacy. 

Image credit: https://tykn.tech/self-sovereign-identity/

In Conclusion

We need no trust to work together however you make people who work accountable.

Stay tuned for the next part of the DAO discussion!

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