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Smart Contracts and Web 3: From Automated Transactions to DAOs
Abstract
This chapter delves into the burgeoning world of smart contracts and their critical role in powering decentralized autonomous organizations (DAOs). Beginning with an exploration of the logical foundations of smart contracts, it underscores the parallels between smart contract creation and traditional contract formulation, with a keen emphasis on the concept of conditional execution. It further elucidates the integral role of smart contracts in underpinning DAOs, illuminating how these automated, transparent, and immutable constructs facilitate the decentralization and autonomy of such organizations. A rigorous examination of the complex interplay between technology, law, and economy in DAO operations is also undertaken. The chapter additionally navigates the challenging regulatory landscape, drawing on international legal frameworks and proposed regulations. Throughout, it maintains a balanced perspective on the transformative potential of smart contracts and DAOs in reshaping societal structures, alongside the profound challenges their implementation presents.
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