Entrepreneurs

Cryptocurrency Guru Tekin Salimi Touts the Power of the Decentralized Autonomous Organization

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While the cryptocurrency market has become so incredibly popular over the past decade that the average user may think all the kinks in the system have worked out, there still remains controversy over the utilization of the Decentralized Autonomous Organizations (DAO) to keep evolving the industry, particularly after its breach in 2016. For well-known crypto mogul and partner at digital asset firm Polychain Capital Tekin Salimi, however, he believes the continued use of DAO to be of the utmost importance to secure blockchain transactions.

“Gas prices and scalability concerns on Ethereum today are bottlenecks that have led many project founders to consider launching DAOs on other platforms,” said Salimi.

Salimi noted that DAOs can vitally establish a permanent record of transactions on the blockchain, while likewise eliminating the need for any centralized governing authority, keeping cryptocurrency as it was meant to be from its genesis: free from the constricting limits of institutions. New DAOs such as Polkadot help connect public and private consortium chains as well as public and permissionless systems all within one cohesive, secure system. With Polkadot, users can swap data across blockchains seamlessly through the use of ‘parachains’, keeping all the individual information protected underneath Polkadot’s relay chain umbrella.

“Polkadot is a great example of a platform that stands to win DAO market share,” elaborated Salimi. “Through utilizing Parity’s Substrate framework, a project founder can now launch a DAO chain that is natively interoperable with all other Substrate-based blockchains. This DAO chain can also participate in Polkadot’s parachain auctions to become an elected parachain and effectively piggy-back off of Polkadot’s consensus security. The value proposition of a platform like Polkadot is through reducing the surface area of issues that a DAO founder needs to worry about, so the founder can focus fundamentally on building a valuable economic model for the DAO’s tokenholders.”

As the world of cryptocurrency continues to expand and the governance issue grows in tandem, Salimi believes that DAOs are the one true answer to keep crypto users’ transactions both safe and far away from the grasp of centralized authorities.

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