ConsenSys defines the DAO as a community-driven entity with no central authority. It is governed through computational algorithms (running through the blockchain) known as smart contracts that regulate how the parties involved in the Decentralised Autonomous Organisation should cooperate. Why is this the case? Because the members do not have to know each other and there is no hierarchy between them. The applications of the blockchain stand out for the transparency and versatility that they bring to all types of transactions to increase security.