What is a DAO
A DAO is a Decentralized Autonomous Organization that contains a decentralized model of governance.
Decentralized Autonomous Organization (DAO) is an economic organization whose assets, rules, and organizational structure are coded into and managed entirely by smart contracts. As with smart contracts themselves, a DAO can operate without the need for a traditional legal system to enforce its rules.
What is an ICO
An ICO is an Initial Coin Offering that crowdfunds a new business opportunity, such as a DAO. An ICO is not to be confused with an IPO, even though they may rhyme. An IPO is when a company offers shares of stocks to the public. An ICO is not generally offering a share of the company
An ICO involves an exchange of a cryptocurrency coin for another cryptocurrency coin. The ICO will ask for one or more established cryptocurrencies or fiat currency to be donated to the crowdfunding effort in exchange for newly created coins specific to the company’s service or product being created by the ICO. Often, Ether is requested by the ICO in return of some predetermined number of new ICO specific coins.
If you would like to review what the US Federal Government has ruled regarding ICOs and the cryptocurrencies they create, read our Blog Post.
Decentralized Apps (Dapps)
Dapps are a new type of software program designed to exist on the Internet in a way that is not controlled by any single entity.
Ethereum provides developers with foundational layer: a blockchain with a built-in Turing-complete programming language, allowing anyone to write smart contracts and decentralized applications where they can create their own arbitrary rules for ownership, transaction formats and state transition functions.