The idea of a DAO has been around for a long time. It was even referenced in Vitalik Buterin’s initial white paper on Ethereum in 2012 before Ethereum was even launched. So the idea itself is not novel.

But the technology to decentralize rule enforcement never existed before, until the arrival of blockchain technology.

Think of the blockchain as a database that everyone has to agree on to modify. In a centralized database, anyone can add an entry to the database. But with blockchains, everyone has a copy of that database. So if you want to change an entry, you’d have to convince everyone to change their copy of the database with you.

And in particular, some blockchain platforms like Ethereum support smart contracts, or programs that you can run on the blockchain. These smart contracts are like automated rules that no one can change.

A DAO could then just follow the rules as dictated by this program. Anyone can look at the code and verify that it does what it says. Nobody can tamper with these rules because everyone owns a copy of it. Even the creators of the initial rules can’t change them. If you tried to co-opt the rule, you’d have to convince everyone else to change it with you. And it’s unlikely to happen if the members don’t agree to change it with you.

So while DAO’s have existed for a while, the technology to make them come to life has only just arrived. Hence the renewed interest in them.