Consensus and Oversight: Auditing, Appraisals, and Legitimacy Confirmation

While the use of voting can handle governance decisions within a DAO, external consensus and oversight are necessary to ensure the legitimacy of the organization and its asset claims. Oracles and auditor networks are key tools that can be leveraged to provide external validation and establish trust in the DAO's claims.

External Consensus: The Role of Oracles

An oracle is essentially a bridge between the blockchain and the external world. In this context, oracles can provide real-world data to verify the claims made by the DAO or any other organization. However, using a single oracle has limitations regarding trust and persistence. The proposed system seeks to address these issues by using a multi-oracle approach:

• Persistence: Oracles will store results consistently by linking them to transaction IDs as a timestamp key, ensuring that the same data is referenced each time.

• Consensus Network: Instead of relying on a single oracle, multiple oracles can contribute to a consensus-based decision regarding a DAO's claims. This ensures that no single entity controls the data, enhancing trust and credibility.

Oracles are crucial for providing real-time or long-term external data, such as asset values or ownership verification. They may use trusted third-party data sources (e.g., zillow.com for real estate pricing) to provide accurate readings on the value of assets in the DAO.