Blockchain Governance Models: Balancing Decentralization and Efficiency

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The Blockchain technology every blessed day keeps changing around the world system around most especially in the way our data are been managed and not only that but also the way financial transactions are been carried out compared to previous year. The Blockchain technology making use of the transparent and Decentralised nature to help give a massive edge and offering something new than much more what we are uses to with the traditional systems.

Even though with the Decentralised and transparent nature that the Blockchain world have, it still have some certain types of tiles and protocols that determine to a very great extent those decisions carried out on the Blockchain. In fact those governance models is what go a long way to determine the sustainability of the Blockchain space not only for the short term gain but for the long term goal. Today I will be talking majorly about those governance models.

Even though the Blockchain world operate on the system of Decentralisation and the transparency nature, I bet many of us is not aware that there are a whole lot of features that made the Blockchain governance. When we talk about the Blockchain governance, we mean the mechanism and way that helps in the decision making of the Blockchain space. The Blockchain governance goes a long way to actually determine which type of consensus mechanisms to run per time. When we talk about Blockchain governance, it is divided into two major categories below:

• On Chain Governance: This will be the first and this type of governance are actually made with decision and those decision are recorded straight away on the Blockchain majorly by the token holders of the various ecosystem in nature. This model makes it so automatic and not only that but also transparent as it is carried out using the smart contracts..

• Off Chain Governance: When It comes to this particular Governance, all the decisions are actually taken outside the Blockchain. What I mean is any decision that is necessary for like proposals and all other decisions that needs to be made within the stakeholders are made outside the Blockchain. This helps to balance both the Decentralisation and the efficiency actually.

I will like to talk about the Decentralisation that exist in the Blockchain governance. First of all, I will like to establish one more time again that Decentralisation is really important as in fact is the major features of the Blockchain technology that makes it to stand out. It makes sure that everything carries out are carried out on the foundation of trust and transparency. When it comes to the governance, Decentralisation allows the power to make decisions not to just be centred on only one person but distributed across a lot of people.

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Come to think of it, there are a whole lot of benefits that the Decentralised governance actually offer which I will be talking about. The first is the inclusivity. This makes it possible whereby all the stakeholders can be able to have a say in any and every decision that is about to be made on the community. This helps to eliminate the centralisation atmosphere.

We also have the security. Security helps to make sure that attacks are not much. Then the last one I will like to talk about is the Transparency. Transparency is also the key to make sure every decision making that is taken is not taken in secret but visible for everyone to actually see. This goes a long way to avoid something called manipulation of those decisions in the future.

This particular post will not actually be complete if I did not make mention of the Efficiency that exist in governance. The act of governance on this Blockchain space helps it to be possible to allow decisions to be made with ease and not only that but also been able.to influence change with effectiveness. This makes it possible that network can actually adapt to new challenges irrespective of the dimensions it might comes. Take for example, there is development in the area of security or even technology advancements, it helps for the network to be able to adapt to the new developments.

If you want to achieve the efficient governance, there are things that needs to be given importance to which I will be making mention of also. The first which is the most important is Speed. Trust me it will be much more better when in an ecosystem, decisions can be implemented speedily without no delay. Then we have the need to also pay attention to what I call clarity. Clarity in the sense that all rules and regulations should be set and established so as to avoid something called ambiguity.

Even with the lot of benefits that the Blockchain Governance offers, there are a lot of challenges that I still believe needs to be looked into before it is too late. The first challenge is the aspect of the Coordination Difficulties. What do I mean by that? When we are having to deal with a whole lot of stakeholders, it can create massive issues most especially in the decision making process and if that is not looked into can actually cause massive damage that might not be repaired. We need to be very careful on how we deal with it actually.

As I round up, I am here to just still establish that the Blockchain governance is really needed in the Blockchain space because it goes a long way to address a whole lot of issues that we might not even be seeing. It has a way of balancing the Decentralisation system and I am so sure that it is here to stay for years to come.