Blockchain Governance :Its importance and uses
Blockchains are decentralized digital network providers whose governance is characterized by a complex interplay between stakeholders. To manage such a community of different people with different roles, some kind of technique is needed.
So Governance by the Blockchain refers to the use of blockchain technology to more efficiently govern and coordinate existing actions and behavior.
Public Blockchain Governance is characterized by the following stakeholders:
Token Holders
project Teams
Core Developers
Node Operators
We all fall under these. For me, governance is a way to keep things in control and avoid chaos due to the fact that it is a community so decisions need to be taken as a community and all individuals have a say. Take for instance, in a voting situation, all members have an equal right to choose a particular option once, and the majority of the choice from the result is what the team will stick with.
There are two types of Governance :
Off-chain and On-chain Governance
Importance of Governance
A governance system is necessary for blockchain projects to move forward. It should be able to fit most needs as blockchain systems need to be able to adapt to their environments. It is necessary to make important decisions from marketing, to PR,to legal compliances, strategic changes, etc
Using Governance tools: Snapshot
Snapshot is a place where projects can create proposals for people to vote on using cryptocurrency. It is used by several companies in the Defi space to help survey users. The project uses ‘off-chain’ signing techniques to make voting fees less. Normally, to vote using cryptocurrency would normally incur fees to process the movement of currency from one wallet to another but on Snapshot, that doesn’t happen, thanks to the clever use of the decentralized storage network called IPFS. Because Snapshot doesn’t use ‘on-chain’ verification, any votes are essentially fee-less.
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Thank you.
