The Future Of Blockchain-Based Governance And Decision Making

INTRODUCTION

Source

Due to the growing implementation of the technology and its increasing capacity, blockchain-based systems have started changing the conventional methods of governing and making decisions within organizations effectively. Governance these days lacks transparency and still possesses some central control. These governance structures have been taken over by systems of governance based on blockchain technology. They use advanced technology in form of smart contracts around which decisions are made in a way that is free, fair, permanent and accountable.

One of the defining features of blockchain governance is the decision-making infrastructure through the establishment of decentralized autonomous organizations (DAOs). They enable anyone with a stake in the network via a token to participate in governance over the network embodied by the blockchain and thus obviate the need for a layer of centralized management. Such a system in which decisions are made is known as collective ownership which encourages responsibility and openness.

Understanding and using ‘blockchain governance’ has expanded beyond the technical scope and is being embraced towards the business world in various regions such as supply chain, real estate and even public administration. The introduction of the blockchain in the decision-making process of organizations is necessary to enhance efficiency, curb the level of corruption, and enable more people to participate in the governance thereby facilitating a new model of governance.

• OPENNESS AND RESPONSIBILITY

The very nature of the blockchain allows for all governance activities to be recorded in an open manner within the unchangeable ledger. Every decision, vote or transaction pertaining to governance in a blockchain system is accessible to all the parties concerned, hence no room for any fraudulent maneuver or interference.

The smart contracts are vital in fostering the element of responsibility. A ready-made contract takes effect and does its work only if trigger parameters have been met. Therefore, governance laws are adhered to at all times. This comes with the advantage of not relying on “faith” to a particular individual or group of people as all is achieved automatically with the technology, therefore every made decision is free from bias and favoritism.

In addition, the governance of blockchain based systems entails a high level of transparency which in turn inspires stakeholders. In most cases, such processes do not involve the stakeholders as they take place in strict secrecy and the decisions are relayed to the citizens. With blockchain technologies, these processes cannot only be conducted but also participants are allowed to observe the exercises thereby building trust in the results of the governance processes.

• DECENTRALIZED DECISION-MAKING

The very concept of decentralization stands out since it allows the decision making to be passed to the concerned parties rather than putting it in a higher hierarchy. This accommodative approach helps in increasing the level of participation as everyone gets a chance to express themselves and contribute towards maintenance of order.

DAOs represent decentralized decision-making, empowering users to submit, discuss, and vote on various proposals. This approach guarantees that governance is driven by the community, ensuring that decisions are made for the benefit of all stakeholders instead of a few individuals or organizations.

And more so, decentralized decision making is also favorable since it eliminates the dangers that come with centralizing the powers for instance risks of corruption or abuse of power and authority. Thanks to authority dispersion in blockchain governance, the system is built to be strong enough to withstand external and internal conflicts or any other form of interference.

Source

• PARTICIPATION AND INCLUSIVITY ACROSS THE GLOBE

Blockchain governance overcomes geographical constraints allowing for global participation in governance processes. This inclusion ensures representation of all views which improves the outcomes of governance processes.

Token-based governance systems allow individuals from different parts of the globe to take part in governance through owning a token. Such token constitutes a voting entitlement for the individual in decision making based on the amount of tokens held. This system provides for people's governance which most of the time is advantageous to marginalized communities.

In addition, the feature of blockchain technology being easily accessible sustains governance inclusiveness. In many old systems, certain groups were barred from being included because they did not have the central authorities. The internet-enabled system encourages participation from every member of the society with an internet connection hence solving the representation and access issues.

• ABILITY TO ADJUST AND WORK SPEEDILY

Changing from the conventional mechanisms of community governance to the blockchain model is much easier. Systems of decision-making can be constructed in a creative and the most efficient way possible. For example, the use of Smart contracts in the reprogramming of the governance system to meet the circumstances that are presented at a particular time.

Another benefit of blockchain governance is its efficiency. The processes are mechanized therefore there is no need for any manual work at any stage of the decision making process. It saves a lot of time and resources in making decisions. This is very helpful especially to the organizations that its operations are conducted in a rapid environment where time is very expensive.

In addition, the sufficiency of blockchain governance in adapting to external changes encourages creativity. They are able to try other models and ways, modifying their structures to attain better results. Such adaptability helps the system to tackle the issues of governance effectively, with the aid of the blockchain technology.

CONCLUSION

Source

It has been noted that blockchain-enabled governance and decision making can be expected to grow tremendously in the years to come, as they present systems that are transparent, inclusive and efficient which compete against the existing systems. Where the advantageous features of blockchain technologies can help build governance frameworks that are solid, flexible and serve the common good. As it develops further ‘in her bowels’ ‘the landscape changes the posture’ how DAOs are adopted, and more importantly how power is balanced across them. Decentralized governance, along with blockchain technology, will soon change the shape of the processes through which actions are decided on and executed in organizations and sectors.