Blockchain Network Governance: Understanding the Role and Responsibilities

Blockchain networks, which are characterized by their decentralized and self-governance structures, require proper governance to ensure their efficient and equitable operation. In this article, we will delve into the various roles and responsibilities of governance in blockchain networks.

Managing Participation in the Network

One of the main responsibilities of governance in blockchain networks is managing participation in the network. This involves ensuring that the right participants are onboarded and offboarded efficiently and fairly. It also requires establishing an equitable cost structure that is distributed based on the activity of the participants.

Allowing for Like-minded Participants to Engage in Transactions and Value Creation

Another important aspect of governance is facilitating transactions and value creation between like-minded participating entities. This requires managing the rules of engagement and social contracts to promote fairness.

Establishing a Fair Cost Structure

Governance of the blockchain network's governance also includes establishing a fair cost structure. This entails detailing how data ownership works, regulatory oversight, and compliance reporting.

Managing a Permissioning Structure

Governance is also responsible for managing the permissioning structure of the network. This involves central management and a voting process, a federated structure, and a delegated structure.

Managing Business Operations and SLAs

Effective governance also involves managing business operations and service level agreements (SLAs). This includes network support services, the same as for IT governance, and risk optimization, the same as for IT governance.

In conclusion, blockchain network governance is a crucial aspect of the efficient and equitable operation of blockchain networks. Effective governance involves managing participation in the network, facilitating transactions and value creation, establishing a fair cost structure, managing a permissioning structure, and managing business operations and SLAs. With the right governance structures and processes in place, blockchain networks can operate efficiently and transparently, unlocking their full potential for value creation.