DSF Explores the Governance Dynamics of Blockchain Networks with Project Liberty & BlockchainGov
The evolution of blockchain technology highlights the need for effective governance models. Recognising this, DLT Science Foundation Chairman, Dr. Paolo Tasca, has joined the Governance Multistakeholder Council contributing to a groundbreaking project by Project Liberty Institute and BlockchainGov. As a result of this joint work, we are pleased to announce the release of the “Intermediary Report on Blockchain Governance Practices.” This report offers a first-of-its-kind comparison and analysis of governance mechanisms across 11 major blockchain networks. It highlights the significance of transparent and accountable governance structures in the blockchain ecosystem.
The DSF team, composed by Dr. Paolo Tasca and supported by Dr. Jiahua Xu, Juan Ignacio Ibañez, and Walter Hernandez, continue to work in this project, crucial for advancing our understanding of blockchain governance. They will be issuing recommendations for the forthcoming Manual on Best Practices for Blockchain and Decentralized Technologies, scheduled for release in April 2024.
Key Findings of the Intermediate Report:
- Legal Entities and Power: Most blockchain networks, aside from Bitcoin, have established legal entities for off-chain management. This points to questions about transparency and power balance within these networks.
- Decentralisation in Practice: The report underscores the importance of defining and genuinely implementing decentralisation, both in technical and political contexts.
- Governance Formalisation: A critical observation is the relationship between on-chain rules and off-chain practices. The gap between documented governance rules and their actual implementation is a key area of focus.
- Mechanisms of Governance: The study examines various governance mechanisms, such as 'rough consensus' and 'signalling and voting'. These are pivotal in shaping decision-making processes within blockchain communities.
- Security and Response to Breaches: The handling of security breaches is scrutinised, emphasising the need for balanced procedures that avoid political manipulation.
This report is a step towards developing practical guidelines for good governance in blockchain and decentralised technologies. As blockchain technology continues to grow, it offers essential guidance, leading the way for a more equitable and sustainable digital future. Keep an eye out for further updates and insights in the realm of blockchain governance.
Download the report here: [link]