Decentralized Governance In BlockChain Technology

This focus of this article is majorly on the Decentralized governance in blockchain technology. We shall be studying the definition of decentralized governance, issues of blockchain technology, decentralization, citizens and their influence, effects of the state, etc.

We can say, decentralized governance are the ways through which a platform, devoid of partiality and intermediaries, is managed. This is for the purpose of decentralized applications and blockchain networks.

Definition Of Decentralized Governance

What is decentralized governance? Decentralized governance are all the unique steps taken for a platform’s development and maintenance. There are two distinct ways to blockchain governance. The are: On-chain governance and Off-chain governance. Now, we shall discuss on-chain governance first.

This particular governance makes use of automated cryptographic algorithm. You can design products with this. It is through the use of digital means. Also, it will facilitate the decision making process. It is worthy to note that, blockchain is the base for on-chain governance. The network custodians, who vote with local currencies, can particularly alter the blockchain.

What about off-chain governance? We can refer to it, as all the steps, taken to make a decision outside the blockchain. The unique steps of off-chain governance are public debate, suggestions, and lastly, consensual updates.

Definition Of Decentralization

We cannot proceed further without defining decentralization. We can define decentralization as the transfer of decision-making power from a central entity to a sub-central group of citizens. Here, there are different structural levels. Those at the top managerial level, which is the state, issue out duties to the lower managerial levels, which are the citizens.

A good functional governance system, will positively influence decentralized networks and platforms. This will enable it protect the usability and long lasting ideas. It must be devoid of a centralized authority. There are unique ways, governing bodies use to access certain operations. Operations like project progression, upgrades and smooth running of important protocols and ecosystem.

More On Decentralized Governance

Generally, a greater number of people and projects make use of blockchain. This leads to a vast movement from the present centralized platforms to a fresh interactive contract. The collective agreement is the base for social or interactive contract. This result to a well developed worldwide community.

Specifications Of The New Social Contract

There are certain specifications, this new social contract will present. Firstly, it will present decentralized communication. Secondly, the contract will feature cooperative platforms. Then finally, a decentralized judgment body. It finds solution to problems using smart contracts. However, this is only functional under a consensual agreement. It is done by the participating members.

The give different duties and responsibilities. This is depending on the network’s structure. The governing network also influences it. What plays an important role in the dispensation of duties and obligations?. It is their ability to react to change in power within players. On the other hand, the governing body or the state should be answerable to server providers and miners. This is because, the are important in the solving issues on blockchain.

There are various ways functional bodies, view power distribution. The traditional forms of governance believe that power is distributed in positions. While the decentralized network governance view power to be in changing or definite connections. However, the way of communication of different bodies can influence where power is placed.

Let us look at the disadvantage of decentralized governance. Due to a public blockchain is very volatile in nature. It can be disposed, especially when it is not beneficial anymore. People have began to question the sustainability of the decentralized blockchain. This is because, it can vanish at any time. All these can affect contracts and government services. It happens when participants move to another system.

How did blockchain-based governance come about ?  

The influence of blockchain technology can’t be overemphasized. Its impact on different people are very essential and vast. Meanwhile, it permits people to reshape their involvement in politics, business, education, etc. Individuals take this actions without intermediaries. This is to avoid transactions that are not trust worthy.

The principles that support the governance systems can be altered due to this process. Consequently, this will lead to asking the purpose of state and centralized bodies. Those who want the usage of blockchain believes that, individuals can personally safeguard their own interest, without the state.

Protection Of Citizen’s Interest

The can achieve this by, adopting blockchain-based services and decentralized platforms (e.g. Ethereum9 , Omni Layer10, Eris11). When individuals adopt this system, it brings about innovations and new possibilities in blockchain revolution. Meanwhile, it scrapes out the negative values and state authority.

Those who clamour for decentralization doesn’t value centralized institution. In other words, they don’t appreciate whatever value, the centralized institution, bring to the table (Paquet & Wilson 2015, p. 21). The media plays a role in influencing reasoning of decentralized institutions. It makes them to perceive the government as unproductive and corrupt. (Paquet & Wilson 2015, p. 21).

However, it is of high demand to understand that, some positions in the decentralized institution, play the role as the state. Also, there is no clear limitations to intermediaries on government services, free market and anarchism.

Advocacy For Blockchain Technology

Advocates of blockchain highly promote blockchain and all its qualities. The clearly state out the benefits of blockchain to the citizens. Their increasing number of applications will enable their independence on government. But, still practiced in a state founded society. There are people who hope for the adoption of information technology. They consistently degrade the state. This is similar to advocates of decentralized institutions.

However, the promote the use of information technology. It is because, it is a tool to override harsh authority. In recent times, individuals can bypass centralized institutions. It is done, through a general based decision. When there is a consensual agreement, they can build a society devoid of hierarchy.

Review Of Protocols

Those, that are involved in technology and decentralization have set in place, materials for the development of cryptonations. All of them are based on blockchain technology. On the other hand, the purpose of this, is to review those proposals. Especially the ones that questions the traditional mechanism of state governance.

Most importantly, you should know that blockchain technology hasn’t fully developed. It still undergoes definition, recognition and establishment. Till date, there is no compact account of blockchain technology’s impact on political governance . In conclusion, this consequent result needs to be solved . That is why, we hope for people to understand the level of the problems and find a way to solve them.

The Paper Arrangement

There are steps involved in organizing this paper in discussion. Let us look at them:

  • What comes first, is the presentation of vital principles. The pertains to blockchain-based governance.
The second step is, to know the factors that will influence the movement of government services to the blockchain. This factors can be risks or advantages.

Use of Blockchain In Control Of Social Interactions

  • More so, we shall ascertain how blockchain and decentralized platforms are carrying out their function. This is as regards to controlling social interactions.
  • If any central political authority is detected, it shall be dissolved. Also, with the help of the paper, we can find out how long the blockchain governance can reduce hierarchial structures and coercion.

Whatever the state plans to do, the blockchain governance can hinder it, although it may not be accepted as an independent political theory. The more the interconnected society grows, the more it gets complicated. Therefore, we need to device a way to avoid some nation-state restrictions. Therefore, it is ideal to campaign for citizen’s participation in politics. What is needed from citizens is to be active and observe government duties and irregularities.

More On Blockchain Influence

Blockchain technology has really influenced our society, both in technology and politics. Some are of the opinion that, its use in political activities should not be used technological activities. In conclusion, for any emergence of governance model, the should be properly checked. This is to make sure the don’t take the risk to promote anti-political materials or bring forth politics.


At the academic level, there hasn’t been any record of interaction for blockchain-based models of governance. Due to this fact, accurate informations are gathered from credible sources without stress. We can use “Swan (2015)” as a reference point. This is because, it provides a credible information regrading the use of blockchain technology. It is important to note that, informations regarding assumptions and predictions are from the internet. Other sources are from conference and forums. However, there is no record of the writer. Now, let us study the principles of blockchain-based governance.

Centralized Political Organizations and the Issue of scale. 

A couple of centralized political organizations have proven to be of great solution to issues of scale. Their goal is to bring together, diverse people and reaching a consensus. This way, social interaction is promoted.

State as a Single Point of Failure (SPOF)

The state, in its hierarchial structure, was set up to assist in solving some minor issues. However, it has proven to be inefficient as it is known for coercion and rigidity. It can’t offer solutions to the issues of the society. Some governments are intoxicated by power. That is why they indulge in various corrupt practices. For this reason, this quote was made, “Quis custodiet ipsos custodes?”. Which means “Who will watch the watchmen?”. How does the acronym “SPOF” come about?

In computer terms, we regard any centralized authority in a hierarchical system as a Single Point of Failure (SPOF). It ought to perform incredibly well, so as not to bring negative effects on its participants. That is why we introduced decentralization. It does not only regulates power concentration, it also enables citizens to achieve a lot in politics.  

Distributed architecture and trust-by-computation:

Until there is a better organizational model, centralized authority will continue to be used. There were ways citizens could reach consensus. The could me inconvenient, but still usable. But for the first time, citizens will reach a consensus with cryptographical authenticated peer-to-peer methods. They will do this without intermediaries. We are in an era of decentralization, which is brought by blockchain technology. It limit use of human efforts while introducing open source code. By open source, it means the network is independent and anyone can access it. Also, data is always available.

When centralized organizations make decision, there are bound to be mistakes. When this mistakes are made, it affects the whole system. So, Neutrality of the code, distributed consensus and audit of transactions, help to avoid those mistakes. The beauty of this architecture is, the government doesn’t involve itself in the implementation of new decentralized governance models.

Individual and politics prowess, by instant, atomic interactions. 

The disadvantage of the State, is majorly the use of force. This is the edge, blockchain has over it, as it doesn’t use force but decentralized ways. Here, power is not concentrated, but shared. Meanwhile, blockchain has a secured public record feature. That is to say, humans are not really relevant. But, smart contracts and Decentralized Autonomous Corporations can be more efficient.

Different atomic interactions can automate the relationship of individuals with the state (Butarin, 2014a). It is also observed that, models from a consensus is more productive than models from pools. This is based on economic and political point of view.

Putting a nation on the blockchain: a Starbucks-style public administration.

With blockchain, dispensation of public administration will be easy. Public records and legal documents can also be stored in a decentralized way. This happens when you use blockchain as a primary public record storage. In recent times, anyone can develop its own decentralized blockchain nation (Swan, 2015). Government can provide voluntary services, which blockchain-based governance systems carry out. Citizens may decide to be part of it or not.

However, Governments can decide to change from use of coercion to use of dialogue and democracy. There is a special feature under this category of discussion. With an app, you can perform many tasks at your convenience. You can get health insurance, choose your code of law, incorporate a company etc. The app also has special features where their own do-it-yourself governance can be shared and sold.

Global Government Services, devoid of boarder.

Governance can cut across boarder and nations with the help of blockchain. The goal is to form an organization, with people from different nations as a global cloud. (Swan 2015, p. 32). There should be no limitations to participate in government services, no matter where you we are from. With this project, individuals can gain from one general governance system. This is a better plan, than the unproductive series of nation-state governance system.

Systems of direct democracy

This aspect talks about the outcome of democracy if people engage more in it. When citizens take part in democratic activities, it makes democracy effective. Liquid democracy and random sample elections are the new models of participation.The are implemented by blockchain technology.

Futarchy’s rule of vote for values, but bet on belief.  

Futarchy was proposed by economist Robin Hanson, an economist, proposed the concept of Futarchy. It came in form of an engineering approach to public policies. However, it deals majorly on betting through tokens and cryptocurrency. There are ways through which this can occur. Firstly, people take their picks on a generally stated outcome. After that people can make picks on specific proposals. The individual hopes for the proposal to be accepted.

This way trades on the losing market will be change to gain. Meanwhile, those on the gaining market, after a particular time, will be paid off with some token. This goes in reverse, if the proposal is rejected. This could be a governance model. When we talk about the transformative nature of blockchain technology, futarchy is the ultimate example for it. Different positions portray show the State carry out its blockchain-based governance.

The positions are :

  • A society based on decentralization and State authority.

The act to decentralize services, is to create room for an effective governance. Carrying out decentralization through blockchain technology, prevents putting full power under one person. Misunderstanding this will create lawlessness and anarchy. But, understanding it promotes legal practices and order.

  • A new social contract, characterized by Decentralized Autonomous Societies and the final demise of the State. 

In recent times, there has been the development of different technologies. These technologies serve different purposes depending on the task. With this new technology, citizens can create new social contracts on a consensual level. This will definitely build the society.

In the development of the new social contract, special features are added to it. It contains systems for decentralized communication and collective executive of task. It also contains decentralized arbitration system for resolving of issues. All these are done for high efficiency. Above all, this actions will make the state, to fade away. This is because, they won’t be important anymore. Once a government doesn’t regard its citizens, it hardly progresses.

Daniel Larimer’s Interview

Daniel Larimer, in an interview, said he visualizes a stage, where governments won’t be necessary. It will be replaced by the free market which will supply all the goods and services to sustain life. This will make the free market have more power than the government. It also, becomes more efficient in executing duties than the government.

When the reason for electing a government is defeated, citizens look for a way to augment. At the point where they discover a more credible body, the government will lose its legitimacy immediately.

Effect Of Fanchulates.

I know the question will be, what are “Franchulates?”. However, it is a combination of “franchise” and “consulate”. As the people make use of free market, we might see the introduction of franchulates.

In Stephenson’s book, it is recorded that private corporations has out-performed the State in its duties. There is a state of lawlessness in the society, as the constitution is bridged. During this condition, the State losses its value. The blockchain technology hopes to transform our societies in something very similar to Stevenson’s vision. In its view, the government should avoid being a monopoly provider. It should embrace being a business state. However, it is important that government and its citizen should have a good relationship. The government should also provide good values and services to its citizens.

A free floating authority, cognitive dissonance and societal maturity. 

A natural progression of humanity is seen as similar to decentralization through the blockchain technology. (Andreas Antonopoulos interviewed by Sparks, 2014). However, for a decentralized trust to be introduced into the line of awareness, it will take some time. Meanwhile, this idea makes way for an intellectual conflict for those in the line of centralized trust systems.

People and the society, however, evolve into more advanced state. This involves how the discuss topics like governance, authority, participation etc. Governance covers everybody and is not limited to only one person. Free float of authority is really experienced in terms of governance for centralized authority. In conclusion, social advancement should also thrive in the same situation.


Its no doubt that public administration and government services can be decentralized. Now the question is, how can blockchain carry out this task?. which extent is it possible to decentralized public administration and government services through the blockchain technology? With this new innovation, is it safe to discard physical ledgers and induct blockchain?

All these are vital questions surrounding the discussion. Some unique features of blockchain are efficiency, cost-effectiveness, irreversibility, transparency, auditability and censorship resistance. With all these features, it still proof difficult to decentralize government services. The consequences might overshadow the benefits. However, it is a general knowledge that blockchain is a worldwide ledger. But, this has limitations, as it doesn’t record a substantial account of various activities.

Limitations of current distributed blockchains: Security and technical weakness.

These are factors that affect the current distributed blockchains. Distributed ledgers like Bitcoin is a very risky investment. Due to its scalable nature, it can carry out centralization in the network. The increase in number of miners also affects it. Many centralized miners are currently dealing on Bitcoin. Meanwhile, its mining operation is based on anonymousness. It also has, an extreme effect on mining operations in China.

Hence, the decentralization of starbuck-syle will expose records and rights of citizens. This confidential items mentioned are open to unpredictable market dynamics. Examples are: lack of assurance of a profitable mine, rise and fall of prices, speculatve attacks, etc. Hence, a blockchain is volatile in nature and maybe removed by the community. This can happen, even though it depends on a peer-to-peer network.

Reactions Regarding Bitcoin Scarcity In The Future

The uncertainty of the availability of Bitcoin as a universal ledger in the future creates a mixed feeling. People take to storing contracts. In this situation, government services will be prone to invalidity (DuPont & Maurer, 2015). Also, block chain is completely dependent on online storage system. This is is to say, it doesn’t It doesn’t have a paper backup. Any change of system or network may lead to a permanent loss of information.

One should be cautious when moving to an open blockchain. A group of crypto analyst states that the Bitcoin isn’t fully developed yet. Many irregularities come with the Bitcoin technology. Ittaly and Gün Sirer in 2014, made a report. It exposes the selfish acts of some bitcoin miners. In conclusion, it is risky to store data on Bitcoin. The programmed self-destruction theory reveals that, any mistake made in the build up of Bitcoin, will lead to self destruction.

Some of the problems include: 

  • High rate of profit loss for mining machines.
  • Lack of protection for the high number of investments.  
  • Inadequate network neutrality; 
  • Lack of credible statistics of transactions.
  • Unbelievable expectations from investors.

Some factors influence the self-destruction mechanism of Bitcoin network. The factors are:

  • Inability of the Longest Chain Rule to take effect. It causes the network to be vulnerable to attacks.
  • Reduction in monetary policies.
  • Unstable or poor network neutrality.
  • Vast or rapid change of power.

Crypto advocates believe in the prospects of Bitcoin. However, some researchers provide evidence of Bitcoin being prone to attacks. This is as regards to the use of Elliptic Curve Cryptography (ECC). It also includes weak key generation, inconsistent or poor signature, insufficient entropy and software bugs (Bos, Halderman, Heninger, Moore, Naehrig et al., 2014).

Emergence Of Quantum Computers

The emergence of quantum and quantum computers can be destructive. What Bitcoin do is, the take emergency actions, with centralized authority to safeguard the blockchain. In as much as solutions are offered for this quantum computers, some people will secretly make use if it. When this happens, it jeopardizes the solution.

There are limitations to solving techical issues through a central authority. This process confers power on private bodies over the government. The data of the citizens are now accessible without any regulation or legitimacy. Legitimacy is very important in governance, therefore should be highly regarded. Meanwhile, this is particular to those accept decentralization.

Some risk associated to the benefits of open blockchains are relating to :

  • some irregularities like moral hazards and scalability problems. It leads to networks relying private bodies.
  • Market logic being rule over citizen’s right and public services.
  • Lack of data preservation and service continuity.
  • Emergence of firm technologically educated people, with dominant power over unique services.

It is now obvious that government services can’t represent how blockchain can be applied. However, it is attributed with good qualities like high reliability, accessibility etc. Such that, any mistake in its security management, will jeopardize the civil rights of citizens. It is only ideal to practice credible legitimacy as regards to government services. This will reduce thoughtless rise of private powers over public affairs.

To be able to reach sensitive data, you need to make use of centralized and democratically legitimated public institutions. Their duty also, is to safe guard the sensitive data, against any risk like market speculations, etc. On the contrary, it doesn’t always work out, to use indiscriminate process of decentralization. When it concerns public administration, it may have adverse effect on the rights of the citizens. 

Benefits of permissioned, token-less blockchains for public sector.

Permissioned blockchains may be the solution to government online services. This is because, unpermissioned blockchains has limitations. Applications may include, for example: ID cards and driving licenses; land, school, medical records; certificates of birth, marriage, and death; tamper-proof and auditable e-vote systems; tax collection, etc. The ability of a permissioned blockchain, to be shared makes it possible for organizations to carry it out. However, the benefits of this ledgers are as follows:

  • They are used for general services of individuals, while safeguarding data from any intermediary.
  • These ledgers are properly shared and are in uniform settings. They also have few trusted nodes, which makes data authentication and dissemination fast.
  • Their structure is designed to carry out a particular function with series of verification systems. This makes it to have high security, control and visibility.

Due to the use of master to slave centralized structure for clone data, we can refer to traditional database as unproductive. Meanwhile, the authentic centralized structure is the master database. Any alteration on the data, affects the slave database. They are however, harmonized. Consequently, the master database can incur challenges reliability, high traffic and so on.

The Multi-master Replication

A company developed a new system that was developed. It is known as multi-master replication. With it, slave databases can perform certain actions to maintain synchronization. The whole idea is to resolve issues between informations. Compared to other databases, it has more advantages. It records high level of efficiency, data integrity, data security, data availability and so on.

Amongst all, data integrity is paramount, it encompasses accuracy and consistency of data. A situation where data integrity merges with security and availability, government services will be efficient. Some people are of the opinion that, we should discuss the pros of permissioned blockchain more. This will bring a change in the public sector.

Permissioned blockchains also have its shortcomings. People condemn due to their centralized nature. Also because, censorship affects it. In conclusion, technologically inclined individuals resist it, as they view it as not uplifting the idea of decentralization.

Subsequently, the hindrance to the use of fully distributed ledgers, have been brought to light. The need to be attention, if not they will influence our decision making. There general conception is that centralized institutions delay in response to security. We may disregard this fact.

Effect Of Vertical Centralization

In certain cases, vertical centralization, responds to sudden technical changes. A factor that poses an issue is scalability. Changing a protocol in a distributed structure with various nodes, can be overwhelming. It demands the collective decision of core developers, miners and nodes. However, in all this, the ecosystem may not react as it should to unforseen circumstances. Therefore, adoption of humans services is the ideal measure to preserve diversed systems of software. (DuPont & Maurer, 2015).

The need to select them legitimately as public officers, especially when it concerns the rights of the citizens.

Effects Of Government Services And The Technological Importance Of

Most advocates of decentralized services by blockchain, believes that it depicts the development of humanity. According some anatgonists, they don’t accept the concept of natural progression of humanity. Rather, they believe that humans are rational enough to make decisions. They also frown at the concept of technology, influencing the citizens and the society into a new level of maturity. For a new technology to progress, it needs the society and its factors. That is why, social factors can affect a new technology positively or negatively

Technological development is something that must occur, despite its extreme consequences on the society. As the technological systems keep developing, the more technological development keep increasing. One should look out for the ideal determinant when handling issues of government services. Determinism should not be paramount. The idea of decentralization is not to fight centralized models, but to help in increasing good governance.

Therefore, the should accept it without anti government feeling. An important factor in every society is innovation. It helps to build commercial interests but doesn’t depict the true attribute for government services. However, government services have a common goal, which is to preserve social, economic and political rights. The idea of decentralization through distributed blockchains is to monetize government services and citizen’s right. It can achieve this by the privatization of public functions. Remember, central coordination of public organizations has an aim.

This aim is to safeguard the citizen’s rights and interest from any uncoordinated directive. To this effect, the benefits of permissioned, token-less blockchains has surpassed that of fully distributed blockchains. The benefits of blockchains that are tokenless and permissioned are not much.

An Overview Of Blockchain Technology And The Global Governance: A Stateless Governance

In recent times, people regard decentralized platforms as tools, used for politics. The also consider blockchain as a tool for sustaining political interactions and eliminating central authority. Meanwhile, the wish of the people is to by-pass the traditional political institutions. Also, the hope for a new decentralized contract for social purposes.

Technocratic reasoning and the triumph of Homo Economicus. 

At this point, there are many objectives and oppositions. This regards to bringing the government and other political bodies down to automatic processes. Techno-elites and decentralized institutions, propagate this idea. The claim, it is an approach to bypass traditional political platforms. Definitely, the use of blockchain technology is beneficial in aspects of management, decision making and so on.

However, use of blockchain technology is not always applicable in all institutions. For example, we shouldn’t practice the act of democracy and politics with decentralized technology. It is practical and demands human factors. Blockchain and decentralization platforms, try to proof a point, how we can use blockchain to collate votes and assist politically. Governance goes beyond elections and aggregating of votes, the earlier they discover this, the better. Similarly, code developers seek to follow in that part of reducing human community to a set of property and set of individuals. In all this, it is paramount that, the blockchain developers see the world for its diversed nature.

With all this ideas, it is evident that the society will be in a state of disorder and unproductivity. It is not ideal that protocols will replace humans in the rise of technology. Like we said early, the case of society and politics requires human contributions, as it involves use of reasoning and analysis. It is never advisable to confer governance authority to computers and decentralized organizations. It will only give rise to “Homo Economics”, an abstract situation of irregularities and under socialization.

The dimension of a blockchain-based society before politics and the meaning of the State.

Let us look into, how a stateless and algorithm based society operates. After that, we can trace back the process of creating a state, as regards to the theorily of natural law. All this will ensure a better understanding of the topic.

A smart contract is a tool for a society, that is fully decentralized. Where as, individuals dwell in a state where they are after a common interest and need. There is only one way of security this, which is by an automated procedure of consensus. A good illustration is the use of decentralization institutions in the sharing of resources or organizing resources form mass donations. People refer to a society lacking this as pre-political.

On the other hand, the pre-political phase poses an inhibition in the exercise of citizen right. This will only bring about lawlessness and anarchy between networks. The can resolve this through negotiation or compromise. It will take the collective decision of individuals to actualize this non-aggressive act. In reference to Bobbio, he claimed that, to resolve conflicts, it requires more than consensus. With only consensus, the society will still be unstable, dispersed and in anarchy.

Further Analysis

To ensure security and avoidance of separation, individual set an intermediary which will see to instilling order in the society. At the point where there is a legitimate way of maintaining order, that is the birth of an ideal state. Kant also claimed that we can achieve this by submission to organized coercion. However, we widely regard it as a juridical and democratic phase that will influence citizens positively. It is important to eradicate central coordination and the state as the negatively influence the society. The bring about hierarchical form of governance.

The concept of decentralization has affiliation with neo-liberal politics which impedes once choice. Let’s not be quick to forget, that central political institutions came forth from private powers, to coordinate groups. Most importantly, to safeguard general consensus, individual’s rights and execute laws. Regardless of the negative deeds of the state, it is still a key determiner in the society. So, we cannot neglect or regard it as an opposition to a civil society. The constitution is the bedrock for this development, as it protects public interest , citizen’s rights and societal coordination. The qualities possessed the citizens of a society helps to develop that society.

It also facilities the resolution of conflicts amongst citizens. In the light of the development, there should be careful observation of people who act like what they aren’t. Also, being able to detect the use of automation and decentralization in the society. There is no possibility of a blockchain -based society could restore order without the use of smart contracts . It also makes use of complicated mechanisms. So, we have to adopt a democratic society to achieve this.

Moral-Neutral anti politics and stateless global society: the disempowerment of citizens.

A global society based on hypotheses is ran on individualism. Which invloves the Decentralized Autonomous Organizations, Authority floating freely and Free Market rules. This will cause a reduction in legitimacy which reduces the involvement of a particular set of citizens into the whole community. When the break the collective identity, citizens begin to see theirselves as separate individuals. This is because, individual will replaces the will and decision of the general people.

When this happens, it retards communal development. A situation like this, reduces the relevance of citizen’s right, making them less relevant. The may not really exercise their rights anymore. What will engulf the society is greedy and inconsiderate interests. When this happens, we regard to it as “amoral anti politics”. This is more of an interest based or profit oriented politics. That is why, people don’t support the idea to create a stateless global society on decentralized platforms. It will only bring about conflicts between groups. In conclusion, use of technical medium or decentralized platforms in politics, doesn’t offer solutions to societal vices. It doesn’t promote societal productivity and progress. So, it isn’t ideal to introduce blockchain technology to politics.


The conferring of power to the lowest level in the society, applies in decentralization. This lowest authority has the capacity to solve an issue efficiently. However, a definition of decentralization refer to it as rearranging of authority to ensure understanding between the highest level and lowest level. But, this is in view of subsidiary principle. This will improve the quality of governance.

Participation in decision-making, democracy, equality and liberty from a higher authority, has an affiliation with decentralization. The participation of decentralization in democracy promotes it, against all odds. Some individuals are of the opinion that when you give discrete powers to local representative authorities, the will create a functional society. Columbia University’s Earth Institute stated one of three important trends relating to decentralization. They are as follows: increased participation of local jurisdictions and civil societies in participation and the management of their affairs, consultation, and partnerships.

There are many definitions of decentralization, it depends on the perspective you view it. However, some define it to be a counterpoint to globalization. It is because, it eliminates decisions from the traditional and national level and takes it to the global level. It involves the sub-national in making decisions and the communal relationship of all levels.

Mode Of Operation For Decentralized Governance

With the emergence of decentralization came the birth of Blockchain and cryptocurrency. This also brought forth the creation of the first cryptocurrency known as Bitcoin. Blockchain technology doesn’t need intermediaries to carryout its operation.

Since the emergency of blockchain technology, it has experienced wins and losses in creating decentralized digital currency. This practice is still developing and more advancement is yet to come.

With a collection of different ideas, people produce a good decentralization directives. Now, let’s look at the overview of decentralized governance mechanisms in blockchain technology.

What is the mode of operation for Decentralized Governance Mechanisms ?

Without innovations, the blockchain technology cannot flourish properly. What caught the attention of Satoshi Takamoto was the special feature of decentralization. Now, the develop new projects and cryptocurrencies with blockchain technology.

The blockchain technology has 3 important governance forms. The have founderbased, council-based, and expressive representation. In terms of making a decision, there are two types: on-chain and off-chain. However, in the case of founder based governance, the founder is with the last vote. It has been in existence.

In blockchain technology, a council is group of people who rule or operate a blockchain. It comprises of learned individuals. Their aim is to make outstanding decisions which pertains to upgrades.

Here, expressive representative is the last stage. It operates in a way that people vote either directly or by voting a representative to stand in on their name.

Blockchain majorly makes use of this last method of governance. It applies the role of on-chain and off-chain form of governance.

Distinguishing Features Between Off-Chain and On-Chain Governance Mechanisms

Off-Chain Governance Mechanism

Most decentralized platforms function properly on off-chain governance mechanism. Examples like Bitcoin and Ethereum perform their transactions on it. Just like that decentralized blockchain management, it involves, miners, node operators, developer and users.

For this particular governance scheme to flourish, there must be a collective agreement in decision making. Also, there is room for checks and balances and transactions must follow a consensual procedure. A collective agreement is also important in performing system upgrades or updates.

What Is “Fork” In Blockchain?

What is “Fork” in blockchain? This is a situation of conflicting opinions amongst contributors. Let us give an example of Fork. When Bitcoin separated into two different blockchains, Bitcoin Cashformed. Generally, people regard it as “Hard Fork” and recognize it as software update. But, technically, they know it as backward-imcomatible software update.

A situation where a blockchain records the most transaction, succeeds the original. In off-chain governance, votes count. Nevertheless, it doesn’t require a payment of transaction fees.

A lot of people ask if both governance system can function on the same blockchain. It is very much possible for this to occur. In such situations, the choose a trustworthy representative, to oversee the affairs of the system.

Lastly, off-chain mechanisms can be overwhelming. This is because different individuals have different view and objectives. Getting every contribution to make a decision can be rigid. It introduced the process of decision making, where every contributor will have every means of discussion. With this discussion, users can participate in decision making.

On-Chain Governance Mechanism

There is a vast difference between on-chain and off-chain governance. There is need for users to have a token to vote in off-chain governance system. It also makes use of proof -of-work formula. While, on-chain governance adopts proof-of-stake formular.

As regards to voting, on-chain governance ensures that each token confers a voting power to its holder. Therefore, the higher your token, the higher your voting power. Those who develope and validate transactions, are all part of the system.

A consensual ground makes the transaction of any sort is available. All the participants can have access to the transaction ledgers. No one can alter the ledger.

In some cases, other users get power if they decide to take part in voting. Meanwhile, note that, on-chain governance records less forks.

Inter-relationship Between On-Chain and Off-chain Governance Mechanism

There are situations, whereby on-chain and off-chain governance cooperate. On-chain and adopt off-chain governance mechanism. This is evident in the careful observation and inspection of proposals in public platforms, before people can vote on them.

Some people frown at this system of governance, as it doesn’t depict a democratic system. Those with higher tokens get more power than others. This causes a problem for the blockchain. Personal gain influence decisions rather than the benefit of blockchain.

Is there any possibility of abuse on token-based power, under on-chain governance ? Yes, there is. A situation may arise, where this token holders will not engage in voting processes again. On the other hand, on-chain governance mechanism have recorded a huge milestone.

Have We Arrived In A Decentralized Governance Mechanism ? 

There is a consensus that decentralized governance mechanism isn’t there yet, despite its powerful nature.

Also, there are some traditional hierarchy that are smilar to some blockchain governance rules. Let us take for instance, the election of a representative to stand in for others is synonymous to that of shareholders. Whereby, they elect a board of directors.

Similarly, there are certain factors on which we new blockchain and cryptocurrency depend on. They are venture funding or founder management. Any of these, influences their nature, either as centralized or public oriented entity.

Centralization Of New Blockchain Facilities

Centralization of new blockchains facilitates both survival and making a decision. This will entail the decentralization of those in charge so as to protect the blockchain reputation.

If there is an advancement in technology, blockchain, as a decentralized entity would have fully evolved. For this reason, some people consider centralization more than decentralization. However, companies can achieve a lot with decentralized blockchain technology.

Introductiom Of Decentralized Autonomous Organizations (DAO)

Ethereum network introduced Decentralized Autonomous Organization (DAO) , in the year 2016. Its function is to take care of decentralization problems. For this reason, there is high optimism from Ethereum users towards the new governance.

DAO faced a harsh challenge lately. An attack by hackers hit it and led to a huge loss of over 3 million Ethereum. This motivates decentralized institutions to make decentralization perform excellently well. .

Conclusion On Decentralized Governance Mechanisms

Although we haven’t experienced the full evolution of blockchain technology, it has however transformed overtime. Satoshi Nakamoto wrote a white paper about blockchain technology. His view is that, the will decentralize blockchain technology as soon as possible. A lot of cryptocurrencies and blockchain apps have evolved from Bitcoin. However, for blockchain to evolve fully, its users must play an active role.

Researchers and experts are also in the struggle to ensure full decentralization. The promotion of decentralization is the initiation of blockchain technology in various apps aside cryptocurrency. This is positive step in achieving this goal.

Above all, there are lots of work to do regarding decentralization. Therefore, advocates of decentralization should not overwork their self. However, the use of trial and error format could b beneficial to blockchain technology.

Lastly, one can use the current decentralized technology, as long as gives a desired result. Blockchain technology will fully decentralize, with the popularity it is getting.

See the List of things to learn.
  1. Blockchain Technology
  2. Defi
  3. NFTs
  4. DAOs
  5. Crypto
  6. Web 3.0
  7. Altcoin Tokenomics
  8. Metaverse
  9. Smart Contracts

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