Advanced Governance Models Using Blockchain for Decentralized Organizations

Image Source

If there is something that is constant in this our contemporary world, I will say it is the factor of change. Change keeps happening in every sphere of our lives and at different phases. Similar thing also apply to the sphere of crypto and generally the Blockchain technology. The Blockchain technology keeps evolving every blessed day and keeps getting better. The mechanism on which Blockchain technology works with in this present world is much more different from how it works 10 years ago and it continues to get better.

Recently, there is a new update that the Blockchain technology have been able to bring which is amazing and that is the governance models. This has been applied on several organisations and have helped to change how it works. For many years, a lot of organisations have been running on the traditional governance system and even though it is good, I will say it still have it's own slacks. The traditional governance system lacks transparency and the fact that it runs on Centralized system also helps to makw it prone to corruption. But there is a solution to that, and that is the innovation of the Blockchain Decentralised governance models.

When it comes to Blockchain based governance, I think it is mostly misinterpreted by a whole lot of people most of the time. They always think it is one system of witness but that is wrong. There are a whole lot of features that Blockchain governance brings since it runs on smart contracts. It has features like the voting system, the automated system of making decisions and many more.

When it comes to the Blockchain governance models, of course we have different types of it. There is the token based governance and this is in fact the most common type of governance models. These is the most common type of governance models because it helps to give members the full control of their tokens. They can vote on decisions that are to be made on the platform. But most of the time, this particular type of governance model can be corrupted because if there is a lot of whales participants, it can leads to greater control for them thereby corrupting the system of the governance models.

Image Source

Then there is the aspect of the quadratic voting. This one is different from the one I talked about earlier because it gives the participants more leverage to only vote on important decisions on the voting systems. Majorly these types of Blockchain governance models are only runned by larged stakeholders. We also have the Futarchy Governance and the Liquid Democracy. These two last types of governance models is less common among projects. But well, it is still quite relevant even till now actually but not that popularly used.

When it comes to the Blockchain based governance, it offers a whole lot of benefits or should I say advantage that the traditional governance model did not offer. I will be briefly talking about some of them. The first one is the aspect of transparency and trust. Whether we like it or not, every organisation wants trust and transparency to be established in their project and that is what the Blockchain based governance offers. With Blockchain technology been Immutable in nature, it helps to give that trust that the traditional governance models fail to offer.

Another one is the aspect of efficiency. Don't get me wrong, even the traditional governance models are very efficient but the efficiency is quite limited. Why? Because the Blockchain governance system can not be automated. With the Blockchain based governance models, we have smart contracts that can actually be automated which helps to go a long way to settle the issue the aspect of efficiency. With the smart contracts, it helps to eliminate those delays that is happening.

Of course even with those benefits, it has a whole lot of challenges attached to it which I believe still needs to be looked into. Issues like the scalability, the voter apathy, the regulatory uncertainty which is a big issue generally in the Blockchain space and much more. All these are what I strongly believe still needs to be looked into but I am so confident as we proceed, it will be settled. I am very sure that a lot of organisations will adapt the Blockchain based governance models as it continues to grow.

As I conclude, you will agree with me that the future is definitely bright generally for the Blockchain space. We are just starting. There was actually a whole lot of growth that have been witnessed which I believe will continue to be witness in the years to come.