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Clear governance is key to driving blockchain technology for businesses

A clear governance structure within a decentralized ecosystem is the key to freeing blockchain technology from uncertainties for companiesMark Radcliffe, partner of the global law firm DLA Piper, who has extensive experience in blockchain governance, said in an interview with Cointelegraph.

Freedom of decentralization and governance

Radcliffe argues that Blockchain is an industry that attracts very individualistic people and is skeptical of authority. However, he believes that Collaboration frameworks are critical to the success of blockchain implementation and tokenization, just like with open source software. He added:

Blockchain projects often say that they will only be a place where people can show up and do what they want, but we won’t put any restrictions on that. We don’t care what people do, we don’t care whether we come or go. The only thing that matters is that everyone has the maximum individual freedom of choice. “

Radcliffe emphasizes that people need to break away from the idea that “being in a blockchain means there is no need for governance.” Building a governance structure that makes companies like banks and insurance companies feel comfortable plays an important role in ensuring that blockchain technology works in the long term.to Radcliffe.

Clear governance is key to driving blockchain technology for businesses
Clear governance is key to driving blockchain technology for businesses

Radcliffe found this using the example of the Ethereum fork Community members provided a software update that caused a hard fork in the Ethereum blockchain, and then the fork was “rolled back.” and returned the ether to the original wallets of the knots that had taken it over. Approximately 80% of the nodes took over the software update and the remaining 20% ​​did not, because “Code is the Law” became Ethereum Classic.

DAO had no board or officials, so the participants had no one to ask for redress, which made “chain governance” extremely “unsafe”. Radcliffe decided When companies consider using blockchain to improve business efficiency, it is important to design a governance structure in which the risks and rules are clear to avoid the uncertainty of the new technology..

As Cointelegraph previously reported, Decentralized networks became a technological lifeline in the event of a disaster, and decentralized governance could help people learn, make decisions, and work together.

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