Gavin Wood, co-founder of Ethereum and Parity Technologies, says that crypto-economic systems act as “nation states” of the Internet that are governed by a parliamentary democracy.
Wood attended the Unitize conference on July 6 to speak about how blockchain governance essentially functions as laws for those nation states that need to adapt to remain relevant.
“We really haven’t thought about how blockchain can be used as a means to really evolve blockchain rules,” said the co-founder of Ethereum. “Decentralization in cryptos prevents corruption of these rules.”
Screenshot of Gavin Wood speaking on Unitize on July 6th
Wood emphasized that to survive, these blockchain nation states would have to interact with each other and governance was key. He said that such decentralized systems are “economic heavyweights“who need proper governance.
“Governance is crucial. Governance is basically the means to speak on behalf of the crypto-economic system, as a form of internal elements where internal system stakeholders come together and determine what (market capitalization should be used for). “
Polkadot’s autonomous government system
Polkadot is a product supported by the blockchain infrastructure company Parity Technologies. The project aims to implement a fragmented and interoperable blockchain that competes directly with the Ethereum platform.
Wood describes Polkadot as a “meta protocol”, in which only the bottom layer of the blockchain is defined. The co-founder of Ethereum says that within this level it is possible to implement governance in addition to balances, accounts, transactions and parallel chains. According to Wood, Polkadot uses this arrangement to autonomously update his rule.
Parity Technologies started Polkadot in May as an independent blockchain as the project is waiting for the transition to its core network.
Cointelegraph has reported that Polkadot has integrated with many of the major players in the ecosystem, primarily related to Ethereum. These include Chainlink, which will use Polkadot-based oracles, and Celer Network, which has announced plans to bring its second-tier side chains to Polkadot.. Recently, Gitcoin announced a collaboration with the project to help its developers find community support and funding.
Previously, Cosmos, Polkadot and Terra had announced at Unitize to jointly develop a new DeFi savings product called Anchor that is reported to offer reliable interest rates on deposits with stable coins.
Gavin Wood’s presentation at Unitize was interrupted due to some technical difficulties. According to a conference official, his full report will be available online within 24 hours.