What is Blockchain Governance?

If you’ve read the whitepaper of Color or other blockchain projects, you’ve probably heard the word ‘governance’ by now. Many people in the blockchain space are interested in discussing TPS, consensus, token economy, etc, but to a lesser extent the governance that makes these decisions possible. Behind the scenes, there is a lot that goes into making these decisions, and they aren’t always easy, as we’ve seen this year with multiple forks of major blockchains.

First of all, let’s look into the origin of the word ‘governance.’ Governance derives from the Greek word ‘kubernaein,’ and it means to steer(a boat or ship). In modern English, it now means the actions and processes by which stable practices and organizations arise and persist.

However, Blockchain Governance is a decision-making process among thousands of people on how to operate the system rather than one person or organization manage the system.

All the individuals involved in the Blockchain Governance might or might not be interested in this decision-making process. Therefore, when designing Blockchain Governance, we need to consider it to encourage members to participate in the decision-making process and prevent dogma and unchecked decision making of half-baked or ill-intended ideas.

There are mainly two things to contemplate regarding designing the Blockchain Governance.

How the rewards are divided and handled.
How code changes occur in the “core” code.

Blockchain Governance is an essential element to create a sustainable decentralized system. There is no perfect solution to governance in general, because it is a process centered around the human element for human needs, but in the upcoming governance blogs, we hope to show why we believe cryptocurrency governance participation is not just for the technocrats, and why it is critical that we get everyone involved.

Have any questions? Stay connected with us through our Telegram channel.

Have a Colorful Day :)

Join Our Chatroom to Learn More!▼