BLOCKCHAIN GOVERNANCE AND ITS IMPORTANCE
Blockchain is a potential solution that allows a better implementation of processes, ensure transparency ,trust and ease of use. Blockchain increase efficiency of processes which makes industries and sectors all over the world to explore the merits of blockchain technology by identifying use cases and developing proofs of concepts. It enables group of people who does not know each other agree on the state of a shared administration without human intervention or relying on middlemen since the validation of the blocks ensures that network has a global state that is accepted by all. With blockchain, people can create their systems of rules and smart contract, enforced by the underlying protocol of a blockchain based network. in Blockchain, people come up with new innovations and changes everyday, the progress rely on a global distributed network of developers, Every blockchain is an evolving system which needs to change and meet the requirement of its users, This is where BLOCKCHAIN GOVERNANCE comes in, even though blockchain is decentralized and does not rely on human interference, just like all other industries like finance, media among others, the governance of a blockchain project is very necessary in order to to enable stake holders to discuss and make decisions on how things should run. these decisions are implemented by the developers.
IMPORTANCE OF GOVERNANCE
Blockchain governance is very crucial because its prevent blockchain projects from being stuck in one place, it brings progress to the project by implementing new innovation which are mostly decided by stakeholders and implemented by developers. apart from deciding new innovations and changes, some other matters that needs decision making in a typical blockchain project are funding allocation, reward system, block size, network access among others. governance ensures the continous usability of a blockchain project. At the end, Users are the main people behind governance because when a project stop delivering and serving its users, the team needs to decide a new innovation which might result into Hardfork. hardfork is a change to a network`s protocol. And for a hardfork to be successful, users need to agree to follow and use the new protocol.
GOVERNANCE TOOLS I WOULD LIKE TO SEE COVALENT USE
Covalent provides the richest and most robust data infrastructure for the entire blockchain ecosystem, covalent simplifies data and remove any complexities that may come with it with the use of a unified API. As covalent is behind many of the existing DeFi projects data infrastructure, it needs efficient governance for its sustainability. There are different governance tools and i would love to see covalent use SAFESNAP, it`s a governance tool by Gnosis in collaboration with Snapshot, a platform that enhances decentralized governance. the high gas fees on ethereum has made it expensive to vote for proposal on on-chain, thereby leading to very little member of voters, Safesnap offers decentralized execution of of crypto governance proposals. Safesnap allows users to reduce high gas fees while maintaining decentralization in the proposal`s execution.
The sustainability of a blockchain is very important and to achieve that, a very efficient governance tool must be used by the project. this will bring more users and more attention to the blockchain.
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