Blockchain and Governance Structure

Abstract

The rapid growth in the advancement of blockchain technology and its development has brought its usage in every field. Traditional legal frameworks, which depend on establishing central points of accountability and responsibility, have difficulties as a result of the characteristics of blockchain, such as decentralisation, transparency, integrity, and immutability, among others. A key challenge behind the adoption of blockchain is understanding the dynamics of blockchain governance. With the promise of an efficient network owing to the elimination of intermediaries, governance in blockchain may be understood as addition of standards and culture, laws and codes, people, and institutions that promote coordination and jointly decide a particular organisation. As a result, having a headquarters is not necessary; instead, development can rely on a globally dispersed network of programmers who create the software protocol, giving rise to the idea of a DAO (decentralized autonomous system).