Importance of Blockchain governance.

In our world today ,the concept of Blockchain has taken over the world, with talks on Blockchain evolving from how real it is or if it would stand the test of time to how it can be developed and used in our everyday financial activities, such as saving, borrowing, lending, buying and selling.

Traditional Financial institutions are now looking for ways to fuse into the Blockchain space and governments are beginning to adopt this technology with the instance of El Salvador adopting Bitcoin as a legal tender, and Nigeria creating the E-naira, we cannot but see how important the Blockchain technology is.

With the increased adoption of Blockchain, it has become necessary for contributors to have access and control over how the software is run, and how updates to the blockchain are made.

Blockchains are open-sourced, and this gives a fair way for contributors to get involved. This concept is known as ”Blockchain Governance”.

Blockchain governance refers to ”the means of achieving the direction, control and coordination of stakeholders within the context of a given blockchain project to which they jointly contribute”.

The success and sustainability of a crypto project depends solely on its governance, as it enables holders to discuss on how best to improve the system. With the rapidly increasing large sizes of Blockchains, it’s governance is essential to regulate it’s communities, and not lose track of set goals.

Adoption of a Blockchain is another importance of Blockchain governance to a project. This determines its usability. Blockchains with a wide variety of use cases tend to be due to a robust community and governance. Take for example, Solana has seen it’s Blockchain adopted by so many other crypto projects, traded NFT’s and the coin token $SOL reached it’s ATH, with an intent to pump even more.

With the increasing adoption of DAO’s (Decentralized Autonomous Organizations), Blockchain governance has seen a new/modified form. They are internet organizations co-owned and managed by their members. DAO is used to describe a transparent digital community, that is governed by rules and principles encoded in the Blockchain. All the principles on which the organization would run are encoded on the blockchain and accessible by every participant of the DAO anytime.

The emergence of Blockchain technology has been likened to the creation of the internet, and it’s governance plays a huge role on how successful and sustainable it is. I dare to say, with Blockchain governance it’s impact is going to be even more explosive.

The world isn’t ready.