Crypto Critic: Let's Decentralize Policy | BitHub.co.uk
Crypto Critic: Let's Decentralize Policy | BitHub.co.uk Crypto Critic: Let's Decentralize Policy | BitHub.co.uk

The idea of a decentralized government, formed by competing, decentralized parties, would be a generational turning point in human evolution. The question is, is it realistic?

The perfect manager

Decentralized governance, an aspect of decentralized autonomous organizations(DAOs), is perhaps the most valuable functionality that smart contracts can bring to humanity. DAOs can be thought of as living organisms on the Internet, entities that would function autonomously according to distributed consensus mechanisms. Governed by the community through voting, DAOs are self-governing systems with a built-in vault. Although they still depend on community members for some tasks – offering an economic incentive from the liquidity pool in return – DAOs are almost entirely automated.

Lost trust

Despite their potential, DAOs are not among the most popular decentralized technologies. Perhaps their reputation hasn’t fully recovered from the 2016 hack, when the first decentralized venture capital fund – known as “The DAO” – was blocked, causing the Ethereum blockchain to fork and the subsequent creation of Ethereum Classic.

Old/new concept

But what many may not know is that the various farming protocols, non-convertible token platforms, and decentralized exchanges we see today all depend on DAOs for governance. In the coming decades, a new type of self-governing organization is likely to take over not only in business, but also in the political sphere through decentralized parties.

Decentralization is measured by the perception of each user. Some maximalists suggest that the decentralized governance of Bitcoin itself is enough to be considered a DAO. However, the term was not officially introduced until 2013 by Daniel Larimer and only became widespread many years later with Dash. One of the most active DAOs today, Dash was the first protocol to establish blockchain consensus decision-making. In 2015, the Dash Foundation decided to create a pool consisting of 10% mining rewards to support the growth of the network.

Go beyond the crypto zone

Although there are now several forms of decentralized governance, DAOs are mainly used to vote on protocol updates and allocate funds from the pool. They just need to get out of the crypto bubble and change the decision-making process in the real world. This is where the true potential of DAOs lies, making democracy not only more just

iwa, but also more flexible and efficient.

A few months ago, Wyoming passed a landmark new law that effectively recognizes DAOs as Limited Liability Corporations (LLCs). As regulation catches up with technology, we may see these LLC DAOs gradually bring decentralization to companies and organizations.

A chance for true democracy

Political decentralization is the only way citizens can have a decisive voice in the governance of their communities and lives. The desire to change the political landscape is palpable and reflected in rising voter absenteeism in many countries. While decentralized parties will not initially have much political impact, the desire for stronger technology and cleaner forms of democracy will drive adoption over time. Eliminating centralized government would help protect citizens from government abuse and corruption, reduce bureaucracy, and speed up the passage of laws and regulations.

Usecase

We can use blockchain technology to improve voting processes in elections and referendums. Blockchain voting systems are currently being tested by several countries around the world and have already been used in the United States: in West Virginia for the 2018 midterm elections and in Utah for the 2020 presidential election.

But what if distributed ledger technologies could do more than just improve voting systems? What if they could take democracy to a new level by creating a system of self-governance where everyone had a say?

This is the dormant potential of decentralized parties: overthrowing the hierarchical structure and changing the paradigm in the political system.

It

just takes some time

Financial Critic

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