Gavin Wood, co-founder of Ethereum and Parity Technologies, says cryptoeconomic systems act as Internet „nation states“, governed by the governance of a parliamentary democracy.
Wood joined the conference, Unitize, July 6 to talk about how blockchain governance essentially acts as the laws for these nation states that must be able to adapt in order to remain relevant.
„We haven’t really thought about how blockchain can be used as a means to really evolve the rules of blockchain,“ said Ethereum co-founder. „Decentralization in the crypts prevents corruption of these rules.“
Telegram will close the TON test network in August 2020
Wood emphasized that for these blockchain nation states to survive, they had to interact with each other, and governance was key. He said that such decentralized systems are „economic heavyweights“ that need proper governance.
„Governance is critical. Governance is basically the means of speaking on behalf of the cryptoeconomic system, as a form of internal elements, internal stakeholders of the system coming together and determining what (market capitalization should be used for)“.
Polkadot’s system of self-government
Polkadot is a product supported by the infrastructure company blockchain, Parity Technologies. The project aims to be an implementation of a fragmented and interoperable blockchain, competing directly with the Ethereum platform.
Meet „Anchor“, DeFi’s new product to generate passive income
Wood refers to Polkadot as a „meta protocol“ in which only the lower layer of the blockchain is fixed. The co-founder of Ethereum says that by working within this layer, it is possible to implement governance, as well as parallel balances, accounts, transactions and chains. According to Wood, Polkadot uses this arrangement to update its governance in an autonomous manner.
Parity Technologies launched Polkadot as an independent blockchain in May while the project awaits the transition to its core network.
Cointelegraph has reported that Polkadot has integrated with many of the key players in the ecosystem who are primarily associated with Ethereum. These include Chainlink, which will use Polkadot-based oracles, and Celer Network, and announced that it will be bringing its layer-two side chains to Polkadot. Recently, Gitcoin announced a collaboration with the project to help its developers find community support and funding.
Destination Blockchain: Shaking up the tourism industry and reducing costs
Previously on Unitize, Cosmos, Polkadot and Terra, announced that they will join forces on a new DeFi savings product called, Anchor, which is reported to offer reliable interest rates on stablecoins deposits.