Blockchain technology was built to counter a lack of faith in the current financial institutions. A useful technology for security and a means of overcoming financial limitations, blockchain also has other redeeming qualities that make it interesting, such as its approch to the concept of democracy. Inhawn Kim, president of BPF elaborates.
Direct democracy
Direct democracy, otherwise known as a pure democracy, is one in which the people and not government representatives, decide and vote on policies and laws directly.
A direct democracy has many benefits, including full government transparency, a more accountable government and greater cooperation among citizens. However there are drawbacks; it could be difficult to reach a decision on some topics and over time it is likely that participants might decrease.
Direct democracy is uncommon in the world today and even more so in the world of blockchain. Most blockchain projects are governed by development teams for a particular project. As such, it is difficult to see a situation in which token holders needed to vote on every situation. The current cryptocurrency climate is a perfect example, while there are many active projects and eager token holders, there are just as many people who have participated in token sales in the past and left their tokens to die in wallets. As with many things, a direct democracy hinges on every participant in the public wanting to achieve a common consensus.
Participatory democracy
This is a form of democracy similar to direct democracy that encourages the participation of the citizens in decision making. Participatory democracy emphasises that the people are in power and have the right to vote on certain decisions, but ultimately things are still run by elected officials. However, participatory democracy echoes similarities with a direct democracy when it comes to limitations. Citizens aren’t obliged to participate, meaning that there is no guarantee that the votes form a true representation of the people and their opinions. Similarly, in blockchain and crypto, there are limitations because getting to a consensus is not easy.
Deliberative democracy
In the case of deliberative democracy, instead of simply voting on every decision, deliberation and discussion are fundamental to reaching specific decisions. In this respect there are elements of both consensus and majority rule involved.
In today’s traditional democracy, officials are elected and come to various decisions about how things are to be run. With a deliberative democracy, elections and voting aren’t the only factor. Instead, it includes key deliberation and discussion about specific topics. Many of the people affected by certain decisions don’t have a chance to weigh in on how things affect them. This isn’t the case with a deliberative democracy. In fact, these groups of people are actively sought out in order to include their opinion.
This concept of democracy is used by Bosagora and represents huge potential for the blockchain and cryptocurrency industry.
The Bosagora solution for blockchain democracy
Bosagora has introduced the concept of the Congress Network, a decision-making body of fully-synchronized node operators. Collaboration that is both inclusive and effective occurs among various project stakeholders. With the Congress Network, things like source-code development and how to utilise marketing resources can be decided by voting. Bosagora node operators can join the Congress Network to participate in all decisionmaking processes and contribute to the entire project.
Blockchain projects, like any other product, are created to satisfy the needs of their users. Like with any product and industry, the market can always change and projects need to be adaptable. As evidenced during various market crashes over the years, stakeholders feel the need to express their opinion on how projects should move forward during difficult times. Centralised decision-making processes can leave out the voices of the network but through the Congress Network, stakeholders can be included in a deliberative process to determine the best course of action.
Democracy in tech today
In today’s current technological landscape there is a diminishing faith in various institutions that traditionally provided us with democratic sureties. Governments, banks, major corporations, the media and more, are no longer viewed in the same manner as they have been before. In years gone by these institutions were the ones that dictated society. Now people believe that these institutions don’t have their best interests at heart and are turning to other alternatives. It is for this reason blockchain technology rose to prominence as a concept and why it will continue to do so.
People are unhappy with what they are currently getting from their demoractic institutions, they are unhappy with how their information is being used and they are unhappy with how things are being run. As we progress in the future, technology could be the thing that alters the current democratic regime.
Given the current changes happening throughout the tech space and the impact they are having on the world, it is important that everyone has their own voice. The current cryptocurrency industry was severely impacted by bad actors who were only focused on their own ideals. Now, it is more important than ever that we all have our own voice and can help in making decisions.
With solutions such as the Congress Network, blockchain and cryptocurrency could finally have the answer to democracy.
If you want to re-live the SiGMA Digital experience go to our Youtube channels – SiGMA – World’s iGaming Festival and AIBC Summit!