Ethereum (CCC:ETH-USD) is one of the most robust blockchain networks in the world. The network has remained on the cutting edge, and it seeks to adapt where it previously might have fallen off. To accommodate increasingly large volumes of transactions, the network created sharding to break down pieces of data. To make mining of ETH a greener process, Ethereum is transitioning from proof-of-work to a proof-of-stake algorithm. With today’s ETH crypto news, the network’s founder shows his desire to transform governance on Ethereum.
Vitalik Buterin is a crypto celebrity. His work within the space is a tour de force that has netted him a net worth of over $1 billion and a legion of fans. In fact, he is so beloved for his work in the space that new meme coins popping up often gift his crypto wallet with huge amounts of their tokens.
Today, Buterin is making waves with his vision of the future of blockchain governance. Buterin is already ahead of the curve with his ideas; governance existed on the Ethereum blockchain for years, until a hack in 2016 led the devs to abandon it for some time.
This previous iteration of governance, a decentralized autonomous organization (DAO), allowed anybody who had a cache of Ethereum to their name to vote on community matters. Upgrades were discussed among holders and voted on in a more democratic fashion than other networks of the time.
The DAO is such a successful concept, many altcoins since have implemented DAOs on their own chains. But as Buterin flirts with the idea of bringing governance back to the chain, he has his eyes set beyond DAOs.
ETH Crypto News: Buterin Wants to Bring Back Governance, But Without DAOs
If Buterin were to bring governance back on Ethereum, as he plans to do, he wants to do it differently. A post on his blog discusses governance at length, especially his idea that blockchain must move beyond its current holdings-based voting that DAOs offer.
Buterin mentions a major issue with this type of voting. As it happens, many of these votes can be compromised through vote-buying and coordinated vote attacks. Bad actors can influence a governance vote against the desires of the greater community. These exploits allow whales and others to abuse their economic power for their own personal interests.
To move beyond this, Buterin suggests truly democratizing on-chain governance. Through a proof-of-personhood model, users can simply prove their humanity and receive their vote, giving everybody level voting power. Another way to implement more level voting is through proof-of-participation. In this model, voting power is more greatly allotted to users who are more active on the network. This removes the uneven field created by financial voting power.
Of course, these ideas are mostly theoretical; Buterin makes note of a few networks using these newer models, like POAP and BrightID. Thus, implementation on Ethereum will likely take some time. However, given Buterin’s track record of success in pushing new boundaries, investors have high hopes that he can get something done.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.