Why Networks Are States That Need Democratic Government
One of the governance problems of blockchains, related to the fundamental error of decentralization theater, is the failure to build deliberative institutions on top of the “parliament of miners.” Voting by proof of work is great, especially if the majority is well above 51%, and can demonstrate its strength without an actual hashing race. It’s a good way to finalize decisions. But not a good way to make them. But blockchain governance would be considerably improved if the miners actually had a formal way to delegate their power to a structured institution that represented them. Both Bitcoin and Ethereum have foundations and/or core teams, but authority in these institutions isn’t tied in any way to actual mining power. Informal politics fills this void with personality cults and eloquent blogposts, all hoping to create collective agreement among the actual voting miners. History shows this is not a great way to run a railroad. Misalignment between a fundamental power, like the miners, and a group purporting to represent them, like the foundations, is inherently dangerous.
via https://blog.p2pfoundation.net/why-networks-are-states-that-need-democratic-government/2016/07/03