But It's Not the Only Law for Blockchains

Publié le by Coindesk | Publié le

Accordingly, any blockchain-based application is subject first to its own governance rules, but is also indirectly affected by the rules of the platform on which it operates: the ethereum blockchain that ensures the proper execution of relevant smart contracts, and the internet network that makes everything run.

Endogenous rules are elaborated by the community and for the community: they are a community's attempt at self-governance through a set of self-imposed rules.

Exogenous rules are established and/or imposed by a third party that is external to the community, but nonetheless have the ability to influence it through a set of rules that community members are required to abide by.

From a DApp's perspective, endogenous rules include decision-making procedures and technical rules embedded in the relevant smart contracts-whereas the underlying ethereum protocol qualifies as exogenous.

On-chain governance rules also specify procedures to amend themselves: just like we can make laws that stipulate how to make, amend or repeal laws, we can design protocol rules that define the procedures to make, amend or repeal other protocol rules.

Take Tezos, for instance: a self-amending blockchain, where people have the ability to change the protocol rules - including the rules to change the rules!

Endogenous rules comprise rules, social norms, customs, and other governance structures developed or endorsed by a particular community with a view to facilitating coordination within that community.

As opposed to on-chain governance rules, these rules are not automatically executed: they require a third-party authority for enforcement or oversight.

For most blockchain communities, endogenous rules include all rules and procedures used to decide which changes to implement in the protocol, including the decision to fork.

As soon as we start dealing with real-world assets, the rule of law will necessarily come into play, potentially countering the rule of code.

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