Clear DefinitionsPermissioned Governance
1 min read
Pronunciation
[per-mish-uhnd guhv-er-nuhns]
Analogy
Permissioned governance is like a homeowners' association board meeting where only elected board members (authorized participants) have the right to vote on new community rules, even though all homeowners are affected by these rules. Other homeowners might be able to observe or give input, but their voting power is restricted.
Definition
A model of blockchain or decentralized application (dApp) governance where the ability to participate in decision-making processes (e.g., proposing changes, voting) is restricted to a select group of authorized entities or token holders who meet specific criteria.
Key Points Intro
In permissioned governance, participation in key decision-making is limited to an authorized set of actors.
Key Points
Restricts voting or proposal rights to pre-approved participants.
Often used in enterprise blockchains or consortiums where members are known and vetted.
Can lead to more efficient decision-making but less decentralization.
Criteria for permissioning can vary (e.g., identity verification, specific token holdings, membership status).
Example
A consortium blockchain for supply chain management might use permissioned governance. Only representatives from the founding member companies are granted voting rights on proposals to upgrade the protocol or admit new members. This ensures that decisions are made by stakeholders with direct involvement in the ecosystem.
Technical Deep Dive
Permissioned governance mechanisms are typically enforced through smart contracts or protocol-level rules. This can involve:
- **Whitelists:** Only addresses on a pre-approved list can submit proposals or cast votes.
- **Role-Based Access Control (RBAC):** Specific roles (e.g., 'council member', 'validator representative') are assigned voting privileges.
- **Verifiable Credentials:** Participants might need to present digital credentials proving their eligibility.
The governance smart contracts check these permissions before accepting a proposal submission or a vote. This model often coexists with permissioned blockchains.
Security Warning
The entities controlling the permissioning process hold significant power. Collusion among permissioned governors or compromise of their credentials can undermine the integrity of the governance process. Transparency in how permissions are granted and managed is crucial.
Caveat
Permissioned governance inherently centralizes decision-making power to some extent, which may be contrary to the ethos of full decentralization. It can be more efficient but may lack the broader community input of permissionless systems.
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