- April 4, 2019
- Posted by: suma
- Category: Blockchain
Since the Blockchain came into the industry. It has seen many ups and down in price graph.
There is only one thing which has been constantly increasing the curve that is technological development. So we can blockchain has three pillars those are- Governance, Economic and Technology.
There are many protocols in blockchain that has to be followed by the network users — Block Producer (BP), Developer, dApps Consumer. As any country has laws, blockchains have protocols. The governance pillar ensures if any protocol is followed or not. Lack of governance may lead to community split. For example- in the past during the DAO hack on Ethereum, it was lack of governance, which led to the partition of the community resulting in ETH & ETC.
At present, there are many public Blockchains out there which lack governance. And due to its absence, making an update to the existing software i.e. the Technology is very difficult as there is a fear of community split. So it’s very important to have good governance in a Blockchain-based network.
There is a huge application of economics in the real world. But in terms of blockchain economics is actually meant by Tokenomics. Tokenomics is basically incentivization of Cryptocurrency in a decentralized world. In the world of blockchain dApps, each user is given a reward as tokens in proportion to the contribution made which do have financial values too. And the tokens can be used to exchange any form of commodity. It is unlike traditional Apps, where a user is given just reward points which has no financial value. Economics has its own significance in the blockchain. For example, BitTorrent (popularly called as Torrent) face issues like missing files or low download speed due to the absence of economics.
When we talk about Technology in blockchain means we mean security, scalability, decentralization. The blockchain is that secure and Irreversible that no one can modify the data once recorded.