Literature Review by Jörn Erbguth: “Democratic states are entities where issues are decided by a large group – the people. There is a democratic process that builds upon elections, a legislative procedure, judicial review and separation of powers by checks and balances. Blockchains rely on decentralization, meaning they rely on a large group of participants as well. Blockchains are therefore confronted with similar problems. Even further, blockchains try to avoid central coordinating authorities.
Consensus methods ensure that the systems align with the majority of their participants. Above the layer of the consensus method, blockchain governance coordinates decisions about software updates, bugfixes and possibly other interventions. What are the strengths and weaknesses of this blockchain governance?
Should we use blockchain to secure e-voting? Blockchain governance has two central aspects. First, it is decentralized governance based on a large group of people, which resembles democratic decision-making. Second, it is algorithmic decision-making and limits unwanted human intervention
Cornerstones
Blockchain and democracy can be split into three areas:
First, the use of democratic principles in order to make blockchain work. This ranges from the basic concensus algorithm to the (self-)governance of a blockchain.
Second, blockchain is seen as providing a reliable tool for democracy. This ranges from the use of blockchain for electronic voting to the use in administration.
Third, to study possible impacts of blockchain technology on a democratic society. This focusses on regulatory and legal aspects as well as ethical aspects….(More)”