What Role Do Smart Contracts Play in Automating Governance within a Consortium Blockchain?
Smart contracts automate the execution of pre-defined business logic and governance rules agreed upon by the consortium members. They can automatically enforce voting procedures for adding new members or changing network parameters.
They also handle the automated settlement of inter-organizational transactions, removing the need for manual intermediaries. This automation increases transparency and reduces operational risk and cost for the member organizations.
Glossar
Voting Procedures
Mechanism ⎊ ⎊ Voting procedures within cryptocurrency, options trading, and financial derivatives represent the formalized processes by which stakeholders exert influence over protocol parameters, governance decisions, or contract modifications, often employing token-weighted systems to reflect proportional ownership or participation.
Pre-Defined Business Logic
Execution ⎊ Pre-defined business logic within cryptocurrency, options, and derivatives markets represents codified trading strategies or risk management protocols implemented via automated systems.
Automating Governance
Governance ⎊ Automating governance refers to the process of embedding organizational rules and decision-making logic directly into smart contracts, enabling decentralized autonomous organizations (DAOs) to operate without human intermediaries.
Smart Contracts
Function ⎊ Smart contracts are self-executing agreements with the terms of the agreement directly written into lines of code, residing on a decentralized ledger.