Hoskinson Details Cardano’s Bill Of Rights For Blockchain Governance

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As a researcher with years of experience in the blockchain industry, I find Charles Hoskinson’s latest initiative to be a significant stride towards establishing ethical governance for Cardano and potentially other blockchain systems. The 11 Blockchain Tenants he introduced are thoughtfully crafted, striking a balance between technical innovation and ethical considerations.

In his recent broadcast, Charles Hoskinson, Cardano‘s creator, presented a system for blockchain governance, which he calls a “Charter of Rights” for the Cardano community. This initiative, based on 11 fundamental principles of blockchain, intends to set up a constitutional base that will shape the development and management of Cardano and possibly impact broader blockchain technologies.

Live from Colorado on October 13, 2024, Hoskinson underscored the collaborative nature of this project, noting that over 50 workshops have already taken place. He added that approximately 1,400 individuals have been involved in the process so far, with 63 delegates being elected through it.

At the core of Hoskinson’s announcement is a blog post named “The 11 Principles for a Blockchain Charter of Rights.” He emphasized that these principles are not specific to Cardano but rather serve as a universal guide applicable to numerous blockchain networks. “These principles aim to reflect the inherent resilience of these systems and the rights of their users,” Hoskinson described, drawing comparisons to human rights embedded in constitutional law.

The 11 Cardano Blockchain Tenants

Charles Hoskinson delved deeply into every one of the 11 principles, clarifying their importance and real-world applications within Cardano.

  1. Transaction Censorship Resistance: “Transactions cannot be slowed down or censored and will be expediently served for their intended purpose,” Hoskinson stated. He likened this principle to the freedom of speech, emphasizing the importance of maintaining user autonomy within the system. “Transactions express the ways the users wish to engage with the system so users should be free and able to do so in a manner proportional to their intent; this excludes censorship but also mandates expediency and processing.”
  2. Predictable Transaction Costs: Hoskinson asserted that “the cost of a transaction should be predictable and cannot be unreasonable,” which is essential for user planning and system sustainability. He acknowledged the challenges in balancing resource allocation with user intent, especially in high-demand scenarios. Mechanisms like tiered pricing and intent-based ledgers are being explored to address these issues.
  3. Fair Recognition And Compensation: Addressing the equitable treatment of contributors, Hoskinson noted, “Every user’s inputs and contributions to the system will be recognized, recorded, processed, and assessed fairly.” This tenant seeks to ensure that both maintenance and development efforts are adequately rewarded, preventing incentives failures within the ecosystem. He also highlighted the need to fairly compensate various roles, from stake pool operators to governance participants.
  4. Data And Value Portability: Reflecting principles similar to the European Union’s General Data Protection Regulation (GDPR), Hoskinson emphasized the importance of user consent in data handling. “The value and data users contribute or create will not be locked or processed without their consent,” he stated. He advocates for user control over personal assets and information.
  5. Resource Efficiency: “No resources will be unnecessarily spent,” Hoskinson explained, highlighting the necessity of minimizing resource utilization through efficient protocol design. This tenant aims to prevent systemic bloat and ensure the long-term viability of the blockchain. Examples include protocol optimizations that reduce transaction sizes without compromising security.
  6. Safe Preservation Of Value And Information: Hoskinson discussed the dual aspects of this tenant: preserving the integrity of information against threats like quantum attacks and ensuring value stability through mechanisms like stablecoins. “The system will safely preserve the value and information stored within it,” he stated, emphasizing both data integrity and asset stability as critical components.
  7. Minimization Of Unnecessary Resource Expenditure: This tenant focuses on resource optimization, ensuring that Cardano operates efficiently without wasting resources. Hoskinson highlighted the transition from Plutus V1 to V2 as an example, where transaction sizes were significantly reduced, enhancing overall system efficiency.
  8. Fair And Representative Governance: “The system will treat users fairly and will evolve accordingly to their collective will, aiming at its long-term sustainability and viability,” Hoskinson declared. This tenant emphasizes the importance of inclusive governance, where all stakeholders have a voice in the system’s evolution. The upcoming Constitutional Convention in Buenos Aires aims to formalize these governance principles.
  9. User Privacy Preservation: Emphasizing data privacy, Hoskinson stated, “Users’ privacy, both in terms of their actions and their data, should be preserved.” Drawing parallels to GDPR, he advocated for minimal disclosure and selective, contextual data sharing. This tenant addresses the balance between transparency and privacy, ensuring users retain control over their personal information.
  10. Compliance with Local Laws and Regulations: “The system will offer users ways to engage that do not require them to break local laws and regulations,” Hoskinson explained. This tenant acknowledges the global nature of Cardano and the necessity for users to remain compliant with their respective jurisdictions.
  11. Transparency, Predictability, and Verifiability: The final tenant mandates that “the system’s operation should be transparent, predictable, verifiable, interpretable, and without asymmetries.” Hoskinson emphasized the importance of open-source protocols and public verifiability to ensure trust and accountability within the ecosystem.

The Way Forward

Charles Hoskinson explained the ongoing work to solidify these principles using a decentralized decision-making process. He stated, “It’s crucial to have decentralized governance before making such decisions because only through it can you reach a consensus for everyone, everywhere – this is the essence of Voltaire.” In December 2024, a Constitutional Convention will take place in Buenos Aires, Argentina, where delegates from 50 countries will gather to draft and ratify the constitution based on these principles.

The founder underscored the significance of this initiative beyond Cardano, suggesting that other blockchain communities could adopt similar frameworks to balance technical innovation with ethical governance. “These tenants are being actively debated by the Cardano community […] they will act as beacons in the far horizon that will pull Cardano and other blockchain communities to where they intend to travel to,” Hoskinson stated.

Hoskinson concluded the video by highlighting the importance of preserving the system’s integrity over short-term gains. “We should never sacrifice the integrity of the system for the sake of short-term gain or short-term progress on some arbitrary metric like token price or adoption,” he asserted.

At press time, ADA traded at $0.3536.

Hoskinson Details Cardano’s Bill Of Rights For Blockchain Governance

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2024-10-14 09:42