{"id":74343,"date":"2018-12-01T14:39:00","date_gmt":"2018-12-01T14:39:00","guid":{"rendered":"https:\/\/interac1.wpengine.com\/content\/%content-category%\/blockchain-why-good-governance-matters\/"},"modified":"2025-05-30T12:36:39","modified_gmt":"2025-05-30T16:36:39","slug":"blockchain-why-good-governance-matters","status":"publish","type":"content","link":"https:\/\/www.interac.ca\/en\/content\/business\/blockchain-why-good-governance-matters\/","title":{"rendered":"Blockchain: Why good governance matters"},"content":{"rendered":"<p><em><img decoding=\"async\" class=\"wp-image-609 alignleft lazyload\" data-src=\"https:\/\/www.interac.ca\/wp-content\/smush-webp\/2021\/05\/6Oscar02-Final-Preferred-4-scaled.jpg.webp\" alt=\"\" width=\"331\" height=\"215\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 331px; --smush-placeholder-aspect-ratio: 331\/215;\" data-srcset=\"https:\/\/www.interac.ca\/wp-content\/smush-webp\/2021\/05\/6Oscar02-Final-Preferred-4-scaled.jpg.webp 2560w, https:\/\/www.interac.ca\/wp-content\/uploads\/2021\/05\/6Oscar02-Final-Preferred-4-300x195.jpg 300w, https:\/\/www.interac.ca\/wp-content\/uploads\/2021\/05\/6Oscar02-Final-Preferred-4-1024x664.jpg 1024w, https:\/\/www.interac.ca\/wp-content\/uploads\/2021\/05\/6Oscar02-Final-Preferred-4-768x498.jpg 768w, https:\/\/www.interac.ca\/wp-content\/uploads\/2021\/05\/6Oscar02-Final-Preferred-4-1536x996.jpg 1536w, https:\/\/www.interac.ca\/wp-content\/uploads\/2021\/05\/6Oscar02-Final-Preferred-4-2048x1328.jpg 2048w\" data-sizes=\"auto\" data-original-sizes=\"(max-width: 331px) 100vw, 331px\">By Oscar Roque, AVP, Innovation, Research &amp; Emerging Solutions, Interac Corp.<br \/>\n<\/em><\/p>\n<p>Many view blockchain as a disruptor, here at Interac we see it as an enabler.<\/p>\n<p>To date, our journey has been an exciting one &#8211; exploring and experimenting with blockchain technology, while applying it to new use-cases and problem sets.<\/p>\n<p>With over three decades of building payments ubiquity in the Canadian market offering a real-time, good funds, push payments model, our position in the payments landscape gives us a unique perspective.<\/p>\n<p>Collaboration is a key driver to our success. As a trusted partner to financial institutions, acquirers, retailers, fintechs and regulators, we have learned how integral good governance is.<\/p>\n<h4>Good Governance: The Building Blocks of Blockchain<\/h4>\n<p>What is good governance? At a high level, it is the successful creation and execution of rule sets, processes, and hierarchies that are designed to manage human interactions and behaviours.<\/p>\n<p>Good governance is absolutely critical in blockchain applications especially since one of the fundamental tenants of blockchain is its ability to weave together multiple industries, creating a new business network that is able to drive new value to the market.<\/p>\n<p>Without a centralized authority or administrator, setting the \u2018rules\u2019 within a business network is as complex as it is essential. Founding members and even participants must focus on creating the appropriate governance framework to manage the business network from day one.<\/p>\n<p>As no two groups or systems are alike, there needs to be a shared understanding of common value propositions, organizational core competencies, economic models, and management structures. This will determine the initial success of the business network.<\/p>\n<p>There are two main ways to start a business network, each with a different focus at the onset:<\/p>\n<ul>\n<li>Speed to market, whereby the business network is formed with a minimum viable ecosystem to quickly build out and iterate on the market value, technology and governance. This provides the benefit of fast-tracking to a commercialized state but with mid to longer term consideration around how new participants are onboarded;<\/li>\n<li>Scale at market focuses on being more inclusive and working with as many participants as possible in the initial build out. This provides the benefit of launching with a more mature network but at the risk that initial commercialization will take longer than the speed to market approach.<\/li>\n<\/ul>\n<p>Governance is never ending \u2013 regardless of the initial approach, having a relentless focus on expanding the network effect and evolving the governance framework will determine the business network\u2019s long-term viability.<\/p>\n<p>This negotiation can be more challenging and lengthier than you might first assume. Don\u2019t make the mistake of overlooking the softer (human) elements. Being able to negotiate between multiple parties is a core skill and communicating successfully with others may be more central to your success than the technology itself.<\/p>\n<p>Governance today is largely \u2018offline\u2019 and manual. With blockchain, there is a tremendous opportunity to digitize governance and increase efficiencies.<\/p>\n<h4>Governance as a Service<\/h4>\n<p>As organizations look to enshrine governance onto blockchain, it is paramount that it is done right each and every time. As blockchain enables real-time efficiencies, it can also propagate maligned intent resulting in material damages. This is no different than releasing exploitable software into the market and it being maliciously attacked.<\/p>\n<p>There is a path forward. One of due diligence and thoroughness \u2013 \u2018measure twice, cut once\u2019 as one might say. Coding governance on blockchain will never be a simple task \u2013 governance requires meticulousness.<\/p>\n<p>In fact, organizations that have good governance today, albeit functioning \u2018offline\u2019, are in the best position to be successful in placing governance on-chain tomorrow.<\/p>\n<p>These organizations have the opportunity to lead, not only by example, but through their advisory expertise a potential new market offering \u2013 Governance as a Service.<\/p>\n<p>As governance goes digital, there will be an emerging need for a unique type of persona. A hybrid of both a governance expert and software engineer, the governance scientist will be responsible to ensure good governance frameworks are successfully coded, implemented and evolved on-chain.<\/p>\n<p>Good governance is fundamental to the success of any blockchain system and, likewise, blockchain can offer a natural opportunity for transitioning governance processes on-chain. Not getting it right means you can expect inconsistencies, overlaps, gaps in processes and no means to efficiently deal with bad actors \u2013 all things that will ultimately impact the output and efficiency of a blockchain system.<\/p>\n<p>There\u2019s no one-size-fits-all approach to governance in blockchain. But, there is a path forward \u2013 finding trusted partners to help negotiate how business networks will work, and being flexible to adapt as you learn what\u2019s working and what\u2019s not, is a good place to start.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many view blockchain as a disruptor, here at Interac we see it as an enabler. To date, our journey has been an exciting one &#8211; exploring and experimenting with blockchain technology, while applying it to new use-cases and problem sets. [Read More]<\/p>\n","protected":false},"author":1,"featured_media":78762,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"content-tags":[952,294],"content-category":[189],"spokespeople":[],"in_the_know_post_format":[169],"class_list":["post-74343","content","type-content","status-publish","format-standard","has-post-thumbnail","hentry","content-tags-enterprise-and-government","content-tags-trends","content-category-business","in_the_know_post_format-article"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Blockchain: Why good governance matters - Interac<\/title>\n<meta name=\"description\" content=\"Many view blockchain as a disruptor, here at Interac we see it as an enabler.To date, our journey has been an exciting one - exploring and experimenting with blockchain technology, while applying it to new use-cases and problem sets.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interac.ca\/en\/content\/business\/blockchain-why-good-governance-matters\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Blockchain: Why good governance matters\" \/>\n<meta property=\"og:description\" content=\"Many view blockchain as a disruptor, here at Interac we see it as an enabler. 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