Governing blockchain powered business networks will require a model that is, again, specific to the use case and industry, factoring in the evolution and particularities of that industry. This governance structure will be multi-organizational, and participating organizations need to have a wide understanding of how the network functions through their collective contributions in order to achieve the best outcomes. As new participants are added or removed, and the blockchain network evolves, its dynamics change, too.
The concept of co-creation implies bringing parties together to produce a mutually advantageous and valuable outcome. One example could be uniting a company with a group of customers to generate new ideas and hear fresh perspectives.
What follows is a non-exhaustive list of what business network governance might include:
- Formulating business models, rules for how the network will operate, and legal charters
- Service management that is common/shared in the network, such as knowing your customer processes, audits, reporting, and so on
- Communication related to the network
- Quality assurance and performance measurement
- Monitoring and managing network security
- Plans for product and business network evolution
- Legal and regulatory framework enforcement
- Strategies for ensuring compliance with industry-specific requirements
- Establishing stewards of the technology and network
The governance structure in a blockchain network can be an interesting challenge. As I've shown, there remains considerable debate about full decentralization, quasi-decentralization, and full centralization of blockchain networks, and this really hinges on the governance structure. By this, I mean that the governance structure of a blockchain network helps decide what kind of interaction, growth, technology choices, and operations are the best fit for that network. Blockchain, as I've stated before, is a platform that enables co-creation, and the new synergies that are generated from it will require some management through SLAs and a robust governance structure. Governance will be covered in detail in Chapter 10, Governance, Necessary Evil of Regulated Industries.