Protocols are rules that facilitate how a system runs. It is these rules that determine the way different layers function, the necessary stipulations for operating the protocol and how these layers engage each other. In blockchain protocols, there’s no chronology to the arrangement of the different parts. Another salient point to be noted is that it is not the function of a protocol to tell the system how to deliver a result.
The goal of a protocol is to carry out the stipulated rules. No output is requires of protocols. By design, they’re meant to carry out rules in way that integrates algorithms into parts of the protocol.
What are algorithms? An algorithm in blockchain refers to a list of guidelines that deliver a particular output. Algorithms can be in the form of a program or a script with varying degrees of complexities. By following these guidelines or instructions to the letter, algorithms tell systems what to execute in order to achieve results.
All protocols need to do is to consist of set rules. Algorithms give commands to systems according to these rule sets. Perfect samples of current samples are Stellar, QTUM, NEO, Lisk, Ethereum, ICON and many more.
Why is protocol governance important?
· They determine the way blocks look.
· They identify who maintains the ledger.
· They establish the definition of consensus.
· They define the way nodes interact without actually telling them what to do.
· They determine who decides the validity of transactions.
· They decide how data transitions from one node to another without an actual command.
· They stipulate when identities are required.
· They assign those with the jurisdiction to determine how system rules change.
· They activate anti-error procedures.
· They determine which players can create new coins.
For a network like Covalent which offers unified API to bring visibility to multiple data points on the blockchain, I think the best tools for it’s protocol governance are:
As a gasless, off-chain multi-governance client providing easily certifiable but incontestable results, Snapshot will not only create proposals and allow for free voting, it will store both components on IPFS. There’s no token for anything and creating a space only takes 5 minutes. Spaces on Snapshot are designed without skins and can have their own custom domain name.
Finally, Snapshot is 100% open source with MIT license and does not require any tracking in their site.
Unlike Snapshot, Gnosis helps to facilitate decentralized finance by building new market mechanisms. With their three interoperable product lines, you can hold, create and trade digital assets on Ethereum.
Gnosis Protocol enables liquidity maximization through ring trades. And what are ring trades? They are order settlements which do not share liquidity with single token pairs but all orders. Gnosis Protocol is one of the best tools for Covalent to work with due to their impressive compatibility with trading tokens for prediction markets as well as tokenized assets.
Because Gnosis Protocol is established on zero authorization innovation, its decentralized architecture allow you to build on their protocol without Gnosis itself.
With Aragon, Covalent will be able to create bureaucracy-free companies on a global scale while partnering and organizing smoothly with the restriction of borders or intermediaries.
Because Aragon offers a wide range of governance solutions, it is easily one of the best tools for Covalent. Aragon is a global distributed network whose primary objective is to support DAOs and also provide decentralized governance solutions to a variety of industries.
Why Colony is on my list of possible protocol governance tools for Covalent is that Colony offers an all-inclusive framework consisting of the functionalities vital to the average organization. These include financial management, ownership, authority, structure etc.
Colony is an impressive suit of smart contracts and its features are compatible with Covalent needs in protocol governance.
Boardroom’s easy and plain interface for signalling, engaging and votorganizationcol decisions makes it one of the effective tools Covalent can work with.
Boardroom features a governance management platform.that is integrated thereby enhancing distributed decision making.
DAOStack is another good tool for Covalent because it is focused on improving the technology of decentralized governance as well as the adoption of decentralized governance in the industry.
In blockchain, DAO (Decentralized Autonomous Organization) is a solid network of stakeholders without a primary or central governing body.
Hence the DAOstack project is setting up an open-source, modular software stack for DAOS with contains an adequate supply of friendly interfaces and governance protocols.
The DXdao is a decentralized organization that develops, governs, and grows DeFi protocols and products, owned and operated by the community. Interestingly, it first started as a wild experiment in decentralization.
Dxdao will be compatibility with Covalent as a governance tool thanks to its wide reach in addresses when it comes to.distributing governance rights.
On DXdao, voting power cannot be compromised (sold or bought) due to the nontransferable nature of REP in DXdao.
DXdao also integrates others into the governance process by inflating REP.
Much like DXdao, Daohaus is a DAO Explorer built with an interface that joins existing DAOs and creates DAOs
DAOhaus is a zero-code ecosystem launching and facilitating DAOs. The beautiful thing about DAOhaus is that ownership rests with the community as well as operation.
Daohaus is known to utilize the Moloch open-source code to perform its magic.
Tally offer Covalent aggregated data from DeFi protocols’ governance plus real-time results for effective research and examination. Tally is a voting dashboard.