Will We Realize Blockchain’s Promise of Decentralization?

The promise of blockchain is decentralized governance. However, managers need to carefully consider two things. First, decentralized governance is not a necessary feature of blockchain; it needs to be enacted. Second, the benefits of decentralized governance may not always be worth the associated costs. Protocol developers may be able to work more effectively on their own or in small teams. As increasingly more businesses move core functions to blockchain the distinction between centralized and decentralized governance becomes increasingly important. There are many expected benefits from decentralization and those benefits may elude us if decentralization fails in practice.