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Building a New World Order: The Rise of Decentralised Governance Models

Written by: Khairul Haqeem, Journalist, AOPG.

Due to its ability to improve transparency, security, and efficiency in government operations, blockchain technology may well cause a paradigm shift in the way that governments are run. The potential for distributed forms of governance has never been higher than with the advent of Web3 and the proliferation of decentralised apps. Yet issues like regulation and distributed identification systems must be rectified if these models are to be useful. Our journey today explores the benefits and drawbacks of Web3 for decentralised governance models by presenting the Estonian government’s use of blockchain technology as a mini case study and the growth of DAOs.

Unchaining Governance

Blockchain technology is revolutionising government operations in Estonia. The tiny Baltic nation, which has a population of only 1.3 million, has been at the forefront of digital innovation for years, so it was only a matter of time until they turned to blockchain to transform their administration.

The Estonian government has established a blockchain-based digital ID system that enables residents to safely access online government services. A person’s blockchain-based identity, which is unchangeable and unassailable, is tied to this digital ID. This technology has simplified government processes and decreased bureaucratic bottlenecks, enabling quicker and more effective service delivery to residents.

Blockchain technology is useful for more than just governments, though. DAOs, or Decentralised Autonomous Organisations, are gaining traction as a novel form of self-governance for enterprises and communities. These organisations are immune to corruption and external influence since they are controlled by code rather than by humans and operated on a decentralised network.

From decentralised banking systems to online gaming communities, DAOs are already in use. They are quickly becoming a viable alternative to traditional centralised organisations, which are often plagued by inefficiencies and corruption.


Decentralised governance model development is challenging, nevertheless. It demands coordination amongst multiple stakeholders, including developers, regulators, and citizens. To that end, this section delves into the process through which Web3 is being used to construct models of decentralised governance.

Smart contracts are an integral part of a decentralised governance scheme. Smart contracts are self-executing contracts in which the contents of the agreement between the buyer and seller are directly encoded into lines of code. Smart contracts eliminate the need for middlemen, which may dramatically cut costs and boost transparency. Smart contracts are being utilised in numerous ways, from constructing decentralised markets to implementing voting procedures.

Using decentralised storage systems is also important for developing models of decentralised governance. These systems make it possible to store data throughout a decentralised network, doing away with the necessity for centralised servers. Because there is no single point of failure, security is improved, and all parties involved have access to the same information.

Under decentralised governance models, governments are also investigating the use of digital IDs. Citizens may connect with decentralised applications and services while preserving control over their data thanks to digital IDs. Blockchain technology is used in decentralised identification systems to ensure that users may verify their identities without depending on a centralised authority. Citizens can keep their anonymity while yet taking part in decentralised governance models.

Many parties need to work together in order to construct effective forms of decentralised governance. To make the model successful and inclusive, governments, developers, regulators, and citizens must all collaborate. Governments must establish regulatory frameworks that promote innovation while safeguarding the public. Developers must make programmes that are simple for users to utilise. People must be informed of the merits of decentralised governance models and provided with the resources necessary to engage actively in those forms.

We are entering a new era in which power is being dispersed more equitably and decision-making is becoming more democratic as a result of the proliferation of blockchain technology and decentralised governance frameworks. Nonetheless, there are concerns and challenges that must be overcome when using any new technology. Security, transparency, and accountability will be of the utmost importance as we progress towards a global order based on decentralised governance. The promise of blockchain technology to foster social justice and equality cannot be fully realised until this condition is met.

Khairul Haqeem

Khairul is proficient in writing tech-related pieces for the Asia-Pacific region. Some of his most notable work is focused on emerging technologies, data storage, and cybersecurity. His prior experience includes stints as a writer for two iSaham sites: and Before beginning his writing career, he worked in the field of education. Aside from studying engineering at the International Islamic University Malaysia, he has also worked as a subtitler for Iyuno Global, serving clients like Netflix. His specialities are: • Disruptive Tech. • Data Storage. • Cybersecurity. • Decentralised Tech. • Blockchains.

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