Cardano bill of Rights

Cardano bill of Rights

#Crypto pioneer and #Cardao chief evangelist, Charles Hoskinson, has introduced a "Bill of Rights" consisting of 11 key principles for blockchain governance. Although designed with Cardano in mind, these principles can be applied across the entire cryptocurrency space. Now that Cardano governance is fully decentralized Charles Hoskinson is formally the CEO of Input Output (IOHK) , a lead developer behind #Cardano #blockchain.

In a live broadcast from Colorado on October 13, 2024, Hoskinson presented this proposal, which aims to establish a legal framework guiding Cardano's governance and development. He highlighted that over 50 seminars were held, with 63 delegates elected and 1,400 participants involved in the process.

Hoskinson stressed that the "Bill of Rights" isn't limited to Cardano alone but is intended as a universal framework to address essential issues in the blockchain ecosystem. He envisions the initiative as a foundational guide for how blockchain platforms should interact with users and contributors.

The 11 tenets provide a detailed outline of how blockchain systems should function, with Hoskinson offering an in-depth explanation of each principle and their practical significance for Cardano.

The 11 Cardano Blockchain Tenets

Hoskinson delved into each of the 11 tenets, explaining their relevance and practical applications for Cardano:

Transaction Censorship Resistance: “Transactions cannot be slowed down or censored and will be expediently served for their intended purpose,” Hoskinson said. He compared this principle to freedom of speech, highlighting the critical need for maintaining user autonomy within the platform. “Transactions express the ways the users wish to engage with the system so users should be free and able to do so in a manner proportional to their intent; this excludes censorship but also mandates expediency and processing.”

Predictable Transaction Costs: According to Hoskinson, “the cost of a transaction should be predictable and cannot be unreasonable,” which is vital for both user planning and ensuring the system's sustainability. He acknowledged the difficulties in balancing resource usage with user expectations, particularly during times of high demand. To manage this, ideas like tiered pricing and intent-based ledgers are being explored.

Fair Recognition and Compensation: On the subject of fairness for contributors, Hoskinson explained, “Every user’s inputs and contributions to the system will be recognized, recorded, processed, and assessed fairly.” This principle aims to ensure that those involved in maintenance and development are properly rewarded, thus preventing breakdowns in incentives within the ecosystem. He also emphasized fair compensation for roles such as stake pool operators and governance participants.

Data and Value Portability: Drawing parallels to the European Union’s GDPR, Hoskinson stressed the need for user consent in data management. “The value and data users contribute or create will not be locked or processed without their consent,” he said. His stance supports giving users full control over their personal assets and information.

Resource Efficiency: “No resources will be unnecessarily spent,” Hoskinson noted, underlining the importance of minimizing resource use through well-designed protocols. This tenet aims to avoid unnecessary system expansion and ensure the blockchain’s sustainability. Protocol optimizations that shrink transaction sizes without sacrificing security serve as examples.

Safe Preservation of Value and Information: Hoskinson discussed the dual importance of safeguarding information from risks like quantum attacks and ensuring stability in stored value through tools like stablecoins. “The system will safely preserve the value and information stored within it,” he stated, emphasizing that both data integrity and asset stability are vital.

Minimization of Unnecessary Resource Expenditure: This tenet focuses on ensuring that resources are used efficiently and not wasted. Hoskinson mentioned the shift from Plutus V1 to V2, which led to significant reductions in transaction sizes, improving the overall system’s performance.

Fair and Representative Governance: “The system will treat users fairly and will evolve accordingly to their collective will, aiming at its long-term sustainability and viability,” Hoskinson stated. This principle stresses the importance of fair governance, where all stakeholders are involved in the system's development. The upcoming Constitutional Convention in Buenos Aires is expected to formalize these governance principles.

User Privacy Preservation: Stressing the importance of privacy, Hoskinson said, “Users’ privacy, both in terms of their actions and their data, should be preserved.” He likened this tenet to GDPR, advocating for minimal disclosure and selective, context-driven data sharing. This addresses the need to balance transparency with user privacy, ensuring that individuals maintain control over their personal data.

Compliance with Local Laws and Regulations: “The system will offer users ways to engage that do not require them to break local laws and regulations,” Hoskinson explained. This principle acknowledges Cardano's global reach and the need for users to adhere to local legal requirements.

Transparency, Predictability, and Verifiability: The final tenet asserts that “the system’s operation should be transparent, predictable, verifiable, interpretable, and without asymmetries.” Hoskinson underscored the value of open-source protocols and public verifiability to promote trust and accountability within the ecosystem.

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