Why is "network governance" important in blockchain?

Network governance is a crucial aspect of blockchain technology as it ensures that all participants adhere to a set of agreed-upon rules and protocols. This structure creates a shared understanding of the processes and expectations within the network, promoting trust and collaborative behavior among participants.

By having clearly defined rules and governance mechanisms, the network can handle disputes, maintain integrity in transactions, and provide a framework for decision-making. This prevents chaotic or arbitrary actions that could undermine the system’s reliability and effectiveness. When participants know that there are rules in place, it fosters accountability and encourages a commitment to the network's overall health.

While unrestricted participation, anonymous transactions, and the prevention of forks might be aspects of blockchain networks, they do not fundamentally capture the essence of governance. Governance specifically addresses how the network is managed and how compliance with rules is ensured, making it essential for the long-term sustainability and functionality of blockchain ecosystems.