In a recent report by Galaxy Digital, Ethereum’s off-chain governance model has been highlighted as a significant factor in its success. Unlike Bitcoin, where changes require consensus amongst miners, Ethereum allows for a more flexible model where developers and the community can propose and implement changes. This model is seen as critical in Ethereum’s ability to innovate and evolve, keeping it at the forefront of the blockchain technology.
The report also indicated that Ethereum’s off-chain governance style might offer a solution to Bitcoin’s scaling issue. Ethereum’s ability to make changes and adapt quickly to market and technological advancements is a key advantage over Bitcoin, whose rigid model tends to delay necessary updates and improvements. Ethereum’s governance model is one of the reasons why the platform has managed to maintain its position as the second largest cryptocurrency by market cap.
