“Innovation means cutting out the unnecessary and bringing in the required one”

Regulation by virtue is a set of rules introduced within the system to ensure that participants behave in the particular manner. Where in one party mostly government agency acts as regulator defines the rules set for the ecosystem to follow. The nature of rules define the method of regulation applied on the ecosystem. The methods can be either command & control, incentive induced or by changing the preference of players. However there also exist a structure which follows self regulation where in system regulates itself.

However in a typical scenario “self-regulation” tends to fail over time in centralised structure but in decentralised structures like blockchain self regulation works miracles. By Virtue of governance self regulation can be regarded as one of the highest order of regulation where system governs itself and Nature is the best example of self regulation.

With that said we usually conclude that only one form of rules can be applied on ecosystem but what we fail to see is that multitude amount of regulation exists within one ecosystem and becomes a very bigger problem at scale for the ecosystem to handle. Take instance for any Drug / Car / any approved and agreed end product which has to pass thru multitude of mandatory regulatory checks and balances in order to get the product to market. Thats one big problem because there is lack of collaboration between entities. Where in we see each entity as individual and not as whole collection of entities.

With self regulation at the core of blockchains. One question becomes very pertinent

“Can methods of regulation be built on top of blockchains and solve massive number of our regulatory problems?”

Answer to which will only be defined how well we collaborate and miracles have only been conquered by collaboration… :)