Covalent & governance issues

Cryptodzh
3 min readJul 24, 2021

Covalent is the future of blockchain with the potential to stir up the current stagnation and imperfections with the prospect of technology. The project is one simple idea that is game-changing. And today it is close to perfect realization.

In short, the capacity of transactions in different isolated systems is like oxygen for the world of cryptocurrencies with the many unnecessary frameworks and too few connections. It is a data collection and presentation tool that provides comprehensive information in any chain at the same time. Chains are linked by a single API. Billions of possible data items are processed very quickly and are displayed to users on the first request.

That is, the problem of the complexity of accessing data in blockchains is being solved. Seems like a small revolution.

But can this “take and use” solution right now? Any crypto enthusiast and developer will instantly be asked questions about security, data management, and most importantly, governance. If you voice the idea of ​​the project, then a weighty fear will become a reasonable comment of any outsider. After all, Covalent is inherently capable of losing its original value and contributing to an avalanche of security problems in blockchains in their current formats, isn’t it?

Scale requires control. The issue of governance is the first thing that needs to be addressed. It is important to understand how changes and requests across different networks will be executed quickly at the same time. It is important to have a clear idea of ​​how a clear hierarchy of interaction with data from users of different networks will be built, as well as the choice of further points of development. The Covalent developers give promising guarantees.

For example, we are talking about an easy and elegant solution in the face of the Covalent token. It does not have traditional functions but is aimed at system management and development. The CQT token is:

1) a voting tool for owners regarding further parameters for changing the system;

2) an asset for betting, where validators can receive a commission for responding to requests.

All this is enough to make the whole world understand the strong attitude to the importance of governance. But the token system is not all that is needed to guarantee the implementation of the declared parameter.

What management tools are used in this case?

Snapshot is an excellent solution in our opinion. This choice was made by the developers themselves. It is worth recognizing that Snapshot is a standalone, gas-free client with multiple management systems. Its main advantages are simplicity of data validation and undeniable response. Snapshot provides a green corridor for the most complex voting, change management, and request management structures. The simplicity of use makes such a huge system of connections environmentally friendly.

What besides Snapshot? Overall, Snapshot is a perfect choice. Also, the beauty is that it can be applied in one form or another to OvalEdge, Truedat, Alation, Xplenty, and many other players of the governance solutions market.

Covalent’s flexibility is an example for all technologies in the blockchain and cryptocurrency world.

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