Yao Qian, the head of the People’s Bank of China (PBoC) digital currency research institute affirms that is not possible to function in decentralized, informal blockchain governance on a large scale. He said that the resolution of this problem for the blockchain is just to have a central governor.
In fact, by relaxing the decentralization constraint, many problems can be solved. For example, in a multi-center system such as a coalition chain, upgrading the blockchain bottom by shutting down the system, or emergency intervention, rolling back data, etc., are available means when necessary, and these methods help to control risks and correct mistakes. For regular code upgrades, controllable smart contract replacements can be achieved by separating code and data and combining multi-layer smart contract structures.
Director, PBoC digital currency research institute
Evidently, Yao referred the DAO hack and the consequent divorce between Ethereum and Ethereum Classic. According to Yao’s suggested structure, the PBoC would have the ability to pause or even shutter the system, roll back transactions and other data, as well as push software upgrades without the need for community consensus.
Yao is not the first authority from a Chinese regulatory agency to insist on the idea that central banks should accept distributed ledger technology (DLT) but at the same time to support a centralized governance structure.