On-Chain Coordination

Definition ∞ On-chain coordination refers to mechanisms within a blockchain network that allow participants to collectively agree on actions or updates. This is often managed through smart contracts or consensus protocols. Such coordination ensures the network functions as intended and maintains its integrity. It is fundamental to decentralized systems.
Context ∞ On-chain coordination is frequently discussed in news related to protocol upgrades, decentralized autonomous organizations (DAOs), and governance proposals within blockchain ecosystems. Reports may detail how community consensus is reached for significant changes, or how disputes are resolved through pre-defined on-chain mechanisms. The efficiency and security of these coordination methods are paramount.