In traditional governance, nations set a code of laws for their communities. In many nations, citizens vote for representatives who allocate the national budget and create/amend laws.
Corporations (legal entities) then control much of the community's economic activity. They have their own corporate governance, with executive officers, a board of directors, and shareholders. In turn, the corporations are governed by the courts and the national code of laws.
Decentralized governance, refers to new methodologies for coordinating communities and allocating resources. Some characteristics of this model include:
- usage of code for enforceable "laws"
- more direct democracy
- increased resiliency from outside forces (i.e. corruption or censorship)