Governance is crucial for the enhanced performance of the crypto space. As the cryptocurrency market is decentralized, all the decisions within the blockchain are taken by the nodes. The on-chain governance allows an easier decision-making process.

The changes in the blockchain or other necessary adjustments are embedded within the blockchain itself. The proposed changes put forth by the developers can either be accepted or rejected by the nodes.

Off-chain governance is adopted by many cryptocurrency projects, including Bitcoin and Ethereum. In off-chain governance, miners, developers, users, and business supporters take part in decision-making. On-chain governance upgrades are automatic. However, off-chain governance is manually updated.