# Integrating a Blockchain-Based Governance Framework for Responsible AI
## 1 Introduction
### Blockchain and Distributed Ledger Technology (DLT)  
Blockchain is a decentralized digital ledger that records transactions on multiple computing nodes [13]. These transactions are grouped together in blocks, which are then chained together using cryptography [14]. This creates a permanent and unchangeable record of all transactions on the blockchain, as shown in Figure 2. The architecture of a blockchain network typically consists of nodes that participate in the network and a consensus mechanism that ensures the integrity of the transactions [15; 16; 17; 18]. In a public blockchain network such as Bitcoin [19], anyone can participate as a node and the consensus mechanism is achieved through a process called mining [20]. In a private blockchain, the nodes are typically restricted and the consensus mechanism can be achieved through other means, such as voting [21]. Blockchain technology has the potential to revolutionize a wide range of industries by providing a secure and transparent way to record and track transactions [22]. Potential use cases include supply chain management, digital identity, and voting systems. Additionally, blockchain can be used to create decentralized applications (dApps) which are build on top of a blockchain network [23; 24; 25]. The complexity of blockchain technology depends on the specific implementation and use case [26]. For example, the complexity of running a full node on the Bitcoin network, which requires validating and relaying transactions, is relatively high and requires a significant amount of computational power [27]. In contrast, using a blockchain for a simple application such as tracking supply chain information would likely be less complex. In terms of energy usage, the process of creating new blocks on a blockchain, known as mining, can be quite energy-intensive [28]. The most well-known example of this is the Bitcoin (BTC) network, which currently consumes a significant amount of electricity. This is because the process of mining new blocks involves solving complex mathematical problems, which requires a significant amount of computational power. However, newer blockchain protocols such as Ethereum are working on improving energy efficiency by using new consensus mechanism such as proof-of-stake, which is less energy intensive than proof-of-work (POW) [29; 30]. It is important to note that energy usage is an issue that  
Figure 2: Flowchart of a blockchain network for transaction processing: (**A**) the transaction is initiated by the consumer, (**B**) the network represents the transaction as a block, (**C**) the verification of the block is broadcast to every node in the network, (**D**) validation of transactions is conducted by nodes, (**E**) the resulting block may then be added to the chain of blocks that serve as a transparent transaction ledger, (**F**) the intended consumer receives the transaction. involves both the blockchain, the consensus mechanism, and the implementation of the blockchain protocol [31]. Blockchain technology is often considered to be highly secure and private due to its decentralized nature and the use of cryptography to secure transactions. One of the main security features of blockchain is that it is a distributed ledger, meaning that the information is stored on multiple computers in the network rather than in a central location [32]. This makes it much more difficult for hackers to tamper with or corrupt the data, as they would need to gain control of a majority of the nodes on the network. Additionally, after a block has been added to the blockchain it is very difficult to change or remove the information it contains [33]. When a smart contract is created [22; 34], the terms of the agreement between the buyer and the seller are written into a computer program. This information is stored and replicated throughout a blockchain network [35; 36]. Smart contracts enable the automatic management of digital assets, which can pave the way for the creation of decentralised apps that can be operated entirely by the network itself.