Explainable AI in Blockchain System for Decentralized Governance

Abstract

Decentralized governance is going through radical changes due to the innovative use of blockchain which allows decisions to be made in a transparent, secure and more im- portantly, immutable way, without the authority of a single individual or party. Thus, the introduction of artificial intelligence (AI) in blockchain governing systems complicates such thing as transparency and trust, especially in the case of deep AI systems. But more on this later – this is where Explainable AI or XAI comes into the picture. XAI methods enable understanding of the reasons behind the choices made by AI models and solves the "black box" problem that is predominant in machine learn- ing. When applied to decentralised governance, XAI provides clarifications of AI’s decision making in such areas as voting, resource distribution and the enactment of smart contracts. This way, the stakeholders are confident that the decision-making is fair and impartial and this is made possible by the use of XAI. This paper aims to find out more about the applicability of XAI concept in blockchain –based governance systems in terms of bias and fairness in automated decisions and explanation of the decisions made. The reasons why interpretability plays the crucial role in decentralized systems are explained with the help of the comparison between the classical artificial intelligence and the Xin Intelligent. The study also looks at various use cases such as, Decentralized Autonomous Organizations (DAOs), and voting systems implemented on blockchain platforms and how XAI can enhance the performance of the governance systems. As this study shows, XAI is vital in building trust, improving responsibility, and guaranteeing balanced majorities in decentralized blockchain governance structures.