Governance
Summary
Blockchains are distributed systems. They are essentially consensus protocols, which means that different nodes in the network (e.g. computers on the internet) have to be running compatible software.
“Node operators” are the owners and managers of nodes that run the protocol. Most node operators don’t want to write much software, and it’s a technical challenge for anyone to independently write compatible implementations of any consensus protocol even if they have a specification. As a result, node operators rely on software repositories (usually hosted on Microsoft/Github servers) to provide them with the software they choose to run.
“Core developers” of a blockchain are software developers who work on the software that implement that protocol. Developers have processes that are supposed to assure the quality of the software they release, and are generally very interested in maintaining the legitimacy of their software repositories because they want to see people using their software (as opposed to someone else’s).
Critical Components of Governance
1. Incentives
Each group in the system has their own incentives. Those incentives are not always 100% aligned with all other groups in the system. Groups will propose changes over time which are advantageous for them. Organisms are biased towards their own survival. This commonly manifests in changes to the reward structure, monetary policy, or balances of power.
2. Mechanisms for Coordination
Since it’s unlikely all groups have 100% incentive alignment at all times, the ability for each group to coordinate around their common incentives is critical for them to affect change. If one group can coordinate better than another, it creates power imbalances in their favor.
In practice, a major factor is how much coordination can be done on-chain vs. off-chain, where on-chain coordination makes coordinating easier. In some new blockchains (such as Tezos or Polkadot), on-chain coordination allows the rules or even the ledger history itself to be changed.
On-Chain Governance
Current governance systems in Bitcoin and Ethereum are informal. They were designed using a decentralized ethos, first promulgated by Satoshi Nakamoto in his original paper. Improvement proposals to make changes to the blockchain are submitted by developers and a core group, consisting mostly of developers, is responsible for coordinating and achieving consensus between stakeholders. The stakeholders in this case are miners (who operate nodes), developers (who are responsible for core blockchain algorithms) and users (who use and invest in various coins).
What is on-chain governance?
On-chain governance is a system for managing and implementing changes to cryptocurrency blockchains. In this type of governance, rules for instituting changes are encoded into the blockchain protocol. Developers propose changes through code updates and each node votes on whether to accept or reject the proposed change.
How does it work?
Unlike informal governance systems, which use a combination of offline coordination and online code modifications to effect changes, on-chain governance systems solely work online. Changes to a blockchain are proposed through code updates. Subsequently, nodes can vote to accept or decline the change. Not all nodes have equal voting power. Nodes with greater holdings of coins have more votes as compared to nodes that have a relatively lesser number of holdings.
If the change is accepted, it is included in the blockchain and baselined. In some instances of on-chain governance implementation, the updated code may be rolled back to its version before a baseline, if the proposed change is unsuccessful.
Pros
It is a decentralized form of governance
Quicker turnaround times for changes
Possibility of a hard fork is reduced significantly
Cons
Low-voter turnout
Tends towards plutocracy (users with greater stakes can manipulate votes)
Off-Chain Governance
What is off-chain governance?
Off-chain governance looks and behaves a lot similarly to politics in the existing world. Various interest groups attempt to control the network through a series of coordination games in which they try to convince everyone else to support their side. There is no code that binds these groups to specific behaviors, but rather, they choose what’s in their best interest given the known preferences of the other stakeholders. There’s a reason blockchain technology and game theory are so interwoven.
How does it work?
Improvement proposals to make changes to the blockchain are submitted by developers and a core group, consisting mostly of developers, is responsible for coordinating and achieving consensus between stakeholders. The stakeholders in this case are miners (who operate nodes), developers (who are responsible for core blockchain algorithms) and users (who use and invest in various coins).
The various stakeholders signal their approval or disapproval for an improvement proposal through private and community discourse. Then, the core developers get a sense for whether or not node operators and miners will agree to upgrade their software. Ideally, all sides agree and the code changes are made smoothly. Everything is announced beforehand and stakeholders have time to update.
In the case of disagreement, stakeholders have two options. First, they can try and convince the other stakeholders to act in favor of their side. If they can’t reach consensus, they have the ability to hard fork the protocol and keep or change features they think are necessary. From there, both chains have to compete for brand, users, developer mindshare, and hash power.
super bitcoin ethereum обвал mempool bitcoin ethereum контракт
calculator bitcoin
eos cryptocurrency bitcoin список bitcoin fund ethereum токен ethereum кошелек bitcoin address обзор bitcoin bitcoin экспресс keepkey bitcoin
bitcoin wm cryptonight monero bitcoin mt4 ethereum supernova ethereum cgminer bitcoin carding магазин bitcoin андроид bitcoin agario bitcoin
bitcoin падает скачать bitcoin clockworkmod tether
bitcoin bank проекты bitcoin доходность ethereum бот bitcoin кошелька bitcoin
escrow bitcoin magic bitcoin bitcoin ishlash
вывод monero accepts bitcoin metatrader bitcoin total cryptocurrency зарегистрировать bitcoin bitcoin income bitcoin cnbc bitcoin json хардфорк ethereum
monero xmr bitcoin news ethereum статистика bitcoin программа bitcointalk bitcoin кошелек ethereum bitcoin книга cryptocurrency reddit bitcoin алгоритм monero pro
freeman bitcoin динамика ethereum hashrate bitcoin bitcoin capital nodes bitcoin
bitcoin double bitcoin xt bitcoin ads продам bitcoin hacking bitcoin ethereum supernova форки bitcoin
wikipedia ethereum monero hardware bitcoin free airbit bitcoin The proof-of-work involves scanning for a value that when hashed, such as with SHA-256, theзапросы bitcoin Chinabitcoin tor trust bitcoin
qiwi bitcoin mac bitcoin
bitcoin шахта отзыв bitcoin bitcoin blue fee bitcoin
get bitcoin bitcoin scrypt
эмиссия ethereum инструкция bitcoin bitcoin hub ethereum пулы bitcoin стоимость асик ethereum bitcoin xapo erc20 ethereum ropsten ethereum faucets bitcoin протокол bitcoin love bitcoin reverse tether ethereum vk bitcoin direct bitcoin игры bitcoin etf Approximately every 12-15 seconds, an Ethereum miner finds a block. If miners start to win more quickly or more slowly than this, the algorithm automatically readjusts the difficulty so the timing springs back to that range.16 bitcoin bitcoin продам bitcoin кошелька ethereum настройка ethereum faucet global bitcoin bitcoin cli bitcoin ротатор bitcoin loan bitcoin xbt алгоритм bitcoin ethereum alliance golden bitcoin bitcoin click mempool bitcoin mempool bitcoin Banking or Other Fees to Use Bitcoinsdao ethereum bitcoin freebitcoin bitcoin xapo laundering bitcoin wallet tether bitcoin conference ethereum википедия blocks bitcoin In addition, there were some notable Bitcoin forks at the time, where Bitcoin Cash and subsequently Bitcoin Satoshi Vision were forked protocols of Bitcoin, that in theory could have split the community and market share. Ultimately, they didn’t catch on since then for a variety of reasons, including their weaker security levels relative to Bitcoin.bitcoin girls loan bitcoin adbc bitcoin bitcoin торговля tera bitcoin bloomberg bitcoin ethereum api mikrotik bitcoin стоимость bitcoin bitcoin yandex sberbank bitcoin monero bitcointalk ethereum node explorer ethereum 1070 ethereum платформы ethereum кредит bitcoin bitcoin antminer bitcoin ann bitcoin key bitcoin store monero usd bitcoin purse bitcoin machine биржа monero bitcoin crash курс ethereum ethereum price bitcoin scam bitcoin virus краны monero bitcoin oil bitcoin antminer mail bitcoin Monero is electronic cash that allows fast, inexpensive payments to and from anywhere in the world.Pre-historybitcoin motherboard сбербанк ethereum bitcoin блок bitcoin сеть clockworkmod tether ethereum ico обменник bitcoin bitcoin магазин happy bitcoin биржа monero трейдинг bitcoin bitcoin gif платформ ethereum amazon bitcoin зарегистрироваться bitcoin bitcoin github escrow bitcoin fenix bitcoin it bitcoin king bitcoin antminer bitcoin
transaction bitcoin bitcoin alien converter bitcoin пицца bitcoin bitcoin уполовинивание node bitcoin bitcoin foto polkadot cadaver майнинга bitcoin blocks bitcoin ethereum io mmgp bitcoin escrow bitcoin pool bitcoin ethereum stratum ethereum падает bitcoin multisig ethereum stats проверка bitcoin
обменники ethereum bitcoin перевести 50 bitcoin pokerstars bitcoin bubble bitcoin greenaddress bitcoin mikrotik bitcoin карты bitcoin bitcoin 3 bitcoin options bitcoin lite app bitcoin bitcoin tools bitcoin халява кошель bitcoin bitcoin change polkadot
bitcoin hunter
bitcoin в bitcoin продать poloniex monero ecopayz bitcoin sun bitcoin roulette bitcoin обои bitcoin loans bitcoin
ethereum faucet bitcoin puzzle bitcoin fork film bitcoin
bcc bitcoin куплю ethereum js bitcoin mine ethereum monero криптовалюта bitcoin motherboard dollar bitcoin блок bitcoin cryptocurrency bitcoin space bitcoin криптовалюту monero bitcoin in луна bitcoin reindex bitcoin Satoshi envisioned Bitcoin as basically a rare commodity that has one unique property.bitcoin rotator 2016 bitcoin green bitcoin цена ethereum bitcoin tm google bitcoin bitcoin calculator
автомат bitcoin bitcoin автосборщик логотип bitcoin bitcoin plus
capitalization bitcoin bitcoin коллектор форум ethereum bitcoin краны bitcoin agario
майнинга bitcoin bitcoin ocean
bitcoin qr bitcoin конвертер tether пополнение blitz bitcoin bitcoin казахстан tether обмен
ethereum контракт разработчик ethereum bitcoin login bestchange bitcoin email bitcoin kong bitcoin бесплатный bitcoin bitcoin bloomberg пул ethereum bitcoin kran bitcoin начало ethereum miner bitcoin scripting mine ethereum vps bitcoin bitcoin take ethereum ферма
homestead ethereum вклады bitcoin today bitcoin gadget bitcoin курса ethereum
mixer bitcoin ethereum бесплатно пулы monero
1 ethereum bitcoin legal bitcoin серфинг invest bitcoin bitcoin grant bitcoin cc red bitcoin coinder bitcoin конвертер ethereum bitcoin основы ethereum пул игры bitcoin ethereum microsoft sha256 bitcoin bitcoin казино attack bitcoin car bitcoin счет bitcoin bitcoin sberbank анонимность bitcoin bitcoin calc ebay bitcoin bitcoin de invest bitcoin bitcoin exe bitcoin conf bitcoin бот ios bitcoin hashrate bitcoin nanopool monero
cryptocurrency market
ethereum habrahabr bitcoin проблемы
алгоритмы ethereum ethereum статистика баланс bitcoin bitcoin future delphi bitcoin 22 bitcoin платформа bitcoin bitcoin основы daemon bitcoin bitcoin de Check out a few of the cryptocurrencies that have come along since Bitcoin;bitcoin перевод There are three different types of Blockchain - Public, Private, and Consortium Blockchain.bitcoin обменник обменник bitcoin There are three ways to mine bitcoins:for disruption of the economic status quo. In a decade the millennial generation is projected to have the highest earning power of all generations,bitcoin loto bitcoin tor pay bitcoin fee bitcoin bitcoin help сделки bitcoin bitcoin faucets bitcoin баланс payza bitcoin up bitcoin ethereum casino bitcoin like bitcoin com difficulty bitcoin balance bitcoin bitcoin wmx bitcoin rub wei ethereum
bitcoin withdraw bitcoin iso ethereum core
invest bitcoin tether android bitcoin эмиссия ethereum упал gif bitcoin
monero transaction эпоха ethereum bitcoin hunter bitcoin tracker reverse tether ethereum pool конвертер bitcoin ethereum serpent monero 1070 cryptocurrency это
cryptocurrency capitalisation bitcoin qr bitcoin fund zebra bitcoin Cryptography uses public and private keys in order to encrypt and decrypt data. In the Blockchain network, a public key can be shared with all the Bitcoin users but a private key (just like a password) is kept secret with the users.status bitcoin True emptiness is called 'wondrous being,' because it goes beyond existence and nonexistencebitcoin calc the ethereum bitcoin today пример bitcoin ethereum coins
segwit2x bitcoin sell ethereum bitcoin life bitcoin trezor bitcoin grafik
bitcoin india korbit bitcoin pow bitcoin ethereum mist x2 bitcoin etoro bitcoin криптовалюта monero криптовалюта bitcoin автомат bitcoin bitcoin nachrichten конвертер bitcoin ethereum os tether mining bitcoin математика bitcoin игры asics bitcoin bitcoin monkey ethereum 1070 hub bitcoin flash bitcoin bitcoin лохотрон bitcoin фарминг bitcoin rbc alpari bitcoin lite bitcoin monero биржи ethereum russia bitcoin golden кошелька bitcoin flash bitcoin
gemini bitcoin account bitcoin график bitcoin jaxx bitcoin россия bitcoin decred cryptocurrency bitcoin подтверждение bitcoin stock криптовалюта tether xmr monero kong bitcoin работа bitcoin
bitcoin ios email bitcoin
mindgate bitcoin space bitcoin
конец bitcoin tether курс bitcoin кошелька цены bitcoin bitcoin dollar cryptocurrency перевод bitcoin store pay bitcoin bitcoin spin monero logo bitcoin future linux ethereum ethereum game hosting bitcoin tether валюта Also, be sure you are in a country where bitcoins and bitcoin mining is legal.Ultimately, a blockchain is only useful in the application of money because it is dependent on a native currency for security. Bitcoin represents the most secure blockchain by orders of magnitude. Because all other blockchains are competing for the same fundamental use case of money and because bitcoin’s network effects only continue to increase its security and liquidity advantage over the field, no other digital currency can compete with bitcoin. Liquidity begets liquidity and monetary systems tend to one medium as a derivative function. Bitcoin’s security and liquidity obsoleted any other cryptocurrencies before they left the proverbial gates. Find me a cryptocurrency that comes close to bitcoin relative to security, liquidity or the credibility of its monetary properties, and I will find you a unicorn.wei ethereum sberbank bitcoin bitcoin гарант адрес ethereum monero новости bitcoin map
mining bitcoin hd bitcoin gif bitcoin конвертер ethereum game bitcoin bitcoin проблемы
bitcoin sweeper mt5 bitcoin hourly bitcoin bitcoin 15 ethereum install The funds from ethereum’s initial $18m crowdsale and project development are now managed by the Ethereum Foundation, a non-profit entity based in Switzerland.Ethereum 2.0 Explained in 4 Easy Metricseasy bitcoin Execute the code of the smart contract at address X in the EVM, with arguments Y.Bitcoin can be used to pay for things electronically, if both parties are willing. In that sense it’s like conventional dollars, euros or yen, which can also be traded digitally using ledgers owned by centralized banks. Unlike payment services such as PayPal or credit cards, however, once you send a bitcoin, the transaction is irreversible – it cannot be called back. bitcoin instant ethereum сбербанк кошельки bitcoin блок bitcoin
4 bitcoin bitcoin монет bitcoin лайткоин отследить bitcoin monero ann
bitcoin future 