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.
краны monero bitcoin деньги вход bitcoin bitcoin комиссия вебмани bitcoin покупка ethereum сети bitcoin love bitcoin credit bitcoin bitcoin смесители purse bitcoin книга bitcoin 1080 ethereum робот bitcoin monero cpu график ethereum monero hardware bitcoin анимация connect bitcoin bitcoin конвертер bitcoin asics bitcoin kz отзыв bitcoin bitcoin virus 'Imagine a book where you write down everything you spend money on each day,' says Buchi Okoro, CEO and co-founder of African cryptocurrency exchange Quidax. 'Each page is similar to a block, and the entire book, a group of pages, is a blockchain.'bitcoin сатоши bitcoin visa bitcoin miner We also recently saw Maxwell conduct the first successful zero-knowledge contingent payment on the bitcoin network. ZKCP is a transaction protocol that allows a buyer to purchase information from a seller using bitcoin in a trustless manner. The purchased information is only transferred if the payment is made, and it is guaranteed to be transferred if the payment is made. The buyer and seller do not need to trust each other or depend on arbitration by a third party.работа bitcoin рубли bitcoin best bitcoin visa bitcoin
rpc bitcoin
ethereum эфириум bitcoin me
bitcoin motherboard usdt tether reklama bitcoin
bitcoin прогноз monero форк bitcoin electrum перевод ethereum
solo bitcoin monero cryptonote bitcoin fortune course bitcoin ethereum serpent bitcoin compromised вывод bitcoin bitcoin conference mt5 bitcoin bitcoin service credit bitcoin monero address bitcoin exe top cryptocurrency love bitcoin ethereum эфир collector bitcoin
bitcoin комментарии magic bitcoin connect bitcoin бумажник bitcoin ethereum pow bitcoin бесплатные
будущее ethereum bitcoin fire bitcoin tails bitcoin paw statistics bitcoin rate bitcoin
bitcoin email bitcointalk ethereum bitcoin сложность bitcoin loan bitcoin казино jpmorgan bitcoin новости bitcoin bitcoin 10 bitcoin ваучер логотип bitcoin How does valuable Ether help to secure the network?bitcoin greenaddress bitcoin security статистика bitcoin bitcoin пулы bitcoin onecoin обменник ethereum gek monero смесители bitcoin bitcoin сегодня
monero майнить
ethereum charts
monero pro пожертвование bitcoin bitcoin system magic bitcoin bitcoin segwit2x разработчик bitcoin 4000 bitcoin
эмиссия ethereum buy ethereum
bitcoin torrent monero ann особенности ethereum курс ethereum bitcoin invest top bitcoin bitcoin map ethereum конвертер bitcoin wm ethereum claymore monero address bitcoin nvidia ethereum пул bitcoin step bitcoin s bitcoin vip pirates bitcoin bitcoin yandex bitcoin neteller обвал ethereum bitcoin mmm bitcoin минфин инструкция bitcoin blogspot bitcoin краны ethereum bitcoin linux bitcoin тинькофф vps bitcoin ethereum foundation tether перевод ava bitcoin bitcoin nasdaq bitcoin com bitcoin armory
grayscale bitcoin ethereum stratum
mikrotik bitcoin bitcoin hack king bitcoin blake bitcoin bitcoin адреса bitcoin mining
bitcoin funding bitcoin гарант monero fork bitcoin комиссия 4 bitcoin bitcoin карты ethereum web3 bitcoin hourly download tether security bitcoin
продать monero продам bitcoin bitcoin hash bitcoin coinmarketcap
forecast bitcoin bitcoin pdf
ethereum bonus search bitcoin mt4 bitcoin сделки bitcoin ethereum прогнозы bitcoin алматы
demo bitcoin bitcoin protocol tether clockworkmod bitcoin gold системе bitcoin продать monero bitcoin python bitcoin book bitcoin добыть кран bitcoin get bitcoin ethereum вывод кран bitcoin monero
ethereum продам trade cryptocurrency deep bitcoin
bitcoin bitcoin trinity bitcoin review
bitcoin расчет bitcoin книга coinmarketcap bitcoin bitcoin криптовалюта bitcoin habr bitcoin ммвб bitcoin получение курс ethereum secp256k1 ethereum ethereum вывод monero пул usb bitcoin monero amd bitcoin neteller bitcoin ixbt iso bitcoin bitcoin сети hd7850 monero cronox bitcoin
bitcoin nodes
new cryptocurrency ethereum btc ethereum форк обмен bitcoin использование bitcoin
secp256k1 ethereum bip bitcoin plus500 bitcoin bitcoin reward windows bitcoin яндекс bitcoin bitcoin poloniex bitcoin poloniex bestchange bitcoin bitcoin сложность bitcoin box bitcoin zebra сбербанк bitcoin автомат bitcoin bitcoin flapper получить ethereum nvidia bitcoin average bitcoin ethereum покупка flappy bitcoin p2p bitcoin ann bitcoin fire bitcoin майнить ethereum
оплата bitcoin ethereum биткоин In June 2014 the network exceeded 100 petahash/sec. On 18 June 2014, it was announced that bitcoin payment service provider BitPay would become the new sponsor of St. Petersburg Bowl under a two-year deal, renamed the Bitcoin St. Petersburg Bowl. Bitcoin was to be accepted for ticket and concession sales at the game as part of the sponsorship, and the sponsorship itself was also paid for using bitcoin.вход bitcoin bitcoin адрес настройка ethereum bitcoin blue monero новости bitcoin падение forex bitcoin security bitcoin create bitcoin hacking bitcoin bitcoin игры bitcoin исходники youtube bitcoin cronox bitcoin bitcoin evolution
playstation bitcoin bitcoin pool coinder bitcoin Bitcoin price fluctuations in 2011, 2013 and 2017автомат bitcoin bitcoin grant ethereum forum ethereum info bitcoin развитие bitcoin loto играть bitcoin monero fee captcha bitcoin bitcoin pizza
cpa bitcoin cryptocurrency wallet free bitcoin халява bitcoin monero windows
carding bitcoin форк bitcoin free ethereum p2pool ethereum
bitcoin machine bitcoin rig bitcoin legal
bitcoin 9000 конвертер ethereum bitcoin planet bitcoin cudaminer сборщик bitcoin bitcoin tm scrypt bitcoin ethereum купить bitcoin cc video bitcoin bitcoin sha256
bitcoin форекс перспектива bitcoin ultimate bitcoin cryptocurrency capitalisation
ethereum charts bitcoin исходники fee bitcoin пулы bitcoin
create bitcoin bitcoin symbol кошелька bitcoin bitcoin anonymous контракты ethereum donate bitcoin bitcoin it monero калькулятор bitcoin zone bitcoin mac Miningbitcoin bloomberg best bitcoin bitcoin проект алгоритмы bitcoin web3 ethereum hashrate bitcoin зарабатывать bitcoin купить monero bitcoin биржа mooning bitcoin otc bitcoin 50 bitcoin hacking bitcoin вложения bitcoin bitcoin qiwi reward bitcoin bitcoin armory bitcoin приложение асик ethereum currency bitcoin
hd7850 monero bitcoin kurs
cryptocurrency mining
основатель ethereum bitcoin knots ethereum blockchain monero калькулятор search bitcoin bitcoin обналичить monero купить cardano cryptocurrency bitcoin clicks bitcoin net frontier ethereum ethereum io
wikipedia bitcoin исходники bitcoin bitcoin депозит bitcoin wm bitcoin withdraw carding bitcoin
bitcoin 10 bitcoin doubler bitcoin коллектор
ethereum падение monero client
bitcoin captcha double bitcoin bitcoin cranes Blockchains reach consensus by following the rules of 'cryptography', which is where the term 'cryptocurrency' comes from. Cryptography is a really advanced area of mathematics that is based on algorithmic puzzles.bitcoin фарминг daily bitcoin gadget bitcoin bitcoin miner ethereum бутерин download bitcoin bitcoin prominer
кошелька bitcoin майнеры monero я bitcoin bitcoin 2020 moto bitcoin bitcoin alliance bitcoin trend iso bitcoin
ethereum metropolis ethereum twitter bitcoin novosti
bitcoin bio
bitcoin кредиты qtminer ethereum monero spelunker mixer bitcoin As the blockchain is decentralized, everybody has access to the same data (unless it is a private blockchain used by companies). That means that as soon as a transaction is processed and confirmed, it appears on the blockchain for all to see.получить bitcoin bitcoin capitalization bitcoin darkcoin decred ethereum обмена bitcoin купить bitcoin monero ico bitcoin cli cryptocurrency forum
андроид bitcoin bitcoin roll отзыв bitcoin bitcoin chart prune bitcoin bitcoin school web3 ethereum ethereum видеокарты майнить monero
boom bitcoin bitcoin blue bitcoin сервисы bitcoin видеокарты mine ethereum сбербанк bitcoin bitcoin changer
doubler bitcoin вебмани bitcoin bitcoin clouding
habrahabr bitcoin исходники bitcoin трейдинг bitcoin gain bitcoin автомат bitcoin bitcoin луна epay bitcoin bitcoin калькулятор bitcoin 100 андроид bitcoin
шрифт bitcoin bitcoin депозит
china cryptocurrency ethereum обмен ethereum charts Lifewire / Vin Ganapathyпрограмма tether bitcoin blog mixer bitcoin 100 bitcoin bitcoin сша bitcoin dice оборудование bitcoin bitcoin stealer майнинг monero roulette bitcoin payza bitcoin bitcoin euro bitcoin рубль ethereum blockchain blogspot bitcoin casascius bitcoin chvrches tether bitcoin litecoin loco bitcoin bitcoin farm clicker bitcoin bitcoin apk
bitcoin курс polkadot блог bitcoin qiwi bitcoin vpn
wikipedia ethereum раздача bitcoin dark bitcoin вход bitcoin wallet cryptocurrency fake bitcoin visa bitcoin хардфорк monero bitcoin department github ethereum up bitcoin email bitcoin bistler bitcoin биткоин bitcoin bitcoin sberbank monero hardware poker bitcoin bitcoin nonce ethereum прогноз адрес ethereum bitcoin орг polkadot скачать bitcoin кредиты bitcoin cryptocurrency reddit usd bitcoin poloniex monero криптовалюту monero сайте bitcoin bitcoin carding coingecko bitcoin free monero amazon bitcoin bitcoin analysis
китай bitcoin bitcoin bubble tether верификация bitcoin cards 500000 bitcoin flash bitcoin matteo monero
bitcoin china
bitcoin price ethereum рубль майнинг monero
bitcoin favicon wei ethereum
bitcoin etf ethereum gas red bitcoin ethereum com elena bitcoin bitcoin даром box bitcoin Some states are more advanced than others in cryptocurrency oversight. New York, for instance, unveiled the controversial BitLicense in 2015, granting bitcoin businesses the official go-ahead to operate in the state (many startups pulled out of the state altogether rather than comply with the expensive requirements). In mid-2017, Washington passed a bill that applied money transmitter laws to bitcoin exchanges.tether io rate bitcoin home bitcoin simple bitcoin msigna bitcoin
обменять ethereum simple bitcoin ethereum википедия bitcoin шахта moto bitcoin bitcoin etherium accept bitcoin
ethereum продать download bitcoin вики bitcoin wifi tether bitcoin торговля bitcoin комиссия bitcoin investing ethereum twitter майнеры monero tp tether асик ethereum bitcoin today captcha bitcoin bitcoin ферма покупка bitcoin If you want to send an international payment, it will normally take 3+ days with your bank and cost you a fee of around $10-15 or more. It’s different in each country, but it’s still expensive and takes a long time.3d bitcoin air bitcoin bitcoin frog bitcoin two ethereum токены bitcoin nonce bitcoin покупка bitcoin sberbank bitcoin easy bitcoin коллектор
bitcoin удвоитель 500000 bitcoin moneybox bitcoin ethereum crane moto bitcoin bitcoin комиссия bitcointalk ethereum bitcoin poloniex ethereum акции обмен tether amazon bitcoin bitcoin explorer bitcoin fire bitcoin смесители bitcoin хардфорк торговать bitcoin bitcoin torrent ads bitcoin фьючерсы bitcoin tokens ethereum adbc bitcoin вложения bitcoin что bitcoin email bitcoin bitcoin aliexpress
ethereum 1070 ethereum прибыльность ethereum стоимость bitcoin сегодня
bitcoin cny apk tether математика bitcoin waves bitcoin bitcoin подтверждение wiki bitcoin bitcoin сложность Blockchain records transaction (history, timestamp, date, etc.) of a product in a decentralized distributed ledger bitcoin обменять ethereum core
BlackFlagSymbol.svg Anarchism portalfast bitcoin Think about your testamentbitcoin бесплатно monero калькулятор bitcoin trust ethereum виталий daemon monero monero майнеры wmz bitcoin buying bitcoin bitcoin trinity ethereum siacoin bitcoin ethereum app bitcoin ethereum casino usb tether криптовалюта monero fast bitcoin bitcoin price bitcoin автосерфинг Deciding whether you need a coin or a token is a big choice: it determines a lot of things for your project, including the amount of money you need to spend.bitcoin kran multi bitcoin bitcoin preev bitcoin auto facebook bitcoin
кредит bitcoin bitcoin antminer tether верификация balance bitcoin polkadot stingray market bitcoin
шахты bitcoin
ethereum info адрес bitcoin терминалы bitcoin What is Bitcoin Mining Difficulty?bittorrent bitcoin ethereum статистика алгоритмы ethereum лото bitcoin bitcoin com выводить bitcoin bitcoin ann
bitcoin окупаемость ethereum перспективы
bitcoin автоматический xbt bitcoin bitcoin окупаемость анимация bitcoin bitcoin кости monero coin
bitcoin drip bitcoin адрес bitcoin проект • Bitcoin savers could accelerate a revolution in the history of thoughtbitcoin проверить There are several methods to buy ether:The recipient of the messagebitcoin окупаемость bitcoin обналичить валюты bitcoin ethereum wallet
пул monero tether yota форумы bitcoin transaction bitcoin monero bitcointalk обменять monero ethereum акции bitcoin форки ethereum dao client bitcoin bitcoin сети bitcoin calculator total cryptocurrency locate bitcoin The audits are not cheap either — typically ranging from $3,000-$10,000. Again, it all depends on what you require.A reliable full-time internet connection, ideally 2 megabits per second or faster.mine monero zcash bitcoin робот bitcoin tether usdt secp256k1 bitcoin uk bitcoin
bitcoin protocol bitcoin x
bitcoin обзор tether верификация bitcoin best bitcoin bat bitcoin cache книга bitcoin ethereum логотип kaspersky bitcoin bitcoin plugin programming bitcoin system bitcoin bitcoin mainer bitcoin paper брокеры bitcoin bitcoin динамика bitcoin sell moneypolo bitcoin
bitcoin count
bitcoin 4pda форк ethereum bitcoin проект freeman bitcoin
accept bitcoin bitcoin review кран ethereum hashrate ethereum bitcoin оплата обналичить bitcoin xpub bitcoin bitcoin видеокарты bitcoin dark
bitcoin transaction ethereum swarm bitcoin bloomberg wei ethereum bitcoin casascius bitcoin брокеры bitcoin virus rise cryptocurrency ethereum заработок
bitcoin прогноз киа bitcoin bitcoin bitrix phoenix bitcoin bitcoin payoneer ethereum контракты bitcoin server goldmine bitcoin monero miner 1979: Hash treebitcoin обменник Cryptocurrencies are a very popular investment for many people. But the popularity—and price—of Bitcoin may be a turnoff. But there are plenty of other virtual currencies that you can purchase and trade that may be easier in which to invest, notably Monero.bitcoin fun ethereum монета
20 bitcoin
ethereum cryptocurrency token ethereum korbit bitcoin bitcoin hesaplama tether bootstrap bitcoin рухнул bitcoin hesaplama кран bitcoin bitcoin обменники bitcoin symbol bitcoin knots ethereum продать bitcoin rus
