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.
bitcoin калькулятор
bitcoin вирус webmoney bitcoin 0 bitcoin bitcoin будущее cryptocurrency wallets таблица bitcoin обсуждение bitcoin business bitcoin bitcoin ann half bitcoin
bitcoin shops биткоин bitcoin bitcoin зебра panda bitcoin bitcoin tm doubler bitcoin график ethereum bitcoin friday testnet bitcoin обменник tether monero биржи air bitcoin
создатель bitcoin ethereum core bitcoin продать bitcoin перевод roulette bitcoin anomayzer bitcoin часы bitcoin
bitcoin forbes bitcoin book bitcoin продать иконка bitcoin solo bitcoin bitcoin register mine monero debian bitcoin bitcoin мошенничество ethereum russia ethereum обменники cryptocurrency mining masternode bitcoin bitcoin machine x bitcoin заработать bitcoin exchange ethereum доходность ethereum
пулы bitcoin bitcoin лучшие
reverse tether
coinmarketcap bitcoin coinder bitcoin total cryptocurrency The value of the dollar did not emerge on the free market. Instead, it emerged as a fractional representation of gold (and silver initially). Essentially, the dollar was a solution to the inherent limitations in the convertibility and transferability of gold; its inception was dependent on the monetary properties of base metals, rather than properties inherent in the dollar itself. It was also initially a system based on trust: accept dollars and trust that it could be converted back to gold at a fixed amount in the future. Gold’s limitation and ultimate failure as money is the dollar system, and without gold, the dollar would have never existed in its current construct.strategy bitcoin cryptocurrency price monero transaction сложность ethereum currency bitcoin
bitcoin проблемы
оборот bitcoin ethereum биржа ethereum токен trezor ethereum
bitcoin qr client bitcoin bitcoin qiwi What's unique about ETH?bitcoin заработка purchasing power across time and geography.bitcoin рост скачать tether field bitcoin monero btc Ultimately, I expect that a tranche of grey or black-market Bitcoins will emerge, with coins available at a discount in exchange for their reduced access to capital markets. This will not be a death knell — there will likely be more than enough demand globally for slightly cheaper Bitcoins, even if they cannot be traded on Coinbase. The world is a big place, with a variety of regulatory regimes, and individuals fleeing hyperinflation may not be too bothered by the fact that the Bitcoins they acquired cannot be deposited on US-regulated exchanges.партнерка bitcoin Repeat.bitcoin easy community bitcoin monero форк bitcoin registration bio bitcoin bitcoin сборщик приват24 bitcoin monero hardware bitcoin blockstream ethereum википедия перспективы bitcoin bitcoin blocks magic bitcoin bitcoin машина bitcoin sberbank bitcoin основы electrodynamic tether криптовалюты bitcoin bitcoin simple mooning bitcoin *****a bitcoin get bitcoin tokens or coins in the network (instead of proving the use of computingava bitcoin nanopool monero total cryptocurrency fx bitcoin bitcoin cryptocurrency bitcoin paypal разработчик ethereum bitcoin обменять bitcoin london finex bitcoin bitcoin linux local ethereum xpub bitcoin
bitcoin конверт bitcoin суть bitcoin client ethereum метрополис заработать monero difficulty bitcoin instant bitcoin raiden ethereum cz bitcoin bitcoin alert майнеры bitcoin ethereum прогнозы wild bitcoin
ethereum course bitcoin lite bitcoin traffic форки ethereum market bitcoin bitcoin принимаем ubuntu ethereum
golang bitcoin moto bitcoin динамика ethereum bitcoin telegram store bitcoin best bitcoin golden bitcoin cryptocurrency calculator
bitcoin kraken bitcoin exchange rpc bitcoin bitcoin quotes серфинг bitcoin 50 bitcoin рейтинг bitcoin panda bitcoin coin ethereum ethereum exchange bitcoin cc bitcoin пулы bitcoin s moneybox bitcoin эфир ethereum iota cryptocurrency bitcoin криптовалюта bitcoin example bitcoin сервисы Having a requirement for minimizing trust is a fundamental property that enables many of the other principles covered in this post. These principles can be understood as coming from and working towards a low-trust aim. We’ll never be able to achieve 100% trustlessness as no one has the resources to audit all of the software and hardware they use to interact with the network. However, we can come reasonably close so that we are confident that transparent, incentive-aligned groups of participants are not colluding to the detriment of the rest of the ecosystem.That’s why I think it is important to explain things in the most basic way possible, using real-world examples. So, let’s find out a bit more about Litecoin blockchain technology.A free private database called a coin wallet. It's a password-protected container that stores your earnings and keeps a network-wide ledger of transactions.ethereum news андроид bitcoin bitcoin email clicks bitcoin nanopool ethereum криптовалюта monero casino bitcoin all cryptocurrency donate bitcoin bitcoin bbc
bitrix bitcoin bitcoin spinner bitcoin captcha трейдинг bitcoin monero amd monero logo gif bitcoin bitcoin ваучер bitcoin forbes poloniex bitcoin
bear bitcoin ethereum dao ethereum solidity bitcoin win coinder bitcoin wechat bitcoin bitcoin api сборщик bitcoin Software Hot WalletsWe have described how open allocation software development works in detail, but we have not yet delved into the roles in the Bitcoin network. Here we describe how technologists join the network.bitcoin торги free monero bitcoin ads monero 1060 blocks bitcoin A Next-Generation Smart Contract and Decentralized Application Platformbitcoin phoenix bitcoin sell
ethereum вывод bitcoin paw bitcoin таблица bitcoin команды bitcoin scrypt bitcoin purse ethereum com ad bitcoin
bitcoin создать bitcoin кошелек генератор bitcoin What is SegWit and How it Works Explainedконтракты ethereum decred cryptocurrency bitcoin yandex faucet cryptocurrency site bitcoin tether limited настройка monero шахты bitcoin 1080 ethereum cryptocurrency dash Ключевое слово ethereum russia bitcoin приложение
bitcoin пирамида video bitcoin bitcoin роботы запросы bitcoin tether скачать bitcoin продать bitcoin fan компьютер bitcoin bitcoin bat rush bitcoin mine monero фермы bitcoin monero пул locals bitcoin bitcoin матрица bitcoin iso bitcoin ru продажа bitcoin blue bitcoin ethereum api bitcoin source курс monero ru bitcoin ethereum btc сайте bitcoin p2pool bitcoin bitcoin history Bitcoin enables peer-to-peer transactions. It acts as a replacement for fiat currencies but doesn’t have all the problems associated with fiat currencies. You don’t have to pay high transaction fees, and you also don’t have a centralized authority that regulates how bitcoins work.gambling bitcoin cryptonator ethereum bitcoin чат
bitcoin hack polkadot su bitcoin stiller matrix bitcoin обмен ethereum история bitcoin planet bitcoin bitcoin прогнозы bitcoin fpga bitcoin сложность bitcoin hd криптовалюта tether bitcoin статистика рынок bitcoin яндекс bitcoin bitcoin биржи api bitcoin widget bitcoin bitcoin rt bitcoin broker reddit bitcoin хардфорк monero status bitcoin cardano cryptocurrency bitcoin 10 продать monero hd7850 monero bitcoin gambling monero биржи
Transaction Speedbitcoin миксер bitcoin bonus обменники bitcoin
ethereum frontier protocol bitcoin bitcoin graph ethereum mining bitcoin node hosting bitcoin autobot bitcoin tether usb bitcoin get collector bitcoin bitcoin fields инструкция bitcoin bitcoin инструкция bitcoin minergate токены ethereum проблемы bitcoin fpga ethereum bitcoin миксер blacktrail bitcoin bitcoin proxy часы bitcoin datadir bitcoin foto bitcoin
bitcoin вконтакте bitcoin masters bitcoin trader group bitcoin skrill bitcoin raiden ethereum cryptocurrency wallets all bitcoin валюты bitcoin проекты bitcoin кран monero space bitcoin bitcoin demo bitcoin сервисы
алгоритм bitcoin
bitcoin официальный
bitcoin автосерфинг займ bitcoin bitcoin кошелька amd bitcoin facebook bitcoin bitcoin grant создатель ethereum 1 ethereum adc bitcoin
Send money to friends and familyclicks bitcoin ethereum coins trade cryptocurrency How Much a Miner Earnsrisk, service provider risk, and so on. Given how globally saleable bitcoin is,Encrypt online backupsbitcoin film bitcoin суть котировка bitcoin ethereum siacoin ethereum crane bitcoin crypto lealana bitcoin
bitcoin legal
россия bitcoin bitcoin neteller bitcoin poloniex подарю bitcoin bitcoin news mine ethereum games bitcoin шифрование bitcoin 10000 bitcoin обменник tether asics bitcoin bitcoin ann panda bitcoin сложность bitcoin bitcoin darkcoin
price bitcoin получить bitcoin bitcoin информация блокчейн ethereum вывод monero создать bitcoin bitcoin rub life bitcoin tether пополнить ethereum википедия bitcoin rub bistler bitcoin ethereum платформа monero cryptonote
bitcoin monkey карта bitcoin bitcoin hardware bitcoin анализ british bitcoin bitcoin fan ethereum linux bitcoin мошенничество мерчант bitcoin air bitcoin short bitcoin wmx bitcoin ethereum supernova
торги bitcoin ethereum asics bitcoin оборот bitcoin пожертвование
bitcoin сервисы dwarfpool monero bitcoin биржи cryptocurrency calendar ethereum stats bitcoin xl bitcoin phoenix
криптовалюту bitcoin bitcoin rate bitcoin indonesia
bitcoin продам проверить bitcoin bitcoin kazanma
dogecoin bitcoin bitcoin алгоритм bitcoin даром купить tether bcc bitcoin bitcoin word simplewallet monero ubuntu ethereum bitcoin de nonce bitcoin bitcoin grafik bitcoin today tether coin addnode bitcoin ethereum dark wallets cryptocurrency Despite the fact that you have to be online to use it, your private keys are kept on your machine. It provides multiple recovery options if your computer was to break or you forget your password.Hashing 24 Review: Hashing24 has been involved with Bitcoin mining since 2012. They have facilities in Iceland and Georgia. They use modern ASIC chips from BitFury deliver the maximum performance and efficiency possible.bitcoin adder lavkalavka bitcoin bitcoin future ico monero hit bitcoin программа tether Today, many software companies experiment with some way to reduce reliance on management hierarchy. Spotify and Github are two high-performing companies that organize entirely through open allocation.Thirdly, as Litecoin is decentralized, you have full control over your funds. This means that you do not need to fill out any forms to send your coins!Best Bitcoin Mining Hardware on a Budget – Antminer T9+Travel the world: Because cryptocurrency isn’t tied to a specific country, traveling with crypto can cut down on money exchange fees. There’s already a small but thriving community of self-titled 'crypto nomads' who primarily, or in some cases exclusively, spend crypto when they travel.circle bitcoin dog bitcoin reverse tether bitcoin ecdsa vps bitcoin bitrix bitcoin hack bitcoin ann bitcoin
logo ethereum bitcoin information прогнозы bitcoin bitcoin конвертер bitcoin apple
