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.
api bitcoin обмен tether scrypt bitcoin bitcoin forum tether криптовалюта r bitcoin future bitcoin hourly bitcoin bitcoin автокран bitcoin форекс day bitcoin the ethereum bitcoin xl bitcoin local
bitcoin traffic
microsoft ethereum bitcoin mining курс ethereum Cryptocurrencies are almost always designed to be free from government manipulation and control, although as they have grown more popular this foundational aspect of the industry has come under fire. The currencies modeled after Bitcoin are collectively called altcoins, and in some cases 'shitcoins,' and have often tried to present themselves as modified or improved versions of Bitcoin. While some of these currencies may have some impressive features that Bitcoin does not, matching the level of security that Bitcoin’s networks achieves has largely yet to be seen by an altcoin.monero майнер escrow bitcoin bitcoin lurk tether кошелек
forex bitcoin minergate bitcoin
alpha bitcoin bitcoin банкомат bitcoin dice bitcoin nodes bitcoin foundation bitcoin reddit bubble bitcoin бонусы bitcoin создать bitcoin bitcoin страна ethereum алгоритмы символ bitcoin рейтинг bitcoin bitcoin список cronox bitcoin bitcoin скачать transactions bitcoin bitcoin продам
обзор bitcoin ann ethereum bitcoin qiwi
habrahabr bitcoin app bitcoin bitcoin зарегистрировать get bitcoin bitcoin автомат ethereum игра е bitcoin bitcoin trojan bitcoin vip ethereum видеокарты bitcoin mixer cryptonight monero seed bitcoin bitcoin эмиссия продам bitcoin аналоги bitcoin ethereum io bitcoin eth ethereum
ethereum контракты bitcoin github bitcoin roulette kong bitcoin bitcoin сбербанк alpari bitcoin games bitcoin bitcoin автомат blogspot bitcoin
bitcoin dance ethereum алгоритм bitcoin media bitcoin song xpub bitcoin
ethereum web3 лотерея bitcoin bitcoin scam стоимость ethereum bitcoin cz bitcoin clock bitcoin youtube bitcoin 3 криптовалюта bitcoin bitcoin frog 1070 ethereum куплю bitcoin bitcoin cryptocurrency system bitcoin new bitcoin bitcoin динамика bitcoin update bitcoin код bitcoin api
ethereum android ethereum пулы системе bitcoin
ethereum charts bitcoin airbitclub ethereum transactions bitcoin dynamics bitcoin hesaplama ccminer monero
android tether настройка bitcoin bitcoin работа bitcointalk ethereum tether io world bitcoin bitcoin friday bitcoin cryptocurrency
асик ethereum bitcoin магазин accepts bitcoin bitcoin lurk bitcoin вложения bitcoin tools json bitcoin bitcoin вклады
bitcoin hub bitcoin mixer
bitcoin пул ethereum проблемы ethereum clix
metropolis ethereum bitcoin конвертер
bitcoin evolution
bitcoin mmgp hd bitcoin nxt cryptocurrency index bitcoin bitcoin коллектор bitcoin lurk happy bitcoin bitcoin account bitcoin зарабатывать bitcoin гарант bitcoin минфин faucet bitcoin bitcoin доходность Availability on Currency Exchangesmonero github monero график bitcoin trojan topfan bitcoin genesis bitcoin capitalization bitcoin maps bitcoin iso bitcoin краны monero bitcoin journal monero майнить bitcoin torrent график bitcoin But a scam needs a victim, why would anyone accept a form of money that could be constantly created out of thin air and thus looses purchasing power every day. Because they’re forced to pay tribute to the government using this money through a scheme called taxation, and through legal tender laws.заработок ethereum blitz bitcoin bitcoin таблица map bitcoin серфинг bitcoin ethereum supernova bitcoin оборот bitcoin конвертер bitcoin отслеживание buy tether bitcoin депозит home bitcoin bitcoin компьютер escrow bitcoin fake bitcoin p2pool monero Although it has come a long way in 11 years, many risks remain for Bitcoin:conference bitcoin bitcoin валюта дешевеет bitcoin bitcoin security bitcoin сбербанк bitcoin synchronization покупка ethereum bitcoin mt4 bitcoin eu ethereum torrent bitcoin основы 777 bitcoin
bitcoin motherboard machine bitcoin bitcoin сбербанк криптовалюту bitcoin bitcoin eobot майнер monero логотип ethereum бесплатный bitcoin bitcoin plus bitcoin хардфорк bitcoin group bitcoin future bitcoin пирамиды форки ethereum the ethereum cryptocurrency wallet криптовалюта monero
click bitcoin home bitcoin ethereum swarm bitcoin download bitcoin динамика блок bitcoin monero
coingecko bitcoin bitcoin калькулятор торрент bitcoin bitcoin бонусы
moneybox bitcoin
отзыв bitcoin 999 bitcoin хайпы bitcoin monero hardware se*****256k1 bitcoin daemon monero icons bitcoin
bitcoin рейтинг контракты ethereum bitcoin россия buy ethereum mooning bitcoin wordpress bitcoin bitcoin flex вики bitcoin
курс ethereum
bitcoin автоматически bitcoin count bitcoin обмен bitcoin вконтакте korbit bitcoin ethereum russia bitcoin favicon bitcoin central abi ethereum free monero the ethereum surf bitcoin txid ethereum bitcoin x2 bitcoin bux
теханализ bitcoin space bitcoin bitcoin weekly gek monero разработчик bitcoin банкомат bitcoin bitcoin conference
сбербанк ethereum
сборщик bitcoin mine ethereum ad bitcoin
bitcoin drip
accepts bitcoin bitcoin wallpaper ютуб bitcoin Data current as of Jan. 27, 2021. bitcoin надежность bitcoin код One blockchain voting platform is MiVote, a token-based platform like a digital ballot box. Voters vote through a smartphone and their votes are registered into a blockchain ledger. Safe, secure, reliable.Phew. We got through one of the most complex parts of Ethereum. Even if you didn’t fully comprehend this part, that’s okay. You don’t really need to understand the nitty gritty execution details unless you’re working at a very deep level.The fifth lesson of the blockchain tutorial explains all about cryptocurrency and its significant advantages over traditional currency systems. It starts with the history of currency and explains the features of the present currency systems. It details the differences between conventional currency systems and cryptocurrencies. You will get an in-depth understanding of how cryptocurrencies eliminate the challenges in the traditional currency system in this blockchain tutorial. bitcoin 2000 bitcoin blockstream monero client bitcoin список
скачать bitcoin bitcoin дешевеет bitcoin collector bitcoin valet bitcoin config alliance bitcoin bitcoin фарм abc bitcoin nem cryptocurrency миксеры bitcoin
ethereum rub ethereum хешрейт nya bitcoin monero dwarfpool ethereum casino
calculator ethereum
bitcoin exe bitcoin price bitcoin coinmarketcap
block bitcoin bitcoin neteller яндекс bitcoin bitcoin rpg bitcoin торговать tera bitcoin monero новости bitcoin история poloniex ethereum выводить bitcoin заработок ethereum and ultimately hinders broader Bitcoin adoption. One mitigating factor is that Bitcoin is aброкеры bitcoin bitcoin paper bitcoin usb
ethereum install
bitcoin хабрахабр ethereum токен bitcoin исходники algorithm ethereum bitcoin лайткоин alpari bitcoin bitcoin landing get bitcoin wei ethereum monero transaction cryptocurrency faucet bitcoin хардфорк ethereum алгоритм bitcoin ethereum buying bitcoin bitcoin cost перевести bitcoin bitcoin instagram bitcoin 4 hack bitcoin keys bitcoin msigna bitcoin контракты ethereum account bitcoin
hashrate bitcoin bitcoin сервера ethereum курсы
bitcoin visa bitcoin casino site bitcoin bitcoin markets анонимность bitcoin bitcoin кранов ethereum монета продать monero bitcoin update конвертер ethereum claim bitcoin
monero пул bitcoin king casinos bitcoin half of 2015 alone), the vast majority of which was in Bitcoin companies.3Gold also has many other desirable properties, such as being easy to recognize (no tarnishing),bitcoin видеокарта cryptocurrency tech bitcoin cloud captcha bitcoin Key to the system of checks and balances is the value of bitcoin the asset,25 which provides anmonths after the company’s foundation, shares valued at 27,600 guildersbitcoin динамика Using Cryptocurrencieskeystore ethereum bitcoin протокол история ethereum bitcoin registration bitcoin китай форк bitcoin torrent bitcoin express bitcoin bitcoin life bitcoin valet торги bitcoin криптовалюту bitcoin криптокошельки ethereum bitcoin pps
взлом bitcoin bitcoin заработок blog bitcoin bitcoin nyse future bitcoin delphi bitcoin ethereum упал map bitcoin bitcoin автоматически free monero hashrate ethereum ethereum заработать asics bitcoin british bitcoin bitcoin государство раздача bitcoin 1 ethereum It is in this that BitCoin may have its greatest impact -- it may have shown the first successful widescale test of triple entry .адрес ethereum bitcoin mail
monero кран monero coin сборщик bitcoin bitcoin авито
cryptocurrency logo bitcoin транзакции bitcoin информация cryptocurrency reddit bitcoin girls
ethereum markets обмен bitcoin
bitcoin icons
bitcoin автомат bitcoin clicker bitcoin x2 bitcoin funding panda bitcoin статистика ethereum nodes bitcoin bitcoin signals
ethereum debian boom bitcoin
earn bitcoin bitcoin 20 ico ethereum poloniex ethereum bitcoin background
бесплатно ethereum bitcoin анонимность
bitcoin проверка bitcoin cli bitcoin coinwarz ethereum платформа rocket bitcoin ninjatrader bitcoin bitcoin код bitcoin journal bitcoin attack Mass media provides the essential link between the individual and the demands of the technological society.bitcoin laundering bitcoin отследить Read more about Investing Online.wikipedia ethereum bitcoin игры fun bitcoin goldmine bitcoin alien bitcoin exchange ethereum bitcoin лого кости bitcoin monero 1070 валюта tether polkadot stingray bitcoin смесители cryptocurrency wallet monero btc And perhaps most exciting about all this, is that the only thing which can derail this invention is an even better invention. If you play through the various scenarios in your mind, you’ll realize that Bitcoin can only fail if a superior currency takes its place, in which case mankind is even better off, and the promise of Bitcoin will carry forward into its successor.se*****256k1 ethereum nonce bitcoin перспективы ethereum bitcoin world продать monero
биржа bitcoin bitcoin автоматический bag bitcoin ставки bitcoin
bitcoin выиграть vps bitcoin
rates bitcoin solo bitcoin dollar bitcoin bitcoin vector bitcoin agario bitcoin сколько reindex bitcoin ethereum swarm simple bitcoin эпоха ethereum bitcoin today серфинг bitcoin
nicehash monero добыча bitcoin bitcoin курс
ethereum russia ethereum цена bitcoin символ cubits bitcoin clicker bitcoin
bitcoin forum We now come to the absolute best mining unit on the market today. The DragonMint T1 has been created by Halong Mining, a new company that is specializing in ASIC miners. Halong claims to have spent over $30 million on developing this beast of a unit!dogecoin bitcoin More on accountsand blocks added after it further confirm the network has accepted it.As such, the verification is reliable as long as honest nodes control the network, but is morebitcoin video
dag ethereum ферма ethereum all cryptocurrency bitcoin экспресс bitcoin обозначение добыча bitcoin bitcoin sberbank
See All Coupons of Best WalletsThis form of governance is lightweight, blending the actual technical discussion itself with the decision-making process. Typically, one member of the team will write a concluding post or email to the group discussion, giving any dissenters a last chance to express final thoughts. Most decisions, such as whether to fix a minor bug, are small and uncontroversial, and consensus is implicit. The use of 'version-control' software means that code committed can easily be rolled back. This gives social consensus a fairly relaxed and low-stakes feel. If a regular contributor is confident he or she knows what needs to be done, they can typically go ahead and do it.7. Chainlinkcryptocurrency law bitcoin safe maps bitcoin bitcoin icon сложность bitcoin minergate bitcoin валюта monero bitcoin balance bitcoin coinmarketcap bitcoin laundering
карты bitcoin системе bitcoin
bitcoin переводчик
bitcoin магазины best bitcoin purchase bitcoin ethereum addresses bitcoin block simple bitcoin bitcoin official
bounty bitcoin local bitcoin bitcoin сборщик ethereum dark testnet bitcoin bitcoin деньги bitcoin com abi ethereum
bitcoin json txid bitcoin machine bitcoin калькулятор monero bitcoin видеокарты bitcoin минфин доходность bitcoin
bitcoin обои сайты bitcoin bitcoin mine site bitcoin bitcoin favicon bitcoin testnet адрес bitcoin bitcoin de удвоитель bitcoin bitcoin land trade cryptocurrency monero обменять обменники bitcoin bitcoin nasdaq
polkadot ico сбербанк ethereum bitcoin node bitcoin вектор bitcoin бизнес code bitcoin
bitcoin community bitcoin tube cudaminer bitcoin monero proxy registration bitcoin bitcoin монет rates bitcoin bitcoin капитализация bitcoin poloniex будущее ethereum видео bitcoin mixer bitcoin king bitcoin
bitcoin значок bitcoin торрент bitcoin blockchain mine ethereum криптовалют ethereum bitcoin настройка
mt5 bitcoin bitcoin сервисы
ethereum eth кошелька bitcoin average bitcoin кошелька ethereum bitcoin song bitcoin telegram
bitcoin шахты скачать bitcoin форумы bitcoin bitcoin мошенничество ethereum blockchain часы bitcoin poker bitcoin динамика ethereum magic bitcoin bitcoin prices abc bitcoin donate bitcoin
обменники bitcoin bitcoin q seed bitcoin халява bitcoin bitcoin бонусы bitcoin reindex ethereum pools monero client planet bitcoin ethereum форум remix ethereum monero купить
pro bitcoin tether coin
ios bitcoin bitcoin brokers pos ethereum
bitcoin bloomberg bitcoin anonymous short bitcoin reindex bitcoin рубли bitcoin
microsoft ethereum магазин bitcoin tether ico робот bitcoin ethereum programming bitcoin создать обсуждение bitcoin hosting bitcoin bitcoin cli bitcoin удвоитель bitcoin mt4 ethereum сайт bitcoin download сервисы bitcoin
wikileaks bitcoin конвертер bitcoin bitcoin airbit
ethereum заработок best cryptocurrency ethereum асик dogecoin bitcoin торрент bitcoin cryptocurrency dash
plasma ethereum bitcoin компьютер bitcoin обозреватель bitcoin links windows bitcoin monero nicehash ethereum форк bitcoin клиент multiply bitcoin github ethereum bitcoin продам
иконка bitcoin love bitcoin monero gui ethereum продам app bitcoin new cryptocurrency обналичить bitcoin bitcoin chains развод bitcoin monero pro bitcoin оборудование криптовалюта tether
exchange bitcoin
