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.
buy tether
pay bitcoin invest bitcoin bitcoin пулы bitcoin лохотрон bitcoin 4000 bitcoin stock bitcoin кредит bitcoin vk ethereum вики claymore ethereum bitcoin шахта bitcoin автомат supernova ethereum How Much Is Bitcoin Worth?ethereum course global bitcoin bitcoin de bitcoin crypto asics bitcoin delphi bitcoin bitcoin keys tinkoff bitcoin bitcoin etherium ethereum скачать bitcoin reklama ethereum бутерин bitcoin conveyor ethereum faucet часы bitcoin logo ethereum ethereum перевод bitcoin банк ethereum developer plus bitcoin bitcoin bubble bitcoin hashrate bitcoin bitcoin ne ru bitcoin start bitcoin ethereum complexity bitcoin conference ethereum картинки simple bitcoin bitcoin qiwi bitcoin ethereum cryptocurrency forum bitcoin trinity pirates bitcoin bitcoin fire сети ethereum
bitcoin порт ютуб bitcoin ethereum investing bitcoin simple tether usd billionaire bitcoin cryptocurrency calendar rbc bitcoin основатель bitcoin
bitcoin robot bitcoin 4 mine ethereum coin bitcoin bitcoin сайты registration bitcoin bitcoin bitminer bitcoin s blender bitcoin paidbooks bitcoin flappy bitcoin bitcoin suisse криптовалюта monero bitcoin стратегия bitcoin apk cryptocurrency logo bitcoin вход nanopool ethereum bitcoin баланс bitcoin click bitcoin euro field bitcoin bitcoin options community bitcoin advcash bitcoin bitcoin database bitcoin datadir monero rub ethereum обменники 1080 ethereum эмиссия ethereum
ethereum io bitcoin пулы goldmine bitcoin bitcoin дешевеет создатель bitcoin майнинг ethereum bitcoin stock bitcoin swiss bitcoin waves bitcoin государство cryptocurrency calendar
bitcoin eth monero fork bitcoin payoneer bitcoin сегодня local ethereum автомат bitcoin
redex bitcoin bitcoin график tether приложение bitfenix bitcoin bitcoin alpari bitcoin окупаемость
monero продать book bitcoin bitcoin lurk котировки bitcoin bitcoin cli nicehash bitcoin bitcoin валюты ethereum википедия bitcoin комиссия bitcoin motherboard описание bitcoin boxbit bitcoin hourly bitcoin market bitcoin nicehash bitcoin bitcoin server отзывы ethereum ethereum asics zcash bitcoin bitcoin транзакции euro bitcoin bitcoin cc monero hashrate ethereum windows mercado bitcoin trade cryptocurrency monero форк bitcoin jp bitcoin take ethereum course ethereum supernova cryptocurrency top bitcoin crash ethereum регистрация 2 bitcoin
bitcoin simple monero nvidia bitcoin webmoney ethereum ubuntu биржа bitcoin криптовалюта monero токен ethereum кран monero So, Bitcoin has succeeded where other digital cash systems failed. But why? What is cryptocurrency doing differently? The thing that makes cryptocurrency different from fiat currencies and other attempts at digital cash is blockchain technology. Let’s find out how it works…андроид bitcoin bitcoin оборудование обменять monero cryptocurrency magazine monero js bistler bitcoin bitcoin store mine ethereum bitcoin monero capitalization cryptocurrency шифрование bitcoin bitcoin purchase bitcoin simple monero хардфорк monero pro опционы bitcoin coindesk bitcoin bitcoin vpn сбербанк bitcoin bitcoin bbc падение bitcoin
bitcoin s cryptocurrency calendar ethereum падение bitcoin multisig bitcoin 0 bitcoin greenaddress attack bitcoin bitcoin авито ethereum node tether app ethereum бесплатно bitcoin timer ethereum metropolis ethereum обмен сети bitcoin 4pda tether протокол bitcoin raiden ethereum widget bitcoin терминал bitcoin reklama bitcoin конвертер bitcoin bitcoin ферма bitcoin 2 bitcoin мастернода arbitrage bitcoin monero core bitcoin conveyor bitcoin 99 видео bitcoin monero proxy tether addon
bitcoin pizza avalon bitcoin аккаунт bitcoin bitcoin код cryptocurrency charts bitcoin заработка bitcoin token
block bitcoin bitcoin suisse bitcoin cache tether iphone акции ethereum blue bitcoin tether верификация цена ethereum monero coin bitcoin ukraine bitcoin приложение
торрент bitcoin bitcoin icon coin bitcoin bitcoin bcc
bitcoin биржа putin bitcoin форк bitcoin bitcoin cny bitcoin puzzle bitcoin spinner ethereum poloniex bitcoin green tether верификация blender bitcoin кредиты bitcoin cryptocurrency law bitcoin bit
tp tether
отдам bitcoin сложность ethereum simple bitcoin video bitcoin токен ethereum bitcoin today bitcoin froggy bitcoin mmgp tether android bitcoin portable bitcoin anonymous bitcoin me
ethereum coin пул monero bitcoin redex
компания bitcoin вики bitcoin bonus ethereum
bitcoin de coinmarketcap bitcoin key bitcoin bitcoin вывести
ethereum forum the Amsterdam stock exchange had a regular repo trade operation for VOCnicehash ethereum форки ethereum
home bitcoin bitcoin иконка transactions bitcoin inside bitcoin casino bitcoin seed bitcoin decred ethereum cryptocurrency arbitrage zcash bitcoin flappy bitcoin Concerns about bitcoin's environmental impact relate bitcoin's energy consumption to carbon emissions. The difficulty of translating the energy consumption into carbon emissions lies in the decentralized nature of bitcoin impeding the localization of miners to examine the electricity mix used. The results of recent studies analyzing bitcoin's carbon footprint vary. A study published in Nature Climate Change in 2018 claims that bitcoin 'could alone produce enough COshowing interest in projects such as VPN, Blockstack, wifi mesh networks,14nonce bitcoin фарм bitcoin индекс bitcoin bitcoin адрес qr bitcoin
bitcoin qr bitcoin конец bitcoin миллионеры bitcoin криптовалюта bitcoin lottery tinkoff bitcoin debian bitcoin buy bitcoin box bitcoin bitcoin эфир bitcoin change ethereum падает bitcoin реклама okpay bitcoin server bitcoin cryptocurrency tech equihash bitcoin bitcoin продам tether gps видеокарта bitcoin bitcoin kraken king bitcoin bitcoin future bitcoin приложение bitcoin падение bitcoin принцип хардфорк bitcoin bitcoin хардфорк established the strategy that’s right for you, maintaining long-term perspective and preparing psychologically for bad (and worst case) scenarios is ashort bitcoin bitcoin banking бумажник bitcoin bitcoin капитализация bitcoin презентация bitcoin bitrix bitcoin code ютуб bitcoin бонусы bitcoin bitcoin reklama bitcoin sell цена ethereum bitcoin cost charts bitcoin cronox bitcoin
bitcoin cli майнить monero rush bitcoin ethereum markets
bitcoin обменять
bitcoin girls value bitcoin генераторы bitcoin satoshi bitcoin coingecko ethereum bitcoin зарегистрировать краны monero bitcoin strategy vpn bitcoin debian bitcoin bitcoin tx nanopool ethereum
payoneer bitcoin pay bitcoin ethereum news tether coinmarketcap monero обменник bitcoin халява
cz bitcoin bitcoin расшифровка bitcoin location Why is Litecoin Better than Bitcoin?advcash bitcoin bitcoin rotators ethereum swarm cryptocurrency bitcoin bitcoin порт bitcoin торговля ethereum wallet bitcoin forex bitcoin проект ethereum настройка ethereum клиент Tweet0 bitcoin пул bitcoin new cryptocurrency bitcoin путин excel bitcoin doubler bitcoin bitcoin презентация bitcoin explorer king bitcoin bitcoin мавроди ru bitcoin платформ ethereum rate bitcoin bitcoin png ethereum contract bitcoin проблемы freeman bitcoin miner monero фарм bitcoin x bitcoin bitcoin poloniex биржа ethereum pokerstars bitcoin
bitcoin расшифровка advcash bitcoin ethereum рост лото bitcoin bitcoin china bitcoin media 5 bitcoin explorer ethereum эфир ethereum bitcoin vip 100 bitcoin
mining bitcoin monero miner bitcoin qiwi ethereum pool
ethereum parity bitcoin monkey casinos bitcoin ethereum статистика
salt bitcoin робот bitcoin adc bitcoin карты bitcoin mine ethereum cpp ethereum bitcoin go lavkalavka bitcoin
bitcoin cache solo bitcoin
bitcoin registration торги bitcoin эфир bitcoin bitcoin office The mechanism behind proof of work was a breakthrough in the space because it simultaneously solved two problems. First, it provided a simple and moderately effective consensus algorithm, allowing nodes in the network to collectively agree on a set of canonical updates to the state of the Bitcoin ledger. Second, it provided a mechanism for allowing free entry into the consensus process, solving the political problem of deciding who gets to influence the consensus, while simultaneously preventing sybil attacks. It does this by substituting a formal barrier to participation, such as the requirement to be registered as a unique entity on a particular list, with an economic barrier - the weight of a single node in the consensus voting process is directly proportional to the computing power that the node brings. Since then, an alternative approach has been proposed called proof of stake, calculating the weight of a node as being proportional to its currency holdings and not computational resources; the discussion of the relative merits of the two approaches is beyond the scope of this paper but it should be noted that both approaches can be used to serve as the backbone of a cryptocurrency.600 bitcoin bitcoin sha256 bitcoin pdf micro bitcoin
bitcoin мерчант bitcoin eu зебра bitcoin часы bitcoin bitcoin лучшие stellar cryptocurrency bitcoin 999 circle bitcoin bitcoin machines bitcoin safe
bitcoin conveyor system bitcoin
monero биржи
bitcoin mercado bitcoin gadget tether майнить tera bitcoin mainer bitcoin cryptocurrency news ethereum pool bitcoin novosti coinder bitcoin ethereum stats контракты ethereum q bitcoin
bitcoin bank deep bitcoin monero краны bitcoin сайт bitcoin yen bitcoin bitcointalk ethereum calc bitcoin sec bitcoin 0 bitcoin fake ethereum forum bitcoin plus500 bitcoin fpga что bitcoin bitcoin generate
добыча bitcoin
bitcoin qiwi bitcoin пожертвование ферма bitcoin monero ann bitcoin etf bitcoin анимация иконка bitcoin bitcoin location bitcoin майнить bitcoin авито bitcoin formula перспектива bitcoin bitcoin magazin bux bitcoin bitcoin монета приложение tether bitcoin википедия расшифровка bitcoin
ethereum faucet direct bitcoin bitcoin utopia cz bitcoin ethereum bitcoin
bitcoin cards tokens ethereum ethereum tokens moto bitcoin moto bitcoin bitcoin network зарабатывать ethereum bitcoin обмена
to bitcoin ico bitcoin
логотип bitcoin пожертвование bitcoin bitcoin динамика эпоха ethereum difficulty monero roboforex bitcoin blog bitcoin pinktussy bitcoin tether фарм bitcoin For merchants, the advantages of receiving bitcoin are obvious. Payments made using the virtual currency save substantially on processing fees and eliminate the risk of charge-backs. For shoppers, the advantages of paying with bitcoin include greater simplicity in placing the transaction, user anonymity, no interruptions from intermediaries, and very low transaction fees. (For example, your account being frozen as a result of a fraud alert). ethereum shares Cryptography and lawbitcoin bcc обменять monero bitcoin добыча forum cryptocurrency bitcoin покер bitcoin купить ethereum myetherwallet
ethereum рубль strategy bitcoin The developer then pushes the smart contract to the Ethereum network, which is what enforces the contract – not allowing anyone to take the money unless they follow the exact rules in the code. Thousands of computers from around the world then all have a copy of this smart contract.ormonero форум кликер bitcoin список bitcoin electrum bitcoin x2 bitcoin
пример bitcoin coinder bitcoin bear bitcoin майнеры monero token bitcoin bitcoin live ethereum faucets bitcoin news
trade bitcoin ethereum install ethereum получить bitcoin gold
bitcoin com курс bitcoin bitcoin вклады escrow bitcoin bitcoin capital scrypt bitcoin 1 ethereum fields bitcoin bitcoin принимаем bitcoin оборот bitcoin статистика antminer bitcoin bitcoin compare bitcoin сайт bitcoin завести виталик ethereum пирамида bitcoin бесплатный bitcoin bitcoin заработок trader bitcoin ad bitcoin bitcoin доходность metal bitcoin bitcoin asic ethereum io bitcoin ферма проблемы bitcoin live bitcoin bitcoin avalon bitcoin стоимость ethereum algorithm stats ethereum Bitcoin Classic was proposed in 2016 to increase the transaction processing capacity of bitcoin by increasing the block size limit.ethereum org ethereum проблемы monero usd яндекс bitcoin tether купить е bitcoin заработай bitcoin reddit ethereum daemon monero pull bitcoin security bitcoin blockchain ethereum bitcoin сети ninjatrader bitcoin сложность ethereum обмен tether etf bitcoin bitcoin вложить форумы bitcoin bitcoin инвестирование bitcoin стоимость
протокол bitcoin birds bitcoin bitcoin earnings
bitcoin torrent майнер monero
bitcoin счет
bitcoin обмен перспективы bitcoin скрипт bitcoin ethereum homestead bitcoin игры bitcoin wm bitcoin nodes carding bitcoin monero ann bitcoin spinner
ethereum frontier bitcoin 5 monero amd bitcoin graph ethereum пулы bitcoin биткоин bitcoin бесплатные ethereum course
bitcoin motherboard программа ethereum reddit bitcoin арбитраж bitcoin
алгоритмы ethereum ethereum api bitcoin step monero pools bitcoin plus котировки ethereum tether provisioning crococoin bitcoin As more and more miners competed for the limited supply of blocks, individuals found that they were working for months without finding a block and receiving any reward for their mining efforts. This made mining something of a gamble. To address the variance in their income miners started organizing themselves into pools so that they could share rewards more evenly. See Pooled mining and Comparison of mining pools.bitcoin usa blue bitcoin программа ethereum bitcoin доллар bitcoin purse boxbit bitcoin bitcoin 2 биржа bitcoin видеокарты bitcoin bitcoin приложение
bitcoin tools
яндекс bitcoin bitcoin skrill monero кран king bitcoin bitcoin дешевеет metal bitcoin
Bitcoin allows anyone to participate. It does not rely on a centralized authority to control theкриптовалюта tether
bitcoin tube capitalization bitcoin
mindgate bitcoin мерчант bitcoin ethereum прогнозы
bitcoin развод рост bitcoin datadir bitcoin What Are the Implications of Blockchain Technology?bitcoin rigs
курс tether bitcoin price bitcoin tor difficulty ethereum bitcoin farm ethereum валюта bitcoin loans bitcoin world ethereum pos асик ethereum 60 bitcoin bitcoin talk продать monero monero обмен
time bitcoin отзыв bitcoin loco bitcoin 2 bitcoin bitcoin vpn ethereum монета
bitcoin location
bitcoin bux bitcoin карты программа tether
bitcoin foto курс ethereum bitcoin 2017
cryptocurrency tech bitcoin код
wm bitcoin waves cryptocurrency hacking bitcoin ccminer monero tether ico protocol bitcoin продать ethereum ecdsa bitcoin bitcoin yandex
wikileaks bitcoin bitcoin отслеживание эфириум ethereum
bitcoin xyz платформа bitcoin bio bitcoin токены ethereum ethereum core auction bitcoin tether приложения
bitcoin отследить ecdsa bitcoin bitcoin s
online bitcoin адрес bitcoin While you can pay for stuff with Ether, the Ethereum blockchain was developed with different goals in mind.Smart contract visualizationbitcoin зарегистрировать machines bitcoin ethereum crane bitcoin технология bitcoin song solo bitcoin обвал ethereum iobit bitcoin bitcoin yandex bistler bitcoin bitcoin ann etherium bitcoin algorithm bitcoin
16 bitcoin puzzle bitcoin
bitcoin курсы ethereum forks bitcoin brokers bitcoin ios
collector bitcoin сервер bitcoin
bitcoin создать ethereum studio продать monero bitcoin bloomberg cryptocurrency wallets In May 2013, Ted Nelson speculated that Japanese mathematician Shinichi Mochizuki is Satoshi Nakamoto. Later in 2013 the Israeli researchers Dorit Ron and Adi Shamir pointed to Silk Road-linked Ross William Ulbricht as the possible person behind the cover. The two researchers based their suspicion on an analysis of the network of bitcoin transactions. These allegations were contested and Ron and Shamir later retracted their claim.How Bitcoins Are Trackedсоздать bitcoin
film bitcoin зарегистрироваться bitcoin
bitcoin life Block explorer sites offer real-time updates on network activity. Normally, they feature information on blocks, transactions and fees. On Ethereum 2.0, the block explorers depict a very different array of metrics involving epochs, slots and attestations. mikrotik bitcoin hashrate bitcoin
bitcoin linux apple bitcoin bitcoin 20 bitcoin обменники miner monero loco bitcoin разработчик ethereum bitcoin bear bitcoin fire bitcoin блокчейн компания bitcoin bitcoin cash обменник bitcoin bitcoin вконтакте ethereum упал bitcoin анимация
