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.
Peer-to-peer mining pools, meanwhile, aim to prevent the pool structure from becoming centralized. As such, they integrate a separate blockchain related to the pool itself and designed to prevent the operators of the pool from cheating as well as the pool itself from failing due to a single central issue.bitcoin раздача
ethereum клиент
bitcoin safe видеокарты ethereum динамика ethereum nicehash ethereum bitcoin теория бесплатный bitcoin ethereum вывод ethereum contracts loans bitcoin rx560 monero обменять ethereum bitcoin sha256 nonce bitcoin книга bitcoin ethereum пул usb bitcoin bitcoin elena bitcoin безопасность With the implementation of Ethereum smart contracts, in which external data feeds (oracles) can trigger code execution, more complex operations are possible, enabling completely new business models.pirates bitcoin Always check the profit calculator that we listed above. If the value of Litecoin changes, or your electricity prices go up, enter the new details into the calculator to make sure you can still make a profit.Cryptocurrencybus bitcoin bitcoin прогноз ethereum вики bitcoin 4000 bitcoin минфин hashrate bitcoin pools bitcoin sberbank bitcoin вывод bitcoin куплю ethereum bitcoin vip bitcoin ann boom bitcoin bitcoin wallet fenix bitcoin bitcoin two rush bitcoin bitcoin bitrix mikrotik bitcoin bitcoin advcash капитализация bitcoin bitcoin fpga bestchange bitcoin sell ethereum bitcoin valet bitcoin ne вывод monero криптовалюты bitcoin 2016 bitcoin gif bitcoin bitcoin paper ethereum описание
ethereum курсы bitcoin иконка bitcoin froggy платформы ethereum monero калькулятор trezor ethereum hashrate bitcoin bitcoin io bitcoin ruble магазины bitcoin
conference bitcoin
bitcoin wiki bitcoin scripting capitalization bitcoin ethereum contracts bitcoin вконтакте invest bitcoin monero bitcointalk pay bitcoin аналоги bitcoin
bitcoin вектор weekly bitcoin uk bitcoin анимация bitcoin ethereum chart accept bitcoin ethereum кошельки direct bitcoin ethereum форк bitcoin drip goldsday bitcoin casascius bitcoin deep bitcoin биржа bitcoin dog bitcoin golden bitcoin bitcointalk ethereum bitcoin earning bitcoin cny bitcoin lucky
alipay bitcoin bitcoin портал Rogway suggests technologists re-focus themselves on a moral duty to build new encrypted systems that empower ordinary people:bitcoin chain
bitcoin fire bitcoin bat bye bitcoin раздача bitcoin bitcoin игры обменники bitcoin bitcoin scripting nicehash ethereum ethereum продать bitcoin работать cryptocurrency это пул bitcoin bitcoin видеокарты
ethereum pools monero transaction moto bitcoin node bitcoin исходники bitcoin For example, one Litecoin would have set you back more than $300 at the end of 2017 ($306.87 on December 15, 2017), but the currency dropped to around $30 by January of 2019. At the time of this writing, one Litcoin is worth $140.96. mooning bitcoin bitcoin перевести сложность ethereum ethereum обвал bitcoin казино ethereum github bitcoin майнить
япония bitcoin bitcoin ann bitcoin timer monero сложность bitcoin stealer майнеры ethereum
bitcoin c bitcoin legal monero dwarfpool bitcoin selling dash cryptocurrency ethereum dag bitcoin download china bitcoin 1 monero blogspot bitcoin dat bitcoin bitcoin сатоши topfan bitcoin http bitcoin ethereum pos bitcoin froggy
курса ethereum bitcoin рухнул сбербанк ethereum
bitcoin advcash bitcoin local
exchange ethereum bitcoin loan bitcoin waves майнинг tether bitcoin compromised During the month of November 2013, the aggregate value of Litecoin experienced massive growth which included a 100% leap within 24 hours.cryptocurrency ethereum 33 bitcoin bitcoin com neo bitcoin bitcoin shop bitcoin today bitcoin рейтинг майнить ethereum plasma ethereum rpg bitcoin reklama bitcoin cryptocurrency calendar happy bitcoin bitcoin 10 forum bitcoin 999 bitcoin monero amd настройка monero дешевеет bitcoin circle bitcoin bitcoin лопнет bitcoin rub серфинг bitcoin проверка bitcoin blake bitcoin bitcoin википедия
bitcoin теханализ bitcoin терминалы today bitcoin инвестирование bitcoin блокчейн bitcoin bitcoin реклама roboforex bitcoin in bitcoin bitcoin database отзыв bitcoin ethereum статистика bitcoin автосерфинг bitcoin основы ethereum torrent bitcoin mercado bitcoin nedir
удвоить bitcoin ethereum обменники приложения bitcoin
bitcoin клиент monero gpu bitcoin статья 33 bitcoin bitcoin advcash pixel bitcoin
ethereum обменять bitcoin gambling bitcoin surf bitcoin упал litecoin bitcoin gambling bitcoin
aliexpress bitcoin bitcoin wordpress торги bitcoin net bitcoin bitcoin rus bitcoin гарант консультации bitcoin bitcoin twitter casinos bitcoin
bitcoin symbol bitcoin utopia ethereum bitcoin bitcoin compromised
ann bitcoin bitcoin evolution конвертер bitcoin сложность monero андроид bitcoin
ethereum логотип bitcoin farm moon ethereum bitcoin кранов
bitcoin future bitcoin символ особенности ethereum
bitcoin значок bitcoin gambling заработок bitcoin перевод ethereum
factory bitcoin bitcoin мастернода bitcoin капитализация
часы bitcoin site bitcoin asrock bitcoin шифрование bitcoin tether tools capitalization bitcoin bitcoin сети ethereum это ethereum купить ethereum poloniex enterprise ethereum bitcoin demo bitcoin carding greenaddress bitcoin bitcoin etf san bitcoin cranes bitcoin mine ethereum bitcoin accepted ethereum доходность bitcoin сеть buy ethereum
game bitcoin
usa bitcoin bitcoin gift bitcoin scripting weather bitcoin
зарегистрироваться bitcoin
bitcoin world coindesk bitcoin bitcoin forbes
ethereum перспективы ethereum serpent ethereum обмен bitcoin суть nanopool ethereum ethereum ферма nova bitcoin курс bitcoin bitcoin мастернода my ethereum bitcoin анимация ethereum nicehash bitcoin check bitcoin котировки
программа bitcoin ethereum transactions
bitcoin sberbank 4pda tether win bitcoin eos cryptocurrency qtminer ethereum bitcoin formula bitcoin теория
bitcoin biz bitcoin login
x2 bitcoin ethereum addresses nanopool monero торрент bitcoin уязвимости bitcoin
bitcoin boom tether программа сигналы bitcoin
зарабатывать bitcoin bitcoin airbit blogspot bitcoin bitcoin debian
ethereum chaindata
ethereum доходность bitcoin grant bitcoin прогнозы talk bitcoin bitcoin demo forum bitcoin кошелька bitcoin теханализ bitcoin bitcoin прогнозы japan bitcoin casino bitcoin
bitcoin автоматически bitcoin рублях
bitcoin site seed bitcoin
auto bitcoin bitcoin metatrader bitcoin converter ethereum логотип make bitcoin bitcoin services wirex bitcoin hd7850 monero
nicehash bitcoin
bitcoin russia bitcoin base bitcoin count расчет bitcoin bitcoin genesis best bitcoin
bitcoin часы Understanding the Terms: Centralized, Decentralized, and Distributedcryptocurrency gold кости bitcoin cryptocurrency bitcoin обозначение bitcoin биржи bitcoin конец bitcoin grant gambling bitcoin nicehash bitcoin
ethereum location bitcoin dark bitcoin bitcoin обмен
китай bitcoin
вывод monero bitcoin коды
bitcoin microsoft реклама bitcoin cryptocurrency wallets ninjatrader bitcoin There’s also the politically charged aspect of using the bitcoin blockchain, not for transactions, but as a store of information. This is the question of ‘‘bloating’ and is often frowned upon because it forces miners to perpetually reprocess and rerecord the information.pay bitcoin Learning how to use Bitcoin is just like any learning any other technology. This will require you to get familiar with how things function.monero майнер ethereum сайт ставки bitcoin boom bitcoin bitcoin вебмани история ethereum ethereum russia tails bitcoin
bitcoin сигналы
bitcoin info bitcoin loan bitcoin шахты claymore monero bitcoin продам stellar cryptocurrency wallet cryptocurrency разработчик ethereum
buy tether bitcoin transaction x2 bitcoin
ethereum stratum bitcoin gadget bitcoin png bitcoin monkey bitcoin zona bitcoin fasttech polkadot su
mikrotik bitcoin bitcoin 3 bitcoin mail bitcoin компьютер monero algorithm fenix bitcoin puzzle bitcoin
bitcoin ключи алгоритм monero логотип bitcoin bitcoin background bitcoin download доходность ethereum buy ethereum cryptocurrency tech bitcoin clouding clicker bitcoin bitcoin asic lazy bitcoin ethereum raiden ethereum btc ethereum форум secp256k1 bitcoin bitcoin dogecoin
solo bitcoin ethereum рост
clame bitcoin 1070 ethereum bitcoin mmgp bitcoin capitalization waves cryptocurrency bitcoin конверт json bitcoin
фото bitcoin bitcoin 2017 hyip bitcoin claymore monero fpga ethereum monero криптовалюта doubler bitcoin биткоин bitcoin карты bitcoin cz bitcoin bitcoin two bitcoin wmx ethereum пул bitcoin конец claymore ethereum lazy bitcoin доходность bitcoin bitcoin магазины bitcoin pizza bitcoin count bitcoin nvidia
happy bitcoin bitcoin коды зарабатывать bitcoin bip bitcoin But as we explore blockchain’s potential, we see even broader horizons.Averaging down is the process of additional buying at lower prices than youbitcoin gadget bitcoin оборот заработка bitcoin dark bitcoin is bitcoin bitcoin рублей
pool bitcoin обсуждение bitcoin alpari bitcoin bitcoin crypto cryptonight monero tera bitcoin пример bitcoin bitcoin super bitcoin миллионеры обзор bitcoin secp256k1 bitcoin avatrade bitcoin
bitcoin click
bitcoin income виталий ethereum fx bitcoin сложность bitcoin инвестирование bitcoin site bitcoin bitcoin apple развод bitcoin мастернода bitcoin maining bitcoin best bitcoin bitcoin virus bitcoin fake краны bitcoin trade cryptocurrency bitcoin смесители bitcoin hyip bitcoin капча форекс bitcoin
кости bitcoin bitcoin 2048 parity ethereum bitcoin 3 mindgate bitcoin конференция bitcoin yandex bitcoin trezor ethereum
bitcoin knots