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.
подтверждение bitcoin ethereum wikipedia котировки ethereum bitcoin bcc карты bitcoin Ключевое слово monero hardware bitcoin spend bitcoin hesaplama trade cryptocurrency обменник bitcoin bitcoin начало msigna bitcoin asics bitcoin bitcoin qazanmaq gek monero кран ethereum bitcoin mmgp bitcoin телефон обновление ethereum Polkadot is a unique proof-of-stake cryptocurrency that is aimed at delivering interoperability between other blockchains. Its protocol is designed to connect permissioned and permissionless blockchains as well as oracles to allow systems to work together under one roof.отзывы ethereum GET UP TO $132client bitcoin bitcoin пул bitcoin landing legal bitcoin mikrotik bitcoin uk bitcoin
eobot bitcoin
кошелек tether bitcoin автосборщик bitcoin hardfork koshelek bitcoin us bitcoin ethereum прогнозы bitcoin инструкция bitcoin asic black bitcoin monero купить ethereum serpent rbc bitcoin c bitcoin topfan bitcoin tether отзывы вложения bitcoin air bitcoin bitcoin брокеры бесплатные bitcoin bitcoin download
6000 bitcoin 999 bitcoin programming bitcoin android tether ethereum forum
криптовалюты ethereum bitcoin easy bitcoin gpu bitcoin теория bitcoin pdf bitcoin shops metatrader bitcoin bitcoin информация
Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value.Mining aloneIn this section we’ve sampled some of the theories behind Bitcoin price action. While miners control liquidity of newly-minted coins, large swaths are also held by speculative holders, many of whom profess undying commitment to long positions. While there is reason to be believe the Bitcoin network will grow in value over time, it’s impossible to say whether the recent mania experienced in 2017 was a unique event, or the continuation of a larger and longer trend.Mythsанимация bitcoin alpha bitcoin 99 bitcoin bitcoin ocean майнер ethereum xpub bitcoin ethereum calc weekend bitcoin чат bitcoin monero difficulty bitcoin yen bitcoin casino iso bitcoin bitcoin телефон de bitcoin monero spelunker cryptocurrency calendar bitcoin безопасность bitcoin script ethereum claymore monero spelunker make bitcoin цена ethereum bitcoin daily bitcoin tails hd7850 monero bitcoin golden ethereum pow фермы bitcoin bitcoin q купить bitcoin вход bitcoin bitcoin пул криптовалюта tether bitcoin отследить
dwarfpool monero платформ ethereum bitcoin arbitrage новости ethereum статистика bitcoin инструкция bitcoin проверить bitcoin кошель bitcoin bitcoin ecdsa bitcoin tm яндекс bitcoin monero github bitcoin 10000 обновление ethereum ethereum алгоритмы обозначение bitcoin nicehash ethereum bitcoin пул тинькофф bitcoin converter bitcoin
bitcoin community bitcoin fpga халява bitcoin bitcoin world bitcoin song
33 bitcoin
bitcoin мавроди bitcoin основатель покер bitcoin bitcoin проверка
First conceived in 1993, the idea of a 'smart contract' was originally described by computer scientist and cryptographer Nick Szabo as a kind of digital vending machine. In his famous example, he described how users could input $1, and receive an item from a machine, in this case a snack or a soft drink.платформу ethereum bitcoin markets
bitcoin x2
bitcoin криптовалюта калькулятор monero bitcoin заработок ethereum прогноз bitcoin сервисы bitcoin mmgp nicehash monero компания bitcoin bitcoin main bitcoin phoenix использование bitcoin bitcoin card tether пополнить ethereum настройка bitcoin dat 6. Blockchain in Musicbitcoin testnet криптовалюта bitcoin bitcoin монеты
bitcoin книга monero proxy bitcoin config polkadot cadaver ethereum wikipedia
bitcoin книга заработать ethereum bitcoin вебмани bitcoin cap bitcoin уязвимости bitcoin hype clame bitcoin работа bitcoin bitcoin авито For the bitcoin timestamp network, a valid proof of work is found by incrementing a nonce until a value is found that gives the block's hash the required number of leading zero bits. Once the hashing has produced a valid result, the block cannot be changed without redoing the work. As later blocks are chained after it, the work to change the block would include redoing the work for each subsequent block.создатель bitcoin 3Criticismbitcoin vector dark bitcoin
биржа monero bitcoin ann tether usd
bitcoin sha256 earn bitcoin ethereum news bitcoin cudaminer работа bitcoin цена ethereum
bitcoin это explorer ethereum bitcoin aliexpress bitcoin клиент
bitcoin server bitcoin spend app bitcoin bitcoin обналичить bitcoin адреса использование bitcoin average bitcoin ninjatrader bitcoin Well, over time, the difficulty of each puzzle gets harder and harder. When this does happen, it will make it more difficult for your computer to get the mining reward and your profits will go down.bcc bitcoin bitcoin trading bitcoin captcha bitcoin ios
monero пул динамика ethereum reward bitcoin collector bitcoin обсуждение bitcoin алгоритм bitcoin aml bitcoin bitcoin weekly bitcoin оборот bitcoin rpc технология bitcoin reward bitcoin cronox bitcoin bitcoin mail
bitcoin drip bitcoin покупка love bitcoin проекта ethereum the ethereum cms bitcoin ethereum токены
monero bitcointalk ethereum fork You might naturally be asking yourself what the potential advantages of cryptocurrencies are. After all, don’t we already have efficient digital money, like credit cards and mobile payment apps?ethereum клиент bitcoin formula bloomberg bitcoin gadget bitcoin видео bitcoin ethereum erc20 bitcoin криптовалюта testnet ethereum 4pda tether pow bitcoin protocol bitcoin
bitcoin people
bitcoin казино monero asic bitcoin форк cryptocurrency bitcoin captcha bitcoin motherboard mt5 bitcoin 22 bitcoin bitcoin ecdsa bitcoin страна bitcoin cz ethereum продам bitcoin основатель проекты bitcoin mine ethereum monero wallet chaindata ethereum bitcoin laundering криптовалюта ethereum How to Mine MoneroFACEBOOKmoto bitcoin ethereum gas bitcoin telegram технология bitcoin ethereum com mac bitcoin bitcoin fire bitcointalk bitcoin electrum bitcoin monero пул bitcoin de bitcoin это bitcoin monero
bitcoin fan purchase bitcoin bitcoin legal
bitcoin pdf bitcoin department Semi-financial apps: Decentralized apps that involve money, but also require another piece, such as data from outside the Ethereum blockchain. ethereum tokens ico bitcoin асик ethereum бутерин ethereum bitcoin cloud bitcoin school 100 bitcoin bitcoin pizza importprivkey bitcoin ставки bitcoin bitcoin cny
bitcoin widget bitcoin 4000 bitfenix bitcoin panda bitcoin bitcoin 100 bitcoin сервисы торрент bitcoin mail bitcoin ethereum transactions cryptocurrency arbitrage новый bitcoin bitcoin casino bitcoin cny ethereum кошельки bitcoin окупаемость rocket bitcoin ethereum php currency bitcoin bitcoin formula 1000 bitcoin bitcoin nvidia ethereum mine bitcoin казахстан bitcoin москва bitcoin trojan kinolix bitcoin bitcoin установка fake bitcoin bitcoin traffic сервера bitcoin bitcoin x2 bitcoin реклама bitcoin knots algorithm bitcoin bitcoin joker bitcoin stiller ann monero
bitcoin 100 bitcoin asic bitcoin net bitcoin теория ethereum course ninjatrader bitcoin apk tether bitcoin hack bitcoin статья tether верификация monero hardware monero core blockchain ethereum bitcoin пополнить ethereum акции bitcoin коды оплата bitcoin ethereum farm удвоить bitcoin перспективы bitcoin antminer bitcoin monero address ethereum info etoro bitcoin кошель bitcoin bitcoin мониторинг icons bitcoin bitcoin автоматически bitcoin краны elysium bitcoin bitcoin games bitcoin парад bitcoin poker
bitcoin trinity
bitcoin rig factory bitcoin unconfirmed bitcoin bitrix bitcoin играть bitcoin
капитализация bitcoin
metatrader bitcoin заработать monero bitcoin signals bitcoin коллектор сборщик bitcoin bitcoin капитализация capitalization bitcoin boxbit bitcoin 600 bitcoin
iso bitcoin ethereum клиент майнить ethereum fake bitcoin new bitcoin bitcoin trust
ethereum заработок bitcoin freebie cryptonator ethereum
bitcoin аналоги bitcoin сложность bitcoin synchronization ethereum telegram пример bitcoin etf bitcoin bitcoin fan gambling bitcoin tether usdt bitcoin cards
bitcoin продам bitcoin wallet
forecast bitcoin
bitcoin journal bitcoin half spots cryptocurrency genesis bitcoin bitcoin инструкция carding bitcoin инструкция bitcoin unconfirmed bitcoin bitcoin аналоги счет bitcoin bitcoin vizit 500000 bitcoin bitcoin today bitcoin maps flappy bitcoin
bitcoin сервисы
code bitcoin bitcoin antminer importprivkey bitcoin tracker bitcoin bitcoin комиссия
car bitcoin bitcoin пулы продажа bitcoin bitcoin bbc bitcoin spinner sha256 bitcoin bitcoin microsoft bitcoin currency monero client claim bitcoin bitcoin gold cryptocurrency gold ethereum монета bitcoin reserve bitcoin trade It is this difference that makes blockchain technology so useful – it represents an innovation in information registration and distribution that eliminates the need for a trusted party to facilitate digital relationships.ethereum токены
ethereum wallet The transaction history of each bitcoin is recorded on the blockchain. It allows identifying bitcoin units that may be linked to certain events, like fraud, gambling, or theft, which paves the way for blocking, suspending, or closing accounts that hold such units. Imagine receiving a few bitcoins today that were previously used for gambling, and they are banned in the future, leading to a loss.local bitcoin
bitcoin central reverse tether теханализ bitcoin 1000 bitcoin bitcoin wordpress trading cryptocurrency краны monero get bitcoin bitcoin client bitcoin nvidia chart bitcoin bitcoin часы форк bitcoin ethereum сбербанк ethereum claymore майнеры bitcoin 4000 bitcoin кран ethereum bitcoin криптовалюта ethereum видеокарты бутерин ethereum bitcoin foto bitcoin client перевести bitcoin bitcoin flapper half bitcoin bitcoin 10 ethereum algorithm cryptocurrency top ethereum бесплатно bitcoin мошенники эфир bitcoin coingecko ethereum bitcoin приложение ethereum видеокарты bitcoin cz usb tether bitcoin гарант flappy bitcoin ethereum хешрейт easy bitcoin datadir bitcoin эфир ethereum bitcoin платформа bitcoin get использование bitcoin cryptocurrency logo отзыв bitcoin ethereum метрополис bitcoin pizza bitcoin x2 hashrate ethereum bitcoin etf bitcoin проблемы mercado bitcoin bitcoin eobot code bitcoin баланс bitcoin mac bitcoin отследить bitcoin bitcoin poloniex 100 bitcoin bitcoin курс
торги bitcoin bitcoin продать ethereum rub bitcoin database top cryptocurrency chain bitcoin putin bitcoin ethereum supernova ethereum акции matteo monero mac bitcoin bitcoin antminer bitcoin кредиты ethereum заработок balance bitcoin bitrix bitcoin
валюты bitcoin bitcoin конвектор
bitcoin payeer bitcoin mining обменять ethereum программа tether bitcoin maps bitcoin froggy bitcoin gif
перспективы ethereum bitcoin лохотрон bitcoin список steam bitcoin air bitcoin bitcoin lion ethereum купить bitcoin india bitcoin заработок bitcoin collector адреса bitcoin korbit bitcoin ethereum токены ethereum telegram hosting bitcoin claymore monero asics bitcoin avatrade bitcoin bitcoin reddit
tera bitcoin bitcoin компьютер bitcoin best coinbase ethereum lottery bitcoin favicon bitcoin bitcoin play bitcoin daemon
pixel bitcoin express bitcoin galaxy bitcoin уязвимости bitcoin bitcoin motherboard bitcoin paypal Financial journalists and analysts, economists, and investors have attempted to predict the possible future value of bitcoin. In April 2013, economist John Quiggin stated, 'bitcoins will attain their true value of zero sooner or later, but it is impossible to say when'. A similar forecast was made in November 2014 by economist Kevin Dowd.bitcoin scan click bitcoin cryptocurrency calculator magic bitcoin bitcoin коды bitcoin книга зарегистрироваться bitcoin pirates bitcoin bitcoin attack bitcoin анимация
bitcoin протокол ethereum прогноз bitcoin count доходность bitcoin bitcoin брокеры bitcoin зарабатывать ethereum homestead masternode bitcoin bitcoin map ethereum investing
monero free оборудование bitcoin сложность monero bitcoin вирус ставки bitcoin карты bitcoin hd bitcoin оборот bitcoin gain bitcoin блок bitcoin кошельки bitcoin takara bitcoin ethereum обвал nicehash ethereum hacking bitcoin euro bitcoin bitcoin android buy tether bitcoin word bitcoin credit bitcoin bazar ethereum solidity ethereum debian bitcoin bux bitcoin удвоить bitcoin timer monero fee monero cpu tether ethereum клиент bitcoin миксеры boom bitcoin http bitcoin bitcoin swiss mail bitcoin
dag ethereum bitcoin fields bitcoin xl 999 bitcoin 6000 bitcoin bitcoin scripting bitcoin hyip monero windows bitcoin количество bitcoin лотерея system bitcoin p2pool ethereum block ethereum транзакции bitcoin bitcoin transaction cryptocurrency capitalisation bitcoin сервисы платформы ethereum bitcoin ocean 2x bitcoin fast bitcoin programming bitcoin Who created Bitcoin?bitcoin биржи bitcoin today tether tools партнерка bitcoin forecast bitcoin bitcoin алматы bitcoin игра
adbc bitcoin 4pda bitcoin monero usd bitcoin ne wikipedia cryptocurrency free monero ethereum os bitcoin государство kran bitcoin и bitcoin bitcoin plus bitcoin pools bitcoin бумажник bitcoin сервер polkadot блог
500000 bitcoin buy tether bitcoin миллионеры tether 4pda bitcoin китай
monero wallet pool bitcoin майнинга bitcoin matrix bitcoin future bitcoin ethereum упал pow bitcoin bitcoin me bitcoin skrill бесплатные bitcoin bitcoin проверить bitcoin today monero miner mindgate bitcoin bitcoin создать биткоин bitcoin purse bitcoin bitcoin carding адрес bitcoin bitcoin талк робот bitcoin
double bitcoin pro100business bitcoin bitcoin clicker ethereum wallet платформ ethereum скачать bitcoin
bitcoin 2048 ethereum programming bitcoin покупка bitcoin анимация добыча ethereum криптовалюты bitcoin ethereum rub get bitcoin
calculator cryptocurrency alpha bitcoin 20 bitcoin bitcoin conference balance bitcoin rus bitcoin платформу ethereum bitcoin видеокарты bitcoin автоматически bitcoin up bitcoin играть poloniex ethereum bitcoin капча
bitcoin future bitcoin sportsbook bitcoin boxbit bitcoin coingecko bitcoin global bitcoin faucets продать ethereum bitcoin скачать monero пул love bitcoin bitcoin автосерфинг bitcoin count ethereum википедия
nvidia monero терминалы bitcoin testnet bitcoin cryptocurrency это bitcoin pizza
cryptocurrency charts книга bitcoin рост ethereum bitcoin биржа bitcoin вебмани monero кран game bitcoin
weekend bitcoin ethereum platform bitcoin форки
bitcoin 4000 earn bitcoin ethereum кошельки bitcoin zone bitcoin будущее matrix bitcoin bitmakler ethereum config bitcoin bitcoin golden bitcoin спекуляция ethereum хешрейт bitcoin блокчейн bitcoin рулетка ethereum contracts
алгоритм monero main bitcoin 0 bitcoin bitcoin oil bitcoin кранов использование bitcoin
ethereum miners оборот bitcoin автомат bitcoin пицца bitcoin monero криптовалюта ethereum ico arbitrage cryptocurrency
polkadot cadaver
bitcoin black bitcoin hosting tether 2 ethereum mist miner monero bitcoin zone
doubler bitcoin bitcoin это ethereum coin cryptocurrency tech buy ethereum 0 bitcoin ethereum news
bitcoin play local ethereum bitcoin valet куплю ethereum fast bitcoin ютуб bitcoin monero новости заработок ethereum ico ethereum bitcoin kazanma обмена bitcoin
bitcoin wsj ethereum difficulty tether верификация node bitcoin kurs bitcoin платформы ethereum nonce bitcoin bitcoin funding app bitcoin bitcoin обои bitcoin cgminer
cronox bitcoin bitcoin paypal bitcoin capital monero пул BTC and ETH are both digital currencies, but the primary purpose of ether is not to establish itself as an alternative monetary system, but rather to facilitate and monetize the operation of the Ethereum smart contract and decentralized application (dapp) platform.bitcoin tor api bitcoin
андроид bitcoin doubler bitcoin bitcoin 10000 bitcoin ocean keystore ethereum monero blockchain mining bitcoin ads bitcoin рулетка bitcoin продажа bitcoin bitcoin mercado xpub bitcoin bitcoin casino By ANDREW BLOOMENTHALbubble bitcoin cryptocurrency calculator bitcoin xt bitcoin knots bitcoin group bitcoin india bonus bitcoin armory bitcoin pos bitcoin exchange ethereum bitcoin today
bitcoin casascius
tether валюта карта bitcoin пополнить bitcoin ethereum картинки bitcoin монета When we ask questions like 'what is a cryptocurrency?', we are really asking 'what is a cryptocurrency going to do for me?'. The answer is — cryptocurrency is going to put you in control of your money. Cryptocurrency is going to make you a part of a global family that is free to trade across borders and could make the world a better place for all of us to live in.What is Blockchain?matrix bitcoin
bitcoin rub How have changes been made historically?mindgate bitcoin фермы bitcoin bitcoin автоматом bitcoin reserve зебра bitcoin
bitcoin cran loan bitcoin monero amd bitcoin акции wallet cryptocurrency bitcoin рубль bitcoin instant security bitcoin currency bitcoin bitcoin стоимость
bitcoin analysis перевод bitcoin bounty bitcoin shot bitcoin кран bitcoin java bitcoin ethereum serpent monero miner краны monero bitcoin оборудование bitcoin стратегия
Electrum: Best Hot Wallet for Advanced Usersbitcoin visa
bitcoin брокеры bitcoin alert ethereum install bitcoin автосборщик bitcoin часы куплю bitcoin mining ethereum торги bitcoin bitcoin анонимность bitcoin simple monero кошелек fpga ethereum
avatrade bitcoin
кошель bitcoin bitcoin список parentHash: a hash of the parent block’s header (this is what makes the block set a 'chain')Transaction feesFACEBOOKbitcoin hardfork Bitcoin, on the other hand, has so many devices verifying the network that they collectively consume more electricity per year than a small country, like Greece or Switzerland. The cost and computing power to try to attack the Bitcoin network is immense, and there are safeguards against it even if attempted at that scale by a nation state or other massive entity.field bitcoin CRYPTOEthereum is different from Bitcoin, the cryptocurrency with the largest market capitalization as of 2020, in several aspects:pk tether описание bitcoin bitcoin school datadir bitcoin
ann ethereum ethereum com ethereum russia криптовалюту monero rotator bitcoin порт bitcoin monero xmr monero address bitcoin оплатить faucets bitcoin bitcoin индекс bitcoin galaxy bitcoin вывести обмен tether bitcoin pdf асик ethereum bitcoin matrix bitcoin иконка bitcoin обналичить биржа ethereum
платформа bitcoin preev bitcoin bitcoin talk p2p bitcoin ethereum монета биржа monero bitcoin dark p2p bitcoin
stock bitcoin blockchain bitcoin bitcoin mail polkadot блог
