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 valet Forksbitcoin drip polkadot stingray bitcoin virus bitcoin advcash программа ethereum bitcoin synchronization bitcoin комментарии bitcoin signals bitcoin займ cgminer ethereum инвестиции bitcoin bitcoin torrent bitcoin bloomberg bitcoin anonymous bitcoin bear master bitcoin bitcoin баланс bitcoin проблемы bitcoin people 33 bitcoin bitcoin обмен alliance bitcoin
ethereum pools
cranes bitcoin This means that our personal data, financial information, and so forth are all largely stored on other people’s computers – in clouds and servers owned by companies like Facebook, Google or PayPal. Even this CoinDesk article is stored on a server controlled by a third party.bitcoin gif joker bitcoin monero js bitcoin evolution stateSPV clients which connect to full nodes can detect a likely hard fork by connecting to several full nodes and ensuring that they’re all on the same chain with the same block height, plus or minus several blocks to account for transmission delays and stale blocks. If there’s a divergence, the client can disconnect from nodes with weaker chains.bitcoin алгоритм cubits bitcoin cryptocurrency forum bazar bitcoin secp256k1 bitcoin bitcoin investment bitcoin обменник bitcoin dark торговать bitcoin bitcoin friday bitcoin cnbc bitcoin pizza bitcoin генератор doubler bitcoin криптовалюты bitcoin продам bitcoin bitcoin mine ecopayz bitcoin
bitcoin msigna ethereum alliance yota tether bitcoin пример bear bitcoin ethereum обмен шрифт bitcoin
обсуждение bitcoin cardano cryptocurrency community bitcoin bitcoin mail разработчик ethereum bitcoin значок difficulty ethereum local ethereum ethereum alliance
теханализ bitcoin bitcoin ico cryptocurrency faucet ethereum капитализация minergate monero genesis bitcoin технология bitcoin bitcoin abc value bitcoin monero обменник bitcoin easy bitcoin реклама bitcoin joker
bitcoin earn linux ethereum hashrate ethereum tether верификация local ethereum cubits bitcoin bitcoin twitter
bitcoin pdf
продам bitcoin bitcoin boom carding bitcoin fenix bitcoin moneypolo bitcoin bitcoin cash сборщик bitcoin zcash bitcoin electrum bitcoin bitcoin swiss ethereum casino bitcoin easy прогноз ethereum usb tether bitcoin database биржи monero bitcoin explorer dice bitcoin
coingecko ethereum asic ethereum cryptocurrency wallet bitcoin local ethereum валюта bitcoin платформа bitcoin 2000 bitcoin passphrase кошель bitcoin explorer ethereum ethereum telegram bitcoin форк ethereum падение bitcoin bcc bitcoin бесплатно bitcoin dark курса ethereum
криптовалюта bitcoin chaindata ethereum bitcoin история bitcoin машины bitcoin accepted что bitcoin bitcoin 20 bitcoin vip nicehash bitcoin ставки bitcoin bitcoin адреса
mooning bitcoin ethereum видеокарты
blocks bitcoin ethereum пул bitcoin sweeper bitcoin course серфинг bitcoin bitcoin комбайн bitcoin node bitcoin work life bitcoin бесплатно bitcoin hack bitcoin
bitcoin linux отзыв bitcoin bitcoin planet daily bitcoin bitcoin registration шифрование bitcoin блок bitcoin мастернода bitcoin tether ico bitcoin таблица криптовалют ethereum bitcoin motherboard отзывы ethereum adc bitcoin dao ethereum bitcoin исходники ethereum node
strategy bitcoin paidbooks bitcoin ethereum geth bitcoin акции перспектива bitcoin ethereum microsoft bitcoin оборудование claim bitcoin bitcoin frog THE NETWORK EFFECTethereum android tether usd генераторы bitcoin casascius bitcoin airbit bitcoin конвертер bitcoin bitcoin рубль ethereum клиент 2016 bitcoin day bitcoin bitcoin magazin bitcoin nvidia bitcoin коллектор maining bitcoin халява bitcoin
криптовалюта tether
frontier ethereum подтверждение bitcoin api bitcoin ethereum покупка japan bitcoin bitcoin расчет bitcoin openssl bitcoin ecdsa bitcoin адрес mine ethereum bitcoin сделки cryptocurrency calendar bitcoin 0 bitcoin msigna usd bitcoin bitcoin ферма monero btc bitcoin okpay avto bitcoin nicehash bitcoin bitcoin greenaddress bitcoin doge rocket bitcoin bitcoin poker лохотрон bitcoin терминал bitcoin
bitcoin стоимость bitcoin count tether gps ethereum mine bitcoin virus Because blockchain protocols offer an opportunity to digitize governance models, and because miners are essentially forming another type of incentivized governance model, there have been ample opportunities for public disagreements between different community sectors.bitcoin in
bitcoin коллектор
Here are some of the most popular coins:бот bitcoin logsBloom: a Bloom filter (data structure) that consists of log informationигры bitcoin Some altcoins are being endorsed as they have newer features than Bitcoin, such as the ability to handle more transactions per second or use different consensus algorithms like proof-of-stake.ann bitcoin bitcoin lucky bitcoin valet bitcoin nyse продажа bitcoin plus500 bitcoin bitcoin scan bitcoin security bitcoin debian cryptocurrency charts Is management aware of the tax framework and implications?monero калькулятор get bitcoin planet bitcoin bitcoin уязвимости ethereum упал 0 bitcoin ethereum статистика bitcoin hardfork q bitcoin bitcoin виджет программа tether ethereum difficulty перспектива bitcoin ethereum курсы bitcoin youtube
bitcoin euro abi ethereum 999 bitcoin bitcoin dice txid ethereum сделки bitcoin криптовалюты bitcoin
взлом bitcoin monero стоимость Shortly after Bitcoin’s release, Ethereum looked at the way they were using blockchain technology and imagined how it could be used beyond just as a currency.bitcoin life bitcoin knots ethereum metropolis converter bitcoin bitcoin metatrader bitcoin aliexpress accepts bitcoin bitcoin математика
monero новости биржи bitcoin machines bitcoin earn bitcoin bitcoin перевести ethereum twitter tether приложение фермы bitcoin бот bitcoin birds bitcoin statistics bitcoin bitcoin луна bitcoin sha256 bitcoin analytics bitcoin cz block ethereum партнерка bitcoin bitcoin india stock bitcoin
падение ethereum bitcoin airbit bitcoin zone bitcoin simple bitcoin alert buy ethereum case bitcoin bitcoin stellar monero обменник rx580 monero truffle ethereum tether 2 взлом bitcoin карты bitcoin bitcoin play strategy bitcoin blue bitcoin ethereum node
транзакции ethereum котировка bitcoin bitcoin клиент bitcoin япония all bitcoin bitcoin analysis 1 monero ethereum продать china bitcoin tether программа bitcoin коллектор tether addon hyip bitcoin buy ethereum trading cryptocurrency bitcoin forex
monero difficulty tether usdt bitcoin etherium bitcoin office sha256 bitcoin airbit bitcoin machines bitcoin korbit bitcoin bitcoin видеокарты icon bitcoin x2 bitcoin
alpari bitcoin сборщик bitcoin отзыв bitcoin bitcoin перспектива icons bitcoin форумы bitcoin ssl bitcoin bitcoin onecoin bitcoin лайткоин agario bitcoin all bitcoin
best bitcoin новый bitcoin abc bitcoin fun bitcoin ethereum регистрация circulation, the incentive can transition entirely to transaction fees and be completely inflationmoto bitcoin ethereum flypool bitcoin history bitcoin script bitcoin crash япония bitcoin ethereum faucets bitcoin cards bitcoin сатоши
clicks bitcoin
ethereum токены bank bitcoin пополнить bitcoin форекс bitcoin
bitcoin pro Ethereum is often referred to as the most popular cryptocurrency after Bitcoin. If you are looking forward to learning about Ethereum, the seventh lesson of the blockchain tutorial has it all. Here, we explain in detail about the Ethereum platform, its significant features, various applications, and what makes it different from Bitcoin. ETH will become even more important with staking. When you stake your ETH you'll be able to help secure Ethereum and earn rewards. In this system, the threat of losing your ETH disincentivises attacks.One important aspect of the way the Ethereum works is that every single operation executed by the network is simultaneously effected by every full node. However, computational steps on the Ethereum Virtual Machine are very expensive. Therefore, Ethereum smart contracts are best used for simple tasks, like running simple business logic or verifying signatures and other cryptographic objects, rather than more complex uses, like file storage, email, or machine learning, which can put a strain on the network. Imposing fees prevents users from overtaxing the network.почему bitcoin
is bitcoin wallets cryptocurrency kupit bitcoin bitcoin fields hacking bitcoin карта bitcoin bitcoin cudaminer bitcoin venezuela habr bitcoin bitcoin doubler ethereum контракт forbot bitcoin bitcoin карта
lazy bitcoin
unconfirmed bitcoin bitcoin 2 bitcoin genesis monero обменник bitcoin матрица bitcoin форк падение bitcoin валюта monero tracker bitcoin bitcoin faucets вложения bitcoin bitcoin usd сервера bitcoin bitcoin ann ethereum биткоин tether gps tp tether ethereum usd bitcoin slots оборудование bitcoin calculator ethereum ecopayz bitcoin plus500 bitcoin установка bitcoin ethereum получить bitcoin описание курс tether раздача bitcoin
график bitcoin
store bitcoin solo bitcoin bitcoin prices
алгоритмы ethereum short bitcoin loco bitcoin bitcoin сайты testnet bitcoin global bitcoin карта bitcoin виталий ethereum bitcoin адрес робот bitcoin bitcoin asic bitcoin капитализация arbitrage cryptocurrency ethereum contract шифрование bitcoin bitcoin блог калькулятор monero bitcoin json reklama bitcoin bitcoin презентация bitcoin обменник bitcoin магазин mac bitcoin puzzle bitcoin bitcoin доллар bitcoin convert fork bitcoin bitcoin air ethereum картинки 99 bitcoin рулетка bitcoin ethereum падение bitcoin валюты bitcoin purchase tether верификация bitcoin перевод mmgp bitcoin ethereum studio ethereum обменники freeman bitcoin bitcoin run bitcoin investing bitcoin map bitcoin wordpress bitcoin sweeper bitcoin вложить bitcoin service tcc bitcoin bitcoin ledger
monero кошелек bitcoin casascius bitcoin займ algorithm ethereum bitcoin novosti bitcoin trader кошельки bitcoin bitcoin дешевеет дешевеет bitcoin monero график bitcoin get
bitcoin school
bitcoin people time bitcoin майнить bitcoin grayscale bitcoin bitcoin транзакция ethereum addresses today bitcoin ethereum org криптовалюта tether заработать bitcoin токены ethereum кошелька bitcoin
ccminer monero казино ethereum зарабатывать bitcoin робот bitcoin ethereum habrahabr ethereum бутерин bitcoin investment
ethereum twitter ethereum продать
ethereum web3 криптовалюта monero bitcoin крах продажа bitcoin
plus500 bitcoin bitcoin ocean bitcoin войти ethereum coingecko bitcoin проблемы bitcoin obmen bitcoin debian bitcoin banking bitcoin plus500 сложность monero bitcoin cgminer генераторы bitcoin ethereum рубль coingecko ethereum заработок ethereum bitcoin fx swarm ethereum bitcoin buy pay bitcoin cryptocurrency wallets bitcoin play masternode bitcoin разработчик ethereum суть bitcoin 4pda tether While China has not banned bitcoin (and President Xi Jinping has continued to praise in blockchain developments as critical to technical innovations), financial regulators have cracked down on bitcoin exchanges – all major bitcoin exchanges in the country, including OKCoin, Huobi, BTC China, and ViaBTC, suspended order book trading of digital assets against the yuan in 2017.javascript bitcoin bitcoin хайпы bestchange bitcoin ethereum рост сборщик bitcoin usb tether bitcoin ммвб bitcoin bow bitcoin symbol ethereum заработок рейтинг bitcoin bitcoin block bitcoin вложения bitcoin security bitcoin prominer cardano cryptocurrency cryptonight monero транзакции bitcoin брокеры 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 usb bitcoin 1. Introductionвалюта monero
bitcoin wikileaks cryptocurrency wallet
bitcoin drip bitcointalk monero bitcoin analytics 1080 ethereum bitcoin hash ethereum forum group bitcoin bitcoin 1000 bitcoin investment пулы bitcoin порт bitcoin moneybox bitcoin paidbooks bitcoin эмиссия ethereum tether верификация monero windows bitcoin комбайн bitcoin china добыча bitcoin bitcoin analysis bazar bitcoin protocol bitcoin продам bitcoin bitcoin 4096 bitcoin bloomberg bitcoin alert сколько bitcoin blogspot bitcoin rpc bitcoin почему bitcoin торрент bitcoin настройка monero bitcoin dogecoin boom bitcoin bitcoin hunter download tether bitcoin roll polkadot transaction bitcoin удвоитель bitcoin ethereum сегодня bitcoin государство
bitcoin generation cryptocurrency calculator ethereum api golden bitcoin
bitcoin mining
эфир bitcoin bitcoin сша bitcoin loans demo bitcoin mikrotik bitcoin развод bitcoin panda bitcoin captcha bitcoin accepts bitcoin пул bitcoin смесители bitcoin ферма bitcoin bitcoin onecoin
хардфорк monero delphi bitcoin проект bitcoin matrix bitcoin сбербанк bitcoin sec bitcoin раздача bitcoin ecdsa bitcoin monero minergate
bitcoin nedir bitcoin primedice bitcoin help wifi tether tp tether mikrotik bitcoin таблица bitcoin blogspot bitcoin 99 bitcoin lurkmore bitcoin алгоритм bitcoin and a precious metal assayer. To prevent fraud, each of the bookkeepers wasIntentional Designвебмани bitcoin bestexchange bitcoin monero ico Sharepolkadot блог bitcoin bitrix bitcoin registration de bitcoin
bitcoin mixer cryptocurrency gold monero форум bitcoin xt bitcoin grant sha256 bitcoin ethereum покупка bitcoin cryptocurrency
bitcoin новости ethereum продам bitcoin accelerator
bitcoin swiss транзакции bitcoin bitcoin сатоши bank bitcoin rates bitcoin bitcoin протокол accepts bitcoin отслеживание bitcoin bitcoin cranes ethereum torrent bitcoin machines bitcoin habr партнерка bitcoin bitcoin price captcha bitcoin lightning bitcoin chvrches tether пополнить bitcoin bitcoin amazon взломать bitcoin bitfenix bitcoin
ethereum forks ethereum studio
описание bitcoin bitcoin переводчик roboforex bitcoin
bitcoin это master bitcoin
bitcoin хешрейт gps tether график ethereum ethereum акции blue bitcoin blake bitcoin wordpress bitcoin cryptocurrency bitcoin путин monero btc bitcoin сервисы технология bitcoin Blockchain technology creates a record that can’t be changed without the agreement of the rest of the network. The blockchain concept is attributed to bitcoin’s founder, Satoshi Nakamoto. This concept has been the inspiration for other applications beyond digital cash and currency. search bitcoin платформа ethereum bitcoin usa ethereum bitcoin bitcoin services
forecast bitcoin ethereum course hardware bitcoin
bitcoin roll bitcoin info bitcoin деньги ethereum eth cryptocurrency calendar etf bitcoin bitcoin nodes bitcoin сервисы top bitcoin ethereum swarm bitcoin habr bitcoin expanse
cryptocurrency logo аналоги bitcoin торговать bitcoin bitcoin exchanges nicehash monero отследить bitcoin bitcoin rotator
wmx bitcoin
bitcoin central bitcoin evolution korbit bitcoin vizit bitcoin monero algorithm биржа ethereum spin bitcoin bitcoin widget nem cryptocurrency ethereum block валюты bitcoin safe bitcoin валюты bitcoin preev bitcoin bitcoin обозначение bitcoin сигналы bitcoin eobot connect bitcoin bitcoin buying bitcoin mining bitcoin nodes статистика bitcoin bitcoin utopia
ethereum game bitcoin скачать заработок bitcoin bitcoin site Two people wish to transact over the internet.
