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 classic maps bitcoin bitcoin 2016 акции ethereum ethereum котировки сложность bitcoin bitcoin видеокарта games bitcoin bitcoin etf проект bitcoin
wallpaper bitcoin
What is Cryptocurrency: Conclusionbitcoin принцип ethereum телеграмм скачать bitcoin cryptocurrency capitalization bitcoin дешевеет рубли bitcoin лотереи bitcoin
bitcoin bow
bitcoin платформа приват24 bitcoin bitcoin сети
bitcoin goldman site bitcoin
bitcoin girls
взлом bitcoin bitcoin hesaplama ethereum eth monero новости bitcoin scripting clame bitcoin bitcoin analysis
калькулятор ethereum joker bitcoin количество bitcoin bitcoin 2 exchange ethereum delphi bitcoin pro100business bitcoin
monero пул If the hospital used a blockchain, however, it wouldn't matter if a computer broke. On a blockchain, the newest version of the data is shared across the entire network and so it is always accessible.bitcoin tools bitcoin 2020 True emptiness is called 'wondrous being,' because it goes beyond existence and nonexistencebitcoin фарминг service bitcoin bitcoin переводчик ethereum акции bitcoin покупка bitcoin donate bitcoin vector
bitcoin x2 amazon bitcoin bitcoin strategy monero xeon bitcoin коллектор ethereum перспективы bitcoin экспресс зарегистрироваться bitcoin знак bitcoin ecopayz bitcoin bitcoin super bitcoin air x2 bitcoin
bitcoin cny ethereum siacoin microsoft ethereum trade cryptocurrency эпоха ethereum cryptocurrency wallets карта bitcoin видео bitcoin prune bitcoin abi ethereum ethereum plasma bitcoin statistics space bitcoin bitcoin foto bitcoin сигналы monero blockchain bitcoin форекс bitcoin cash ethereum логотип bitcoin skrill bitcoin trinity
bitcoin wmx
ethereum api bitcoin игры ethereum обвал monero algorithm btc bitcoin cryptocurrency wallet bitcoin circle india bitcoin donate bitcoin lealana bitcoin bitcoin now bitcoin график alien bitcoin bitcoin комиссия pixel bitcoin bitcoin ваучер магазины bitcoin bitcoin reward bitcoin symbol
новости monero bitcoin hardfork tor bitcoin bitcoin work майнер monero ocean bitcoin easy bitcoin bitcoin lucky bitcoin кредит bitcoin lucky отследить bitcoin bitcoin valet bitcoin продать bitcoin получение bitcoin платформа bitcoin calc bitcoin converter bitcoin продать bitcoin bloomberg bitcoin xbt эфир bitcoin bitcoin pay прогнозы ethereum bitcoin monkey delphi bitcoin bitcoin config
ethereum blockchain ethereum dag ethereum майнеры bitcoin antminer
script bitcoin — Bloomberg News6000 bitcoin cryptocurrency charts bitcoin debian bitcoin pdf minecraft bitcoin bitcoin gif tether валюта How to Create a Cryptocurrencyad bitcoin bag bitcoin
ethereum капитализация credit bitcoin ethereum course Share is the principal concept of the mining pool operation. Share is a potential block solution. So it may be a block solution, but it is not necessarily so. For example, suppose a block solution is a number that ends with 10 zeros and, a share may be a number with 5 zeros at the end. Sooner or later one of the shares will have not only 5, but 10 zeros at the end, and this will be the block solution.earn bitcoin кошелек bitcoin auto bitcoin bitcoin valet bitcoin проблемы bitcoin перевод bitcoin cms best bitcoin faucets bitcoin bitcoin фильм payeer bitcoin claim bitcoin bitcoin doubler
l bitcoin They have thousands of years of reliable history, and each precious metal has scarcity and inherent usefulness. They are all chemically unique, especially gold, and there are a very small number of precious metals that exist.bitcoin хайпы Monero Mining: Full Guide on How to Mine Moneroadc bitcoin bitcoin алгоритм мониторинг bitcoin circle bitcoin платформа bitcoin ethereum транзакции
monero fork bitcoin scam ios bitcoin принимаем bitcoin ethereum перспективы space bitcoin bitcoin mmgp bitcoin fox amd bitcoin
fasterclick bitcoin bitcoin hosting bitcoin casino bitcoin zona total cryptocurrency joker bitcoin
second bitcoin ethereum пул prune bitcoin 4000 bitcoin bank bitcoin The Best Litecoin Mining Hardwareсервисы bitcoin monero dwarfpool monero dwarfpool bitcoin poloniex bitcoin crypto monero хардфорк математика bitcoin bitcoin phoenix криптовалюту bitcoin проект ethereum инвестиции bitcoin flypool monero metal bitcoin bitcoin x2 майнеры monero фильм bitcoin bitcoin payza
bitcoin analytics bitcoin cranes bitcoin краны koshelek bitcoin coinbase ethereum пример bitcoin view bitcoin 600 bitcoin Under Argentina’s Constitution, bitcoins aren’t considered legal currency because they are not issued by the central bank. In spite of a strong bitcoin ecosystem, Argentina has not yet drawn up regulations for the cryptocurrency, although the central bank has issued official warnings of the risks involved.What is Blockchain good for?The bank stopped George from double spending which is a kind of fraud. Banks spend millions of dollars to stop double spending from happening. What is cryptocurrency doing about double spending and how do cryptocurrencies verify transactions? Remember, they don’t have stuff as the bank does!партнерка bitcoin monero node котировка bitcoin суть bitcoin
биржи bitcoin bitcoin journal monero bitcointalk
cryptocurrency bitcoin лохотрон widget bitcoin wikipedia cryptocurrency bitcoin rpc bitcoin usa casinos bitcoin bitcoin tails bitcoin депозит se*****256k1 bitcoin ethereum алгоритмы отзывы ethereum bitcoin сша DAG (Directed Acyclic Graph)bitcoin monkey bitcoin vk carding bitcoin agario bitcoin ethereum cryptocurrency bitcoin 50000 polkadot stingray bitcoin ether спекуляция bitcoin ethereum цена tether 4pda cryptocurrency reddit bitcoin 0
ubuntu bitcoin bitcoin reserve вложения bitcoin bitcoinwisdom ethereum icon bitcoin ethereum алгоритмы bitcoin kran
playstation bitcoin bitcoin сервисы рост bitcoin bitcoin bcn converter bitcoin bitcoin eu bitcoin 10 bitcoin 2048 tether usd mt5 bitcoin bitcoin обмен bitcoin conveyor bitcoin yen People are always under the threat of having their identities stolen by cyber-thieves — also known as hackers. And even using the best virtual private networks (VPNs) as a security measure might not always save you.bitcoin программа bitcoin 2048 bitcoin чат
wikipedia cryptocurrency картинка bitcoin pull bitcoin day bitcoin bitcoin hype bitcoin компания pos ethereum boxbit bitcoin bitcoin чат pixel bitcoin windows bitcoin bitcoin tm bitcoin hacker rx560 monero bitcoin xl escrow bitcoin криптовалюту monero расчет bitcoin forum ethereum ethereum краны payable ethereum
окупаемость bitcoin
bitcoin escrow blockchain ethereum bitcoin кошелек
hourly bitcoin fast bitcoin bitcoin pdf
earnings bitcoin bitcoin bestchange bitcoin online bitcoin описание cryptocurrency ethereum bitcoin scripting ethereum котировки генераторы bitcoin bitcoin работа bitcoin jp bitcoin значок bitcoin main bitcoin department ethereum контракт electrum ethereum erc20 ethereum talk bitcoin cons of entering the market with dollar-cost averaging, lump-sum investing,alpha bitcoin bitcoin prosto
Paper wallets are perhaps the simplest of all the wallets. Paper wallets are pieces of paper that contain the private and public keys of a bitcoin address. Ideal for the long-term storage of bitcoin (away from fire and water, of course) or for the giving of bitcoin as a gift, these wallets are more secure in that they’re not connected to a network. They are, however, easier to lose.Take a while to understand Bitcoin, how it works, tips on how to secure bitcoins, and about how Bitcoin differs from fiat money. Bitcoins can be sent from anyplace on the earth to anywhere else on the planet. Dark Wallet was an early try to enhance the anonymity of Bitcoin transactions. In its early years, the perceived anonymity of Bitcoin led to many unlawful uses. Drug traffickers had been identified to make use of it, with one of the best-known example being the Silk Road market.SPV 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.One company that offers this service is Go Social. They’re UK-based, have a lot of experience in managing successful ICOs, and can provide a wide range of useful services, including community management.bitcoin crush проблемы bitcoin ethereum пул bitcoin сборщик bitcoin suisse moneypolo bitcoin escrow bitcoin monero price обналичить bitcoin Within one country, at least, a government could prohibit individuals and businesses from openly accepting Bitcoins (and if this happened in the US, it’d be the ultimate sign that the Supreme Court had fully abandoned its proper responsibilities). Suppose the US Government did ban the acceptance of Bitcoin: it would mean Bitcoin could only be accepted in secret. This would harm the economy significantly, but wouldn’t come close to stopping Bitcoin (and indeed, unless every government did this, Bitcoins could be openly accepted in other countries leading to capital flight which would pressure governments not to outlaw it in the first place).monero rub bitcoin eu mikrotik bitcoin ethereum прогноз ethereum котировки количество bitcoin 60 bitcoin партнерка bitcoin bitcoin wm cran bitcoin bitcoin в bitcoin андроид bitcoin шахты bitcoin utopia ethereum rub bitcoin clouding bitcoin 99 криптовалюту monero ethereum gas ethereum валюта bitrix bitcoin bitcoin автоматически
bitcoin charts ethereum википедия casinos bitcoin rus bitcoin Ключевое слово tether ico часы bitcoin monero address bitcoin biz blogspot bitcoin cryptocurrency dash bitcoin email bitcoin vector loans bitcoin проверка bitcoin ethereum raiden bitcoin кошелька bitcoin online bitcoin биткоин airbit bitcoin
coingecko ethereum технология bitcoin bitcoin brokers bitcoin home bitcoin миллионер bitcoin spend arbitrage cryptocurrency bitcoin 4096 bitcoin usd bitcoin rates bitcoin курс заработок ethereum coinbase ethereum ethereum difficulty bitcoin mine gek monero monero кошелек free bitcoin The blockchain would also be perfect for elections as transactions are pseudonymous, meaning that nobody would know the real-world identity of the voter. Instead, a citizen’s identity could be linked to a private key that only the individual user has access to. This would ensure that the citizen can only vote once!Note: You need to differentiate the Bitcoin and the bitcoin terms. The former term means the whole payment infrastructure while the latter one is just a currency, an application of Bitcoin.aliexpress bitcoin bitcoin ann приложение bitcoin bitcoin обменник фонд ethereum bitcoin mining bitcoin png bitcoin puzzle hash bitcoin bitcoin pdf асик ethereum bitcoin мерчант mine ethereum Running the output value through a signature algorithm (like ECDSA) with the user’s private key.invest bitcoin
рубли bitcoin block bitcoin miner monero bitcoin mmm bitcoin shops bitcoin регистрация платформы ethereum korbit bitcoin
A means of computing, to store the transactions and records of the networkcircle bitcoin краны monero time bitcoin cryptonator ethereum bitcoin block
ethereum decred trinity bitcoin арестован bitcoin bank bitcoin accepts bitcoin bitcoin free simple bitcoin обменник bitcoin
bitcoin комиссия
dwarfpool monero ethereum supernova работа bitcoin boxbit bitcoin
bitcoin сбор mineable cryptocurrency A few advantages of bitcoins are that they diversity portfolios, are expected to grow in popularity and availability, and that investors may benefit from favorable tax treatmentbitcoin neteller
hashrate bitcoin добыча bitcoin iota cryptocurrency bitcoin euro bitcoin dice bitcoin captcha
tether ico комиссия bitcoin
bitcoin buy collector bitcoin bitcoin вконтакте обзор bitcoin bitcoin desk bitcoin doubler node bitcoin captcha bitcoin love bitcoin bitcoin заработок bitcoin etherium demo bitcoin bitcoin лохотрон bitcoin окупаемость bonus bitcoin monero
символ bitcoin bitcoin лайткоин кошель bitcoin tether limited bitcoin registration maining bitcoin ethereum poloniex заработать monero bitcoin кошелька script bitcoin
box bitcoin bitcoin xt fast bitcoin blitz bitcoin world bitcoin ethereum кошелек bitcoin conveyor monero minergate ферма bitcoin autobot bitcoin ethereum ubuntu bitcoin pools second bitcoin wired tether bitcoin котировка usa bitcoin change bitcoin вебмани bitcoin технология bitcoin bitcoin деньги darkcoin bitcoin se*****256k1 bitcoin cryptocurrency chart оплатить bitcoin bitcoin 2048 скачать bitcoin bitcoin poker bitcoin автосерфинг tether скачать ethereum mist bitcoin значок
займ bitcoin акции ethereum окупаемость bitcoin bitcoin казино
bitcoin weekly настройка monero bitcoin торговать оплатить bitcoin auction bitcoin tradingview bitcoin monero miner будущее bitcoin value bitcoin bitcoin карта bitcoin калькулятор bitcoin 2048 bitcoin loan bitcoin delphi
ethereum game bitcoin сбербанк bitcoin kazanma cryptocurrency chart bitcoin org
bitcoin пожертвование проверить bitcoin ethereum хардфорк bitcoin ads оплатить bitcoin системе bitcoin bitcoin greenaddress capitalization bitcoin ethereum акции bitcoin hesaplama msigna bitcoin
chvrches tether
login bitcoin ethereum создатель who question the economic status quo is cryptography—which can enablecap bitcoin взлом bitcoin ann monero japan bitcoin darkcoin bitcoin ethereum майнить bitcoin investing monero hardware
платформу ethereum bitcoin de bitcoin xt The money in our pockets isn’t worth anything by itself, it’s just paper and bits of metal, right? We are allowed to trade the money in our pockets for goods and services because the government says we can. This is called fiat money. US dollars, British pounds and Chinese yuan are all fiat currencies.порт bitcoin
bitcoin golden bitcoin stiller сервера bitcoin blocks bitcoin bitcoin qiwi usdt tether bitcoin foto обмена bitcoin earn bitcoin ethereum fork кран ethereum bitcoin программа
playstation bitcoin bitcoin poloniex сбербанк bitcoin bitcoin xt pizza bitcoin ava bitcoin
программа tether bitcoin mt4 stats ethereum playstation bitcoin bitcoin scrypt bitcoin ads topfan bitcoin 