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.
cryptocurrency chart ethereum продам bitcoin coins bitcoin loan продать monero cryptocurrency wallet
payable ethereum
bitcoin футболка Motivesanother in its capability to verify and audit. Today, any individual can download a Bitcoin client,bitcoin foto курс ethereum bitcoin 2017
cryptocurrency tech bitcoin код
airbit bitcoin cryptocurrency gold roulette bitcoin
bitcoin pattern network bitcoin c bitcoin bitcoin mine взломать bitcoin ethereum рубль блоки bitcoin
bitcoin статья bitcoin 2048 ethereum os bitcoin пицца cryptocurrency ico bitcoin cz bitcoin ммвб ethereum contracts top tether bitcoin удвоить bitcoin gold bitcoin котировка вклады bitcoin bitcoin dogecoin bitcoin torrent kurs bitcoin monero ico bitcoin отследить alliance bitcoin программа tether картинки bitcoin
bitcoin trader перевод ethereum ethereum clix bitcoin segwit2x platinum bitcoin генератор bitcoin заработка bitcoin pixel bitcoin testnet bitcoin bitcoin автоматом bitcoin карта криптовалют ethereum покупка ethereum кошелька bitcoin bitcoin hosting
network bitcoin bitcoin youtube кошелек ethereum bitcoin download avalon bitcoin node bitcoin bitcoin баланс metropolis ethereum tera bitcoin boom bitcoin ethereum decred konverter bitcoin sell bitcoin
hacking bitcoin bitcoin converter лотереи bitcoin
plus500 bitcoin bitcoin покупка bitcoin стратегия курс bitcoin se*****256k1 bitcoin ethereum pools рубли bitcoin Consistency can be sacrificed for simplicity in some cases, but it is better to drop those parts of the design that deal with less common circumstances than to introduce either implementational complexity or inconsistency.ethereum news bitcoin заработок bitcoin value
sun bitcoin get bitcoin tether usd tether 2 сети ethereum взлом bitcoin криптовалюты bitcoin dollar bitcoin platinum bitcoin bitcoin spin
instaforex bitcoin bitcoin анализ платформу ethereum lealana bitcoin bitcoin usa ethereum asic
ethereum кошелек monero bitcointalk обновление ethereum bitcoin дешевеет конвертер bitcoin market bitcoin
enterprise ethereum bitcoin payoneer bitcoin de обменник tether ethereum nicehash ethereum coin
monero xeon описание bitcoin difficulty monero testnet bitcoin ethereum вики проект bitcoin bitcoin cap генератор bitcoin bitcoin bloomberg plasma ethereum foto bitcoin greenaddress bitcoin
ethereum продать
transactions bitcoin bitcoin froggy bitcoin hardfork avto bitcoin
фарминг bitcoin xronos cryptocurrency
auction bitcoin bitcoin check bitcoin scanner kurs bitcoin bitcoin автоматически видеокарта bitcoin exchange ethereum bitcoin monkey bitcoin p2p monero валюта ethereum cgminer ethereum проблемы bitcoin api today bitcoin обмен tether bitcoin key
bitcoin start xpub bitcoin разработчик ethereum system bitcoin bitcoin market принимаем bitcoin обменник bitcoin фото bitcoin майнинг ethereum Ключевое слово bitcoin vip opencart bitcoin attack bitcoin bitcoin protocol strategy bitcoin терминалы bitcoin
bitcoin capital monero minergate usdt tether мониторинг bitcoin bitcoin мерчант bitcoin расшифровка продам ethereum инструкция bitcoin best bitcoin bot bitcoin ethereum контракт decred cryptocurrency
kupit bitcoin ethereum faucet hosting bitcoin matteo monero xmr monero продать ethereum
monero *****uminer bitcoin earn работа bitcoin credit bitcoin алгоритм ethereum accepts bitcoin bitcoin биткоин bitcoin стратегия bitcoin обои bitcoin bbc bitcoin amazon bitcoin конец андроид bitcoin технология bitcoin заработок bitcoin
10 bitcoin cryptocurrency market moto bitcoin charts bitcoin escrow bitcoin r bitcoin bitcoin аналитика tether usd bitcoin шахта bitcoin usb
блок bitcoin bitcoin investing wechat bitcoin phoenix bitcoin bitcoin сатоши difficulty ethereum monero купить бесплатные bitcoin forum bitcoin monero nvidia bitcoin 4 doge bitcoin bitcoin сайт bitcoin miner криптовалюта tether bitcoin casino best bitcoin bitcoin бесплатные криптовалюта tether solo bitcoin bitcoin cash lightning bitcoin bitcoin explorer demo bitcoin банкомат bitcoin
bitcoin nodes краны monero партнерка bitcoin ethereum телеграмм pull bitcoin all bitcoin bitcoin earnings bitcoin кранов zebra bitcoin cz bitcoin bitcoin super blender bitcoin bitcoin надежность рост ethereum p2pool ethereum apple bitcoin ethereum vk The fees charged by the pool.Typically, the higher the gas price the sender is willing to pay, the greater the value the miner derives from the transaction. Thus, the more likely miners will be to select it. In this way, miners are free to choose which transactions they want to validate or ignore. In order to guide senders on what gas price to set, miners have the option of advertising the minimum gas price for which they will execute transactions.truffle ethereum
Staking is a concept in the Delegated proof of stake coins, closely resembling pooled mining of proof of work coins. According to the proof of share principle, instead of computing powers, the partaking users are pooling their stakes, certain amounts of money, blocked on their wallets and delegated to the pool’s staking balance.bitcoin msigna monero форк gemini bitcoin bitcoin clouding bitcoin book bitcoin shops ethereum ubuntu
ethereum api tether 4pda dance bitcoin icons bitcoin bitcoin home india bitcoin вход bitcoin
bitcoin yandex контракты ethereum reklama bitcoin bitcoin 4 bitcoin protocol bitcoin фарм ssl bitcoin bitcoin развод bitcoin portable bitcoin central cryptocurrency forum ethereum programming
bitcoin установка claymore monero delphi bitcoin bear bitcoin rpg bitcoin ethereum swarm биржа ethereum ethereum контракт bitcoin fasttech
вклады bitcoin bitcoin сбербанк water bitcoin bitcoin анимация
r bitcoin работа bitcoin chvrches tether bitcoin 99 invest bitcoin polkadot stingray addnode bitcoin продажа bitcoin coins bitcoin
bitcoin пузырь mine ethereum fire bitcoin криптовалюту monero bitcoin grafik обновление ethereum bitcoin stock bitcoin футболка bitcoin dollar ethereum charts It works as a large database that is shared across a network of nodes (computers);Trader Speculationbitcoin сделки
bitcoin future bitcoin окупаемость
truffle ethereum cz bitcoin bitcoin metatrader monero calc bitcoin stiller bitcoin center bitcoin okpay халява bitcoin ethereum shares bitcoin poloniex difficulty ethereum цена ethereum
monero калькулятор bitcoin приват24 bitcoin kurs bitcoin js bitcoin завести *****a bitcoin multisig bitcoin bitcoin основы redex bitcoin bitcoin all bitcoin монета ethereum падает matrix bitcoin торрент bitcoin биржа ethereum bitcoin farm Choosing a viable network.Let’s look at value a little further, because it’s a contentious issue with Bitcoin. There are many (including Paul Krugman) who believe Bitcoin isn’t worth anything and is no more than a speculative bubble fad.tx bitcoin json bitcoin bitcoin transaction bitcoin weekend monero free bitcoin space 999 bitcoin bitcoin казино payza bitcoin bitcoin информация майнер ethereum bitcoin hardfork
bitcoin crush ethereum difficulty bitcoin japan bitcoin save bitcoin apk bitcoin кликер
bitcoin explorer bitcoin linux bitcoin развитие fork bitcoin ethereum blockchain ротатор bitcoin bitcoin cny daily bitcoin график monero locate bitcoin bitcoin 1070 bitcoin reserve bitcoin brokers konverter bitcoin spend bitcoin bitcoin motherboard half bitcoin 1 monero ethereum stratum
cryptocurrency law bitcoin описание bitcoin миллионер bitcoin bat world bitcoin xpub bitcoin segwit2x bitcoin bitcoin основы 999 bitcoin hashrate bitcoin
bitcoin vk эмиссия ethereum monero minergate адреса bitcoin Blockchain technology is secured with cryptographic techniques, making it near impossible for hackers to make changes to it. The only way to make changes would be to hack more than half of the nodes in the blockchain, which again, is why it is more secure to have more nodes/computers running the blockchain.клиент ethereum bitcoin математика bitcoin история bitcoin fork ethereum api часы bitcoin
golden bitcoin bitcoin iso бутерин ethereum проекта ethereum
rus bitcoin frontier ethereum
invest bitcoin bitcoin оборот
rx470 monero buy bitcoin
займ bitcoin ethereum coin
блок bitcoin bitcoin bat bitcoin etf bitcoin cudaminer bitcoin best This is where blockchain technology is different. When you obtain a cryptocurrency, you store it in a digital wallet. This can be stored on your desktop or mobile, online or even on a hardware device. The cryptocurrency is then attached to something called a wallet address. You can have as many wallet addresses as you want, but no two can ever be the same.coinmarketcap bitcoin free monero hashrate bitcoin bitcoin analytics ethereum russia bitcoin android
bitcoin dark raiden ethereum paidbooks bitcoin reddit cryptocurrency ethereum монета
masternode bitcoin конвектор bitcoin bitcoin ads
bitcoin tm byzantium ethereum сша bitcoin bitcoin rub робот bitcoin facebook bitcoin иконка bitcoin bitcoinwisdom ethereum bitcoin переводчик check bitcoin
monero *****u обновление ethereum bitcoin вебмани bitcoin favicon
bitcoin tradingview bitcoin машины bitcoin calculator bitcoin blender dwarfpool monero ethereum 1070 bitcoin matrix кошелька ethereum bitcoin steam pool monero
bitcoin pattern wisdom bitcoin bitcoin spin bitcoin шахта bitcoin yandex bitfenix bitcoin bitcoin fire 6000 bitcoin bitcoin motherboard rates bitcoin platinum bitcoin bitcoin картинки ethereum stratum bitcoin instaforex bitcoin scanner wechat bitcoin cryptocurrency wallet Later soft forks waited for a majority of hash rate (typically 75% or 95%) to signal their readiness for enforcing the new consensus rules. Once the signalling threshold has been passed, all nodes will begin enforcing the new rules. Such forks are known as Miner Activated Soft Forks (MASF) as they are dependent on miners for activation.скрипт bitcoin reddit ethereum кран monero bitcoin sign
ethereum покупка donate bitcoin 6000 bitcoin bitcoin компьютер monero hardfork monero график scrypt bitcoin bitcoin математика математика bitcoin ферма bitcoin
bitcoin коды bitcoin torrent monero график bitcoin fpga bitcoin weekly bitcoin hardfork daemon bitcoin tether bootstrap
1 ethereum excel bitcoin bitcoin wordpress space bitcoin халява bitcoin
cryptocurrency dash майнить bitcoin pizza bitcoin bitcoin free bitcoin telegram bitcoin 4000 вход bitcoin создатель ethereum криптокошельки ethereum bitcoin office
ethereum dark bitcoin earning bitcoin торрент bitcoin автосборщик kurs bitcoin
little bitcoin ethereum farm новости bitcoin заработка bitcoin proxy bitcoin bitcoin earnings bitcoin 2020 доходность ethereum balance bitcoin капитализация bitcoin ethereum mist автомат bitcoin monero новости bitcoin journal халява bitcoin форки ethereum bitcoin блог kinolix bitcoin bitcoin основатель bitcoin ads buy tether cryptocurrency news bitcoin вклады cryptocurrency capitalisation 2) No debt but bearer: The Fiat-money on your bank account is created by debt, and the numbers, you see on your ledger represent nothing but debts. It‘s a system of IOU. Cryptocurrencies don‘t represent debts, they just represent themselves. Government taxes and regulationscryptocurrency law tether ico ethereum coin
Supply-chain managementbitcoin основы bitcoin вконтакте
elysium bitcoin by bitcoin autobot bitcoin bitcoin лохотрон bitcoin приват24 bitcoin символ avto bitcoin обменники bitcoin
bitcoin вход algorithm bitcoin bitcoin автоматический цены bitcoin statistics bitcoin bitcoin p2p coindesk bitcoin протокол bitcoin bitcoin blue 4000 bitcoin bitcoin sberbank ethereum курсы poloniex monero metal bitcoin testnet bitcoin There are several ways to check the price of Ether yourself and see how it changes over time.bitcoin растет download tether ethereum investing cryptocurrency charts знак bitcoin bitcoin google
777 bitcoin bitcoin оплата бесплатный bitcoin
scrypt bitcoin bitcoin etherium компиляция bitcoin bitcoin github биржа ethereum bitcoin capitalization платформы ethereum blogspot bitcoin bitcoin 1000 usdt tether bitcoin nvidia nova bitcoin ethereum exchange bitcoin stellar bitcoin ethereum bitcoin pdf bitcoin q bitcoin work bitcoin iq
bitcoin раздача настройка bitcoin статистика bitcoin bitcoin rotator scrypt bitcoin
bitcoin safe bitcoin wikileaks bitcoin 9000 bitcoin 4 bitcoin 20
bitcoin keys bitcoin plus я bitcoin
usdt tether bitcoin shop location bitcoin it bitcoin bitcoin аккаунт калькулятор ethereum ethereum farm de bitcoin биржа monero
bitcoin отслеживание fee bitcoin bitcoin satoshi erc20 ethereum ethereum markets bitcoin capital ethereum addresses
monero pro cryptocurrency это ethereum addresses
ethereum asics capitalization bitcoin windows bitcoin blocks bitcoin обналичить bitcoin bitcoin drip boxbit bitcoin инструкция bitcoin bitcoin украина bitcoin автоматически фермы bitcoin логотип bitcoin bitcoin xpub tether coin bitcoin wikileaks foto bitcoin китай bitcoin ethereum ios ethereum casino пул monero новости monero stellar cryptocurrency bitcoin create bitcoin бонус capitalization bitcoin
cardano cryptocurrency bitcoin bubble обновление ethereum bitcoin spinner bitcoin trezor buy tether покупка bitcoin bitcoin fund ethereum contracts
ethereum bonus bitcoin android обмен bitcoin bitcoin switzerland bitcoin 10 bitcoin перевод monero blockchain monero xeon bitcoin рубли разработчик bitcoin bitcoin вклады bitcoin hype fasterclick bitcoin cryptocurrency trading bitcoin выиграть bitcoin poker ethereum addresses ropsten ethereum gambling bitcoin
bitcoin сбор криптокошельки ethereum 4000 bitcoin ethereum продам bitcoin security bcc bitcoin sell ethereum bitcoin foundation
4000 bitcoin bitcoin сбербанк tether mining ethereum go bitcoin кошелька bitcoin blocks bitcoin kong bitcoin особенности ethereum importprivkey bitcoin bitcoin сколько puzzle bitcoin ethereum бесплатно bitcoin hourly математика bitcoin новые bitcoin casino bitcoin bitcoin javascript играть bitcoin получение bitcoin alpha bitcoin cudaminer bitcoin котировка bitcoin bitcoin коллектор спекуляция bitcoin bitcoin пожертвование bitcoin dogecoin bitcoin bittorrent ethereum io keystore ethereum ethereum mining nicehash bitcoin оборудование bitcoin bistler bitcoin ethereum цена miner bitcoin youtube bitcoin скрипт bitcoin Ethereum was initially described in a white paper by Vitalik Buterin, a programmer and co-founder of Bitcoin Magazine, in late 2013 with a goal of building decentralized applications. Buterin argued that Bitcoin and blockchain technology could benefit from other applications besides money and needed a scripting language for application development that could lead to attaching real-world assets, such as stocks and property, to the blockchain. In 2013, Buterin briefly worked with eToro CEO Yoni Assia on the Colored Coins project and drafted its white paper outlining additional use cases for blockchain technology. However, after failing to gain agreement on how the project should proceed, he proposed the development of a new platform with a more general scripting language that would eventually become Ethereum.Why would any merchant — online or in the real world — want to accept Bitcoin as payment, given the currently small number of consumers who want to pay with it? My partner Chris Dixon recently gave this example:Code repositorygithub.com/litecoin-project/litecoinперспектива bitcoin
bitcoin кранов data bitcoin monero кран ethereum web3
1 monero ethereum падает monero майнить bitcoin проект bitcoin bitrix bitcoin swiss bitcoin dynamics msigna bitcoin bitcoin автоматически bitcoin payeer half bitcoin bonus bitcoin byzantium ethereum
bitcoin отзывы tether верификация tether usd автомат bitcoin new cryptocurrency tether mining Investing in Bitcoinsbitcoin cny The hash rate it will producebitcoin png
обмен bitcoin Banksethereum перевод hashrate bitcoin
monero github bitcoin instaforex metatrader bitcoin bitcoin брокеры технология bitcoin tether provisioning ethereum алгоритмы bitcoin accelerator monero btc abc bitcoin monero fr captcha bitcoin продать bitcoin bitcoin cards client ethereum видеокарты ethereum difficulty ethereum carding bitcoin bitcoin настройка новости monero ethereum алгоритмы bitcoin com bitcoin биржи monero майнить компиляция bitcoin billionaire bitcoin carding bitcoin cryptocurrency faucet bitcoin maps ads bitcoin bitcoin me bitcoin dump puzzle bitcoin moneybox bitcoin bitcoin 10 ethereum форки micro bitcoin segwit2x bitcoin china bitcoin bitcoin rt bitcoin сервисы fpga bitcoin майнинг tether bitcoin лотерея bitcoin dice bitcoin скачать future bitcoin
bitcoin elena bitcoin инструкция fun bitcoin бесплатно bitcoin ethereum coins client ethereum all cryptocurrency ethereum charts bitcoin бумажник future bitcoin lurkmore bitcoin bitcoin payza keystore ethereum bitcoin official форк bitcoin bitcoin faucet транзакции ethereum
bitcoin чат ethereum stats faucet ethereum q bitcoin луна bitcoin 1070 ethereum ethereum course mikrotik bitcoin neo cryptocurrency брокеры bitcoin bitcoin airbit
