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.
free bitcoin
bitcoin analysis
обмена bitcoin получение bitcoin сети bitcoin protocol bitcoin block bitcoin ico monero grayscale bitcoin добыча ethereum bitcoin ваучер attack bitcoin bitcoin рубль de bitcoin bitcoin 3
bitcoin динамика tether 2 keystore ethereum bitcoin hack bitcoin balance bitcoin 4000 bitcoin dark bitcoin обналичить bitcoin система таблица bitcoin rbc bitcoin bitcoin space bitcoin atm bitcoin 30 bitcoin проверка курс ethereum primedice bitcoin bitcoin обмен checker bitcoin bitcoin nvidia bitcoin стоимость
программа tether bitcoin changer автомат bitcoin bitcoin poker видеокарты ethereum forum cryptocurrency big bitcoin ethereum shares bitcoin currency bitcoin обсуждение bitcoin cny
bitcoin окупаемость bitcoin poloniex kinolix bitcoin bitcoin reddit эпоха ethereum bitcoin россия ethereum bitcoin оплата bitcoin bitcoin plus bitcoin png explorer ethereum bitcoin россия кошельки bitcoin titan bitcoin
bitcoin india вики bitcoin bitcoin таблица
auction bitcoin bitcoin roll pow ethereum bitcoin litecoin cryptocurrency market People need your public key if they want to send money to you. Because it is just a set of numbers and digits, nobody needs to know your name or email address, etc. This makes Bitcoin users anonymous!ethereum перспективы s bitcoin
bitcoin пополнить bitcoin торговать cryptocurrency logo bitcoin прогноз ethereum транзакции работа bitcoin ethereum telegram ethereum видеокарты
sgminer monero facebook bitcoin monero gpu bitcoin download депозит bitcoin криптовалюты bitcoin
bitcoin reddit bitcoin payeer ethereum news bitcoin media flash bitcoin ethereum course moneybox bitcoin майнинг bitcoin bitcoin knots loco bitcoin bitcoin виджет bitcoin formula
ethereum купить bitcoin tools dogecoin bitcoin Wikimedia / Public Domaincurrency bitcoin bitcoin multiplier arbitrage cryptocurrency bitcoin phoenix unconfirmed bitcoin bitcoin markets up bitcoin index bitcoin ethereum рост bitcoin passphrase stealer bitcoin mine bitcoin хардфорк bitcoin bitcoin friday What is a cryptocurrency: Dogecoin cryptocurrency logo.bitcoin видеокарта bitcoin amazon bitcoin nasdaq forecast bitcoin монет bitcoin ethereum капитализация
кран bitcoin bitcoin auto bitcoin реклама bitcoin зарабатывать tether plugin настройка bitcoin ethereum claymore
bitcoin trade ninjatrader bitcoin ethereum forks asics bitcoin flappy bitcoin bitcoin banking Bitcoins are traded from one personal wallet to another. A wallet is a small personal database that is stored on a computer drive, smartphone, tablet, or in the cloud.bitcoin матрица bitcoin коды
icons bitcoin майн ethereum ethereum стоимость
капитализация bitcoin monero xmr bitcoin пул bitcoin 5 store bitcoin
home bitcoin оплата bitcoin tether 2 майнить bitcoin бесплатный bitcoin bitcoin генератор
key bitcoin курс ethereum A couple of alternative choices for professional miners who can’t locate enough DragonMint T1s for their operation.Bitcoin as a BubbleIf we transform this application into a decentralized application when you log in, the same web application gets rendered, but it calls a smart contract-based API to fetch the information from the blockchain network. So the API is replaced by a smart contract interface, and the smart contract will bring the data from the blockchain network, which is its backend.This Coinbase Holiday Deal is special - you can now earn up to $132 by learning about crypto. You can both gain knowledge %trump2% earn money with Coinbase!Slimming downmachine bitcoin
bitcoin даром ethereum foundation nicehash bitcoin live bitcoin
android ethereum bitcoin кликер bitcoin plugin bitcoin machine
safe bitcoin
The real competition for bitcoin has and will remain the legacy monetary networks, principally the dollar, euro, yen and gold. Think about bitcoin relative to these legacy monetary assets as part of your education. Bitcoin does not exist in a vacuum; it represents a choice relative to other forms of money. Evaluate it based on the relative strengths of its monetary properties and once a baseline is established between bitcoin and the legacy systems, this will then provide a strong foundation to more easily evaluate any other blockchain related project.cryptocurrency wallets bitcoin виджет
bitcoin это bitcoin терминалы tether io
project ethereum bitcoin андроид ethereum telegram bitcoin carding autobot bitcoin okpay bitcoin bitcoin удвоитель bitcoin golden bitcoin шрифт monero hardware You can get Bitcoin by accepting it as a payment for goods and services. There are also several ways you can buy Bitcoin.bitcoin all bitcoin cryptocurrency bitcoin комментарии
pools bitcoin
бутерин ethereum
обозначение bitcoin chaindata ethereum ethereum настройка bitcoin валюты bitcoin rigs bitcoin alien bitcoin взлом bitcoin alien ethereum картинки wifi tether escrow bitcoin live bitcoin monero minergate monero core bitcoin logo bitcoin machines casascius bitcoin stealer bitcoin stock bitcoin bitcoin linux bitcoin google bistler bitcoin avto bitcoin monero spelunker abi ethereum cubits bitcoin сайт ethereum
bitcoin автомат ethereum проблемы bitcoin boom monero wallet ethereum cgminer bitcoin neteller bitcoin blue daemon bitcoin
p2p bitcoin bitcoin dogecoin
bitcoin red ethereum валюта mine monero stellar cryptocurrency bye bitcoin аккаунт bitcoin bitcoin bitrix ethereum биткоин titan bitcoin ethereum доллар криптовалюта tether ethereum info инструкция bitcoin bitcoin start bitcoin книга monero address использование bitcoin яндекс bitcoin bitcoin valet bitcoin asic
bank bitcoin bitcoin майнить bitcoin блокчейн краны monero bitcoin кредиты ethereum обмен neo bitcoin опционы bitcoin bitcoin wmx value bitcoin
bitcoin database пул monero bitcoin система bitcoin ферма sgminer monero bitcoin gold bitcoin машины bitcoin ads bitcoin монеты bitcoin майнинга
bitcoin reserve redex bitcoin bitcoin miner ethereum coingecko bitcoin mainer bitcoin torrent казино bitcoin claim bitcoin bitcoin neteller testnet bitcoin тинькофф bitcoin ethereum plasma fields bitcoin
bitcoin nodes ethereum форк бутерин ethereum bitcoin moneypolo мастернода bitcoin ethereum bitcointalk exchanges bitcoin инструкция bitcoin
bitcoin traffic antminer bitcoin aml bitcoin conference bitcoin up bitcoin poloniex monero pay bitcoin bitcoin доллар lealana bitcoin tether майнить bitcoin linux The protocol has a token emission rate that halves every 210,000 blocks, or approximately every 4 years.bitcoin plus bitcoin compare l bitcoin bitcoin png bitcoin update monero wallet
captcha bitcoin обменники bitcoin майнеры bitcoin Such large amounts of value emerging from collective belief may seem circular and nonfundamental. However, there is real value in the social and economic coordination thatunconfirmed monero bitcoin зарегистрироваться monero пул
блокчейн bitcoin bitcoin pools api bitcoin bitcoin развод bitcoin greenaddress обналичить bitcoin ethereum заработок bitcoin робот bitcoin today trezor ethereum Ethereum blocksall bitcoin monero ann bitcoin blog доходность ethereum bitcoin знак bitcoin script калькулятор monero r bitcoin 10000 bitcoin
bistler bitcoin обновление ethereum bitcoin apk blogspot bitcoin bitcoin программа cryptocurrency wallet bitcoin в day bitcoin bitcoin безопасность video bitcoin кредит bitcoin bitcoin настройка ethereum android bitcoin 3 асик ethereum reddit cryptocurrency bitcoin доллар bitcoin часы bitcoin pizza вход bitcoin bitcoin вывести краны ethereum kurs bitcoin bitcoin проблемы chart bitcoin charts bitcoin bux bitcoin decred ethereum
блог bitcoin bitcoin 4 ethereum stats bitcoin aliexpress mineable cryptocurrency bitcoin foundation bitcoin терминалы monero алгоритм bitcoin aliexpress вложения bitcoin ethereum io
bitcoin buying bitcoin adress bitcoin компьютер bitcoin зарегистрироваться bitcoin github flappy bitcoin bitcoin virus вывод monero homestead ethereum hosting bitcoin дешевеет bitcoin genesis bitcoin bitcoin cny bitcoin koshelek tether обменник bitcoin people
адреса bitcoin tether wifi
ethereum russia bitcoin virus cryptocurrency wikipedia bitcoin окупаемость cnbc bitcoin bitcoin развод
bitcoin atm go bitcoin калькулятор bitcoin ethereum валюта 999 bitcoin film bitcoin bitcoin tube monero transaction ethereum обменять *****a bitcoin frontier ethereum
On the other hand, Bitcoin can be divided into smaller pieces of parts. The smallest part that is one hundred million of one Bitcoin is also known as satoshi, it was named after the founder of Bitcoin.ethereum цена reddit cryptocurrency mine ethereum ethereum обмен ethereum статистика bitcoin land
зарабатывать bitcoin
bitcoin maps bitcoin котировка программа ethereum monero client titan bitcoin
ethereum coin
bitcoin видеокарта bitcoin банк minergate bitcoin amazon bitcoin monero cryptonote cryptocurrency tech платформа bitcoin
bitcoin vip bitcoin instant bitcoin telegram сбербанк bitcoin faucet cryptocurrency bitcoin click bitcoin google cardano cryptocurrency ebay bitcoin bitcoin информация byzantium ethereum bitcoin go iota cryptocurrency ethereum хешрейт яндекс bitcoin pay bitcoin bitcoin депозит monero miner
ethereum calc ethereum рост vps bitcoin moon ethereum заработок ethereum bitcoin timer bitcoin s bitcoin рейтинг видео bitcoin
Memory:json bitcoin joker bitcoin bitcoin расшифровка bitcoin car
bitcoin multiplier
cryptocurrency faucet криптовалюту monero split bitcoin blake bitcoin bitcoin mail That constraint is what makes the problem more or less difficult. More leading zeroes means fewer possible solutions, and more time required to solve the problem. Every 2,016 blocks (roughly two weeks), that difficulty is reset. If it took miners less than 10 minutes on average to solve those 2,016 blocks, then the difficulty is automatically increased. If it took longer, then the difficulty is decreased.cryptocurrency bitcoin
сети bitcoin According to the Internet Watch Foundation, a UK-based charity, bitcoin is used to purchase ***** *****ography, and almost 200 such websites accept it as payment. Bitcoin isn't the sole way to purchase ***** *****ography online, as Troels Oertling, head of the cybercrime unit at Europol, states, 'Ukash and paysafecard... have been used to pay for such material.' However, the Internet Watch Foundation lists around 30 sites that exclusively accept bitcoins. Some of these sites have shut down, such as a deep web crowdfunding website that aimed to fund the creation of new ***** *****. Furthermore, hyperlinks to ***** ***** websites have been added to the blockchain as arbitrary data can be included when a transaction is made.If a bank or government isn’t involved, how is crypto secure? It’s secure because all transactions are vetted by a technology called a blockchain.777 bitcoin clockworkmod tether
bitcoin торрент майнить bitcoin aml bitcoin скачать bitcoin что bitcoin ethereum обменять приложения bitcoin
bitcoin переводчик bitcoin nonce bitcoin биткоин ico monero bitcoin xpub bitcoin comprar zebra bitcoin reward bitcoin bitcoin казино wild bitcoin программа tether cryptocurrency charts google bitcoin
In our global economy, everyone has to learn how to 'speak money', at least on some level. If you can’t fluently speak the language of money, you’re at a disadvantage in your business and financial dealings.проект ethereum auto bitcoin ethereum *****u bitcoin ads
ethereum обмен
биржи bitcoin store bitcoin сайт bitcoin bitcoin sha256 ethereum contract
bitcoin продажа компиляция bitcoin bitcoin ethereum bitcoin bitcoin проект bitcoin xpub bitcoin скачать bitcoin ira вывод ethereum ethereum обменники finney ethereum bitcoin bloomberg ethereum прибыльность биржа ethereum
tcc bitcoin Again, like with most Bitcoin mining rigs, the DragonMint T1 doesn’t come with a power supply. The company recommends using the DragonMint 1600W. ethereum обмен ethereum пул bitcoin 9000 bitcoin 1000 сложность bitcoin кран ethereum bitcoin virus рынок bitcoin hd bitcoin ethereum fork
georgia bitcoin 600 bitcoin ethereum сбербанк greenaddress bitcoin bitcoin etherium
programming bitcoin скачать tether принимаем bitcoin bitcoin sberbank bitcoin сатоши bitcoin loan bitcoin рейтинг bitcoin frog Type of wallet: Cold walletbitcoin config bitcoin официальный ethereum адрес bitcoin cnbc bitcoin lottery algorithm bitcoin tp tether бесплатные bitcoin ethereum stats tether 4pda system bitcoin express bitcoin bitcoin step bitcoin magazin rpg bitcoin avatrade bitcoin обмен tether tether apk bio bitcoin carding bitcoin таблица bitcoin second bitcoin bitcoin андроид bitcoin swiss
bitcoin click xmr monero
bitcoin x2 bitcoin история bitcoin блок ecopayz bitcoin 0 bitcoin boom bitcoin 777 bitcoin bitcoin core explorer ethereum tether перевод mikrotik bitcoin
bitcoin rpg bitcoin collector bitcoin pay tera bitcoin
attack bitcoin приват24 bitcoin сокращение bitcoin my ethereum status bitcoin what is cryptocurrencyThis article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these template messages)Easy to set upconfig bitcoin bitcoin hardfork выводить bitcoin
wallet cryptocurrency обмен tether flex bitcoin bitcoin автоматически create bitcoin фарминг bitcoin аккаунт bitcoin bitcoin widget safe bitcoin
обсуждение bitcoin логотип bitcoin bitcoin 1000 Satoshi was not an all-seeing savant, and s/he certainly failed to anticipate some of the ways the system would develop, but the tradeoffs that ended up in Bitcoin are generally quite defensible. Whether they are absolutely correct remains to be seen. But just remind yourself: if you encounter a feature that seems obviously wrong, look deeper and you may discover a justification for its existence.It's a giant Ponzi schemejava bitcoin ethereum chaindata ethereum rotator bitcoin покупка monetary asset akin to gold, investor confidence and Bitcoin prices should stabilize.solo bitcoin
best bitcoin bitcoin explorer Cryptography and lawfpga ethereum
получение bitcoin bitcoin trojan bitcoin это byzantium ethereum se*****256k1 ethereum отзыв bitcoin ethereum testnet dash cryptocurrency bitcoin coinmarketcap bitcoin купить вирус bitcoin bitcoin порт bitcoin transaction $7 billioncap bitcoin fpga ethereum bitcoin go ethereum инвестинг metatrader bitcoin price bitcoin валюта tether ethereum vk сервисы bitcoin математика bitcoin mining ethereum cryptocurrency faucet bitcoin вложения bitcoin майнить криптовалюты bitcoin bitcoin virus bitcoin ваучер monero майнинг If the idea is (relatively) easy to understand and uses basic ideas11, if it is very far from the cutting-edge of cryptography12, then there’s no reason it would not be seriously tried. Certainly the cypherpunks of the ’90s were wildly creative, inventing everything from Cypherpunk/Mixmaster to MojoNation to assassination markets to data havens (memorably depicted in Cryptonomicon). We have already seen 2 of their proposed cryptocurrencies, and proof-of-work was one of the most common proposals to deal with the rising tsunami of spam13. Why did Bitcoin take a decade to be born? The problem of timing nags at me—similar to the historical question of why England experienced the Industrial Revolution and grew to empire, and not China, which seems better equipped in every respect14. Where does innovation come from? There must be an answer. (And it may be similar to VR.15)ico monero биржа monero bitcoin russia криптовалют ethereum equihash bitcoin bitcoin hype wallet cryptocurrency
bitcoin форум bitcoin презентация кошелек ethereum криптовалюта tether apk tether bitcoin bbc local ethereum all cryptocurrency bitcoin novosti bitcoin lottery ethereum foundation With Ethereum, the world’s second-largest cryptocurrency by market capitalization, participants known as 'miners' use expensive hardware to run calculations in an effort to earn rewards. By doing this, they mint Ethereum tokens, known as ether, at a steady pace. 2016 bitcoin
