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.
Easy to verifyfox bitcoin secp256k1 ethereum bitcoin monero This could all be done in a transparent, fast and secure eco-system, such as the blockchain!bitcoin wmz bitcoin accepted
альпари bitcoin
вход bitcoin ecdsa bitcoin value bitcoin Ключевое слово bitcoin s global bitcoin bitcoin payoneer bitcoin s bitcoin laundering bitcoin reklama eth ethereum bitcoin lion bitcoin signals etherium bitcoin
system bitcoin ethereum stats cryptocurrency price casascius bitcoin
vector bitcoin r bitcoin bitcoin лучшие
bitcoin loto кошелек monero анализ bitcoin вклады bitcoin купить tether roulette bitcoin bitcoin пополнить лотереи bitcoin bitcoin calculator bitcoin grafik ethereum btc купить ethereum bitcoin calculator ethereum debian проект bitcoin cryptocurrency market майнинга bitcoin telegram bitcoin bitcoin drip фри bitcoin usb bitcoin токен bitcoin currency bitcoin bitcoin world ethereum сайт payoneer bitcoin clame bitcoin bitcoin qr ru bitcoin unconfirmed monero coin bitcoin ethereum calc bitcoin москва
bitcoin server
bitcoin bounty майнер monero
bitcoin развод bitcoin акции mine monero monero пул
криптовалют ethereum transactions bitcoin trading bitcoin приват24 bitcoin платформ ethereum cryptocurrency кран ethereum bitcoin шахты auction bitcoin sberbank bitcoin bitcoin cran talk bitcoin foto bitcoin trading bitcoin bitcoin lion bank cryptocurrency bitcoin cny bitcoin investment
bitcoin кредиты форки ethereum обои bitcoin ethereum проекты micro bitcoin bitcoin вектор конференция bitcoin reward bitcoin bitcoin logo microsoft bitcoin Technically, the idea of an electronic peer-to-peer currency was being tinkered with decades ago, but it wasn't truly successful until 2008, when bitcoin was conceived. The basis of bitcoin's creation, and all virtual currencies that have since followed, was to fix a number of perceived flaws with the way money is transmitted from one party to another.bitcoin разделился обмен tether bitcoin лохотрон bitcoin kurs шахты bitcoin bitcoin word bitcoin автокран ethereum инвестинг bitcoin mmm ethereum рубль
split bitcoin bitcoin s bitcoin online swarm ethereum webmoney bitcoin cryptocurrency tech bitcoin ocean bitcoin community bitcoin euro wisdom bitcoin Because each output of a particular transaction can only be spent once, the outputs of all transactions included in the block chain can be categorized as either Unspent Transaction Outputs (UTXOs) or spent transaction outputs. For a payment to be valid, it must only use UTXOs as inputs.bitcoin machines мониторинг bitcoin konvertor bitcoin bitcoin проект cryptocurrency wikipedia carding bitcoin миллионер bitcoin bitcoin trading токен ethereum bitcoin dice bitcoin check bitcoin торговля bitcoin лотереи rinkeby ethereum
happy bitcoin пополнить bitcoin
bitcoin начало обменник monero bitcoin sec ethereum кран
tether майнинг сервер bitcoin bitcoin monero вывод trade cryptocurrency bitcoin delphi monero pro ios bitcoin bitcoin мошенничество bitcoin parser Cryptocurrencies compensate miners based on a proof-of-work hashing algorithm. Solving the complex math built into cryptocurrency results in a miner discovering a 'solution.' Miners who discover the solution first are compensated with Litecoin, while those who were unable to come up with a solution have to try again with another block of transactions.bitcoin cgminer iphone tether blocks bitcoin bitcoin world bitcoin кликер bitcoin адрес bitcoin dollar майн bitcoin bitcoin maps mikrotik bitcoin bitcoin виджет ubuntu bitcoin bitcoin weekend bitcoin count monero coin валюта tether bitcoin hype konvertor bitcoin технология bitcoin get bitcoin bitcoin foto Is Ethereum mining profitable?bitcoin заработок This talk is about the Role of Bitcoin as Money.blitz bitcoin сколько bitcoin
remix ethereum multiplier bitcoin dash cryptocurrency boom bitcoin weather bitcoin moneybox bitcoin
bitcoin get bitcoin sha256 logo ethereum CRYPTOethereum os ledger bitcoin bitcoin автоматически monero minergate faucet bitcoin adbc bitcoin bitcoin accelerator
кошелек ethereum forbes bitcoin bitcoin игры monero кран bitcoin баланс clame bitcoin birds bitcoin cudaminer bitcoin заработок ethereum bitcoin cap ads bitcoin банк bitcoin bitcoin location fast bitcoin сайте bitcoin bitcoin ann bitcoin 1070 abi ethereum search bitcoin bitcoin рублей bitcoin эмиссия bitcoin protocol 777 bitcoin ethereum сбербанк ads bitcoin bitcoin блокчейн
конвертер monero black bitcoin bitcoin hosting In contrast to traditional online communication, which goes directly through a centralized platform or company, such as Facebook (FB), Microsoft (MSFT), or Apple (AAPL), blockchain takes a different approach by decentralizing their system, allowing independent computers from around the globe to monitor network activity. These independent computers continually cross-check transactions known as ‘blocks’ and link them together in a chain of events, hence the name blockchain.rpg bitcoin Without a native currency, a blockchain must rely on trust for security which eliminates the need for a blockchain in the first place. In practice, the security function of bitcoin (mining), which protects the validity of the chain on a trustless basis, requires significant upfront capital investment in addition to high marginal cost (energy consumption). In order to recoup that investment and a rate of return in the future, the payment in the form of bitcoin must more than offset the aggregate costs, otherwise the investments would not be made. Essentially, what the miners are paid to protect (bitcoin) must be a reliable form of money in order to incentivize security investments in the first place. tp tether bitcoin keywords проект ethereum bitcoin machine accepts bitcoin bitcoin cap raiden ethereum магазин bitcoin wallets cryptocurrency mempool bitcoin
euro bitcoin bitcoin монет платформ ethereum bitcoin funding steam bitcoin Bitcoin’s ledger deals with the privacy issue through a bit of accounting trickery. The ledger only keeps track of bitcoin transfers, not account balances. In a very real sense, there is no such thing as a bitcoin account. And that keeps users anonymous.Dynamic block-size: the blocksize cap is a function of the past block sizes which results in greater blocksize, containing more transactions when network activity picks up. Conversely, when the network activity slows down, the blocksize cap will decrease.bitcoin database окупаемость bitcoin testnet bitcoin bitcoin testnet nonce bitcoin мастернода bitcoin usb tether ethereum кошелька back to your original averaging down strategy. bitcoin rotators Bitcoin Cloud Miningbitcoin balance field bitcoin bitcoin основатель bitcoin information bitcoin dice bitcoin окупаемость индекс bitcoin captcha bitcoin
bitcoin genesis bitcoin okpay
ethereum создатель tp tether proxy bitcoin nanopool ethereum
bitcoin cache wikipedia cryptocurrency криптовалюта tether When a node finds a proof-of-work, it broadcasts the block to all nodes.bitcoin rub
This might not seem practically for non-technical users, but in actuality, the Bitcoin software does the work of rejecting incorrect data. Technical users or developers building Bitcoin-related services can inspect or alter their own copy of the Bitcoin blockchain or software locally to understand how it works.смесители bitcoin майнинга bitcoin golden bitcoin
calculator cryptocurrency bitcoin life pay bitcoin исходники bitcoin bitcoin фирмы bitcoin change приложение bitcoin запросы bitcoin nvidia bitcoin ethereum asic bitcoin сервисы bitcoin china bitcoin брокеры лучшие bitcoin lightning bitcoin bitcoin комбайн
bitcoin strategy ethereum blockchain golden bitcoin bitcoin валюты vpn bitcoin ethereum casino bitcoin paypal advcash bitcoin bitcoin мерчант login bitcoin bitcoin ann bitfenix bitcoin bitcoin rt
bitcoin exchanges майнить bitcoin bitcoin анимация monero биржи е bitcoin
скрипты bitcoin bitcoin автосерфинг ethereum usd cpa bitcoin bitcoin брокеры bitcoin адреса обмен bitcoin bitcoin cap bitcoin kraken bitcoin валюты
отзыв bitcoin 999 bitcoin polkadot ico пример bitcoin python bitcoin bitcoin рулетка bitcoin parser фьючерсы bitcoin master bitcoin yota tether double bitcoin bitcoin preev сокращение bitcoin
daemon bitcoin kinolix bitcoin bitcoin динамика 15 bitcoin
store bitcoin ethereum price инвестирование bitcoin programming bitcoin сети bitcoin
bitcoin сервисы консультации bitcoin
bitcoin carding bitcoin зебра ethereum online steam bitcoin bitcoin hacker bitcoin in bitcoin автокран котировка bitcoin android tether bitcoin 4000 ethereum 1070 monero logo bitcoin word gps tether dat bitcoin wordpress bitcoin service bitcoin bitcoin biz инвестирование bitcoin bitcoin buy raiden ethereum bitcoin капча бесплатные bitcoin форки bitcoin
bitcoin options bitcoin check paidbooks bitcoin оплата bitcoin bitcoin отзывы bitcoin drip bitcoin gif андроид bitcoin технология bitcoin poloniex monero валюты bitcoin bitcoin avalon bitcoin planet all cryptocurrency poker bitcoin bitcoin окупаемость
monero free ethereum core ethereum forum алгоритм bitcoin air bitcoin монеты bitcoin bitcoin инструкция сбербанк ethereum кредиты bitcoin ethereum complexity claymore monero bitcoin информация bitcoin investing bitcoin биткоин ethereum mining bitcoin analysis
ethereum api cryptocurrency reddit
6000 bitcoin bitcoin best foto bitcoin ethereum news заработать monero
ethereum eth bitcoin сервисы bye bitcoin ethereum виталий разделение ethereum amazon bitcoin big bitcoin куплю ethereum проекта ethereum фарминг bitcoin bitcoin spinner ethereum ubuntu bitcoin adress ethereum хардфорк bitcoin monkey mikrotik bitcoin hosting bitcoin bitcoin waves bitcoin ваучер lazy bitcoin bitcoin ваучер donate bitcoin bitcoin adress change bitcoin робот bitcoin film bitcoin
bitcoin fpga wallets cryptocurrency блок bitcoin блоки bitcoin баланс bitcoin bitcoin отследить global bitcoin bitcoin keys
bitcoin transactions ethereum chaindata Several industries like Unilever, Walmart, Visa, etc. use blockchain technology and have gained benefits in transparency, security, and traceability. Considering the benefits blockchain offers, it will revolutionize and redefine many sectors. blacktrail bitcoin мастернода bitcoin kupit bitcoin options bitcoin ethereum swarm bitcoin plugin bitcoin gpu криптовалют ethereum bitcoin games майнинг monero ставки bitcoin amazon bitcoin home bitcoin bitcoin автосборщик satoshi bitcoin zone bitcoin polkadot cadaver bitcoin desk шрифт bitcoin payable ethereum fox bitcoin field bitcoin бесплатные bitcoin ethereum transaction
настройка monero dark bitcoin lurkmore bitcoin bitcoin блоки курса ethereum bitcointalk ethereum blockchain monero bitcoin virus bitcoin steam bitcoin аналоги
ethereum browser bank bitcoin tether coin фото bitcoin
bitcoin cash bitcoin dollar bitcoin торговля проект bitcoin торговать bitcoin free monero space bitcoin
bitcoin coins bitcoin пирамиды explorer ethereum monero xmr simplewallet monero bitcoin trading bitcoin payeer bitcoin rub bitcoin balance As of June 2018, most ransomware attackers preferred to use currencies other than bitcoin, with 44% of attacks in the first half of 2018 demanding Monero, which is highly private and difficult to trace, compared to 10% for bitcoin and 11% for Ethereum.bitcoin китай bitcoin review ethereum алгоритм
bitcoin dark проект ethereum json bitcoin bitcoin телефон bitcoin приложения server bitcoin bitcoin datadir bitcoin net bitcoin zona курс bitcoin bitcoin simple sberbank bitcoin bitcoin оборот bitcoin plugin bitcoin окупаемость bitcoin metatrader bitcoin calc ethereum os dapps ethereum reddit bitcoin криптовалюту monero nicehash ethereum майнеры monero fee bitcoin china bitcoin matteo monero market bitcoin tether limited 1 monero
ethereum скачать разделение ethereum bitcoin переводчик bitcoin store ethereum course криптовалют ethereum bitcoin official создатель ethereum форум bitcoin mine ethereum bitcoin автомат mine ethereum lealana bitcoin bitcoin таблица мавроди bitcoin bitcoin wikipedia bitcoin логотип
инвестиции bitcoin coinmarketcap bitcoin ethereum ios кости bitcoin bitcoin магазин microsoft ethereum перевести bitcoin
bitcoin qiwi bitcoin oil bitcoin air bitcoin виджет bitcoin ann monero новости bitcoin футболка tether clockworkmod algorithm ethereum coinmarketcap bitcoin The overwhelming majority of bitcoin transactions take place on a cryptocurrency exchange, rather than being used in transactions with merchants. Delays processing payments through the blockchain of about ten minutes make bitcoin use very difficult in a retail setting. Prices are not usually quoted in units of bitcoin and many trades involve one, or sometimes two, conversions into conventional currencies. Merchants that do accept bitcoin payments may use payment service providers to perform the conversions.bitcoin trust дешевеет bitcoin the ethereum ethereum обменять bitcoin maps joker bitcoin bitcoin переводчик gif bitcoin faucets bitcoin форумы bitcoin
hourly bitcoin bitcoin рубль лотереи bitcoin bitcoin change case bitcoin баланс bitcoin webmoney bitcoin
code bitcoin
wallet tether key bitcoin
monero usd free bitcoin ethereum coin разделение ethereum monero logo видео bitcoin bitcoin red
auto bitcoin пополнить bitcoin миксер bitcoin pro bitcoin bitcoin авито tracker bitcoin bitcoin аккаунт bitcoin okpay nicehash bitcoin bitcoin регистрации bitcoin count bitcoin python перспективы ethereum bitcoin proxy bitcoin desk usb bitcoin free bitcoin asus bitcoin ethereum addresses дешевеет bitcoin bitcoin traffic get bitcoin cryptocurrency ico bitcoin update
