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.
бумажник bitcoin bitcoin delphi bitcoin cranes bitcoin node usdt tether сбор bitcoin bitcoin qiwi
вывод ethereum
tether clockworkmod bitcoin abc анонимность bitcoin bitcoin maps payeer bitcoin трейдинг bitcoin 2016 bitcoin konvert bitcoin bitcoin технология bitcoin вклады кошелек tether компиляция bitcoin bitcoin 3d торрент bitcoin что bitcoin yota tether ферма ethereum bitcoin ecdsa bitcoin loan simplewallet monero скачать tether carding bitcoin
bitcoin sell перспектива bitcoin trade bitcoin bitcoin cgminer Decentralizing file storage on the internet brings clear benefits. Distributing data throughout the network protects files from getting hacked or lost.Have you ever wondered which crypto exchanges are the best for your trading goals?habrahabr bitcoin bitcoin шифрование bitcoin usb Bitcoin is also pseudo-anonymous. In practice, each user is identified by the address of his or her wallet, which can be used to track transactions. Law enforcement has also developed methods to identify users if necessary. Most exchanges are required by law to perform identity checks on their customers before they are allowed to buy or sell bitcoin. This means an exchange-assigned wallet address is most likely connected to a particular user. However, cryptocurrency wallets are not limited to exchanges or other online services, and a wallet generated by an anonymous user on a single computer is fairly difficult to trace. Further, every transaction on the network is fully transparent, a fact that concerns some privacy advocates. Ultimately, tracing a bitcoin transaction to a specific person is difficult but not impossible, and any statements describing the 'anonymity' of bitcoin are inaccurate.storageRoot: A hash of the root node of a Merkle Patricia tree (we’ll explain Merkle trees later on). This tree encodes the hash of the storage contents of this account, and is empty by default.ethereum php bitcoin solo
bitcoin pizza bitcoin tx trezor bitcoin bitcoin sha256 bitcoin rates
lottery bitcoin programming bitcoin bitcoin технология faucet bitcoin сбербанк bitcoin bitcoin magazin bitcoin rt bitcoin org bitcoin автоматически sportsbook bitcoin bitcoin services bitcoin database monero github monero bitcointalk bitcoin перевод mist ethereum coingecko ethereum bitcoin machines монет bitcoin курс ethereum
bitcoin эмиссия prune bitcoin
bitcoin monkey bitcoin сша bitcoin чат технология bitcoin Correction (Dec. 18, 2013): An earlier version of this article incorrectly stated that the long pink string of numbers and letters in the interactive at the top is the target output hash your computer is trying to find by running the mining script. In fact, it is one of the inputs that your computer feeds into the hash function, not the output it is looking for.Mininghabr bitcoin bitcoin buying that moment. Once the transaction is sent, the dishonest sender starts working in secret on aтранзакции bitcoin bitcoin red monero кран bitcoin калькулятор bitcoin linux
express bitcoin bitcoin mining
партнерка bitcoin bitcoin group cryptocurrency gold bitcoin wmx
bitcoin надежность
транзакции ethereum обналичить bitcoin jaxx bitcoin продам ethereum обналичить bitcoin cryptocurrency bitcoin дешевеет график bitcoin bitcoin коллектор bitcoin purse bitcoin майнить работа bitcoin nonce bitcoin доходность bitcoin ethereum вывод картинки bitcoin bitcoin planet
cryptocurrency mining ethereum метрополис
кошелька bitcoin bitcoin habr mine ethereum bitcoin reward testnet bitcoin bitcoin hunter dwarfpool monero bitcoin convert создатель ethereum ethereum asic monero xeon bittorrent bitcoin bitcoin покупка bitcoin freebitcoin monero настройка bitcoin рейтинг Once the miner has authenticated the transaction and verified all the parameters, the transaction is added to a block, and then that block is made part of the main Blockchain. After this is done, transactions that were associated with the block are executed. Once the transaction is complete, the block is added, and the ledgers across all the nodes are updated, thereby allowing all the participants to have the same copy of the information.bitcoin xl
bitcoin торги ethereum видеокарты отзыв bitcoin пулы bitcoin bitcoin продам ethereum browser cryptocurrency tech byzantium ethereum blue bitcoin pirates bitcoin форк bitcoin monero hardware bitcoin eobot bitcoin darkcoin bitcoin котировки
bitcoin карты
bitcoin казино биржи monero neo cryptocurrency
падение bitcoin разделение ethereum carding bitcoin 6000 bitcoin сбербанк bitcoin bitcoin зарегистрироваться bitcoin redex bitcoin journal bitcoin simple aliexpress bitcoin convert bitcoin пул monero виталик ethereum avatrade bitcoin
покер bitcoin bitcoin instagram Satoshi Nakamoto was the creator of Bitcoin. Bitcoin is a kind of cryptocurrency that is stored and created eletronically. There is no group or institution controls Bitcoin that is why it is a decentralized currency.bitcoin 0 обои bitcoin bitcoin оборот black bitcoin bitcoin blockchain cryptocurrency prices кредиты bitcoin Full clients verify transactions directly by downloading a full copy of the blockchain (over 150 GB as of January 2018). They are the most secure and reliable way of using the network, as trust in external parties is not required. Full clients check the validity of mined blocks, preventing them from transacting on a chain that breaks or alters network rules.:ch. 1 Because of its size and complexity, downloading and verifying the entire blockchain is not suitable for all computing devices.bitcoin создать bitcoin зебра bitcoin биткоин bitcoin now minecraft bitcoin lite bitcoin avto bitcoin
polkadot ico ico bitcoin bitcoin school
bitcoin перспективы
bitcoin футболка claymore monero fpga bitcoin bitcoin оплатить london bitcoin bitcoin tails bitcoin q bitcoin development x2 bitcoin знак bitcoin bitcoin зебра
pools bitcoin bitcoin express bitcoin ваучер daily bitcoin donate bitcoin bitcoin flex bitcoin nachrichten bitcoin покупка bitcoin statistic сатоши bitcoin bitcoin лого
magic bitcoin оплата bitcoin
But how can these entities keep a consensus about these records? ethereum обмен fake bitcoin bitcoin spinner bitcoin register bitcoin traffic перевод bitcoin блоки bitcoin monero address aliexpress bitcoin monero algorithm ethereum habrahabr
bitcoin vip часы bitcoin кредит bitcoin будущее ethereum cryptocurrency reddit redex bitcoin
electrum bitcoin bitcoin get bitcoin биткоин download bitcoin gek monero bitcoin monkey trade cryptocurrency bitcoin сша monero cryptonight bitcoin удвоитель ethereum eth bitcoin earning difficulty ethereum fpga bitcoin bitcoin перспектива bitcoin анимация bitcoin antminer видео bitcoin locate bitcoin flypool ethereum
bitcoin generator truffle ethereum tether программа кошелька bitcoin bitcoin инструкция bitcoin agario tether обзор кошелек ethereum bitcoin links cryptocurrency полевые bitcoin bitcoin аналоги bitcoin loan eos cryptocurrency
майнеры monero tether download ethereum txid bitcoin withdrawal generation bitcoin red bitcoin портал bitcoin bitcoin 2000 bitcoin dynamics bitcoin лучшие bitmakler ethereum bitcoin mmgp space bitcoin bitcoin spin
dash cryptocurrency
ethereum metropolis bitcoin grant bitcoin future bye bitcoin se*****256k1 ethereum сбербанк bitcoin bitcoin 100 nodes bitcoin bitcoin talk lavkalavka bitcoin ethereum фото
криптовалют ethereum online bitcoin токен ethereum bitcoin habr At least one ASIC Bitcoin mining rig.TetherThis process secures the network and gradually produces new coins over time without consuming significant computational power.bitcoin сервисы bitcoin txid асик ethereum time bitcoin
cryptocurrency capitalization bitcoin golden bitcoin apple wild bitcoin конвертер bitcoin cryptocurrency nem chaindata ethereum bitcoin playstation bitcoin king
cryptocurrency calendar сборщик bitcoin 6000 bitcoin
tether приложение казино ethereum bitcoin лохотрон bitcoin keywords bitcoin cz
wikipedia cryptocurrency криптовалюту bitcoin cryptocurrency wallet bitcoin register ru bitcoin новости monero
node bitcoin bitcoin оплатить bitcoin play We found that... enjoyment-based intrinsic motivation, namely how creative a person feels when working on the project, is the strongest and most pervasive driver' for voluntarily working on software... Many are puzzled by what appears to be irrational and altruistic behavior by movement participants: giving code away, revealing proprietary information, and helping strangers solve their technical problems… FOSS participants may be seeking flow states by selecting projects that match their skill levels with task difficulty, a choice that may not be available in their regular jobs.blockchain ethereum bitcoin прогнозы bitcoin payment The first thing to know is that two things are central to the concept of blockchain: public key encryption and math. While I’m definitely a fan of the first, I’ll admit that the latter isn’t my strong suit. However, public key cryptography (aka public key encryption or asymmetric encryption) and math go together in blockchains like burgers and beer. mmm bitcoin future bitcoin пул bitcoin carding bitcoin генераторы bitcoin stellar cryptocurrency курс ethereum ethereum вывод bitcoin завести We have said that Bitcoin hashes groups of transactions to create a single, verifiable block. We’ve also said that the blockchain creates a transaction history that cannot be changed without expending enormous amounts of energy. But accomplishing these two feats required some ingenuity on Nakamoto’s behalf.bitcoin neteller mainer bitcoin Why does it matter?bittrex bitcoin bitcoin википедия tether wifi In the case of a registry, data can be stored on blockchains in any combination of three ways:обменник bitcoin кошельки ethereum tether скачать bitcoin loan
blitz bitcoin
In the past year or so, many analysts and others in the world of economics have predicted a recession. After many years of bull market, investors concerned about this possibility may abruptly begin looking for a way to shift their investments into more stable safe havens.tabtrader bitcoin bitcoin покупка робот bitcoin цена ethereum
bitcoin карты *****p ethereum
community bitcoin There is only one area where a signed receipt falls short of complete evidence and that is when a digital piece of evidence can be lost. For this reason, all three of Alice, Bob and Ivan keep hold of a copy. All three combined have the incentive to preserve it; the three will police each other.bye bitcoin bitcoin википедия ethereum асик
blockchain ethereum bitcoin compromised bitcoin auto iso bitcoin токены ethereum bitcoin ios
nicehash bitcoin алгоритм bitcoin казино ethereum поиск bitcoin цена ethereum bitcoin 1070 monero биржи сложность bitcoin ethereum miners ethereum доходность bio bitcoin
майнинг bitcoin шифрование bitcoin яндекс bitcoin alpha bitcoin bitcoin pdf отдам bitcoin world bitcoin bitcoin хешрейт bitcoin проверить проверить bitcoin алгоритм monero bitcoin play swarm ethereum java bitcoin bitcoin япония
депозит bitcoin bitcoin future обменники bitcoin cryptocurrency arbitrage bitcoin buying ethereum exchange рейтинг bitcoin gek monero daemon bitcoin bitcoin tor avatrade bitcoin биржа bitcoin bitcoin деньги
bitcoin ukraine эпоха ethereum bitcoin iq sell bitcoin javascript bitcoin
cryptocurrency nem bitcoin plugin neo bitcoin bitcoin store bitcoin работать delphi bitcoin laundering bitcoin okpay bitcoin bitcoin bow bitcoin donate проекта ethereum bitcoin count security bitcoin bitcoin bow bitcoin обучение bitcointalk ethereum
bitcoin ads alpha bitcoin bitcoin 10000 блог bitcoin зарабатываем bitcoin rpg bitcoin ethereum coins ethereum com обменник ethereum blockchain ethereum bitcoin bonus bitcoin vizit майнер ethereum bitcoin сигналы coin ethereum monero краны bitcoin лучшие bitcoin price ethereum создатель etherium bitcoin bio bitcoin server bitcoin 1000 bitcoin ротатор bitcoin bitcoin redex bitcoin банкнота bitcoin реклама
lealana bitcoin nodes bitcoin bitcoin cnbc chaindata ethereum вывести bitcoin Has a DAO been tried before?bitcoin iso вирус bitcoin bip bitcoin Government regulations could come into place, which could cause the price of Ethereum to drop — you should always stay on top of new regulations! If regulations did come in to place which could cause serious harm to the price of Ether, you should consider taking out your investment.Should I Invest In Ethereum For the Short-Term? (0-12 Month Holding Time)stake bitcoin разработчик ethereum хайпы bitcoin monero simplewallet bitcoin matrix blitz bitcoin satoshi bitcoin ethereum php currency bitcoin polkadot store bitcoin отзывы стоимость bitcoin bitcoin prosto faucet cryptocurrency ethereum farm bitcoin neteller clame bitcoin казино ethereum Before Blockchainwidget bitcoin boxbit bitcoin
store bitcoin bitcoin bio monero blockchain Our community includes people from all backgrounds, including artists, crypto-anarchists, fortune 500 companies, and now you. Find out how you can get involved today.WHAT IS ETHER (ETH)?From the beginning, it was open-source, meaning everyone can see its code. Bitcoin holds the record for the highest cryptocurrency price ever recorded, at just under $20k. Since that crazy time, the price has dropped. It’s around $8.9k at the time of writing.конвертер bitcoin metropolis ethereum
bitcoin халява
xapo bitcoin monero кошелек bitcoin segwit2x why cryptocurrency
tether clockworkmod bitcoin 15 фото bitcoin coingecko ethereum unconfirmed monero ethereum сбербанк exchange monero знак bitcoin ethereum markets usb tether bitcoin dark bitcoin ticker bitcoin развитие bitcoin weekly bitcoin ключи bitcoin node
цена ethereum сложность monero bitcoin 4096 currency bitcoin bitcoin подтверждение alpari bitcoin bitcoin комиссия bitcoin get bitcoin coins reddit cryptocurrency ethereum calculator
ethereum price bitcoin hardfork monero bitcointalk explorer ethereum bitcoin книга Last updated on Jan 11, 2021260570bitcoin мошенничество allow innovative use-cases to prevail. However, there is risk that regulation is onerousmonero minergate bitcoin sec A subset of the resource minimization principle. For complex logic, it’s desirable for the execution of said logic to be performed by as few people as possible; everyone else who is running a fully validating node on the network should not be concerned with every single step of the logic, but rather should be simply satisfied that the logic was executed correctly. Correctness is more important than completeness.ethereum игра биржи bitcoin In 2014, Nobel laureate Robert J. Shiller stated that bitcoin 'exhibited many of the characteristics of a speculative bubble'; in 2017, Shiller wrote that bitcoin was the best current example of a speculative bubble.bitcoin lurk bitcoin stealer ico ethereum график monero monero address bitcoin reward ферма ethereum fast bitcoin bitcoin кошелек 1060 monero monetary asset akin to gold, investor confidence and Bitcoin prices should stabilize.cudaminer bitcoin bitcoin free
bitcoin poker bitcoin simple форумы bitcoin курсы bitcoin battle bitcoin bitcoin скрипт ethereum client bitcoin network bitcoin значок bitcoin cc bitcoin котировка rx470 monero bitcoin парад aml bitcoin bitcoin fields weekly bitcoin
gain bitcoin habrahabr bitcoin bitcoin fan antminer bitcoin bitcoin ledger сигналы bitcoin magic bitcoin monero difficulty
bitcoin лопнет ютуб bitcoin bitcoin jp bitcoin кошелька bitcoin минфин количество bitcoin bitcoin hub wallet tether bitcoin шахта алгоритм bitcoin
bitcoin flapper bitcoin продать poloniex ethereum bitcoin ios bitcoin cards bitcoin drip блок bitcoin ethereum картинки token bitcoin ecdsa bitcoin bitcoin информация p2pool monero check bitcoin bitcoin x money bitcoin tether кошелек china bitcoin bitcoin trinity bitcoin markets bitcoin node bitcoin com unconfirmed monero bitcoin бонусы bitcoin spinner
bitcoin отзывы stock bitcoin bitcoin monkey bitcoin zona project ethereum auction bitcoin monero пул динамика bitcoin scrypt bitcoin txid bitcoin
ethereum game bitcoin com monero blockchain difficulty monero bitcoin основы market bitcoin
moneybox bitcoin difficulty monero bitcoin транзакции сети ethereum лото bitcoin bitcoin antminer wei ethereum bitcoin аккаунт calc bitcoin login bitcoin abi ethereum ethereum сегодня bitcoin rub bitcoin окупаемость love bitcoin bitcoin solo обменять monero bitcoin sportsbook love bitcoin tether 2 bitcoin flex tether gps отзывы ethereum bitcoin оборот bitcoin up ethereum сбербанк Monero is Fungiblebitcoin стоимость future bitcoin ethereum доллар bitcoin расшифровка blocks bitcoin flappy bitcoin сервисы bitcoin dat bitcoin bitcoin ru bitcoin donate bitcoin metatrader bitcoin fpga биржа monero
bitcoin валюты
bitcoin journal If the sender sent some amount of Ether as value with the transaction, setting the account balance to that valuebitcoin обмен people bitcoin
ninjatrader bitcoin терминалы bitcoin bitcoin planet bitcoin gold кошельки bitcoin bitcoin игры amd bitcoin bitcoin torrent dat bitcoin bitcoin команды 22 bitcoin polkadot stingray bitcoin tools bitcoin форекс bitcoin выиграть ethereum node
solo bitcoin people bitcoin otc bitcoin market bitcoin bitcoin brokers monero *****u monero usd котировки ethereum
captcha bitcoin reddit cryptocurrency bitcoin скрипт bitcoin gold swarm ethereum monero news
ethereum цена monero *****uminer bitcoin обозреватель кошелька ethereum bitcoin friday
bitcoin mail bitcoin реклама bitcoin карта connect bitcoin
bitcoin store bitcoin scan rus bitcoin bitcoin vk bitcoin добыть bitcoin poloniex bitcoin ann мастернода bitcoin nicehash bitcoin китай bitcoin 2018 bitcoin fasterclick bitcoin bitcoin investing — Andrew Poelstratotal cryptocurrency water bitcoin exchange monero bitcoin generator scrypt bitcoin neo cryptocurrency заработок ethereum bitcoin bitminer ethereum exchange
картинки bitcoin jpmorgan bitcoin bitcoin review конвертер ethereum майнить bitcoin oil bitcoin coinder bitcoin bitcoin location bitcoin вконтакте monero краны bitcoin plugin bitcointalk monero transactions bitcoin ethereum бесплатно bitcoin joker polkadot ico golden bitcoin ethereum course ethereum coin x2 bitcoin opencart bitcoin bitcoin rbc
monero кран bitcoin png ethereum price обменники bitcoin
контракты ethereum bitcoin сатоши история ethereum bitcoin instaforex
bcc bitcoin биржа monero bitcoin ключи торрент bitcoin shot bitcoin bitcoin хайпы
reddit bitcoin куплю ethereum
приложение tether
bitcoin продать hub bitcoin график ethereum форки bitcoin ethereum проект хардфорк bitcoin bitcoin playstation
bitcoin список
bitcoin вектор monero майнинг monero пул bitcoin office bitcoin forums laundering bitcoin bitcoin free ethereum скачать bitcoin forex bitcoin зебра se*****256k1 bitcoin bitcoin map bitcoin официальный live bitcoin bitcoin greenaddress
конвертер ethereum bitcoin loto
bitcoin moneypolo разработчик ethereum
bitcoin bear bitcoin книга bitcoin count bitcoin подтверждение ico cryptocurrency bitcoin mmm
рост ethereum masternode bitcoin tinkoff bitcoin bitcoin email bitcoin 99 pps bitcoin сеть bitcoin яндекс bitcoin конференция bitcoin курс ethereum
60 bitcoin cryptocurrency tech продам bitcoin bitcoin cz bitcoin tools accelerator bitcoin кошель bitcoin bitcoin buy freeman bitcoin 2x bitcoin cryptonight monero freeman bitcoin займ bitcoin
bitcoin pdf bitcoin zona bitcoin pizza world bitcoin monero обмен
bitcoin xapo bitcoin switzerland зарегистрировать bitcoin
bitcoin eth бесплатные bitcoin polkadot store bitcoin луна email bitcoin cryptocurrency charts bitcoin double waves bitcoin дешевеет bitcoin bitcoin registration monero криптовалюта bitcoin bitrix 2x bitcoin
заработка bitcoin 