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 plugin generation bitcoin
bitcoin make
stock bitcoin bitcoin раздача mine ethereum monero ann bitcoin раздача bitcoin заработка de bitcoin avatrade bitcoin tether верификация bitcoin exchange ethereum биржа rotator bitcoin bitcoin links hashrate bitcoin bitcoin расшифровка
криптовалюта ethereum
bitcoin click bitcoin knots ethereum dao обменники ethereum bitcoin tor
tinkoff bitcoin gas ethereum bitcoin make transaction bitcoin bitcoin pro bitcoin foundation
сборщик bitcoin
bitcoin neteller
ethereum доходность bitcoin apk sberbank bitcoin
сервисы bitcoin This would be a lot more efficient, transparent and secure than using centralized servers, as everything could be put on to the same network. Furthermore, the network would never go down and it is fraudproof!bitcoin investment
ico cryptocurrency bitcoin symbol bitcoin ios ethereum vk ethereum стоимость зарабатывать ethereum bitcoin bux казино ethereum client ethereum ethereum fork bitcoin скрипты
bitcoin legal kong bitcoin claim bitcoin яндекс bitcoin bitcoin card bitcoin сша lucky bitcoin bitcoin mining форумы bitcoin bitcoin сайты bitcoin математика convert bitcoin
bitcoin автосерфинг bitcoin пожертвование ethereum torrent bitcoin рулетка bitcoin обменники x2 bitcoin
sha256 bitcoin ethereum краны bit bitcoin bitcoin блок However, this is just like spending cash in the physical world. When you walk into your local supermarket and pay with cash, the supermarket knows what you look like, but they don’t have any other information about you!монета ethereum tether android cryptocurrency logo
продажа bitcoin ethereum habrahabr Ключевое слово bitcoin maps bitcoin convert bitcoin перевод ethereum api ethereum github bitcoin бизнес bitcoin математика programming bitcoin bitcoin india курса ethereum bitcoin future ebay bitcoin bitcoin авито auto bitcoin Final words to getting blockchain explainedобмена bitcoin moneypolo bitcoin ethereum web3 Pool Miningпроекты bitcoin
daemon bitcoin accepts bitcoin продажа bitcoin mine bitcoin bitcoin вход space bitcoin bitcoin card bitcoin hesaplama
Cryptocurrency networks display a lack of regulation that has been criticized as enabling criminals who seek to evade taxes and launder money. Money laundering issues are also present in regular bank transfers, however with bank-to-bank wire transfers for instance, the account holder must at least provide a proven identity.bitcoinwisdom ethereum lavkalavka bitcoin основатель ethereum bitcoin торговля bitcoin neteller strategy bitcoin криптовалют ethereum приложение bitcoin monero xmr tether пополнение wallets cryptocurrency терминал bitcoin адрес ethereum bitcoin лотерея лучшие bitcoin ethereum supernova gek monero bip bitcoin ethereum эфириум
withdraw bitcoin особенности ethereum flypool ethereum конец bitcoin txid bitcoin
top bitcoin bitcoin магазины bitcoin donate flappy bitcoin bitcoin register
4000 bitcoin bitcoin masternode bitcoin сбербанк форки ethereum difficulty ethereum новости monero майнер ethereum ethereum investing bitcoin сколько bitcoin матрица What’s the Incentive?алгоритм monero ethereum crane bitcoin ocean bitcoin plugin bitcoin презентация bitcoin koshelek bitcoin map ann monero приват24 bitcoin jaxx bitcoin bitcoin registration hardware bitcoin bitcoin market multiply bitcoin windows bitcoin
monero hardfork надежность bitcoin bitcoin bat bitcoin робот poloniex monero bitcoin nasdaq metropolis ethereum java bitcoin ethereum виталий monero dwarfpool иконка bitcoin ethereum nicehash
криптовалют ethereum ethereum токены Miners set computers loose to grind through cryptographic computations in an attempt to win ether, Ethereum’s native token. They need to try a huge number of computational problems until one unlocks a new batch of the asset.grayscale bitcoin bitcoin курс
0 bitcoin goldmine bitcoin валюты bitcoin bitcoin блог
ethereum russia майнить bitcoin стратегия bitcoin bitcoin bloomberg bitcoin future bitcoin symbol bitcoin путин
bitcoin mail best bitcoin bitcoin land
monero minergate bitcoin комбайн bitcoin analysis
bitcoin описание bitcoin qiwi брокеры bitcoin 1070 ethereum doge bitcoin ico monero bitcoin capital reverse tether payable ethereum продам ethereum Ключевое слово торрент bitcoin ltd bitcoin bitcoin cc cubits bitcoin история bitcoin bitcoin gambling бутерин ethereum bitcoin index bitcoin rt blocks bitcoin topfan bitcoin
сайте bitcoin bitcoin расшифровка
обменник bitcoin bitcoin bank bitcoin hack goldmine bitcoin Ключевое слово разработчик ethereum майнеры bitcoin easy bitcoin ethereum difficulty bux bitcoin circle bitcoin bitcoin click ethereum контракты
sun bitcoin
film bitcoin bitcoin withdrawal bitcoin book india bitcoin
сервер bitcoin bitcoin генератор bitcoin buy хардфорк bitcoin ethereum форки bitcoin otc You can either manage this yourself or hire a team to do it for you. Either way, you should create a strong social media campaign that boosts the popularity of your ICO.search bitcoin hack bitcoin альпари bitcoin bitcoin пожертвование bitcoin half bitcoin boom monero pool мастернода bitcoin bitcoin algorithm кошельки bitcoin bitcoin cost bitcoin expanse alpha bitcoin game bitcoin добыча bitcoin ethereum os stock bitcoin bitcoin hosting сайте bitcoin ethereum валюта alpari bitcoin приват24 bitcoin ethereum markets bitcoin explorer pay bitcoin 1070 ethereum game bitcoin decred cryptocurrency monero minergate кредит bitcoin monero core bitcoin reserve habrahabr bitcoin p2pool bitcoin bitcoin rotator обновление ethereum система bitcoin
buying bitcoin flex bitcoin foto bitcoin sha256 bitcoin ethereum block bitcoin evolution reddit bitcoin captcha bitcoin bitcoin информация datadir bitcoin bitcoin картинки p2pool bitcoin bitcoin json bitcoin покупка эфириум ethereum accepts bitcoin
bitcoin moneypolo описание bitcoin mist ethereum bitcoin торрент miner bitcoin
кран monero 8 bitcoin bitcoin tools minergate bitcoin
monero cryptonight bitcoin grafik обзор bitcoin metropolis ethereum bye bitcoin
метрополис ethereum bitcoin x2 bitcoin background bitcoin sportsbook solo bitcoin bitcoin расчет ethereum github mempool bitcoin ubuntu ethereum bitcoin прогнозы bitcoin lurk порт bitcoin monero ico best bitcoin xmr monero bitcoin стоимость bitcoin в cryptocurrency wallet nvidia bitcoin bitcoin робот tether кошелек bitcoin вклады
фото bitcoin purchase bitcoin хайпы bitcoin bitcoin best bitcoin биткоин ethereum валюта best bitcoin
casinos bitcoin займ bitcoin bitcoin работа теханализ bitcoin ethereum poloniex top cryptocurrency bitcoin информация обменять ethereum bitcoin перспектива bitcoin wm
live bitcoin bitcoin qt monero github bitcoin сеть сети bitcoin cryptocurrency calculator bitcoin eobot bitcoin farm 999 bitcoin bitcoin криптовалюта bitcoin core monero форум
happy bitcoin дешевеет bitcoin bitcoin валюты
нода ethereum майнить bitcoin bitcoin slots bitcoin кошелек wallets cryptocurrency 33 bitcoin ethereum прибыльность настройка monero bitcoin visa inside bitcoin bitcoin save golden bitcoin tether wifi рост bitcoin bitcoin cny bitcoin приложения demo bitcoin lurkmore bitcoin халява bitcoin bitmakler ethereum monero pools bitcoin banks отзыв bitcoin bitcoin air
iobit bitcoin
abi ethereum генераторы bitcoin tether скачать bitcoin pdf bitcoin knots bitcoin airbit algorithm bitcoin tp tether bitcoin png cgminer ethereum simple bitcoin bitcoin hardware ethereum rig bitcoin история
bitcoin prices
frontier ethereum bitcoin бизнес bitcoin лого addnode bitcoin doubler bitcoin addnode bitcoin bitcoin робот auto bitcoin bitcoin биржа bitcoin x2 The best of both worlds: One of the most attractive features of stablecoins is the fact that it provides you with the best of both worlds, fiat, and crypto. The lack of stability and extreme volatility have been often cited as the biggest reasons holding back crypto adoption. However, stablecoins completely mitigate this issue by ensuring price stability. However, despite this, it’s still based on blockchain technology and gives you the benefits of decentralization and immutability inherent in blockchain technology.bitcoin play вложить bitcoin bitcoin spinner ethereum хешрейт tradingview bitcoin bitcoin me bitcoin go ethereum debian bitcoin страна
bitcoin blue deep bitcoin bitcoin регистрация bitcoin растет q bitcoin alpari bitcoin ethereum php bitcoin wordpress
зарабатывать bitcoin difficulty bitcoin monero пулы ethereum новости
надежность bitcoin 'Activist investors' came to represent shareholder interests, and took action to fire and hire C-suite executives who would maximize share price. As the 1990s dawned, many hackers saw their companies struggle to contend with shareholder demands, the threat of hostile takeover, and competition from new Silicon Valley startups.Bitcoin is Not Backed by Nothingbitcoin вход
bitcoin register
шифрование bitcoin The hash address is the unique identification of the block. It is a hex value of 64 characters that have both letters and digits. It is obtained by using the SHA - 256 algorithms.создатель bitcoin сбербанк ethereum
mooning bitcoin people bitcoin пополнить bitcoin получение bitcoin bitcoin машины bitcoin 0 алгоритм monero mercado bitcoin tether перевод buy tether home bitcoin bitcoin биржи bitcoin реклама
bitcoin обменник bitcoin завести bitcoin usa bitcoin fork дешевеет bitcoin bitcoin шрифт monero bitcoin установка bitcoin kazanma etoro bitcoin bitcoin sec
magic bitcoin проверка bitcoin халява bitcoin bitcoin коллектор armory bitcoin bitcoin shop roulette bitcoin алгоритм ethereum cryptocurrency law bitcoin лопнет ethereum supernova p2p bitcoin ethereum rig abc bitcoin сколько bitcoin bitcoin today
ethereum coins mempool bitcoin
okpay bitcoin
иконка bitcoin терминалы bitcoin
bitcoin обменники RATINGair bitcoin froggy bitcoin p2p bitcoin Cold storage (or offline wallets) is one of the safest methods for holding bitcoin, as these wallets are not accessible via the Internet, but hot wallets are still convenient for some users.bitcoin кран bitcoin signals статистика bitcoin bitcoin google lamborghini bitcoin stealer bitcoin ethereum foundation bitcoin 3
create bitcoin ethereum gas
Top-notch securityYou should now know pretty much everything you need to know about mining Bitcoin; from the reasons, you should consider mining Bitcoin, to the setup procedure, and the answer to the question 'how long does it take to mine a Bitcoin.' If you wish to know more about Bitcoin mining software, click here. If you're interested in top Bitcoin mining hardware, press here.nicehash monero ethereum обвал pokerstars bitcoin bitcoin россия эмиссия ethereum серфинг bitcoin bitcoin indonesia bitcoin apple bitcoin прогноз bitcoin casinos bitcoin форк ethereum twitter конференция bitcoin mining cryptocurrency homestead ethereum
Forrest Stroudbitcoin упал battle bitcoin convert bitcoin bitcoin work
cz bitcoin bitcoin genesis iota cryptocurrency tether clockworkmod ethereum алгоритм epay bitcoin code bitcoin ethereum pos bitcoin игры bitcoin example bitcoin мониторинг
keystore ethereum bitcoin сколько
bitcoin wiki agario bitcoin
кошельки ethereum bitcoin payza bitcoin gold windows bitcoin
up bitcoin автомат bitcoin bitcoin lurk epay bitcoin пицца bitcoin bitcoin changer ethereum график wikileaks bitcoin bitcoin stock майнер ethereum bitcoin euro bag bitcoin bitcoin investment monero сложность ann bitcoin bitcoin passphrase cryptocurrency gold bitcoin матрица usdt tether tor bitcoin ферма ethereum сложность bitcoin ethereum charts bitcoin price bitcoin разделился 10 bitcoin теханализ bitcoin криптовалюту monero
монета bitcoin bitcoin poloniex
bitcoin окупаемость bitcoin history ethereum rig
ethereum os валюта tether konvert bitcoin bitcoin cz курс ethereum bitcoin roulette moto bitcoin
bitcoin рухнул laundering bitcoin bitcoin system bazar bitcoin bitcoin pps hyip bitcoin bitcoin koshelek plasma ethereum верификация tether bitcoin mining bitcoin local bitcoin pay create bitcoin
математика bitcoin bitcoin antminer ethereum blockchain
charts bitcoin bitcoin loto
bitcoin journal mac bitcoin настройка bitcoin bitcoin dice bitcoin мастернода bitcoin x2 автокран bitcoin wirex bitcoin основатель bitcoin bitcoin atm monero github cryptocurrency nem сервисы bitcoin
ethereum client bitcoin site Everyone can speak obscurely, only the few can speak clearly.cpp ethereum cryptocurrency capitalization bitcoin mercado сбербанк ethereum bitcoin best bitcoin electrum
bitcoin conf автосерфинг bitcoin ethereum контракты space bitcoin bitcoin grafik ethereum обозначение ethereum addresses bitcoin аналоги c bitcoin кости bitcoin bitcoin development bitcoin office bitcoin мошенничество bitcoin зебра monero faucet This argument also depends on bitcoin early adopters using bitcoins to store rather than transfer value. The daily trade on the exchanges (as of Jan 2012) indicates that smaller transactions are becoming the norm, indicating trade rather than investment. In more pragmatic terms, 'fairness' is an arbitrary concept that is improbable to be agreed upon by a large population. Establishing 'fairness' is no goal of Bitcoin, as this would be impossible.bitcoin hosting Anonymityexpress bitcoin bitcoin com monero ico настройка bitcoin bitcoin symbol golden bitcoin сложность bitcoin bitcoin passphrase ethereum usd node bitcoin block bitcoin bitcoin продам matteo monero visa bitcoin space bitcoin monero cryptonight bitcoin investing картинка bitcoin bitcoin это обмен tether bitcoin phoenix кран ethereum токен bitcoin bitcoin bitrix команды bitcoin short bitcoin reddit bitcoin nxt cryptocurrency bitcoin msigna ethereum рубль bitcoin робот In addition to utility value, Ether also has speculative value. This is value that is derived from speculative activities (such as trading and investing) which currently accounts for most of the value behind all crypto-assets. As observed in 2017, crypto-assets can attract substantial speculative interest, with some assets increasing in value by 1000x over just a few months. This speculative interest often brings fresh capital into the ecosystem that can be reinvested into various verticals, but it can be damaging to the short-term market sentiment of all crypto-assets.zebra bitcoin wiki ethereum продам ethereum bitcoin department bitcoin окупаемость bitcoin statistics tether coin bitcoin dollar pool monero the ethereum konverter bitcoin
monero blockchain новости bitcoin mmgp bitcoin http bitcoin
monero ico
ads bitcoin bitcoin rpc bitcoin форки ethereum addresses trade cryptocurrency bitcoin carding keys bitcoin криптовалюта tether ethereum обменники ios bitcoin
bitcoin project
lealana bitcoin майнер ethereum monero address amazon bitcoin secp256k1 bitcoin bitcoin миллионеры вебмани bitcoin
tether обзор bitcoin analytics bitcoin миллионер bitcoin machines ethereum classic серфинг bitcoin боты bitcoin dash cryptocurrency bitcoin фермы direct bitcoin pool monero динамика ethereum While litecoin requires more sophisticated technology to mine than bitcoin, blocks are actually generated up to four times faster. Litecoin also processes financial transactions a lot quicker, and can also process a higher number of them over the same time period.проекта ethereum bitcoin kaufen 2012metal bitcoin If one group of nodes continues to use the old software while the other nodes use the new software, a permanent split can occur. For example, Ethereum has hard-forked to 'make whole' the investors in The DAO, which had been hacked by exploiting a vulnerability in its code. In this case, the fork resulted in a split creating Ethereum and Ethereum Classic chains. In 2014 the Nxt community was asked to consider a hard fork that would have led to a rollback of the blockchain records to mitigate the effects of a theft of 50 million NXT from a major cryptocurrency exchange. The hard fork proposal was rejected, and some of the funds were recovered after negotiations and ransom payment. Alternatively, to prevent a permanent split, a majority of nodes using the new software may return to the old rules, as was the case of bitcoin split on 12 March 2013.порт bitcoin деньги bitcoin bitcoin links bitcoin trading список bitcoin bitcoin котировки bitcoin multiplier bitcoin государство bitcoin legal
stealer bitcoin bitcoin capitalization ethereum solidity сбор bitcoin фермы bitcoin asic monero
форк bitcoin приват24 bitcoin bitcoin сбор алгоритмы bitcoin асик ethereum cryptocurrency wallet ethereum метрополис world bitcoin ethereum habrahabr логотип bitcoin bitcoin funding factory bitcoin bitcoin биржа rise cryptocurrency bitcoin machine bitcoin взлом
bitcoin ledger статистика ethereum ethereum txid bitcoin core bitcoin zone hourly bitcoin кран ethereum bitcoin книги
bitcoin rt bitcoin банк bitcoin transaction ethereum web3 ethereum bonus bitcoin курс 50 bitcoin bitcoin laundering hashrate bitcoin bitcoin simple bitcoin проект обмен ethereum сеть ethereum bitcoin neteller earning bitcoin bitcoin стратегия bitcoin халява bitcoin символ bitcoin tube bitcoin data депозит bitcoin ethereum bitcoin обновление ethereum bitcoin rig
bitcoin в tether курс python bitcoin cryptocurrency nem
ethereum асик bestexchange bitcoin monero калькулятор ethereum transactions партнерка bitcoin график bitcoin future bitcoin fpga bitcoin ethereum block trade cryptocurrency
скрипты bitcoin moon ethereum 0 bitcoin bitcoin usd bitcoin окупаемость cryptocurrency dash bitcoin картинки алгоритм bitcoin обучение bitcoin dorks bitcoin loans bitcoin bitcoin etf
bitcoin demo конвектор bitcoin buy tether майнинга bitcoin
бизнес bitcoin ethereum сбербанк
bitcoin ruble bitcoin update bitcoin magazin airbit bitcoin unconfirmed bitcoin верификация tether bitcoin symbol bitcoin torrent ethereum coins monero сложность ethereum eth okpay bitcoin sha256 bitcoin
bitcoin валюты forum bitcoin monero windows криптовалют ethereum generator bitcoin ethereum asics ethereum перевод bitcoin server kurs bitcoin bitcoin лохотрон bitcoin sweeper cryptocurrency logo asics bitcoin
tether android bitcoin antminer настройка ethereum майнинг tether primedice bitcoin monero ico bitcoin история запрет bitcoin block bitcoin tether android сигналы bitcoin moto bitcoin bitcoin it I am afraid I can’t go through every single industry that the blockchain could be used for, so I will list five of my favorites!
