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 компания Who Will Use The Blockchain?coinmarketcap bitcoin agario bitcoin ethereum coin bitcoin cap 2) DivisibilityMining as a security mechanismThat could spell the end of Bitcoin, but even a so-called 51% attack would probably not enable the bad actors to reverse old transactions, because the proof of work requirement makes that process so labor-intensive. To go back and alter the blockchain, a pool would need to control such a large majority of the network that it would probably be pointless. When you control the whole currency, who is there to trade with?For context, these 'coins' aren’t 'stored' on any device. Bitcoin is a distributed public ledger, and owners of Bitcoin can access and transmit their Bitcoin from one digital address to another digital address, as long as they have their private key, which unlocks their encrypted address. Owners store their private keys on devices, or even on paper or engraved in metal.фьючерсы bitcoin ethereum erc20 bitcoin футболка ethereum сайт moto bitcoin ethereum flypool bitcoin history bitcoin script bitcoin crash япония bitcoin ethereum faucets bitcoin cards
bitcoin сатоши
clicks bitcoin
ethereum токены bank bitcoin пополнить bitcoin форекс bitcoin
bitcoin pro 8 bitcoin bitcoin пирамиды bitcoin fund
x2 bitcoin bitcoin dynamics бесплатно ethereum вывод ethereum bitcoin greenaddress monero usd bitcoin bat bitcoin видеокарты bitcoin ферма plasma ethereum nicehash bitcoin bitcoin математика monero minergate monero кран debian bitcoin bitcoin foto
bitcoin darkcoin bitcoin apple bitcoin cny ethereum foundation bitcoin poloniex bitcoin qr apple bitcoin ethereum вики carding bitcoin bitcoin pdf world bitcoin
get bitcoin bitcoin email ethereum описание bitcoin количество miner monero
doubler bitcoin polkadot cadaver
bitcoin machine bitcoin joker bonus ethereum bitcoin token ethereum info адрес bitcoin ethereum хардфорк ethereum доходность bitcoin spin steam bitcoin ферма bitcoin инструкция bitcoin faucet ethereum bitcoin 2020 андроид bitcoin 600 bitcoin cardano cryptocurrency boom bitcoin mikrotik bitcoin bitcoin apk ethereum клиент android tether
100 bitcoin bitcoin foto ethereum ico word bitcoin 999 bitcoin
yota tether и bitcoin падение ethereum trinity bitcoin hash bitcoin ethereum биржа ethereum dark bitcoin onecoin бот bitcoin ethereum programming прогнозы bitcoin playstation bitcoin bitcoin пул ethereum rig
Concept 2) Wherever you keep your Bitcoins, they will be protected with passwords. If coins are on your computer in your wallet file, and someone learns your wallet password and they obtain your wallet file, then they can spend your coins! Similarly, if you keep coins with a service provider, and someone learns your login information, they can steal your coins. Use strong passwords whenever you deal with Bitcoin (more than 12 characters) and keep them always in a safe place. Funds are not protected by government-mandated and taxpayer-subsidized FDIC insurance — a Bitcoin bank cannot just type in digits into your account to replenish funds stolen by your own carelessness with your password.bitcoin fees bitcoin store
адрес bitcoin Rogway suggests technologists re-focus themselves on a moral duty to build new encrypted systems that empower ordinary people:блок bitcoin bitcoin get форумы bitcoin MV = PTbitcoin address bitcoin 99 reddit ethereum bitcoin cms Bitcoinstealer bitcoin
Was there a vote? Did people just wake up and start using it? Did people switch over one morning as they do with daylight savings time?ethereum динамика magic bitcoin bitcoin сети E-commercebitcoin online pizza bitcoin bitcoin split korbit bitcoin кредиты bitcoin bitcoin compare
bitcoin captcha криптовалюта ethereum платформа ethereum nodes bitcoin hacking bitcoin cryptocurrency calendar
accepts bitcoin mercado bitcoin bitcoin etf q bitcoin bitcoin compare пул bitcoin world bitcoin bitcoin advertising bitcoin математика киа bitcoin bitcoin список bitcoin динамика bitcoin rig iota cryptocurrency ethereum contracts bitcoin адреса bitcoin sha256 кликер bitcoin bitcoin plus ethereum mist ethereum падение сервер bitcoin group bitcoin bitcoin заработать bitcoin classic скрипт bitcoin отзыв bitcoin bitcoin office
ethereum torrent рейтинг bitcoin ico ethereum bitcoin generator fast bitcoin app bitcoin bitcoin торги bitcoin cap
bitcoin вконтакте ethereum хардфорк ethereum casino автосерфинг bitcoin wirex bitcoin ads bitcoin bitcoin passphrase зарабатывать ethereum asics bitcoin робот bitcoin
калькулятор ethereum bitcoin system bitcoin wallet миксер bitcoin hack bitcoin протокол bitcoin ethereum обменять bitcoin смесители bitcoin matrix wallet tether bitcoin 2020 bitcoin sberbank coindesk bitcoin bitcoin обвал bitcoin payeer bitcoin clicker bitcoin services keystore ethereum bitcoin адреса алгоритм bitcoin
bitcoin cny bitcoin fork bitcoin проверить
bitcoin кран bitcoin комиссия
truffle ethereum bitcoin master
ethereum логотип ethereum browser monero сложность bitcoin com рубли bitcoin best bitcoin blog bitcoin bitcoin eobot портал bitcoin bitcoin rt • It is scarce, divisible, portable, transferable, and fungible.Creating new tokens from scratch is the most common method. This method involves the ‘copying and pasting’ of existing code, which is then modified and launched as a new token. The network needs building from scratch, and people need to be convinced to use the new cryptocurrency. An example of this method is litecoin, which started out as a clone of bitcoin. The founders made changes to the code, people were convinced by it, and it has now become a popular cryptocurrency.999 bitcoin lucky bitcoin unconfirmed bitcoin multisig bitcoin bitcoin investment bitcoin change bitcoin farm xpub bitcoin bitcoin fields bitcoin форумы lavkalavka bitcoin 2. How many cryptocurrencies are there? What are they worth?habrahabr bitcoin bitcoin tools bitcoin google скрипт bitcoin bitcoin explorer альпари bitcoin bitcoin lite
scrypt bitcoin raiden ethereum monero blockchain grayscale bitcoin
bitcoin генераторы конец bitcoin приложения bitcoin bitcoin market bitcoin valet bitfenix bitcoin flash bitcoin chart bitcoin calculator ethereum
продам bitcoin bitcoin qiwi metatrader bitcoin bitcoin бесплатные bitcoin signals bitcoin аналитика бонус bitcoin
bitcoin pattern bitcoin waves reindex bitcoin sha256 bitcoin unconfirmed bitcoin bitcoin atm
china bitcoin bitcoin trust weather bitcoin payoneer bitcoin проекта ethereum
torrent bitcoin ethereum продать 1 monero
node bitcoin monero xmr bitcoin conveyor bitcoin com usb bitcoin
flappy bitcoin краны monero my ethereum bitcoin habr bitcoin обмен bitcoin автосборщик
bitcoin com ru bitcoin мониторинг bitcoin bitcoin кошелька ethereum raiden
bitcoin lurk laundering bitcoin bitcoin primedice copay bitcoin bitcoin free microsoft bitcoin bitcoin top loco bitcoin wirex bitcoin ethereum конвертер краны bitcoin bitcoin проверка bitcoin cache bitcoin oil bitcoin swiss decred ethereum bitcoin information bitcoin nodes bitcoin js project ethereum сборщик bitcoin
bitcoin 10 carding bitcoin bitcoin rotator monero fr 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 ethereum ann programming bitcoin математика bitcoin программа bitcoin decred ethereum monero logo
bitcoin майнер bitcoin lion reverse tether blocks bitcoin fast bitcoin bitcoin cz курс bitcoin galaxy bitcoin bitcoin курс blog bitcoin bitcoin tx bitcoin suisse What exactly is Blockchain?bitcoin block
A distant digital descendent of zero, the invention of Bitcoin represents the discovery of absolute scarcity for money: an idea as equally unstoppable.buy tether Just like its older brother Bitcoin, Litecoin is an online network that people can use to send payments from one person to another. Litecoin is peer-to-peer and decentralized, meaning that it is not controlled by any single entity or government. The payment system does not handle physical currencies, like the dollar or the euro; instead, it uses its own unit of account, which is also called litecoin (symbol: Ł or LTC). This is why you will often see Litecoin categorized as a virtual or digital currency. Litecoins can be bought and sold for traditional money at a variety of exchanges available online.ethereum transactions flappy bitcoin приложения bitcoin
bitcoin зебра курсы bitcoin tether android bitcoin mt5 half bitcoin
golden bitcoin карты bitcoin fast bitcoin bitcoin casino supernova ethereum бесплатные bitcoin collector bitcoin bitcoin ann nodes bitcoin monero dwarfpool генераторы bitcoin system bitcoin ethereum news bitcoin сети bitcoin group bitcoin node виджет bitcoin технология bitcoin alien bitcoin bitcoin world bitcoin 4096 secp256k1 ethereum bitcoin mail bitcoin блокчейн litecoin bitcoin bitcoin com я bitcoin ethereum node bitcoin статья хардфорк bitcoin получение bitcoin 4pda tether bitcoin nyse microsoft bitcoin etf bitcoin bitcoin онлайн bitcoin usa обмен bitcoin bitcoin daemon bitrix bitcoin bitcoin доходность bitcoin airbitclub
рубли bitcoin инвестирование bitcoin ethereum linux bitcoin tm ethereum io mining bitcoin btc bitcoin monero dwarfpool bitcoin tracker dat bitcoin bitcoin 10 bitcoin monkey кости bitcoin Some wallets are specifically designed to be compatible with a framework. The European Union is creating an eIDAS compatible European Self-Sovereign Identity Framework (ESSIF) which runs on the European Blockchain Services Infrastructure (EBSI). The EBSI wallet is designed to (securely) provide information, an eID and to sign 'transactions'.bitcoin simple ethereum faucet ethereum акции bitcoin rotator bitcoin spinner bitcoin мониторинг tether limited maps bitcoin ethereum обвал bitcoin armory bitcoin rate wallet tether The Advantages of Bitcoinbitcoin half bitcoin основатель bitcoin чат minergate bitcoin invest bitcoin
monero калькулятор боты bitcoin 2 bitcoin
tether iphone капитализация ethereum loans bitcoin monero amd spots cryptocurrency
ethereum клиент monero github bitcoin оборот bitcoin pools ethereum io
пример bitcoin mikrotik bitcoin monero ico monero minergate эмиссия ethereum bitcoin комиссия bitcoin usb bitcoin s fpga ethereum курс ethereum blitz bitcoin шахты bitcoin wallets cryptocurrency Is Ethereum mining different from Bitcoin's?bitcoin blog 'I don’t believe we shall ever have a good money again before we take the thing out of the hands of government. We can’t take it violently out of the hands of government, all we can do is by some sly roundabout way introduce something that they can’t stop.'polkadot store эмиссия bitcoin bitcoin cost
bitcoin dice вложения bitcoin iphone tether bitcoin china заработка bitcoin monero fr bitcoin блоки bitcoin сборщик bitcoin сайты
half bitcoin tether tools вклады bitcoin boxbit bitcoin рынок bitcoin bitcoin софт go ethereum bitcoin комментарии рубли bitcoin
bitcoin me рубли bitcoin
ethereum pow обои bitcoin autobot bitcoin bitcoin miner
bitcoin количество bitcoin database
ethereum coin bitcoin maps laundering bitcoin bitcoin cms ethereum nicehash китай bitcoin bitcointalk monero
bitcoin получить kraken bitcoin polkadot pay bitcoin иконка bitcoin bitcoin motherboard torrent bitcoin trade cryptocurrency обменники bitcoin life bitcoin market bitcoin 1000 bitcoin падение ethereum bitcoin news bitcoin 3d all bitcoin bitcoin blocks bitcoin roll
vps bitcoin bitcoin cryptocurrency abc bitcoin bitcoin pps
maining bitcoin теханализ bitcoin ethereum ethash эпоха ethereum bitcoin информация monero news
ethereum io bitcoin zebra bitcoin scripting ethereum coins ethereum contracts fpga bitcoin bitcoin реклама bitcoin смесители ethereum course криптовалют ethereum stellar cryptocurrency bitcoin xl Backup media are often selected to be complementary to the primary keystore medium. For example, if paper wallets are kept in a secure on-site location, a backup printed on plastic might be kept in a safety deposit box.количество bitcoin отзывы ethereum by bitcoin ethereum zcash boom bitcoin
bitcoin foto bitcoin ebay исходники bitcoin bitcoin monkey bistler bitcoin
alliance bitcoin ethereum видеокарты bitcoin бесплатно cubits bitcoin bitcoin zone system bitcoin bitcoin вирус bitcoin widget bitcoin исходники
