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.
cryptocurrency wallet bitcoin приват24 bitcoin scripting пожертвование bitcoin tether android bitcoin community earn bitcoin ethereum вывод видеокарты ethereum использование bitcoin bitcoin local
майнер bitcoin
mining bitcoin bitcoin changer bitcoin poloniex bitcoin transaction tether usb lamborghini bitcoin bitcoin bitrix bitcoin форк заработка bitcoin bitcoin выиграть bitcoin trojan bitcoin bounty программа bitcoin ethereum видеокарты
ethereum russia daemon bitcoin bitcoin ферма
контракты ethereum bitcoin создатель bitcoin 2017 bitcoin сделки stealer bitcoin future bitcoin space bitcoin bitcoin 2010 bitcoin пополнить эфириум ethereum bitcoin конвектор usa bitcoin bitcoin криптовалюта moneybox bitcoin
bitcoin purse up bitcoin bitcoin adress хайпы bitcoin bitcoin x2 хешрейт ethereum monero обменять monero coin bitcoin nvidia bitcoin ecdsa The use of bitcoin by criminals has attracted the attention of financial regulators, legislative bodies, law enforcement, and the media. The FBI prepared an intelligence assessment, the SEC has issued a pointed warning about investment schemes using virtual currencies, and the U.S. Senate held a hearing on virtual currencies in November 2013.bitcoin options кошель bitcoin bitcoin roulette ethereum telegram ethereum сбербанк Bitcoin is here to stay. As the very first cryptocurrency, it has opened the door to a new world of digital money and even more than digital money – digital value that knows (almost) no boundaries.ethereum проекты
people bitcoin автомат bitcoin blog bitcoin bitcoin carding byzantium ethereum mercado bitcoin bitcoin donate bitcoin картинки game bitcoin криптовалюта monero bitcoin софт курс ethereum monero купить monero майнер bitcoin футболка bitcoin видеокарты china bitcoin логотип bitcoin bitcoin knots фонд ethereum bitcoin phoenix программа tether bitcoin qiwi exchange ethereum nonce bitcoin
ethereum course bitcoin подтверждение ecopayz bitcoin 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 торги bitcoin ethereum ico bitcoin сети ethereum пул wiki bitcoin bitcoin maps rigname ethereum mindgate bitcoin
dat bitcoin 6000 bitcoin create bitcoin bitcoin group
bitcoin xt ann bitcoin bitcoin вклады de bitcoin bitcoin сайты trezor bitcoin bitcoin apk bitcoin darkcoin bitcoin 5 ethereum wiki сбербанк ethereum пополнить bitcoin bitcoin hosting ethereum создатель ssl bitcoin mine ethereum сигналы bitcoin roboforex bitcoin спекуляция bitcoin bitcoin удвоитель masternode bitcoin монета ethereum bitcoin stock tp tether A Brief Primer on Blockchain TechnologyLow-voter turnoutbitcoin wallpaper ann bitcoin ethereum habrahabr bitcoin mempool bitcoin formula Externally owned accounts vs. contract accountsTo a thief on a network, Bitcoin private keys represent more than just data - they’re money. For insight into how this can be, consider the recent case of a website repurposed to steal funds from unsuspecting Bitcoin users.терминал bitcoin mastercard bitcoin monero майнить
ethereum casino ads bitcoin что bitcoin обменники bitcoin
bitcoin registration bitcoin пул json bitcoin bitcoin коды bitcoin транзакция day bitcoin теханализ bitcoin In November 2013, three US government officials testified at senate hearings that 'Bitcoin has legitimate uses'. According to the Washington Post, 'Most of the other witnesses echoed those sentiments.'bitcoin future cryptocurrency tech
суть bitcoin ethereum btc ethereum статистика flypool ethereum monero форк куплю ethereum котировки bitcoin jpmorgan bitcoin bitcoin будущее 600 bitcoin bitcoin система боты bitcoin x bitcoin bitcoin jp обменники bitcoin The dictatorial behavior of the management class belied the true balance of power in technical organizations.If you’re deciding whether to join a mining pool or not, it can be helpful to think of it like a lottery syndicate – the pros and cons are exactly the same. Going solo means you won’t have to share the reward, but your odds of getting a reward are significantly decreased. Although a pool has a much larger chance of solving a block and winning the reward, that reward will be split between all the pool members.заработка bitcoin скачать tether
теханализ bitcoin ethereum 2017 game bitcoin golden bitcoin ethereum прибыльность 1000 bitcoin bitcoin money bitcoin ocean
bitcoin car bitcoin banking widget bitcoin bitcoin asics casascius bitcoin bitcoin online bitcoin server
bitcoin клиент bitcoin видеокарты bitcoin litecoin торги bitcoin bitcoin gift monero ann википедия ethereum bitcoin reklama bitcoin блок bitcoin 2x bitcoin china купить ethereum tether download global bitcoin bitcoin key future bitcoin bitcoin electrum полевые bitcoin amazon bitcoin seed bitcoin bitcoin исходники вики bitcoin
alliance bitcoin boom bitcoin ютуб bitcoin
bitcoin landing map bitcoin
today bitcoin bitcoin tor вывести bitcoin tether перевод ethereum акции bitcoin bounty ethereum blockchain bitcoin chains bitcoin акции криптовалюту monero up bitcoin ethereum news fields bitcoin bitcoin king перевод tether bitcoin автосерфинг bitcoin loan описание bitcoin bitcoin scanner bitcoin planet ethereum course приложение bitcoin ethereum падение полевые bitcoin обменники bitcoin bitcoin сколько bitcoin loan fasterclick bitcoin win bitcoin blocks bitcoin multiplier bitcoin bitcoin игры обмен bitcoin bitcoin yen kong bitcoin автомат bitcoin trust bitcoin bitcoin investment bitcoin reddit captcha bitcoin red bitcoin bitcoin принимаем bitcoin banking биржи bitcoin верификация tether bitcoin future monero windows best bitcoin forex bitcoin tether plugin get bitcoin hyip bitcoin кошель bitcoin
1 monero bitcoin king bitcoin hack coin bitcoin ethereum 4pda bitcoin сложность currency bitcoin bitcoin игры доходность ethereum little bitcoin вклады bitcoin
bitcoin get bitcoin apple bitcoin прогноз
decred cryptocurrency
bitcoin в tether купить bitcoin boom анонимность bitcoin ethereum io bitcoin 2020 ledger bitcoin cryptocurrency это yandex bitcoin использование bitcoin bitcoin ocean alpari bitcoin froggy bitcoin е bitcoin
адрес bitcoin bitcoin block bitcoin проблемы купить ethereum bitcoin matrix
tether limited tether верификация
hit bitcoin ethereum токены bitcoin значок map bitcoin bitcoin деньги coffee bitcoin
ethereum install bitcoin получить bitcoin арбитраж стоимость ethereum bitcoin шахта продам bitcoin bitcoin foto котировки bitcoin bitcoin yen bitcoin take bitcoin checker фильм bitcoin 50000 bitcoin криптовалюту bitcoin bitcoin обменник fun bitcoin bitcoin asic cgminer ethereum
tether перевод bitcoin сбербанк china bitcoin проверка bitcoin bitcoin prominer agario bitcoin equihash bitcoin ethereum обменять bitcoin status 0 bitcoin robot bitcoin
обменник ethereum microsoft bitcoin
bitcoin phoenix
maining bitcoin monero fr ethereum calc bitcoin login bitcoin download rate bitcoin fire bitcoin clicks bitcoin qtminer ethereum froggy bitcoin 1 monero blocks bitcoin автосборщик bitcoin forum ethereum hd7850 monero registration bitcoin bitcoin ethereum bitcoin 4 bitcoin презентация monero bitcoin darkcoin сайте bitcoin bitcoin doubler bitcoin video курса ethereum bitcoin daily monero js It isn’t just the fees that are the problem, it’s the data they store. Banks store lots of private data about their customers. Many banks have been hacked over the last 10 years, which is very dangerous for people who use those banks. This is why it is important to understand how does Bitcoin work.заработать bitcoin blockchain monero bitcoin чат Developing and monitoring any smart contractsbitcoin conveyor
dat bitcoin electrodynamic tether bitcoin zebra bitcoin purse
ethereum асик mindgate bitcoin история ethereum
bitcoin koshelek bitcoin xpub bitcoin xt korbit bitcoin map bitcoin ethereum contracts wikileaks bitcoin анимация bitcoin клиент bitcoin bitcoin doubler bitcoin скрипт пул bitcoin bitcoin значок top cryptocurrency testnet bitcoin
Bitcoin is the best at what it does. And in a world of negative real rates within developed markets, and a host of currency failures in emerging markets, what it does has utility. The important question, therefore, is how much utility.bitcoin metatrader bitcoin xl
bitcoin мавроди mining ethereum bitcoin bittorrent the cost of gas expended within the block by the transactions included in the blockbitcoin metatrader зарегистрироваться bitcoin
4pda bitcoin
cryptocurrency price bitcoin vip bitcoin автоматически
ethereum картинки 10000 bitcoin bubble bitcoin alpha bitcoin bitcoin вложить
msigna bitcoin putin bitcoin etoro bitcoin обновление ethereum bitcoin p2p
bitcoin программирование
ethereum course calc bitcoin difficulty monero bitcoin магазин ethereum обменять шахты bitcoin bitcoin qr total cryptocurrency bitcoin etherium bitcoin trading live bitcoin ethereum windows tether tools game bitcoin
iso bitcoin ethereum цена bitcoin address bitcoin calculator
electrum bitcoin mine ethereum проверка bitcoin bitcoin node monero fr bitcoin магазин delphi bitcoin bitcoin co withdraw bitcoin ethereum rub ethereum платформа ethereum online bonus bitcoin казино bitcoin купить ethereum ethereum создатель nem cryptocurrency github ethereum bitcoin captcha bitcoin compromised bitcoin биткоин blacktrail bitcoin bitcoin кран график monero reddit bitcoin monero gui crococoin bitcoin cryptocurrency tech новости monero проекта ethereum blake bitcoin bitcoin fan delphi bitcoin bitcoin автосерфинг ethereum os ethereum контракты ethereum контракты клиент ethereum bitcoin china facebook bitcoin bitcoin обменник bitcoin online сложность bitcoin bitcoin litecoin bitcoin all clockworkmod tether tether usd bitcoin mercado apk tether криптовалюты bitcoin bitcoin statistics hub bitcoin bitcoin qr ethereum clix golden bitcoin
ethereum ethash payeer bitcoin bitcoin магазин bitcoin journal
bitcoin reindex fork ethereum
bitcoin map fork bitcoin coin bitcoin bitcoin pizza titan bitcoin flash bitcoin avatrade bitcoin конвертер monero 1 ethereum блокчейн bitcoin bitcoin генератор bitcoin машина monero криптовалюта развод bitcoin
ethereum это deep bitcoin bitcoin donate tether курс electrum bitcoin майнинга bitcoin bitcoin metatrader cryptocurrency mining blocks bitcoin окупаемость bitcoin ethereum ubuntu bitcoin trust
bitrix bitcoin bitcoin airbit bitcoin коллектор mine monero token ethereum
monero майнить wallet tether
bitcoin blue создать bitcoin
bitcoin заработок bitcoin get http bitcoin bitcoin data bitcoin virus tether кошелек bitcoin магазин 7. Workersbitcoin скрипт bitcoin видео
монета ethereum bitcoin cryptocurrency bitcoin switzerland bitcoin таблица bitcoin exe ecdsa bitcoin выводить bitcoin bitcoin таблица метрополис ethereum
conference bitcoin monero js bitcoin купить
genesis bitcoin bitcoin registration платформа bitcoin bitcoin окупаемость bitcoin de bitcoin in bitcoin майнер dollar bitcoin monero free In March 2018, the city of Plattsburgh in upstate New York put an 18-month moratorium on all cryptocurrency mining in an effort to preserve natural resources and the 'character and direction' of the city.bitcoin стратегия ethereum ротаторы bitcoin loto оплата bitcoin криптовалюту monero 8 bitcoin bitcoin casino bitcoin падение bitcoin анимация bitcoin telegram film bitcoin monero настройка bitcoin bank
cryptocurrency calculator zebra bitcoin bitcoin online excel bitcoin Governments have no control over the creation of cryptocurrencies, which is what initially made them so popular. Most cryptocurrencies begin with a market cap in mind, which means that their production decreases over time. This is similar to the physical monetary production of coins; production ends at a certain point and the coins become more valuable in the future.обменять bitcoin ethereum контракт bitcoin galaxy credit bitcoin difficulty monero bitcointalk ethereum ethereum supernova
adbc bitcoin bitcoin dance bitcoin galaxy
love bitcoin bitcoin краны bitcoin transactions
bitcoin конвертер bitcoin прогнозы instant bitcoin
gps tether
ethereum майнеры bitcoin virus the ethereum bitcoin qt
bitcoin орг bitcoin global bitcoin expanse карта bitcoin bitcoin token bitcoin tradingview eth ethereum bitcoin аналоги
wei ethereum значок bitcoin crococoin bitcoin майнеры monero bitcoin kran терминалы bitcoin ethereum wikipedia ssl bitcoin
bitcoin форумы bitcoin analysis
цена ethereum bitcoin dogecoin bitcoin вики
accept bitcoin monero proxy
1024 bitcoin график ethereum ethereum windows decred cryptocurrency компиляция bitcoin bitcoin main bitcoin лохотрон
bitcoin андроид monero алгоритм бесплатно ethereum ethereum форки bitcoin icon bitcoin 999 monero форум зарегистрироваться bitcoin se*****256k1 bitcoin таблица bitcoin nova bitcoin bistler bitcoin bitcoin matrix bitcoin spin 3d bitcoin кредиты bitcoin bitcoin alpari bitcoin lucky форки bitcoin
серфинг bitcoin credit bitcoin sha256 bitcoin bitcoin смесители bitcoin golden Open-source development is currently underway for a major upgrade to Ethereum known as Ethereum 2.0 or Eth2. The main purpose of the upgrade is to increase transaction throughput for the network from the current of about 15 transactions per second to up to tens of thousands of transactions per second.bitcoin ann
алгоритм monero дешевеет bitcoin decred ethereum monero fork bitcoin tm bitcoin easy lazy bitcoin
golden bitcoin system bitcoin iphone tether bitcoin protocol ethereum btc new cryptocurrency lite bitcoin script bitcoin Ethereum is relatively new in the cryptocurrency world, having launched in 2015. It operates in a similar way to the bitcoin network, allowing people to send and receive tokens representing value via an open network. The tokens are called ether, and this is what is used as payment on the network. Ethereum’s primary use, however, is to operate as smart contracts rather than as a form of payment. Smart contracts are scripts of code which can be deployed in the ethereum blockchain. The limit on ether also works slightly differently to bitcoin. Issuance is capped at 18 million ether per year which equals 25% of the initial supply. So, while the absolute issuance is fixed, relative inflation decreases every year. Learn more about ethereummonero купить
ecopayz bitcoin weekend bitcoin cryptocurrency bitcoin миллионеры micro bitcoin bitcoin atm bitcoin fpga bitcoin 2017 film bitcoin monero logo
bitcoin кошелька
ethereum course компиляция bitcoin платформе ethereum ethereum rig mist ethereum bitcoin blog
bitcoin journal You may be wondering what types of cryptocurrencies are out there. You’ve likely heard of a few, such as Bitcoin (BTC), Dash (DASH), and Monero (XMR). However, the reality is that there are actually thousands of different cryptocurrencies in existence. Coinmarketcap.com reports that there are 7,433 cryptocurrencies as of Oct. 16, 2020, and the global crypto market is worth more than $356 billion.ethereum online You can use cryptocurrency to make purchases, but it’s not a form of payment with mainstream acceptance quite yet. A handful of online retailers like Overstock.com accept Bitcoin, it’s far from the norm. This may change in the near future, however. Payments giant PayPal recently announced the launch of a new service that will allow customers to buy, hold and sell cryptocurrency from their PayPal accounts.bitcoin бумажник loan bitcoin 500000 bitcoin взлом bitcoin Forcing risk taking on practically all individuals within an economic system is not natural nor is it fundamental to the functioning of an economy. It is the opposite and it is detrimental to the stability of the system as a whole. As an economic function, risk taking itself is productive, necessary, and inevitable. The unhealthy part is specifically when individuals are forced into taking risk as a byproduct of central banks manufacturing money to lose value, whether those taking risk are conscious of the cause and effect or not. Risk taking is productive when it is intentional, voluntary and undertaken in the pursuit of accumulating capital. While deciphering between productive investment and that which is induced by monetary inflation is inherently grey, you know it when you see it. Productive investment occurs naturally as market participants work to improve their own lives and the lives of those around them. The incentives to take risk in a free market already exist. There is nothing to be gained, and a lot to lose, through central bank intervention.bitcoin создать бесплатный bitcoin казино ethereum bitcoin nasdaq bittrex bitcoin apk tether bitcoin hyip
p2pool bitcoin The developers of Ethereum were able to return the funds by implementing a hard fork, which split the blockchain in two. When people talk about Ethereum today, they are usually referring to the new blockchain, also known as Ethereum 2.0. The original blockchain is now referred to as Ethereum Classic.ethereum course ethereum купить bitcoin 99 ubuntu ethereum ethereum investing ethereum получить bitcoin настройка locate bitcoin калькулятор bitcoin bitcoin расчет ethereum обменять bitcoin motherboard bistler bitcoin консультации bitcoin bitcoin миксеры проекта ethereum maining bitcoin
gadget bitcoin bitcoin network bitcoin gif bitcoin today mmgp bitcoin теханализ bitcoin master bitcoin bitcoin алгоритм monero xeon bitcoin пример testnet bitcoin film bitcoin cryptocurrency tech bitcoin expanse carding bitcoin
стоимость monero bitcoin автосерфинг
miningpoolhub ethereum 2018 bitcoin casinos bitcoin торги bitcoin стоимость monero ebay bitcoin bitcoin scam bitcoin brokers будущее ethereum prune bitcoin ethereum github хайпы bitcoin email bitcoin txid bitcoin spin bitcoin
bitcoin slots
bitfenix bitcoin live bitcoin bitcoin ключи bitcoin будущее разработчик ethereum автоматический bitcoin bitcoin mastercard ebay bitcoin bitcoin usa ico cryptocurrency golden bitcoin cryptocurrency charts autobot bitcoin nicehash monero ann monero bitcoin pools etoro bitcoin капитализация bitcoin bitcoin nodes bitrix bitcoin заработок ethereum bitcoin прогноз alien bitcoin логотип ethereum lootool bitcoin
tether android конференция bitcoin bitcoin joker
Speaking purely from the point of view of cryptocurrency, if you know the public address of one of these big companies, you can simply pop it in an explorer and look at all the transactions that they have engaged in. This forces them to be honest, something that they have never had to deal with before.bitcoin смесители расширение bitcoin майнер bitcoin миксеры bitcoin
bitcoin scripting обсуждение bitcoin описание ethereum bitcoin mine bitcoin 4000 love bitcoin bitcoin playstation
logo bitcoin
bitcoin деньги legal bitcoin bitcoin обменять bitcoin сервера us bitcoin
создатель ethereum tether io описание bitcoin проекта ethereum reward bitcoin pps bitcoin bitcoin анимация ethereum rub calculator bitcoin
