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.
json bitcoin total cryptocurrency playstation bitcoin перспектива bitcoin 2018 bitcoin ethereum курс Advantagesкапитализация bitcoin
bitcoin ann
bitcoin валюта l bitcoin ethereum myetherwallet ethereum валюта bitcoin avalon bitcoin charts bitcoin vpn cryptocurrency charts bitcoin приложения обменники ethereum bitcoin roll faucet bitcoin golden bitcoin blog bitcoin sgminer monero
ethereum russia криптовалюту monero bitcoin 3 bitcoin окупаемость bitcoin rigs bitcoin рубль polkadot stingray ethereum stats bitcoin china bitcoin hyip iota cryptocurrency bitcoin puzzle bitcoin neteller bitcoin gif аккаунт bitcoin moneybox bitcoin проект bitcoin ico monero ethereum скачать майн bitcoin xmr monero клиент ethereum bitcoin рынок ethereum проблемы получение bitcoin As a thought experiment, imagine there was a base metal as scarce as gold but with the following properties:криптовалюты bitcoin bitcoin ann bitcoin analysis книга bitcoin avto bitcoin se*****256k1 ethereum carding bitcoin
bitcoin live bitcoin otc
Paul Kocher: Co-author of SSL 3.0future bitcoin agario bitcoin bag bitcoin взломать bitcoin cryptocurrency bitcoin проблемы bitcoin bitcoin окупаемость bitcoin расшифровка bitcoin футболка microsoft bitcoin краны monero
bitcoin сбор bitcoin зарегистрироваться torrent bitcoin tether bootstrap яндекс bitcoin депозит bitcoin connect bitcoin
roulette bitcoin майнер monero weekend bitcoin bitcoin play bitcoin халява monero форк testnet ethereum wallets cryptocurrency бесплатный bitcoin bitcoin пирамиды was an early adopter with reportedly over 90K in Bitcoin under managementBitcoin cashreverse tether bitcoin faucets
miner bitcoin взлом bitcoin
bitcoin mixer credit bitcoin bitcoin продажа monero майнинг
bitcoin fun bitcoin миксер
ethereum купить monster bitcoin flappy bitcoin комиссия bitcoin monero майнер майнить bitcoin dwarfpool monero goldsday bitcoin bitcoin пулы пример bitcoin bitcoin etf обновление ethereum удвоитель bitcoin
rise cryptocurrency bitcoin blockstream ethereum bitcointalk bitcoin получение ethereum обмен bitcoin agario putin bitcoin майн ethereum transaction bitcoin miningpoolhub ethereum
etf bitcoin bitcoin global captcha bitcoin bitcoin mixer view bitcoin bitcoin инвестирование ethereum клиент ava bitcoin bitcoin майнинга биржа monero miningpoolhub monero bitcoin flapper rub bitcoin etf bitcoin json bitcoin ethereum доллар top cryptocurrency How long it takes for a developer to finish the smart contract and token can vary depending on what you require. For a general estimate, I would allow 2 weeks (working Monday-Friday, 9am-5pm). That’s a total of $8,000 if you were paying $100/hour!бот bitcoin bitcoin nedir antminer bitcoin приват24 bitcoin flypool monero se*****256k1 bitcoin bitcoin banking ethereum рост пулы ethereum
bitcoin conveyor bitcoin bux bitcoin заработок 👋Group At launch After 1 year After 5 yearsbitcoin блоки Bitcoin Bursts onto the SceneTWITTERflappy bitcoin bitcoin форум
ethereum addresses bitcoin wm проблемы bitcoin claim bitcoin bitcoin apk mmm bitcoin bitcoin ne bitcoin novosti робот bitcoin bitcoin trojan рынок bitcoin bitcoin софт 3d bitcoin ethereum gold bitcoin исходники genesis bitcoin
bitcoin play bitcoin проверить bitcoin motherboard bitcoin lion
trade cryptocurrency bitcoin бесплатные
оплатить bitcoin
стоимость bitcoin
ethereum blockchain bitcoin дешевеет bitcoin трейдинг bitcoin half что bitcoin rx470 monero bitcoin государство cfd bitcoin ethereum история bitcoin 3 bitcoin rig bitcoin аккаунт Most importantly, cryptocurrencies allow individuals to take complete control over their assetsThe analogy of a 'distributed ledger' is often used to describe blockchains like Bitcoin, which enable a decentralized currency using fundamental tools of cryptography. A cryptocurrency behaves like a 'normal' currency because of the rules which govern what one can and cannot do to modify the ledger. For example, a Bitcoin address cannot spend more Bitcoin than it has previously received. These rules underpin all transactions on Bitcoin and many other blockchains.'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).fire bitcoin top bitcoin TABLE OF CONTENTSEthereum is open access to digital money and data-friendly services for everyone – no matter your background or location. It's a community-built technology behind the cryptocurrency ether (ETH) and thousands of applications you can use today.bitcoin даром bitcoin вывод The foundation for our digital futurebitcoin lite It aims to fix the problems in global finance, often referred to as the 'bank of the people';monero калькулятор s bitcoin сервисы bitcoin форк bitcoin bitcoin валюты metal bitcoin bitcoin автоматически bitcoin system bitcoin services hacker bitcoin bitcoin прогноз 2016 bitcoin прогноз ethereum новый bitcoin продам bitcoin ann ethereum bitcoin frog korbit bitcoin jax bitcoin get bitcoin cryptocurrency bitcoin monero coin ethereum mine bitcoin foto bitcoin продам эмиссия ethereum bitcoin aliexpress bitcoin окупаемость avatrade bitcoin bitcoin луна golden bitcoin tether wifi cryptocurrency price bitcoin шахты bitcoin cc bitcoin цены mining bitcoin algorithm ethereum bitcoin transaction prune bitcoin get bitcoin bitcoin ru bitcoin 100 Bitcoin is a currency generated and secured by peer-to-peer networked devices that maintain a communal record of all transactions within the system that can be used in a crypto-anarchic context. The idea behind bitcoin can be traced to The Crypto Anarchist Manifesto. There exist a large number of altcoins, some of which have opaque ledgers such that transactions between peers can be untraceable (the first protocol for this is known as the Zerocoin protocol, see also Monero). Some altcoin currencies also act as decentralized autonomous organizations, or act as platforms for enabling such organizations.майнить ethereum
порт bitcoin bitcoin future Your or your friend’s account could have been hacked—for example, there could be a denial-of-service attack or identity theft.bitcoin алгоритм
Stablecoins in a nutshellTiming the purchase with the hardware cycle.pps bitcoin майн bitcoin monero difficulty bitcoin pro fast bitcoin виталий ethereum bitcoin bbc coin ethereum ethereum casper bitcoin adress kinolix bitcoin in bitcoin bitcoin network
bitcoin футболка bitcoin habr usdt tether ethereum supernova новости bitcoin
ethereum обвал bitcoin iso расчет bitcoin alpari bitcoin bitcoin news bitcoin xapo bitcoin nasdaq ethereum game bitcoin лопнет bitcoin suisse миксер bitcoin faucet ethereum tera bitcoin bitcoin gambling bitcoin knots bitcoin расчет форумы bitcoin This prohibitive hardware requirement is one of the biggest security measures that deter people from trying to manipulate the bitcoin system.bitcoin mmm Revolutionary PropertiesWhy did The DAO fail?top bitcoin
nodes bitcoin bitcoin banks platinum bitcoin
bitcoin бонусы особенности ethereum валюта bitcoin bitcoin best bitcoin site смесители bitcoin bitcoin блог bitcoin монета
monero cryptonight wired tether bitrix bitcoin рубли bitcoin ethereum php bitcoin weekend ethereum geth bitcoin настройка bitcoin шрифт bitcoin mempool надежность bitcoin форекс bitcoin unconfirmed bitcoin casper ethereum
bounty bitcoin падение ethereum matteo monero reddit bitcoin bitcoin оборот bitcoin эмиссия In Blockchain, mining is a process to validate transactions by solving a difficult mathematical puzzle called proof of work. Now, proof of work is the process to determine a number (nonce) along with a cryptographic hash algorithm to produce a hash value lower than a predefined target. The nonce is a random value that is used to vary the value of hash so that the final hash value meets the hash conditions.bitcoin википедия
4000 bitcoin algorithm ethereum bitcoin goldman bitcoin перевод bitcoin register ethereum цена daemon monero frog bitcoin bitcoin china казино ethereum bitcoin hunter bitcoin iq gemini bitcoin bitcoin ann ethereum конвертер After dropping someone off, the car uses its profits for a trip to an electric charging station, using ether – Ethereum’s native token used for paying to use decentralized apps – to pay for the electricity. bitcoin security контракты ethereum monero xeon bitcoin футболка 1. Etherswarm ethereum multiply bitcoin bitcoin buying футболка bitcoin bitcoin account bitcoin настройка конвертер bitcoin ethereum casper bitcoin kurs сборщик bitcoin bitcoin транзакция bitcoin gold
bitcoin torrent bitcoin mmm
bitcoin халява bitcoin is bitcoin escrow перевести bitcoin
bitcoin zone
киа bitcoin сбор bitcoin lootool bitcoin ethereum casino порт bitcoin bitcoin vip loan bitcoin заработок bitcoin зарегистрироваться bitcoin bitcoin download bitcoin clouding seed bitcoin amd bitcoin bitcoin poker bitcoin testnet bitcoin информация monero amd bitcoin poloniex ubuntu ethereum chain bitcoin
segwit bitcoin vector bitcoin roulette bitcoin best cryptocurrency bitcoin рост bitcoin api bitcoin status electrum ethereum
bitcoin sberbank bitcoin stock ethereum nicehash bitcoin calculator blog bitcoin bitcoin реклама ethereum raiden bitcoin traffic armory bitcoin credit bitcoin qr bitcoin bitcoin биткоин bitcoin mempool ethereum developer gold cryptocurrency bitcoin лохотрон car bitcoin bitcoin gif total cryptocurrency tether gps
monero ico ethereum chaindata
wechat bitcoin ethereum контракты usa bitcoin ebay bitcoin monero новости debian bitcoin криптовалюта tether
краны monero accepts bitcoin кости bitcoin monero gui bitcoin heist партнерка bitcoin bitcoin icon bitcoin cap credit bitcoin phoenix bitcoin phoenix bitcoin ios bitcoin иконка bitcoin
купить monero bitcoin get лотереи bitcoin ethereum логотип life bitcoin bitcoin coinmarketcap bitcoin instagram bitcoin mmgp bitcoin создать
bitcoin mining bitcoin приложение film bitcoin bitcoin курс ethereum кошельки bitcoin государство инструкция bitcoin взлом bitcoin ethereum хешрейт monero stats ethereum bitcoin kran mmm bitcoin icons bitcoin bitcoin check майнер ethereum bitcoin cny
monero bitcoin часы gambling bitcoin
ethereum contracts конвертер bitcoin conference bitcoin best cryptocurrency new cryptocurrency bitcoin hype bitcoin paw bitcoin nachrichten суть bitcoin bitcoin fpga bitcoin фарминг bitcoin darkcoin ethereum blockchain bitcoin friday monero client
usa bitcoin bitcoin example ethereum токен That leaves Bitcoin at about 0.4% of the estimated value of narrow money from The Money Project's report.Very secureзаработать monero настройка monero форум ethereum value bitcoin clicks bitcoin asic monero weekly bitcoin bitcoin андроид blog bitcoin bitcoin обналичить tether криптовалюта bitcoin ne bitcoin green выводить bitcoin bio bitcoin отследить bitcoin bitcoin easy rinkeby ethereum
tether clockworkmod alpha bitcoin bitcoin валюты bitcoin code bitcoin прогноз серфинг bitcoin мониторинг bitcoin bitcoin fortune se*****256k1 ethereum bitcoin mail bitcoin purchase bitcoin clicks
bitcoin x2
акции ethereum книга bitcoin lurkmore bitcoin ethereum 4pda excel bitcoin bitcoin компьютер bitcoin роботы bitcoin монета
homestead ethereum abi ethereum рейтинг bitcoin ютуб bitcoin Protection against accidental lossпицца bitcoin ethereum web3 explorer ethereum
игра ethereum
monero обменник local ethereum ethereum клиент
hashrate bitcoin my ethereum
bitcoin майнер opencart bitcoin get bitcoin free bitcoin exchange ethereum
chaindata ethereum monero майнинг xbt bitcoin bitcoin torrent bitcoin рейтинг new cryptocurrency видеокарты ethereum кредит bitcoin monero logo gambling bitcoin gas ethereum bitcoin bloomberg подтверждение bitcoin monero курс майнинга bitcoin bitcoin token криптовалюту bitcoin бесплатный bitcoin взлом bitcoin кости bitcoin bitcoin получение bitcoin 50 nicehash bitcoin microsoft bitcoin mempool bitcoin ethereum конвертер bitcoin окупаемость bitcoin tradingview вебмани bitcoin bitcoin email sberbank bitcoin
advcash bitcoin ethereum chart значок bitcoin bitcoin project bitcoin blog bitcoin портал erc20 ethereum
зарабатывать ethereum bitcoin journal
bitcoin рост bitcoin добыть bitcoin usd bitcoin auto bitcoin халява bitcoin valet bitcoin карта bitcoin service bitcoin co bitcoin компьютер bitcoin generation bitcoin difficulty ethereum web3 bitcoin alpari bitcoin казахстан check bitcoin bitcoin lurkmore bitcoin joker cryptonight monero вывод ethereum bitcoin расшифровка case bitcoin bitcoin expanse bitcoin форки цены bitcoin
технология bitcoin bitcoin etf bitcoin россия bitcoin миллионеры исходники bitcoin bitcoin count программа tether raiden ethereum рейтинг bitcoin coingecko ethereum cryptocurrency calendar ethereum transaction bitcoin hardfork nanopool ethereum hacking bitcoin cryptocurrency ico bitcoin fpga токены ethereum bitcoin vk money bitcoin пожертвование bitcoin bitcoin today bye bitcoin 4000 bitcoin bitcoin видео bitcoin роботы ethereum charts tether plugin eth_vs_btc_issuanceигра bitcoin bitcoin landing форк bitcoin криптовалюты bitcoin If a miner solves and proposes an invalid block, specifically one that either includes invalid transactions or an invalid coinbase reward, the rest of the network will reject it as invalid. Separately, if a miner builds off a version of history that does not represent the longest chain with the greatest proof of work, any proposed block would also be considered invalid. Essentially, as soon as a miner sees a new valid block proposed in the network, it must immediately begin to work on top of that block or risk falling behind and performing invalid work at a sunk cost. As a consequence, in either scenario, if a miner were to produce invalid work, it would incur real cost but would be compensated nothing in return.халява bitcoin digi bitcoin bitcoin network nubits cryptocurrency all bitcoin bitcoin инструкция bitcoin начало galaxy bitcoin bitcoin click
bitcoin кранов importprivkey bitcoin bitcoin капча контракты ethereum
bitcoin лотерея bitcoin форумы ethereum биткоин jax bitcoin bitcoin c bitcoin euro bitcoin telegram ethereum новости bitcoin кошелек torrent bitcoin monero proxy проблемы bitcoin миксер bitcoin
bitcoin logo bitcoin block bitcoin hacker
