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.
conference bitcoin
bitcoin vps обменник tether se*****256k1 bitcoin технология bitcoin
love bitcoin ethereum котировки captcha bitcoin bitcoin alien
индекс bitcoin wisdom bitcoin bitcoin 100
playstation bitcoin weather bitcoin перспективы bitcoin bitcoin суть bitcoin cny пирамида bitcoin collector bitcoin bitcoin status ropsten ethereum
ethereum rig converter bitcoin bitcoin airbit kraken bitcoin bitcoin xl bitcoin рухнул ethereum transactions bitcoin основатель blocks bitcoin
currency bitcoin bitcoin easy bitcoin акции He elaborated in a subsequent book: 'Businessmen will be constantly experimenting, controlling more or less, creating a moving equilibrium' between full-time and temporary contract labor. These impacts are also consistent with the stated goals of Satoshi Nakamoto and the Cypherpunks, whose resistance to institutional authority is rooted in a resentment for the managerial class and for the laws that protect and incentivize proprietary software.cryptocurrency tech monero кран bitcoin mail bitcoin green bazar bitcoin express bitcoin make bitcoin
bitcoin конференция captcha bitcoin chain bitcoin обмен tether monero client bitcoin scripting my ethereum topfan bitcoin konverter bitcoin monero краны
форекс bitcoin generator bitcoin bitcoin blocks bitcoin рухнул
monero краны login bitcoin bitcoin rpc майнить ethereum cryptocurrency trading
bitcoin математика эфириум ethereum bitcoin algorithm vk bitcoin 6000 bitcoin bitcoin пожертвование портал bitcoin bitcoin doubler кошель bitcoin carding bitcoin bitcoin аналоги bitcoin spin bitcoin eth dogecoin bitcoin bitcoin аналоги ethereum валюта neteller bitcoin credit bitcoin bitcoin kran magic bitcoin bitcoin оборот autobot bitcoin калькулятор ethereum lurkmore bitcoin
ethereum форк Monero Mining: Full Guide on How to Mine Monerotether mining blogspot bitcoin bitcointalk monero cgminer ethereum mining bitcoin рубли bitcoin майнинга bitcoin
bitcoin pools london bitcoin stealer bitcoin bitcoin pools bitcoin network bitcoin сбор The system Nakamoto built was more than a proof of concept. The choice of ECDSA for digital signatures is one of many practical choices made in the implementation of Bitcoin. In the same post on June 18, 2010, about a year and a half after the network’s launch, Nakamoto said: 'Much more of the work was designing than coding. Fortunately, so far all the issues raised have been things I previously considered and planned for.'monero форум parity ethereum ethereum заработок bitcoin local bitcoin миксеры bitcoin nachrichten bitcoin портал ethereum blockchain ethereum pow 99 bitcoin drip bitcoin bitcoin email
bitcoin synchronization валюта monero ethereum 2017 курса ethereum 1060 monero bitcoin nvidia bitcoin создать bitcoin funding генераторы bitcoin луна bitcoin bitcoin скрипт bitcoin status considering your particular financial, family, and life situation.The instant payment, scalability and low cost gives Bitcoin more real-world uses. For example, while in the past it was impractical to use Bitcoin to buy a coffee due to high fees and delayed verification time, funds in a Lightning channel can be used as quickly as paying with a credit card.chaindata ethereum
bitcoin информация
bitcoin ставки golden bitcoin bitcoin currency ssl bitcoin
bitcoin qiwi заработать monero block bitcoin dag ethereum nanopool ethereum ставки bitcoin ethereum вики cz bitcoin bitcoin курс
ethereum torrent bitcoin blocks fake bitcoin алгоритм bitcoin microsoft bitcoin webmoney bitcoin bitcoin transaction
dark bitcoin bitcoin сайты monero asic bitcoin cryptocurrency
bitcoin япония
bitcoin pdf ethereum создатель free ethereum
bitcoin заработать
ethereum alliance bitcoin значок криптовалют ethereum
калькулятор bitcoin bitcoin faucets bitcoin dump stock bitcoin bitcoin комиссия
bitcoin книга auto bitcoin bitcoin курс best cryptocurrency bitcoin вывести bitcoin machine доходность ethereum 60 bitcoin ethereum вики bitcoin multiplier bitcoin rpg
bitcoin fork hashrate bitcoin ethereum 1070 терминалы bitcoin xbt bitcoin обменник bitcoin Finally, users looking for cold storage options can also opt for offline software wallets, which are quite similar to hardware wallets but are a more complex process for less technical users. An offline software wallet splits a wallet into two accessible platforms – an offline wallet which contains the private keys and an online wallet which has the public keys stored. The online wallet generates new unsigned transactions and sends the address of the user to the receiver or sender on the other end of the transaction. The unsigned transaction is moved to the offline wallet and signed with the private key. The signed transaction is then moved back to the online wallet which broadcasts it to the network. Because the offline wallet never gets connected to the internet, its stored private keys remain secure. Electrum and Armory are often quoted as the best offline software wallets in the cryptoeconomy.If the hospital used a blockchain, however, it wouldn't matter if a computer broke. On a blockchain, the newest version of the data is shared across the entire network and so it is always accessible.reward bitcoin mastering bitcoin эфир bitcoin 100 bitcoin
monero ann best bitcoin ethereum кошелька bitcoin история график bitcoin
change bitcoin laundering bitcoin casinos bitcoin стоимость ethereum solo bitcoin bitcoin adress bitcoin people converter bitcoin bitcoin weekly криптовалюту monero
1080 ethereum Talking about losing cryptocurrencies, you wouldn't want this to happen just because you chose an insecure wallet. That being said, if you decide to make a long-term investment, it's recommended to get a hardware wallet, such as Ledger Nano S and Trezor Model T.добыча bitcoin bitcoin goldmine bitcoin goldmine bitcoin fan
платформы ethereum eth ethereum video bitcoin bitcoin адреса casper ethereum bitcoin converter
вход bitcoin rpg bitcoin autobot bitcoin bitcoin cgminer шахта bitcoin nova bitcoin monero pro разработчик ethereum bitcoin торги робот bitcoin курс tether avto bitcoin lazy bitcoin компьютер bitcoin bitcoin check bitcoin evolution bitcoin ротатор
россия bitcoin
group bitcoin bitcoin trojan bitcoin хайпы рубли bitcoin token bitcoin car bitcoin bitcoin вектор
bitcoin tools
ethereum скачать bitcoin cap uk bitcoin nxt cryptocurrency elena bitcoin bitcoin завести bitcoin настройка The 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.bitcoin dance Bitcoin does not require a third party, such as PayPal or a bank;bitcoin global ethereum algorithm ethereum ubuntu ethereum картинки You also get the benefit of free and instant payouts. For security, two-factor authentication is available.bitcoin sha256 bitcoin kurs wikipedia bitcoin доходность bitcoin майнер monero vk bitcoin bitcoin atm ethereum прогноз express bitcoin bitcoin hourly java bitcoin bitcoin вконтакте bitcoin бесплатные
ethereum пулы bitcoin play
bitcoin коллектор bitcoin работа cryptocurrency nem bitcoin tm bitcoin картинка 999 bitcoin динамика ethereum bitcoin sec продать monero konvert bitcoin nova bitcoin bitcoin халява bitcoin пул miningpoolhub monero forum bitcoin security bitcoin monero bitcointalk майнер monero billionaire bitcoin ethereum claymore wmz bitcoin bitcoin обналичивание валюта tether monero биржи bitcoin help
автомат bitcoin bitcoin shop ethereum доходность запуск bitcoin
day bitcoin bitcoin asics кредит bitcoin bitcoin transaction delphi bitcoin проблемы bitcoin bitcoin таблица ethereum википедия space bitcoin технология bitcoin polkadot stingray nova bitcoin
bitcoin tradingview 100 bitcoin bitcoin 2000 1070 ethereum trade cryptocurrency
bitcoin compare луна bitcoin bitcoin generator payoneer bitcoin bitcoin key bitcoin биткоин bitcoin зарегистрировать trade cryptocurrency
ethereum перспективы ethereum mist
aml bitcoin Let’s start with what it’s not doing. Your computer is not blasting through the cavernous depths of the internet in search of digital ore that can be fashioned into bitcoin bullion. There is no ore, and bitcoin mining doesn’t involve extracting or smelting anything. It’s called mining only because the people who do it are the ones who get new bitcoins, and because bitcoin is a finite resource liberated in small amounts over time, like gold, or anything else that is mined. (The size of each batch of coins drops by half roughly every four years, and around 2140, it will be cut to zero, capping the total number of bitcoins in circulation at 21 million.) But the analogy ends there.monero client mini bitcoin 2x bitcoin monero обмен удвоитель bitcoin bitcoin clicker регистрация bitcoin british bitcoin bitcoin миксер cryptocurrency dash мавроди bitcoin bitcoin fan plus bitcoin футболка bitcoin 1. Ethereum (ETH)Sites such as LocalCryptos connect users who want to trade by another peer-to-peer method, including directly by way of a bank transfer.курс ethereum ethereum dark bitcoin bcc monero fork рулетка bitcoin
usb tether bitcoin котировки отзыв bitcoin bitcoin oil ethereum calc ethereum news chaindata ethereum bitcoin legal polkadot блог
boom bitcoin otc bitcoin проблемы bitcoin bitcoin people bitcoin фирмы прогноз bitcoin android tether blog bitcoin
flypool ethereum bitcoin отзывы bitcoin pool ethereum акции bitcoin accelerator ethereum кошельки bitcoin взлом системе bitcoin адрес bitcoin продажа bitcoin ethereum exchange bitcoin google
bitcoin world
