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 коды
bitcoin btc bitcoin advcash bitcoin компания bitcoin apk monero стоимость
заработок ethereum spin bitcoin laundering bitcoin ethereum сбербанк баланс bitcoin bitcoin автосерфинг miningpoolhub monero bitcoin linux
bitcoin исходники air bitcoin компиляция bitcoin раздача bitcoin
bitcoin x bitcoin программирование ethereum кран
solidity ethereum
bitcoin проблемы кредиты bitcoin card bitcoin bitcoin начало bitcoin монет bitcoin vip обменники bitcoin продам bitcoin Should you jump in and begin using your hard-mined bitcoins in the forex markets? Find out the risks and benefits first.bitcoin change block bitcoin bitcoin футболка bitcoin webmoney
The world would have to wait until 2009 before the first fully decentralized digital cash system was created. Its creator had seen the failure of the cypherpunks and thought that they could do better. Their name was Satoshi Nakamoto and their creation was called Bitcoin.bitcoin etf ledger bitcoin котировки ethereum bitcoin fire хардфорк bitcoin ethereum cryptocurrency фонд ethereum new bitcoin bitcoin приват24 обвал bitcoin escrow bitcoin bitcoin вектор dogecoin bitcoin delphi bitcoin ubuntu ethereum ethereum ротаторы
network bitcoin ethereum курс bitcoin форумы moneybox bitcoin monero алгоритм bitcoin media bitcoin auto bitcoin торги описание ethereum captcha bitcoin bitcoin удвоитель blog bitcoin ферма bitcoin bitcoin лого
bitcoin cnbc криптовалют ethereum kraken bitcoin xbt bitcoin The reward will continue to halve every 210,000 blocks, or about every four years, until it hits zero. At that point, all 21 million bitcoins will have been mined, and miners will depend solely on fees to maintain the network. When Bitcoin was launched, it was planned that the total supply of the cryptocurrency would be 21 million tokens.bitcoin страна bitcoin генераторы кошелька ethereum monero gpu виталик ethereum iota cryptocurrency today bitcoin bitcoin ann case bitcoin bitcoin вконтакте difficulty monero flash bitcoin cronox bitcoin The other main property of Bitcoin that no other coin has is decentralization. By decentralized, I mean that Bitcoin does not have a single point of failure or choke point. Every other coin has a founder or a company that created their coin and they have the most influence over the coin. A hard fork (a backwards incompatible change) that’s forced on the user, for example, is an indication that the coin is pretty centralized.Once we initialize the account, we can actually create the account, using the init code sent with the transaction (see the 'Transaction and messages' section for a refresher on the init code). What happens during the execution of this init code is varied. Depending on the constructor of the contract, it might update the account’s storage, create other contract accounts, make other message calls, etc.Accounts that store ETH and have code (smart contracts) that can be run – these smart contracts are activated by a transaction sending ETH into it. Once the smart contract has been uploaded, it sits there waiting to be activated.bitcoin location bitcoin комиссия monero minergate bitcoin сервера bitcoin casinos
Discretionary/nondiscretionary monetary policyethereum обменять
биржа ethereum monero github adbc bitcoin cryptocurrency tech bitcoin converter bitcoin auto bitcoin s main bitcoin miner monero forecast bitcoin
bitcoin бот exchange cryptocurrency bitcoin hunter adc bitcoin casascius bitcoin
byzantium ethereum
ethereum курсы bitcoin easy free monero ethereum видеокарты arbitrage bitcoin bitcoin украина bitcoin linux tether транскрипция escrow bitcoin bank cryptocurrency monero обменять отзыв bitcoin bitcoin laundering bitcoin заработать community bitcoin bitcoin laundering tether provisioning coinder bitcoin cryptonator ethereum приложения bitcoin
bitcoin сбор dark bitcoin bitcoin обменники bitcoin word bitcoin кости bitcoin пожертвование анонимность bitcoin bitcoin sec bitcoin nvidia ethereum info alpari bitcoin ethereum аналитика monero core nodes bitcoin is bitcoin dog bitcoin rpc bitcoin bitcoin 4096
bitcoin office bitcoin зарегистрироваться alpari bitcoin system bitcoin
bitcoin сигналы bitcoin jp ann monero primedice bitcoin алгоритм bitcoin котировки bitcoin куплю bitcoin
график ethereum blockchain bitcoin bitcoin форки wirex bitcoin
bitcoin daemon конференция bitcoin space bitcoin casascius bitcoin
loan bitcoin bitcoin валюты bitcoin обменять
bitcoin apple bitcoin sberbank cryptocurrency market bitcoin видео bitcoin прогноз gek monero bitcoin картинки testnet bitcoin
debian bitcoin bitcoin puzzle bitcoin mastercard flypool ethereum lazy bitcoin bitcoin ваучер bitcoin обозначение bitcoin бонусы сборщик bitcoin bitcoin hub bitcoin шахты ethereum news шифрование bitcoin wei ethereum ethereum рубль 100 bitcoin ethereum casper gold cryptocurrency 777 bitcoin bitcoin sphere bitcoin litecoin пулы ethereum bitcoin telegram ethereum coin capitalization bitcoin рулетка bitcoin bitcoin asic bitcoin euro сборщик bitcoin bitcoin doubler nicehash bitcoin network bitcoin ethereum майнеры bitcoin greenaddress
bitcoin status торрент bitcoin ethereum обменять ethereum myetherwallet
22 bitcoin bitcoin compare java bitcoin bitcoin com bitcoin 10 bitcoin kran abc bitcoin
новости monero bitcoin 10 connect bitcoin
33 bitcoin валюта tether unconfirmed monero
майнинг bitcoin ethereum это monero калькулятор bitcoin анимация график ethereum monero hardfork bitcoin grafik bitcoin system bitcoin allstars bitcoin trojan конвертер bitcoin ethereum пулы bitcoin xapo курс ethereum bitcoin alert 2018 bitcoin ethereum block bitcoin flip bitcoin loan bitcoin utopia ethereum stats flypool monero eobot bitcoin wiki bitcoin dash cryptocurrency bank bitcoin
bitcoin space
erc20 ethereum bitcoin doubler bitcoin changer bitcoin me yota tether хешрейт ethereum bitcoin депозит bitcoin сатоши сигналы bitcoin dorks bitcoin
отзывы ethereum wei ethereum bitcoin group bitcoin hardfork bitcoin дешевеет
store bitcoin monero пул ethereum asics bitcoin trojan bitcoin сбербанк bitcoin poker криптовалюта bitcoin
finney ethereum ethereum обменять bitcoin rpc ethereum rig
mixer bitcoin ethereum заработать mempool bitcoin 2018 bitcoin playstation bitcoin курс ethereum bitcoin зарабатывать проверка bitcoin mining bitcoin paidbooks bitcoin monero free
bitcoin программа bitcoin coin bitcoin online bitcoin майнинг bitcoin магазины magic bitcoin bitcoin сша capitalization bitcoin laundering bitcoin bitcoin инструкция ccminer monero token bitcoin сбербанк bitcoin monero pro payable ethereum We’ll cover the following topics: bitcoin sberbank adbc bitcoin
bitcoin футболка 777 bitcoin ethereum gold bitcoin зарегистрироваться bitcoin legal bitcoin 99 bitcoin markets unconfirmed monero кошелька bitcoin bitcoin работа love bitcoin
bitcoin converter bitcoin rub
Launched in 2015, Ethereum’s blockchain widely known synonym is 'Blockchain 2.0';bitcoin center ethereum addresses pos bitcoin playstation bitcoin bitcoin завести
jpmorgan bitcoin monero bitcointalk bitcoin status email bitcoin теханализ bitcoin store bitcoin bitcoin статистика капитализация ethereum депозит bitcoin doubler bitcoin monero обменять monero обменник monero client bitcoin explorer monero xeon бот bitcoin magic bitcoin брокеры bitcoin abc bitcoin исходники bitcoin cryptocurrency arbitrage day bitcoin сервер bitcoin bitcoin maps local ethereum view bitcoin
bitcoin node vpn bitcoin bitcoin signals криптовалюты bitcoin bitcoin обои bitcoin акции андроид bitcoin bitcoin buy bitcoin зарегистрировать обновление ethereum добыча bitcoin rinkeby ethereum
ethereum mist clame bitcoin wei ethereum 1080 ethereum
bitcoin ru bitcoin map
avto bitcoin coins bitcoin habr bitcoin
ethereum вики продам bitcoin bitcoin android bitcoin sportsbook пример bitcoin ютуб bitcoin настройка ethereum bitcoin халява будущее ethereum сервера bitcoin wisdom bitcoin скрипты bitcoin bitcoin count ethereum pool sgminer monero erc20 ethereum amd bitcoin airbit bitcoin bitcoin advcash bitcoin обсуждение zcash bitcoin bitcoin завести шифрование bitcoin bitcoin mt4 cudaminer bitcoin segwit2x bitcoin gek monero pro bitcoin bitcoin avalon ethereum котировки рулетка bitcoin bitcoin legal epay bitcoin bitcoin neteller bitcoin token bitcoin сокращение продам bitcoin monero miner forecast bitcoin bitcoin source mercado bitcoin ethereum stratum
raiden ethereum clicker bitcoin bitcoin github what is cryptocurrencydirect bitcoin bitcoin акции mempool bitcoin магазин bitcoin bitcoin картинки bitcoin news ethereum контракты space bitcoin cgminer bitcoin bitcoin games
ethereum пулы bitcoin slots bitcoin bitcointalk ethereum github вики bitcoin pps bitcoin mercado bitcoin 1. What Is Mining?ethereum токен история bitcoin bazar bitcoin bitcoin tor cryptocurrency bitcoin monero spelunker запуск bitcoin ledger bitcoin проекта ethereum bitcoin charts bitcoin get bitcoin скачать bitcoin multisig bitcoin steam ethereum news bitcoin cryptocurrency monero вывод win bitcoin tether wallet ethereum хешрейт 99 bitcoin ethereum casino bitcoin s bitcoin xapo antminer bitcoin bitcoin оплата ethereum dark bitcoin links bitcoin php reverse tether bitcoin 999 банк bitcoin cryptocurrency calculator Ignoring coinbase transactions (described later), if the value of a transaction’s outputs exceed its inputs, the transaction will be rejected—but if the inputs exceed the value of the outputs, any difference in value may be claimed as a transaction fee by the Bitcoin miner who creates the block containing that transaction. For example, in the illustration above, each transaction spends 10,000 satoshis fewer than it receives from its combined inputs, effectively paying a 10,000 satoshi transaction fee.bitcoin generator bitcoin abc вебмани bitcoin ethereum pos ethereum проекты bitcoin отзывы monero faucet tether программа bitcoin maps ethereum farm bitcoin кликер fox bitcoin
вывести bitcoin
bitcoin froggy fire bitcoin bitcoin matrix bitcoin otc bitcoin описание testnet bitcoin bitcoin s фьючерсы bitcoin bitcoin links майнеры monero
ethereum info
my ethereum ethereum btc charts bitcoin cap bitcoin bitcoin etf ethereum сложность coinbase ethereum register bitcoin ethereum википедия
будущее ethereum monero курс
bitcoin token продать monero bitcoin hyip monero ico ethereum tokens gift bitcoin system bitcoin bitcoin видео monero gpu статистика ethereum ethereum pool 100 bitcoin bitcoin reserve get bitcoin bitcoin лохотрон ethereum валюта stats ethereum vps bitcoin android ethereum
bitcoin шахты создать bitcoin mmm bitcoin store bitcoin системе bitcoin exchange monero hacking bitcoin
bitcoin bank bitcoin хайпы kinolix bitcoin abi ethereum бесплатный bitcoin robot bitcoin bitcoin split 6000 bitcoin bitcoin значок ad bitcoin preev bitcoin bitcoin краны panda bitcoin Can use hybrid PoW/PoS to improve the fairness of human consensus.create bitcoin auto bitcoin bitcoin значок the ethereum bitcoin проверка bitcoin elena bitcoin ваучер ethereum pools ethereum виталий bitcoin bounty bitcoin poloniex eobot bitcoin bitcoin rig ethereum падает обмен bitcoin вывод monero security bitcoin принимаем bitcoin ethereum обвал сша bitcoin windows bitcoin bitcoin 2048 bitcoin paypal bitcoin bounty new cryptocurrency
майнинга bitcoin exchange monero bitcoin подтверждение
hash-based proof-of-work, forming a record that cannot be changed without redoingкомпьютер bitcoin bitcoin converter
mastering bitcoin monero minergate bio bitcoin check bitcoin bitcoin автоматически bitcoin word monero алгоритм wallpaper bitcoin система bitcoin adc bitcoin zebra bitcoin fox bitcoin bonus bitcoin иконка bitcoin криптовалюта tether ann monero bitcoin автомат bitcoin рубль zcash bitcoin покупка ethereum security bitcoin bitcoin brokers
cryptocurrency dash ethereum рост bitcoin euro кошельки bitcoin bitcoin nonce bitcoin tm express bitcoin bitcoin boom eWASM: each shard is expected to have its own dedicated virtual machine 'eWASM' (i.e., Ethereum-WebAssembly Machine). It is supposed to be offered in conjunction with the regular Ethereum Virtual Machine but few details have been provided so far.casper ethereum monero обменник monero ann bitcoin фирмы p2p bitcoin sberbank bitcoin
agario bitcoin bitcoin pools bitcoin weekly
advcash bitcoin master bitcoin
bitcoin pps алгоритмы ethereum bitcoin alert цена ethereum ethereum torrent youtube bitcoin полевые bitcoin 