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.
To understand how this works, imagine Alice wants to pay Bob 10 bitcoin (BTC). To make this payment, Bitcoin requires that Alice publish a written promise to pay Bob the agreed amount. This promise is called a transaction. Bitcoin knows nothing about real-world identities, so addresses are used as a proxy.bitcoin обменять ethereum wallet script bitcoin bitcoin dark bitcoin значок cardano cryptocurrency bitcoin mail bitcoin кошелек получение bitcoin bitcoin click monero кран maps bitcoin ethereum block bitcoin s chaindata ethereum ethereum project bitcoin download lurkmore bitcoin кран ethereum bitcoin магазин eos cryptocurrency
bitcoin novosti
bitcoin get bitcoin казино ethereum decred bitcoin пополнение
bitcoin форекс пополнить bitcoin
importprivkey bitcoin кошелек ethereum халява bitcoin bitcoin multiplier протокол bitcoin обменник bitcoin bitcoin падение wikipedia cryptocurrency bitcoin check bitcoin fox ethereum blockchain исходники bitcoin
monero client bitcoin казахстан java bitcoin bitcoin инвестирование bitcoin теханализ bitcoin poker bitcoin 33 краны monero bitcoin flip claim bitcoin monero dwarfpool bitcoin бонус best cryptocurrency cryptocurrency nem bitcoin loto биржа monero bitcoin moneybox r bitcoin ethereum вывод bitcoin betting bitcoin авито bitcoin сервисы copay bitcoin bitcoin calculator bittorrent bitcoin bitcoin кошелька cpp ethereum
tether limited monero xmr отзывы ethereum создатель bitcoin prune bitcoin падение ethereum использование bitcoin price bitcoin bitcoin ethereum bitcoin plus bitcoin abc bitcoin official word bitcoin bitcoin payza bitcoin лопнет bitcoin магазин polkadot cadaver tether обменник bitcoin знак monero hardware
red bitcoin ethereum contracts ethereum покупка mooning bitcoin bitfenix bitcoin flappy bitcoin конец bitcoin bitcoin форекс monero address
bitcoin markets bitcoin prominer продажа bitcoin stellar cryptocurrency дешевеет bitcoin фото bitcoin decred ethereum monero обменник bitcoin tools While Bitcoin uses private key encryption to verify owners and register transactions, fraudsters and scammers may attempt to sell false bitcoins. For instance, in July 2013, the SEC brought legal action against an operator of a Bitcoin-related Ponzi scheme.13 There have also been documented cases of Bitcoin price manipulation, another common form of fraud.monero fr bitcoin conference fpga ethereum pull bitcoin bitcoin доходность отзыв bitcoin sgminer monero trezor bitcoin ethereum ethash gas ethereum forex bitcoin bitcoin spend trading bitcoin регистрация bitcoin programming bitcoin вклады bitcoin 4 bitcoin bitcoin capitalization ethereum io bitcoin shops bitcoin код invest bitcoin pay bitcoin bitcoin расчет bitcoin 999 bitcoin sec bitcoin расширение bitcoin
torrent bitcoin bitcoin ann poloniex ethereum bitcoin генераторы bitcoin проверка bubble bitcoin сайте bitcoin swiss bitcoin ethereum plasma monero windows reverse tether poloniex ethereum bitcoin withdrawal bitcoin capital
bitcoin компания сколько bitcoin
спекуляция bitcoin difficulty bitcoin bitcoin количество pos bitcoin click bitcoin
monero обмен блокчейн bitcoin ethereum casino проект ethereum bitcoin proxy ethereum twitter bitcoin 2018 ru bitcoin rinkeby ethereum poloniex monero bitcoin форк block ethereum bitcoin vip machines bitcoin bitcoin 4096 panda bitcoin динамика ethereum ethereum foundation instant bitcoin bitcoin ebay qiwi bitcoin blocks bitcoin bitcoin eu bitcoin софт dark bitcoin Prosroboforex bitcoin ethereum стоимость bitcoin spend bitcoin pdf
hashrate bitcoin bitcoin пример лото bitcoin bitcoin рулетка bitcoin bloomberg wiki bitcoin monero free bitcoin 33 token ethereum заработок bitcoin bonus bitcoin bitcoin best bitcoin prices kran bitcoin bitcoin видеокарта программа ethereum ethereum токен bitcoin today bitcoin получить habrahabr ethereum click bitcoin ethereum логотип cryptocurrency market rigname ethereum акции bitcoin bitcoin start production cryptocurrency bitcoin будущее бесплатные bitcoin ethereum купить bitcoin suisse bitcoin dark ethereum перспективы ethereum erc20 alliance bitcoin ethereum blockchain bitcoin puzzle ecdsa bitcoin bitcoin окупаемость покер bitcoin
биржи ethereum golden bitcoin playstation bitcoin ninjatrader bitcoin скрипты bitcoin bitcoin путин bitcoin config bitcoin вложить bitcoin игры bitcoin cgminer bitcoin падение bitcoinwisdom ethereum ethereum install cryptocurrency bitcoin monero spelunker ethereum install bitcoin пул
bitcoin xt
покупка ethereum создать bitcoin bitcoin автокран bitcoin foto field bitcoin пожертвование bitcoin bitcoin казахстан panda bitcoin Miners will be doing their process when there is a created block of transactions. They will simply get the block necessary information and do mathematical solution using formulas and as a result it turns out into something.code bitcoin bitcoin hype scrypt bitcoin
bitcoin links
bitcoin зарегистрироваться сеть ethereum excel bitcoin mercado bitcoin bitcoin knots Uncles Reward:ethereum калькулятор bitcoin перспективы bitcoin metatrader rx580 monero autobot bitcoin For example, Slushpool uses a specially designed algorithm called Vardiff (Variable Difficulty Algorithm), which assigns more difficult tasks to stronger individual miners and less difficult ones to weaker miners, thereby facilitating relatively even communication frequency. It allows for a balanced flow of hash data to the pool server that ensures the correct measurement of the hash rate generated by the miner, so each miner has a fair chance of getting rewarded.4bitcoin code заработок ethereum siiz bitcoin bitcoin base bitcoin wallet location bitcoin bitcoin 2020 agario bitcoin ethereum форк monero майнить
bitcoin выиграть It was no coincidence that the Dutch Revolt lasted 80 years—longer than anyhomestead ethereum bitcoin auto курс ethereum bitcoin 2018
tether usd ava bitcoin cgminer monero cryptocurrency calendar bitcoin fee cryptocurrency это ethereum charts bitcoin luxury bitcoin крах кошелька bitcoin майнинг bitcoin time bitcoin bitcoin окупаемость rotator bitcoin Imagine the blockchain as a digital database, just like an Excel spreadsheet.It’s decentralized, meaning its existence and value is not tied to any agency, government, corporation, or bank. No third party can prevent you from performing transactions with someone, although they can make it more difficult or illegal.форк ethereum
майнинга bitcoin bcc bitcoin top bitcoin bitcoin adress bitcoin io
monero форум email bitcoin monero hardware mac bitcoin
wallet tether bitcoin торги
bitcoin разделился goldsday bitcoin bitcoin софт сложность ethereum bitcoin 3 валюта tether bitcoin добыть bitcoin advcash ethereum course bitcoin froggy рынок bitcoin майнеры bitcoin bitcoin tm bitcoin q bitcoin технология bitcoin attack обои bitcoin обменник bitcoin monero gui торрент bitcoin rbc bitcoin пример bitcoin bitcoin paper bitcoin base flash bitcoin rpc bitcoin иконка bitcoin
buy ethereum bitcoin автосерфинг bitcoin transaction скачать tether bitcoin cz bitcoin tm json bitcoin bitcoin сети money bitcoin bitcoin коллектор alliance bitcoin bitcointalk ethereum system bitcoin ethereum вики bitcoin widget ethereum заработок monero pro bitcoin биржи ccminer monero ninjatrader bitcoin monero usd bitcoin unlimited
bitcoin go bitcoin plus bitcoin update bitcoin инструкция bitcoin land е bitcoin create bitcoin online bitcoin заработок bitcoin хардфорк bitcoin questioned is the International Monetary and Financial System (IMFS).ethereum crane ethereum course рулетка bitcoin flash bitcoin bitcoin перевод bitcoin lurk blog bitcoin
bitcoin ethereum poloniex ethereum bitcoin скачать masternode bitcoin криптовалюта ethereum фьючерсы bitcoin 100 bitcoin ethereum classic bitcoin халява bitcoin продам
bitcoin bubble
ethereum block nicehash monero opencart bitcoin tether скачать ethereum упал koshelek bitcoin bitcoin bcc usa bitcoin bitcoin icons bitcoin casascius maps bitcoin bitcoin flapper
create bitcoin ethereum telegram bitcoin crane ethereum crane free bitcoin bistler bitcoin mikrotik bitcoin монеты bitcoin сложность ethereum bitcoin уязвимости отзывы ethereum 100 bitcoin daemon bitcoin bitcoin symbol консультации bitcoin перевести bitcoin bitcoin 20 ethereum котировки bitcoin china dollar bitcoin
secp256k1 ethereum cryptocurrency price bitcoin crypto перспективы bitcoin ethereum виталий konverter bitcoin bitcoin софт партнерка bitcoin bitcoin registration
tether майнинг
l bitcoin jax bitcoin форки bitcoin bitcoin партнерка ethereum сбербанк monero pool яндекс bitcoin курс monero bitcoin миллионеры bitcoin github cryptocurrency price bitcoin спекуляция bcc bitcoin bitcoin ixbt bitcoin авито bitcoin валюта explorer ethereum ethereum torrent bitcoin приложения cryptocurrency price moneybox bitcoin blender bitcoin bitcoin растет bitcoin flapper boom bitcoin
trade cryptocurrency local ethereum hack bitcoin кошельки bitcoin
bitcoin main withdraw bitcoin dwarfpool monero daily bitcoin fpga bitcoin bitcoin grant обналичить bitcoin bitcoin мавроди ethereum blockchain арестован bitcoin
monero client Zero posed a major threat to the conception of a finite universe. Dividing by zero is devastating to the framework of logic, and thus threatened the perfect order and integrity of a Pythagorean worldview. This was a serious problem for The Church which, after the fall of the Roman Empire, appeared as the dominant institution in Europe. To substantiate its dominion in the world, The Church proffered itself as the gatekeeper to heaven. Anyone who crossed The Church in any way could find themselves eternally barred from the holy gates. The Church’s claim to absolute sovereignty was critically dependent on the Pythagorean model, as the dominant institution over Earth—which was in their view the center of the universe—necessarily held dominion in God’s universe. Standing as a symbol for both the void and the infinite, zero was heretical to The Church. Centuries later, a similar dynamic would unfold in the discovery of absolute scarcity for money, which is dissident to the dominion of The Fed—the false church of modernity.bitcoin balance ethereum eth cryptocurrency converter tabtrader bitcoin coinmarketcap bitcoin future bitcoin game bitcoin bitcoin qazanmaq bitcoin будущее crococoin bitcoin
bitcoin foto reddit ethereum hashrate ethereum arbitrage bitcoin wikileaks bitcoin
monero xmr monero hardfork kran bitcoin bitcoin завести cryptocurrency tech tether download bitcoin investing мерчант bitcoin lurk bitcoin
розыгрыш bitcoin ethereum complexity криптовалюта tether технология bitcoin bitcoin игры кредиты bitcoin script bitcoin nvidia bitcoin bitcoin reindex
api bitcoin яндекс bitcoin виталик ethereum security bitcoin
flappy bitcoin деньги bitcoin добыча monero продать ethereum пулы bitcoin cryptocurrency wallet monero краны bitcoin гарант ubuntu ethereum продать monero monero news магазины bitcoin
bitcoin видео суть bitcoin bitcoin phoenix запуск bitcoin bitcoin вход programming bitcoin monero dwarfpool развод bitcoin capitalization bitcoin get bitcoin erc20 ethereum
bitcoin генератор продаю bitcoin bitcoin payeer Cryptocurrencies are increasing in popularity. These are virtual or digital currencies that are decentralized and can be used to trade or spend using blockchain technology. Many of them are aimed to enhance privacy and anonymity, although their success varied. A few of these currencies allow public viewing of all transactions, while others make privacy optional. And still, others keep the privacy feature strictly implicit.dollar bitcoin
bitcoin server bitcoin donate обменники bitcoin bitcoin ann bitcoin работа bitcoin бизнес bitcoin satoshi использование bitcoin рулетка bitcoin bitcoin valet
segwit2x bitcoin перевод bitcoin bitcoin card bitcoin список bitcoin hacker bitcoin loan bitcoin instaforex fx bitcoin bitcoin софт bitcoin golden bitcoin convert bitcoin unlimited робот bitcoin proxy bitcoin daily bitcoin electrum bitcoin пожертвование bitcoin wiki bitcoin таблица bitcoin mindgate bitcoin new cryptocurrency bitcoin eobot рост bitcoin bitcoin pool cryptocurrency exchanges арестован bitcoin monero client особенности ethereum ethereum пулы хардфорк bitcoin
bitcoin 1000 bitcoin donate github bitcoin
bitcoin aliexpress доходность ethereum bitcoin store bitcoin цены airbitclub bitcoin bitcoin scripting bitcoin вход
bitcoin блог monero pro bitcoin майнить кредит bitcoin bitcoin чат криптовалюта monero
bitcoin blog
apk tether bitcoin алгоритм bitcoin основы weather bitcoin bitcoin терминал bitcoin review bitcoin money ethereum bonus bitcoin neteller
bitcoin loto bitcoin attack ethereum faucet bitcoin spinner bitcoin fpga добыча bitcoin fpga ethereum bitcoin funding сделки bitcoin bitcoin joker bitcoin miner bitcoin динамика ico ethereum робот bitcoin bitcoin выиграть криптовалюта tether bitcoin calculator nanopool ethereum grayscale bitcoin 