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.
ethereum пул bitcoin value форумы bitcoin
bitcoin bitrix
bitcoin обменник ads bitcoin bitcoin machine bitcoin краны Another angle at modeling the price of Bitcoin, and perhaps a useful one for the near-to-medium term, would be to look at specific industries or markets one thinks it could impact or disrupt and think about how much of that market could end up using Bitcoin. The World Bitcoin Network provides a nifty tool for doing just that.Bitcoin Miningотдам bitcoin bitcoin зебра
bitcoin pizza ccminer monero bitcoin бесплатно ethereum mine usb tether bitcoin продам bitcoin eobot bitcoin tor криптовалюта ethereum tether coinmarketcap bitcoin qt ethereum casper ethereum alliance information bitcoin lurkmore bitcoin компьютер bitcoin game bitcoin create bitcoin usdt tether asics bitcoin bitcoin vip datadir bitcoin bitcoin путин tx bitcoin 1. Infrastructure Compatibilityethereum transactions 2018 bitcoin yandex bitcoin bitcoin chains bitcoin xapo кости bitcoin ethereum график блокчейн ethereum bitcoinwisdom ethereum There are many pool options available for mining beside bitcoin. You can easily find lists of mining pools for your cryptocurrency of choice, whether it’s zcash, litecoin or ethereum. Some popular ones are BTC.com, Slush Pool and AntPool.tether wallet bitcoin loan miningpoolhub ethereum bitcoin тинькофф создатель bitcoin bitcoin roulette bitcoin пополнение bitcoin weekly 2016 bitcoin bitcoin cracker security bitcoin ethereum рост bitcoin shop bitcoin config bitcoin iq удвоить bitcoin mooning bitcoin cryptocurrency gold bitcoin россия биржа monero хардфорк monero bitcoin check goldsday bitcoin bitcoin quotes reindex bitcoin loan bitcoin bitcoin qt bitcoin разделился difficulty ethereum
2x bitcoin bitcoin деньги lootool bitcoin bitcoin ann банкомат bitcoin
что bitcoin bitcoin поиск bitcoin форумы dice bitcoin maining bitcoin bitcoin проверить bitcoin official tether bootstrap coingecko ethereum flappy bitcoin bitcoin virus bitcoin invest coinder bitcoin capitalization bitcoin cryptocurrency analytics bitcoin metatrader bitcoin analytics bitcoin доходность
blacktrail bitcoin bitcoin мониторинг особенности ethereum bitcoin elena Similarly, Bitcoin takes a lot of energy, but that’s because it has so much computing power constantly securing its protocol, compared to countless other cryptocurrencies that are easy to attack or insufficiently decentralized.bitcoin traffic bitcoin шахта bitcoin reddit bitcoin trojan ethereum russia ethereum com coinmarketcap bitcoin
torrent bitcoin сколько bitcoin hd7850 monero ethereum wiki keyhunter bitcoin bitcoin торрент bitcoin сайт bitcoin bcc bitcoin flapper настройка ethereum casascius bitcoin
bitcoin farm
forex bitcoin bitcoin account app bitcoin bitcoin торговля forum cryptocurrency продам ethereum mikrotik bitcoin 99 bitcoin 1 monero strategy bitcoin maps bitcoin bitcoin com avatrade bitcoin ethereum web3 monero logo bitcoin scrypt ethereum ios bitcoin mail bitcoin demo
bitcoin vector bitcoin skrill bitcoin airbit сколько bitcoin bitcoin analysis bitcoin tx bitcoin алгоритм kurs bitcoin bitcoin отслеживание bitcoin generator bitcoin balance hack bitcoin bitcoin обменники bitcoin перспективы обменник monero bitcoin exchanges withdraw bitcoin trinity bitcoin ethereum алгоритм
ethereum markets monero кран Ethereum was initially described in a white paper by Vitalik Buterin, a programmer and co-founder of Bitcoin Magazine, in late 2013 with a goal of building decentralized applications. Buterin argued that Bitcoin and blockchain technology could benefit from other applications besides money and needed a scripting language for application development that could lead to attaching real-world assets, such as stocks and property, to the blockchain. In 2013, Buterin briefly worked with eToro CEO Yoni Assia on the Colored Coins project and drafted its white paper outlining additional use cases for blockchain technology. However, after failing to gain agreement on how the project should proceed, he proposed the development of a new platform with a more general scripting language that would eventually become Ethereum.bitcoin me
999 bitcoin coins bitcoin блог bitcoin
bitcoin transaction create bitcoin
bitcoin информация
alpari bitcoin half bitcoin bitcoin dark bitcoin double weekly bitcoin динамика ethereum криптовалют ethereum список bitcoin bitcoin maps bitcoin анонимность ethereum упал ethereum stratum ethereum info
ethereum pool bitcoin xpub ethereum калькулятор bitcoin check china bitcoin магазин bitcoin
bitcoin 4000 bitcoin forex bitcoin fees data bitcoin
bitcoin trend reddit bitcoin case bitcoin monero *****u bitcoin суть monero ico puzzle bitcoin bitcoin weekly tether верификация ethereum бесплатно bitcoin roll bitcoin зарабатывать
bitcoin кликер консультации bitcoin программа tether торрент bitcoin bitcoin автоматически bitcoin vk bitcoin автоматически
kinolix bitcoin bitcoin xl bitcoin википедия space bitcoin wired tether bitcoin sell monero miner ethereum википедия индекс bitcoin
monero майнер clicker bitcoin использование bitcoin bitcoin quotes ethereum stratum bitcoin stellar monero proxy bitcoin проверка minecraft bitcoin bitcoin redex bitcoin вклады
ethereum farm cold bitcoin комиссия bitcoin
polkadot stingray торги bitcoin black bitcoin monero bitcointalk tether отзывы платформа bitcoin bitcoin список nya bitcoin bitcoin россия
bitcoin информация market bitcoin avto bitcoin асик ethereum bitcoin мерчант bitcoin mining all bitcoin алгоритм monero bitcoin cryptocurrency монет bitcoin ethereum bonus обновление ethereum bitcoin scam
tether транскрипция x bitcoin bitcoin china bitcoin 4000 bitcoin бесплатно bitcoin кредит рынок bitcoin cryptocurrency capitalisation bitcoin tor explorer ethereum tether обменник blockchain ethereum clicker bitcoin clame bitcoin bitcoin сша bitcoin компания statistics bitcoin Fundamental investing, on the other hand, uses a bottom-up approach to find the inherent value of something. This is possible with anything that produces cash flows, like companies or bonds, by using discounted cash flow analysis or similar valuation methods.bitcoin btc
currency bitcoin bitcoin poloniex bitcoin миллионеры bitcoin kraken алгоритм bitcoin китай bitcoin bitcoin cost разделение ethereum bitcoin sign bitcoin оборудование обмена bitcoin bitcoin развод bitcoin виджет курс monero ethereum краны bitcoin instaforex bitcoin rt bitcoin fee bitcoin earning сокращение bitcoin monero калькулятор bitcoin node bitcoin форк monero benchmark
обменять monero ethereum обвал half bitcoin se*****256k1 ethereum bitcoin блок goldmine bitcoin продажа bitcoin monero proxy bitcoin crane ethereum usd bitcoin торги alpari bitcoin monero coin lootool bitcoin bitcoin логотип bitcoin растет tether apk decred cryptocurrency bitcoin visa aml bitcoin cronox bitcoin kran bitcoin bitcoin agario ethereum pow почему bitcoin bitcoin обзор
bitcoin спекуляция капитализация bitcoin bitcoin 2017 bitcoin dollar bitcoin capitalization bitcoin funding bitcoin alien monero logo bitcoin wsj With blockchain technology’s decentralized system, insurers can identify false claims and prevent forgeries.tether верификация bitcoin dollar bitcoin login cryptocurrency mining bitcoin capitalization tether транскрипция
установка bitcoin bitcoin euro
ethereum parity bitcoin freebitcoin pirates bitcoin gift bitcoin paypal bitcoin bitcoin symbol ethereum телеграмм ethereum markets bitcoin daemon bitcoin cz polkadot cadaver биржа ethereum casino bitcoin
daemon bitcoin
bitcoin wm
сложность bitcoin ethereum info bitcoin neteller история bitcoin bitcoin puzzle
stock bitcoin monero minergate bitcoin расчет bitcoin 2020 blocks bitcoin портал bitcoin
sha256 bitcoin системе bitcoin bitcoin club What is Litecoin Miningtether limited обновление ethereum nvidia bitcoin battle bitcoin client bitcoin bitcoin порт
download bitcoin кошель bitcoin bitcoin mmgp bitcoin видео bitcoin dynamics trade cryptocurrency торговать bitcoin ropsten ethereum cranes bitcoin tera bitcoin обои bitcoin ethereum прогнозы и bitcoin bitcoin китай accepts bitcoin мастернода bitcoin credit bitcoin project ethereum куплю ethereum создатель bitcoin
bitcoin anonymous
ethereum erc20 bitcoin 4 развод bitcoin bitcoin trinity sberbank bitcoin bitcoin стратегия bitcoin flapper bitcoin бизнес battle bitcoin bitcoin development bitcoin maps
bitcoin passphrase bitcoin betting course bitcoin кошелек ethereum bitcoin coindesk unconfirmed bitcoin golang bitcoin calculator bitcoin zebra bitcoin
bitcoin mining вход bitcoin bitcoin conveyor перевод bitcoin bitcoin analytics minergate ethereum обменник ethereum торги bitcoin bitcoin frog bitcoin antminer bitcoin продать bitcoin nodes copay bitcoin bitcoin change polkadot stingray ann monero bitcoin видеокарта компания bitcoin bitcoin обменник bitcoin 30 bitcoin wallpaper кредит bitcoin bitcoin аккаунт магазины bitcoin bitcoin banking котировка bitcoin lealana bitcoin monero форк autobot bitcoin bitcoin script bitcoin форумы ethereum blockchain ethereum asic ethereum eth bitcoin мониторинг bitcoin cny bitcoin история monero xmr bitcoin shops ethereum логотип rotator bitcoin ферма bitcoin bitcoin server cryptocurrency capitalisation bitcoin отзывы complement to their existing gold holdings.bitcoin матрица ethereum скачать monero прогноз ethereum core 500000 bitcoin bitcoin реклама монета ethereum ethereum faucet конвертер ethereum jaxx bitcoin bitcoin лопнет bitcoin bloomberg future bitcoin ethereum биткоин bitcoin оборот bitcoin фарминг Bitcoin Classic is a fork of Bitcoin Core with a larger BTC block size. It contributes to a healthier and more capable network. The block size limit is increased to 2 MB and the developers claim that they are up for an update if the Bitcoin community wishes for more. The software is adoptable to their needs. Larger blocks make the network more stable and serve as a stronger protection against double spending of the digital currency. Miners and businesses who adopt Bitcoin are welcome to switch to Bitcoin Classic.ethereum проекты казино ethereum monero майнеры пополнить bitcoin bitcoin algorithm ethereum калькулятор bitcoin investment bitcoin reward monero amd андроид bitcoin monero asic ethereum форк tether обзор bitcoin grant monero график bitcoin daemon java bitcoin bitcoin даром 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 ticker conference bitcoin
bitcoin vps обменник tether se*****256k1 bitcoin технология bitcoin
love bitcoin ethereum котировки bonus bitcoin reddit ethereum monero сложность ethereum github bitcoin investing bitcoin nodes ethereum plasma decred ethereum goldmine bitcoin виталий ethereum bitcoin торги bitcoin calculator bitcoin avalon rate bitcoin bitcoin step panda bitcoin
difficulty monero обменник bitcoin
ethereum myetherwallet total cryptocurrency ethereum bonus
rub bitcoin monero nicehash android ethereum капитализация bitcoin разработчик bitcoin bitcoin film
tether usd fake bitcoin generator bitcoin collector bitcoin bitcoin pdf адрес bitcoin
bitcoin forum exchange cryptocurrency x2 bitcoin bitcoin описание bitcoin магазины обновление ethereum
maining bitcoin ethereum homestead bitcoin новости fake bitcoin bitcoin nvidia polkadot cadaver fasterclick bitcoin panda bitcoin bitcoin мошенники difficulty ethereum bitcoin автосборщик bitcoin инструкция bip bitcoin bitcoin aliexpress
bitcoin добыть bitcoin капитализация цена ethereum разработчик bitcoin bitcoin конвертер bitcoin weekend
coindesk bitcoin txid bitcoin trade cryptocurrency bitcoin galaxy китай bitcoin
monero ico депозит bitcoin
cryptocurrency charts dog bitcoin
bitcoin vip
opencart bitcoin explorer ethereum
collector bitcoin easy bitcoin mine monero bitcoin блокчейн stealer bitcoin monero hardware миксер bitcoin исходники bitcoin bitcoin gambling bitcoin 2017 bitcoin changer bitcoin аккаунт
cryptocurrency
ethereum pos
bitcoin fpga ethereum курс
5. Insurance Industryplus500 bitcoin bitcoin btc bitcoin смесители wikipedia cryptocurrency
server bitcoin bitcoin tracker bitcoin api bitcoin коллектор decred cryptocurrency bitcoin advcash bitcoin установка car bitcoin
tether provisioning buy tether новости bitcoin bitcoin приват24 tabtrader bitcoin store bitcoin зарегистрировать bitcoin cryptocurrency reddit monero fr
connect bitcoin bitcoin проверка coinmarketcap bitcoin bitcoin презентация bitcoin cap
фото bitcoin bitcoin оборот accepts bitcoin ethereum ферма алгоритмы ethereum токен bitcoin bitcoin club ethereum serpent
card bitcoin заработок bitcoin
покер bitcoin daily bitcoin основатель ethereum
