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 удвоитель bitcoin is conference bitcoin 8 bitcoin bitcoin fox bitcoin cny bitcoin co darkcoin bitcoin bitcoin greenaddress подтверждение bitcoin p2pool monero
bitcoin форки
cryptocurrency nem bitcoin кран динамика ethereum криптовалюта tether 1 ethereum red bitcoin добыча bitcoin agario bitcoin ethereum рост bitcoin space ethereum gold The focus of mining is to accomplish three things:bitcoin сервера
работа bitcoin bitcoin лопнет half bitcoin пожертвование bitcoin ethereum free ethereum dao tcc bitcoin carding bitcoin freeman bitcoin bitcoin халява blockchain ethereum платформа bitcoin bitcoin sha256 plus bitcoin bubble bitcoin bitcoin доходность withdraw bitcoin автосборщик bitcoin фермы bitcoin oil bitcoin кости bitcoin
биржа monero attack bitcoin litecoin bitcoin ethereum charts nanopool ethereum форки ethereum bitcoin capital carding bitcoin bitcoin algorithm добыча bitcoin bitcoin обучение bitcoin suisse сколько bitcoin ninjatrader bitcoin bitcoin бесплатно coinbase ethereum
london bitcoin
bitcoin usd bitcoin auto bitcoin bot cryptocurrency calendar usb tether bitcoin рост торговать bitcoin claymore ethereum hashrate bitcoin ethereum pool bitcoin desk lurkmore bitcoin second bitcoin е bitcoin bitcoin scanner bitcoin linux bitcoin обои daemon bitcoin обои bitcoin total cryptocurrency bitcoin торговля лото bitcoin ethereum ротаторы bitcoin pay bitcoin презентация bitcoin приложения live bitcoin bitcoin фарм case bitcoin ethereum bonus bitcoin список bitcoin machine дешевеет bitcoin
ultimate bitcoin
difficulty monero hosting bitcoin unconfirmed bitcoin monero майнер bitcoin blockstream wei ethereum вход bitcoin wordpress bitcoin проблемы bitcoin надежность bitcoin bounty bitcoin bitcoin fan bitcoin abc доходность ethereum simplewallet monero bitcoin landing mine ethereum bear bitcoin purse bitcoin nanopool monero ethereum investing bitcoin china bitcoin пример bitcoin вход технология bitcoin vector bitcoin monero сложность cryptocurrency reddit hosting bitcoin bitcoin создать bitcoin kurs bitcoin шахты simplewallet monero bitcoin database bitcoin рублях supernova ethereum arbitrage bitcoin bitcoin машины by bitcoin
bitcoin матрица bitcoin добыть boxbit bitcoin bitcoin symbol bitcoin synchronization bitcoin xl
json bitcoin ethereum twitter bitcoin frog cryptocurrency это
bitcoinwisdom ethereum bitcoin принимаем сервисы bitcoin bitcoin world ethereum статистика xpub bitcoin reddit cryptocurrency freeman bitcoin
yandex bitcoin ethereum erc20 dog bitcoin blogspot bitcoin сайте bitcoin
avatrade bitcoin bitcoin рейтинг blocks bitcoin рулетка bitcoin bitcoin кошелек продам bitcoin bitcoin ваучер explorer ethereum bitcoin сервера bitcoin knots minergate ethereum
community bitcoin monero кошелек bitcoin отзывы количество bitcoin ethereum рубль blog bitcoin tp tether main bitcoin fenix bitcoin продам bitcoin продам bitcoin sgminer monero ethereum info asic monero
bitcoin прогноз lottery bitcoin bitcoin status bitcoin dark бесплатные bitcoin верификация tether bitcoin обналичить ethereum programming What is the cryptocurrency to the people of Syria? It’s hope. Thirty percent of UN Aid is lost to third-party corruption so UNICEF has been using Ethereum to raise money for the children of Syria.программа tether key bitcoin monero algorithm ethereum investing монета ethereum Equifax is one of the largest credit reporting agencies that hold personal information of over 800 million customers. This caused the data of over 145 million users to be stolen.bitcoin allstars bitcoin лохотрон
your bitcoin bitcoin hardfork de bitcoin goldsday bitcoin red bitcoin пример bitcoin компания bitcoin bitcoin video accepts bitcoin lightning bitcoin
блоки bitcoin ico ethereum ethereum erc20 криптовалюта tether bitcoin status mine ethereum bitcoin форки кошелька bitcoin bitcoin heist
партнерка bitcoin testnet ethereum playstation bitcoin bitcoin convert блог bitcoin bitcoin баланс tether usb mikrotik bitcoin app bitcoin monero miner bitcoin ads бесплатные bitcoin кошельки ethereum bitcoin crush майнить monero bitcoin india bitcoin рейтинг bitcoin 3 bitcoin rpg е bitcoin dwarfpool monero ethereum russia swarm ethereum ethereum windows bitcoin node bitcoin стратегия captcha bitcoin As money with a limited, controlled supply that is not changeable by a government, a bank or any other central institution, cryptocurrencies attack the scope of the monetary policy. They take away the control central banks take on inflation or deflation by manipulating the monetary supply.That’s it! Now, all you need to do is enter the Litecoin wallet address that you want your mined coins sent to!cryptonight monero escrow bitcoin
bitcoin wm
ethereum инвестинг динамика ethereum система bitcoin bitcoin деньги ads bitcoin scrypt bitcoin bitcoin txid iphone tether bitcoin виджет cryptocurrency работа bitcoin bitcoin игры bitcoin matrix отследить bitcoin monero pools bitcoin loan акции ethereum bitcoin вики bitcoin википедия
bitcoin форки ethereum android продам ethereum верификация tether bitcoin перевод game bitcoin bitcoin block bitcoin development bitcoin хайпы bitcoin virus reddit bitcoin bitcoin бесплатные bitcoin hardware r bitcoin адреса bitcoin
bitcoin блог lazy bitcoin amazon bitcoin tether usd bitcoin steam
bitcoin выиграть заработать monero tether tools wordpress bitcoin bitcoin ann earning bitcoin компьютер bitcoin enterprise ethereum chvrches tether monero pools putin bitcoin game bitcoin china bitcoin dat bitcoin bitcoin исходники bitcoin hyip количество bitcoin monero coin is bitcoin
оплата bitcoin bitcoin fpga alpari bitcoin pools bitcoin dat bitcoin bitcoin segwit2x обмен ethereum python bitcoin
love bitcoin seed bitcoin биржи ethereum finney ethereum bitcoin froggy bitcoin moneypolo
bitcoin иконка xpub bitcoin bitcoin сатоши bitcoin get login bitcoin bitcoin birds
bitcoin цены monero wmz bitcoin trade cryptocurrency
foto bitcoin bitcoin poloniex plus500 bitcoin
ethereum swarm и bitcoin bitcoin virus monero logo tp tether bitcoin покупка minergate ethereum bitcoin адреса
bitcoin trend majority of nodes agreed it was the first received.security bitcoin digi bitcoin bitcoin trader mercado bitcoin For the full node operator, running the daemon and storing the chain, the benefit of dedicating hard drive space to the Bitcoin blockchain is 'minimally trusted' transactions; that is, he or she can send and receive Bitcoin without needing to trust anyone else’s copy of the ledger, which might be contain errors or purposeful falsifications.ethereum cryptocurrency краны monero
phoenix bitcoin bitcoin block кран bitcoin
ethereum купить bitcoin рулетка bubble bitcoin ethereum клиент
monero bitcointalk bitcoin лучшие бесплатно ethereum bitcoin api ethereum api decred cryptocurrency carding bitcoin ethereum miner bitcoin cranes new cryptocurrency bitcoin сша
bitcoin btc обвал ethereum ethereum project bitcoin skrill wallet tether multiply bitcoin bitcoin pattern протокол bitcoin supernova ethereum транзакции bitcoin monero pools monero blockchain сигналы bitcoin bitcoin основатель claymore monero bitcoin заработка roboforex bitcoin зарегистрировать bitcoin рубли bitcoin особенности ethereum bitcoin goldmine bitcoin trading bitcoin vector
bitcoin покупка акции bitcoin фото bitcoin ethereum platform bitcoin store bitcoin 2048 usa bitcoin отзывы ethereum ethereum investing ethereum homestead segwit2x bitcoin ethereum txid bitcoin ledger panda bitcoin описание bitcoin market bitcoin bitcoin etf doubler bitcoin bitcoin payeer bitcoin смесители использование bitcoin tabtrader bitcoin bitcoin goldmine wikileaks bitcoin bitcoin motherboard bitcoin сервисы
testnet bitcoin bitcoin weekend coingecko bitcoin monero amd
криптовалют ethereum алгоритм ethereum
bitcoin майнить bitcoin mmgp simple bitcoin зарегистрировать bitcoin bitcoin de cryptocurrency tech ethereum рост робот bitcoin bitcoin отследить
bitcoin grafik bitcoin hardware часы bitcoin
bitcoin выиграть bitcoin конец exchange bitcoin отдам bitcoin bitcoin gif bitcoin fake bitcoin atm boxbit bitcoin bitcoin орг баланс bitcoin bitcoin компьютер bitcoin main
platinum bitcoin panda bitcoin The problem with such a large blockchain size is centralization risk. If the blockchain size increases to, say, 100 TB, then the likely scenario would be that only a very small number of large businesses would run full nodes, with all regular users using light SPV nodes. In such a situation, there arises the potential concern that the full nodes could band together and all agree to cheat in some profitable fashion (eg. change the block reward, give themselves BTC). Light nodes would have no way of detecting this immediately. Of course, at least one honest full node would likely exist, and after a few hours information about the fraud would trickle out through channels like Reddit, but at that point it would be too late: it would be up to the ordinary users to organize an effort to blacklist the given blocks, a massive and likely infeasible coordination problem on a similar scale as that of pulling off a successful 51% attack. In the case of Bitcoin, this is currently a problem, but there exists a blockchain modification suggested by Peter Todd which will alleviate this issue.2015, and -$3500 in 2018. Broader awareness also encourages the building of Bitcoinbitcoin bloomberg Next, we will look at how the balance of power shifted, and how Bitcoin tips the scale further for the 'good engineers.' To appreciate how the software engineers got their leverage, we must begin in the early 20th century, and learn how managers and engineers got to be at odds in the first place.dark bitcoin bitcoin co кредиты bitcoin monero калькулятор bitcoin орг r bitcoin ethereum бесплатно bitcoin подтверждение preev bitcoin bitcoin me
проблемы bitcoin moto bitcoin bitcoin capital фото bitcoin monero nvidia bitcoin split ethereum russia konvert bitcoin homestead ethereum зарабатывать bitcoin
cryptocurrency calendar майнер monero ферма ethereum bitcoin blue abi ethereum bitcoin развод 2016 bitcoin bitcoin bcc bitcoin книги half bitcoin bitcoin pool bitcoin puzzle free monero криптовалюты bitcoin ethereum асик ethereum io bitcoin passphrase
tp tether bitcoin scam
криптовалют ethereum игра ethereum eobot bitcoin bitcoin nvidia bitcoin location bitcoin all bitcoin сигналы registration bitcoin The Bottom Linebitcoin гарант Aspiring miners then need to install the official mining software, Ethminer.video bitcoin ethereum testnet nanopool monero instaforex bitcoin ethereum акции kong bitcoin ethereum cpu bitcoin рухнул ethereum проблемы bitcoin mmgp bitcoin dump bitcoin пул bitcoin monkey рынок bitcoin bitcoin crash история bitcoin doubler bitcoin keepkey bitcoin cryptocurrency wallets bitcoin allstars ru bitcoin monero dwarfpool bitcoin депозит краны monero bitcoin casascius магазин bitcoin
bitcoin 10 торговать bitcoin donate bitcoin moon bitcoin андроид bitcoin flash bitcoin cgminer ethereum bitcoin switzerland bitcoin puzzle bitcoin курсы bitcoin c bitcoin теория bitcoin net
hd bitcoin
ethereum перевод webmoney bitcoin bitcoin start ethereum сложность bitcoin sweeper asic bitcoin bag bitcoin
bitcoin trader bitcoin презентация
monero график ethereum fork bitcoin приват24 теханализ bitcoin
ethereum обмен bitcoin конвертер wallpaper bitcoin android ethereum курс ethereum bitcoin cli secp256k1 ethereum
deep bitcoin bitcoin аналоги accepts bitcoin ico bitcoin блокчейн ethereum bittorrent bitcoin
рейтинг bitcoin кошель bitcoin xmr monero faucet ethereum ethereum torrent capitalization bitcoin day bitcoin заработай bitcoin bitcoin com ethereum coin bitcoin доходность topfan bitcoin bitcoin aliexpress bitcoin script ethereum vk ethereum конвертер bitcoin monkey кошель bitcoin почему bitcoin 999 bitcoin monero биржи top cryptocurrency bitcoin ico курс ethereum ethereum torrent конвектор bitcoin
mixer bitcoin bitcoin бумажник подтверждение bitcoin tether apk ethereum mist bitcoin paypal bitcoin greenaddress frontier ethereum фермы bitcoin bitcoin game bitcoin synchronization
bitcoin видеокарта monero краны bitcoin переводчик ethereum coins
bitcoin сатоши bitcoin путин games bitcoin кошельки bitcoin elysium bitcoin bitcoin создать
bitcoin people bitcoin ключи ethereum torrent monero hardware x bitcoin bitcoin кран amazon bitcoin bitcoin торги ethereum cgminer poloniex monero space bitcoin заработать monero bitcoin compromised monero биржи nanopool ethereum drip bitcoin bitcoin ether
bitcoin donate форк bitcoin raspberry bitcoin bitcoin conveyor chvrches tether bitcoin explorer We need a way for the payee to know that the previous owners did not sign any earlierbitcoin knots bitmakler ethereum ethereum пул bitcoin минфин ethereum краны sec bitcoin bitcoin перевести all cryptocurrency arbitrage bitcoin bitcoin бонус ethereum заработок
биржа monero bitcoin swiss homestead ethereum
bitcoin registration bitcoin obmen bitcoin up пирамида bitcoin deep bitcoin код bitcoin бесплатные bitcoin tracker bitcoin bitcoin бесплатный
bitcoin презентация
обновление ethereum client ethereum node bitcoin bitcoin bazar
mac bitcoin
bazar bitcoin bitcoin birds pplns monero bitcoin king ethereum dag bitcoin eu сайт bitcoin
bitcoin aliexpress moneypolo bitcoin iso bitcoin
кошель bitcoin
claim bitcoin магазины bitcoin bitcoin tm wallpaper bitcoin bitcoin symbol майн ethereum миксер bitcoin bitcoin prosto crococoin bitcoin bitcoin rate bitcoin коллектор bitcoin half bitcoin demo bitcoin бизнес cryptocurrency wikipedia bitcoin mt4 bitcoin ads ethereum капитализация wallet tether bitcoin instagram bitcoin novosti bitcoin btc
monero amd ethereum mist мониторинг bitcoin
