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.
multiply bitcoin
connect bitcoin bitcoin nachrichten сбербанк bitcoin bitcoin rbc количество bitcoin проверка bitcoin daily bitcoin ethereum miner bitcoin софт монета bitcoin bitcoin get bitcoin shop 22 bitcoin
bitcoin valet пулы bitcoin bitcoin novosti xpub bitcoin bitcoin neteller The plan was for investors in The DAO to receive tokens proportional to how much ether they invested in the project. With those tokens they could vote for which projects to fund. For selecting projects to invest in, it relied on the 'wisdom of crowds,' the idea that decisions made by a large group of people voting often leads to better outcomes than a single director, or even multiple directors making the decision.bitcoin xl direct bitcoin bitcoin oil майнинг tether ethereum coingecko карта bitcoin робот bitcoin ethereum падает bitrix bitcoin tokens ethereum bitcoin развод
ethereum обменять tether usd bitcoin webmoney ethereum заработать testnet bitcoin bitcoin компания genesis bitcoin bitcoin картинки криптовалюта tether trading bitcoin bitcoin master
5 bitcoin конвектор bitcoin
bitcoin ethereum nya bitcoin hardware bitcoin bitcoin прогнозы майнер bitcoin monero биржи zebra bitcoin
покупка ethereum qr bitcoin ethereum форум forum ethereum компания bitcoin
wiki bitcoin course bitcoin cryptocurrency wallets
your bitcoin ферма bitcoin
bitcoin отслеживание mining ethereum
alpari bitcoin bitcoin машины monero gpu utxo bitcoin bitcoin flex bitcoin 2 nicehash ethereum monero алгоритм bitcoin компьютер bitcoin poker bitcoin scan bitcoin base forum bitcoin криптовалюта tether
us bitcoin bitcoin loan bitcoin torrent bitcoin вывод icon bitcoin bitcoin fx bitcoin formula ethereum логотип bitcoin bloomberg stats ethereum bitcoin kran mmm bitcoin icons bitcoin bitcoin check майнер ethereum bitcoin cny
monero bitcoin часы gambling bitcoin
ethereum contracts конвертер bitcoin conference bitcoin best cryptocurrency new cryptocurrency bitcoin hype bitcoin paw bitcoin nachrichten суть bitcoin bitcoin fpga bitcoin фарминг bitcoin darkcoin ethereum blockchain bitcoin friday monero client
usa bitcoin bitcoin example ethereum токен стоимость monero
bitcoin компьютер unconfirmed monero Cardano aims to be the financial operating system of the world by establishing decentralized financial products similarly to Ethereum as well as providing solutions for chain interoperability, voter fraud, and legal contract tracing, among other things. As of January 2021, Cardano has a market capitalization of $9.8 billion and one ADA trades for $0.31.bitcoin onecoin биржа ethereum rpg bitcoin zcash bitcoin equihash bitcoin ethereum конвертер bitcoin change
оборудование bitcoin eos cryptocurrency bitcoin приложение bitcoin signals tether usdt tether tools bitcoin token
bitcoin billionaire ethereum calc bitcoin generate book bitcoin bitcoin selling bitcoin мониторинг people bitcoin bitcoin scripting average bitcoin bitcoin картинки bitcoin pool ads bitcoin
pay bitcoin ethereum chaindata
monero amd bitcoin virus kaspersky bitcoin bitcoin matrix monero пул daily bitcoin
bitcoin daily ethereum cryptocurrency coins bitcoin bitcoin analytics принимаем bitcoin aml bitcoin bitcoin магазин See All Coupons of Best Walletsbitcoin форки bitcoin capital bitcoin explorer
bitcoin doubler bitcoin расшифровка bitcoin платформа bitcoin клиент порт bitcoin
ethereum contract mikrotik bitcoin
bitcoin разделился apple bitcoin bitcoin server акции bitcoin bitcoin weekly
bitcoin rus bitcoin zone создатель bitcoin bitcoin bounty bitmakler ethereum 999 bitcoin minergate bitcoin bitcoin global clicker bitcoin bitcoin heist polkadot stingray bitcoin lite заработать ethereum ферма bitcoin виталий ethereum bitcoin joker bitcoin trojan 2x bitcoin
autobot bitcoin transactions bitcoin bitcoin nedir курс bitcoin bitcoin хабрахабр
кликер bitcoin луна bitcoin bitcoin bank пулы ethereum bitcoin fasttech
bitcoin скачать bitcoin развитие bitcoin автоматически платформу ethereum блокчейн bitcoin ethereum client bitcoin казино mining ethereum iota cryptocurrency
bitcoin banks ethereum info bitcoin отзывы lamborghini bitcoin bitcoin cny android tether 20 bitcoin
cryptocurrency reddit bitcoin run bitcoin сервера bitcoin fees bitcoin автосерфинг bubble bitcoin bitcoin иконка ethereum casino accepts bitcoin datadir bitcoin сокращение bitcoin bitcoin doge avto bitcoin вывод monero msigna bitcoin эфириум ethereum bitcoin daily ethereum рост статистика ethereum bitcoin оплатить добыча bitcoin bitcoin linux bitcoin review обменник bitcoin bitcoin продам описание bitcoin monero курс
bitcoin приложение api bitcoin
polkadot ico tether программа double bitcoin bitcoin описание bitcoin комбайн planet bitcoin bitcoin trade bitcoin обои bitcoin майнинга ethereum 1070 ютуб bitcoin
bitcoin крах bitcoin double
эмиссия bitcoin
график monero токен ethereum
ethereum core matteo monero ethereum настройка майн bitcoin bitcoin suisse trader bitcoin bitcoin java bitcoin kz
ethereum обмен bitcoin stellar рубли bitcoin
форки bitcoin monero hardware tether отзывы смесители bitcoin обвал ethereum bitcoin instant bitcoin all рубли bitcoin kurs bitcoin bitcoin carding check bitcoin gold cryptocurrency forbot bitcoin bitcoin withdraw ethereum википедия кран monero hacking bitcoin bitcoin converter лотереи bitcoin
plus500 bitcoin bitcoin покупка bitcoin стратегия курс bitcoin secp256k1 bitcoin ethereum pools рубли bitcoin партнерка bitcoin bitcoin рублей 30. Write a crowd-sale smart contract code in Solidity programming language.bitcoin сборщик bitcoin 99 bitcoin алгоритм заработок bitcoin bitcoin pps bitcoin tools доходность ethereum вывод monero скачать bitcoin bitcoin отзывы bitcoin основы case bitcoin bitcoin кран отдам bitcoin keepkey bitcoin bitcoin cz topfan bitcoin bitcoin word
bitcoin froggy keys bitcoin bitcoin instagram monero алгоритм
asrock bitcoin bitcoin convert ethereum получить автокран bitcoin bitcoin сервера ethereum farm bitcoin double bitcoin bitrix ethereum платформа
jaxx monero all cryptocurrency ethereum биткоин bitcoin server ethereum news развод bitcoin bitcoin конвертер bitcoin заработок crococoin bitcoin
space bitcoin daemon bitcoin water bitcoin cryptocurrency wallet it bitcoin bitcoin rt l bitcoin pow ethereum ethereum ico monero faucet san bitcoin ethereum decred bitcoin робот bitcoin conference course bitcoin mooning bitcoin rigname ethereum bitcoin auto icon bitcoin bitcoin экспресс
download bitcoin fee bitcoin bitcoin заработок bitcoin shop x2 bitcoin exchange bitcoin by bitcoin bitcoin настройка bitcoin greenaddress bitcoin phoenix bitcoin putin xmr monero invest bitcoin bitcoin pdf total cryptocurrency Within the next month or so after the original article, Bitcoin briefly soared to reach $20,000, but then crashed down to below $3,500 a year later, and has since recovered to bounce around in a wide trading range with little or no durable returns.Obstacles to understanding cryptocurrencyThere are four main types of Bitcoin mining hardware – the list below will introduce you to the changes which shaped the Bitcoin industry in the past few years:CPUWhen it all started, everyone (the few people who knew about it) was using CPUs to mine. Not only was it the only known way but it was enough to use your personal computer’s CPU to get results.600 bitcoin asic monero
world bitcoin
ethereum russia python bitcoin
electrodynamic tether криптовалюта tether miner bitcoin bitcoin habr bitcoin компания bitcoin пицца продать monero новости monero bitcoin minecraft monero pool nicehash bitcoin bitcoin betting bitcoin монет ethereum asics bitcoin код tether usdt bitcoin qiwi партнерка bitcoin
bitcoin habrahabr bitcoin настройка bitcoin conference truffle ethereum валюта bitcoin bitcoin окупаемость
bitcoin community ethereum rig bitcoin script bitcoin оборудование bitcoin plus500 ethereum frontier bitcoin доходность
Finally, hacking is a big threat if you’re a crypto investor. Online exchanges permit you to trade your cryptos on mobile apps and websites, both of which expose you to hackers stealing all of your investment. And if someone gets their hands on your cryptocurrency, well, there's really nothing you can do about it.bitcoin update l bitcoin ethereum alliance bitcoin cudaminer bitcoin central
ethereum usd invest bitcoin bitcoin rate
bitcoin it bitcoin виджет bitcoin рубль bitcoin forex gold cryptocurrency bitcoin проблемы multisig bitcoin bitcoin boom monero курс tp tether конференция bitcoin ethereum news 16 bitcoin обменники ethereum
bitcoin change vk bitcoin криптовалюта ethereum grayscale bitcoin bitcoin market
main bitcoin 2016 bitcoin
instant bitcoin киа bitcoin ethereum raiden bitcoin 2010
ethereum биржа ethereum отзывы avalon bitcoin япония bitcoin bitcoin 100
goldmine bitcoin