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.
цена bitcoin
майнинг bitcoin tether android bitcoin code bitcoin сатоши
bitcoin nvidia bitcoin changer bitcoin payza tether верификация tether usd bitcoin market bitcoin mastercard
This change aimed to reduce the efficiency gain and economic incentive to develop custom hardware such as Application Specific Integrated Circuits ('ASIC'). While this initially prevented ASIC mining, new machines have been more performant than GPU mining, leading to most of LTC mining activities being conducted by ASIC machines (e.g., Antminer L3+).click bitcoin Money is also a form of communication. It’s how we express the value of tangible goods, services, and investments to each other. In an exchange of money, one party communicates the value of a product, service, or investment while the counterparty communicates the need for that product, service, or investment.So what is that script doing, exactly?bitcoin bow Communities have taken various approaches to counter miners’ overwhelming amount of influence. The team at Siacoin decided to manufacture its own ASIC miner upon learning of Bitmain’s Sia miner. Communities such as Zcash take a cautiously welcoming attitude to ASICs. New projects such as Grin designed the hashing algorithm to be RAM (Random Access Memory) intensive so that ASICs are more expensive to manufacture. Some projects such as Monero have taken a much harsher stance, changing the hashing algorithm just to render one manufacturer’s ASIC machines inoperable. The fundamental divide here is less about 'decentralization' and more about which faction controls the means of producing coinbase rewards valued by the marketplace; it is a fight over control of the 'golden goose.'bitcoin favicon
bitcoin half bitcoin удвоитель bitcoin litecoin сборщик bitcoin gambling bitcoin alien bitcoin tether кошелек ethereum обменники airbit bitcoin pps bitcoin ethereum transactions bitcoin knots bitcoin generate bitcoin plus bitcoin android
монета ethereum bitcoin life ethereum wikipedia брокеры bitcoin бот bitcoin 4pda tether bitcoin virus
x2 bitcoin bitcoin maker conference bitcoin bitcoin compromised видеокарты bitcoin gain bitcoin bitcoin nachrichten crococoin bitcoin bitcoin fund спекуляция bitcoin сложность ethereum bitcoin 9000
курсы ethereum bitcoin ключи In November 2013, three US government officials testified at senate hearings that 'Bitcoin has legitimate uses'. According to the Washington Post, 'Most of the other witnesses echoed those sentiments.'пожертвование bitcoin
bitcoin оборот ethereum купить bitcoin account ethereum акции trade cryptocurrency bitcoin lurkmore cryptocurrency wallets block bitcoin bitcoin теханализ wechat bitcoin
bitcoin scripting bitcoin баланс сложность monero ethereum доходность криптовалюту bitcoin ethereum новости создатель ethereum bitcoin хайпы tether usd Bytes transmitted on chain per day in Bitcoin (red) vs BSV (orange). Coinmetricsсложность ethereum bitcoin bow foto bitcoin bitcoin china foto bitcoin карта bitcoin dog bitcoin розыгрыш bitcoin 10 bitcoin
bitcoin зарабатывать ethereum twitter сборщик bitcoin bitcoin работа golden bitcoin видео bitcoin bitcoin green etf bitcoin bitcoin greenaddress форекс bitcoin bitcoin картинка пул bitcoin arbitrage cryptocurrency metropolis ethereum bitcoin scrypt
bitcoin india planet bitcoin difficulty ethereum bitcoin stellar bitcoin алматы bitcoin пул bitcoin get ethereum news market bitcoin обменять ethereum bitcoin lottery знак bitcoin bitcoin видеокарты платформа bitcoin
ethereum php
ethereum ios
история ethereum bitcoin arbitrage nonce bitcoin
теханализ bitcoin bitcoin venezuela сайты bitcoin bitcoin roll dwarfpool monero bitcoin приложения bitcoin банк status bitcoin bitcoin онлайн bitcoin зарегистрироваться bitcoin gift uk bitcoin blake bitcoin скачать tether bitcoin wmx bitcoin оплатить bitcoin кранов bitcoin регистрация приложение tether вики bitcoin kurs bitcoin bitcoin переводчик bitcoin ферма цены bitcoin roll bitcoin взлом bitcoin кран ethereum bitcoin презентация пузырь bitcoin cryptocurrency magazine bitcoin mempool
cryptocurrency chart ethereum programming bitcoin фермы bitcoin development hosting bitcoin finex bitcoin ethereum вывод This would normally be stored in one place in a centralized network. But because Bitcoin uses a decentralized network, the Bitcoin database is shared. This shared database is known as a distributed ledger and it is accessed using the blockchain. To learn more about blockchain technology and understand what are Bitcoins from the blockchain perspective better, read my 'Blockchain Explained' guide.bitcoin коды
bitcoin btc bitcoin advcash bitcoin компания bitcoin apk monero стоимость
заработок ethereum bitcoin nedir 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 Nonce—this field contains a random value (the nonce value) whose sole purpose is to act as a variate for the hash valuebitcoin currency usb tether short bitcoin bitcoin обсуждение monero сложность bitcoin elena cryptocurrency calculator ethereum mine bitcoin surf бумажник bitcoin
ethereum charts
bitcoin landing ethereum инвестинг ethereum инвестинг обвал ethereum bitcoin скачать half bitcoin ethereum майнить bitcoin service bitcoin brokers bitcoin андроид blockchain ethereum алгоритм monero ethereum bitcoin
bitcoin bloomberg ethereum faucet nanopool ethereum ethereum pow лохотрон bitcoin ethereum programming bitcoin авито
bitcoin конец monero xmr bitcoin gpu bitcoin capital bitcoin баланс bitcoin scan blocks bitcoin bitcoin stellar bitcoin location исходники bitcoin bitcoin суть tether пополнить приват24 bitcoin bitcoin freebitcoin bitcoin core p2pool bitcoin
0 bitcoin ethereum os arbitrage cryptocurrency blogspot bitcoin coinder bitcoin Very securebitcoin kurs monero js 1000 bitcoin monero proxy bitcoin подтверждение bitcoin адрес buy tether bitcoin игра приложения bitcoin расчет bitcoin decred ethereum продать ethereum ethereum алгоритм bitcoin продам nodes bitcoin golden bitcoin tether пополнить количество bitcoin bitcoin шифрование blitz bitcoin bitcoin phoenix ethereum swarm
настройка monero bitcoin реклама miner monero bitcoin location block bitcoin clame bitcoin cryptocurrency magazine You can readily send money anywhere allowing the recipient to receive a few minutes later, by the time the network of bitcoin processes the payment.monero новости
майн ethereum iso bitcoin byzantium ethereum 33 bitcoin ethereum studio bitcoin миксер lite bitcoin bitcoin pattern bitcoin paypal reddit bitcoin space bitcoin стоимость bitcoin пример bitcoin coin ethereum bitcoin ферма bitcoin мошенничество bitcoin завести truffle ethereum bitcoin base captcha bitcoin monero fee london bitcoin store bitcoin автосборщик bitcoin bitcoin scrypt analysis bitcoin bitcoin selling ethereum токены bitcoin protocol bitcoin работать monero cpu ethereum forks bitcoin 10 сервисы bitcoin bitcoin 4000 кран bitcoin bitcoin кран сервисы bitcoin spend bitcoin bitcoin hashrate
котировка bitcoin bitcoin ваучер эмиссия ethereum
bitcoin china location bitcoin gek monero
One virus, spread through the Pony botnet, was reported in February 2014 to have stolen up to $220,000 in cryptocurrencies including bitcoins from 85 wallets. Security company Trustwave, which tracked the malware, reports that its latest version was able to steal 30 types of digital currency.bitcoin red wm bitcoin
simple bitcoin bitcoin лохотрон протокол bitcoin monero cpu bitcoin перевести bitcoin telegram bitcoin weekly bitcoin рбк
monero amd bitcoin зарегистрироваться bitcoin anonymous locate bitcoin
jax bitcoin bitrix bitcoin vizit bitcoin казино ethereum monero майнер konvert bitcoin bitcoin форк bitcoin банк tether 2 bitcoin китай хешрейт ethereum bitcoin украина invest bitcoin bitcoin network node bitcoin loans bitcoin виджет bitcoin bitcoin department bitcoin стратегия количество bitcoin 1080 ethereum вики bitcoin love bitcoin bitcoin 2x значок bitcoin фарминг bitcoin
лотерея bitcoin ethereum pow cryptonator ethereum wikileaks bitcoin multi bitcoin abc bitcoin bitcoin форки bitcoin украина ecopayz bitcoin best bitcoin bitcoin pools monero client etoro bitcoin обновление ethereum ✗ You pay money upfront. If the price of Bitcoin drops considerably, you might be stuck in a contract and mining at a loss until the price increases again (if it ever does). You take all the risk as the cloud mining operator is guaranteed a profit.Software Walletscryptocurrency blog bitcoin topfan bitcoin bitcoin обменять difficulty bitcoin
monero xeon bitcoin акции monero algorithm 16 bitcoin bitcoin euro ethereum конвертер
ebay bitcoin super bitcoin ethereum org клиент ethereum bitcoin gold bitcoin торги 500000 bitcoin electrum bitcoin bitcoin today bitcoin office conference bitcoin tether пополнение сети bitcoin
scrypt bitcoin bitcoin карта bitcoin форумы yota tether ssl bitcoin bitcoin central
monero price стоимость bitcoin ethereum бесплатно ethereum calculator
конвертер bitcoin bitcoin проблемы bitcoin лотерея algorithm bitcoin vector bitcoin технология bitcoin xapo bitcoin bitcoin blue in massive wealth creation in the coming years.bitcoin scam cap bitcoin jax bitcoin bitcoin япония homestead ethereum bitcoin blender bitcoin купить nova bitcoin deep bitcoin 50 bitcoin auto bitcoin auction bitcoin bitcoin nodes bitcoin краны
брокеры bitcoin динамика ethereum doge bitcoin bitcoin обучение ethereum сложность криптовалюта ethereum кости bitcoin bitcoin start ethereum регистрация download tether ethereum алгоритм вложить bitcoin byzantium ethereum transactions bitcoin сборщик bitcoin
flappy bitcoin loans bitcoin bitcoin scam bitcoin usa bitcoin safe
kinolix bitcoin new cryptocurrency оплата bitcoin bitcoin heist bitcoin ethereum платформе ethereum bitcoin safe home bitcoin bitcoin carding global bitcoin bitcoin развод
принимаем bitcoin neo bitcoin bitcoin прогнозы биржа monero bitcoin список ann monero bitcoin king ethereum ubuntu bitcoin adder demo bitcoin bitcoin darkcoin
bitcoin роботы withdraw bitcoin
генераторы bitcoin bitcoin pos tether usd app bitcoin bitcoin основы tether пополнение bitcoin мониторинг
bitcoin run криптовалюты bitcoin bitcoin 123 monero amd happy bitcoin
tinkoff bitcoin bitcoin оборот bitcoin reward разработчик ethereum bitcoin it ethereum кошельки bitcoin lurk Cypherpunks write code. They know that someone has to write software to defend privacy, and thus they take up the task. They publish their code so that fellow Cypherpunks may learn from it, attack it and improve upon it.bitcoin etf mixer bitcoin system bitcoin click bitcoin bitcoin direct bitcoin надежность avto bitcoin bitcoin poloniex бесплатно bitcoin monero криптовалюта bitcoin получение monero pro bitcoin zebra ethereum telegram testnet ethereum bitcoin pay принимаем bitcoin Bitcoin is not recognized as an official currency but a form of private moneyWhat is Ethereum?to bitcoin ethereum complexity vpn bitcoin bitcoin приложения
кликер bitcoin ethereum майнер service bitcoin bitcoin 2020 torrent bitcoin tether gps keystore ethereum bitcoin mail команды bitcoin monero кран bitcoin инструкция super bitcoin bitcoin pools bitcoin darkcoin
сеть bitcoin ethereum ico
casino bitcoin fake bitcoin будущее ethereum monero алгоритм search bitcoin alpha bitcoin 1000 bitcoin продам bitcoin bitcoin earn bitcoin сколько ethereum валюта кошелек bitcoin ethereum курсы bitcoin marketplace bitcoin код bitcoin change bitcoin puzzle tether пополнение
bitcoin journal multisig bitcoin bitcoin quotes криптовалюта ethereum bitcoin клиент bitcoin vpn bitcoin genesis bitcoin fee down investment strategy it is advisable to decide beforehand how muchConclusionnanopool ethereum nanopool ethereum ethereum platform Mining poolbitcoin sha256 p2pool ethereum ethereum explorer перспективы ethereum habrahabr bitcoin bitcoin ethereum bitcoin видеокарты bag bitcoin алгоритм monero bitcoin pizza attack bitcoin капитализация ethereum plus bitcoin
обновление ethereum
monero калькулятор 1070 ethereum bitcoin торги monero github bitcoin cache vps bitcoin cryptonight monero bitcoin сбор bitcoin блок stock bitcoin monero краны bitcoin doubler bitcoin игры bitcoin apk биржа bitcoin bitcoin satoshi bitcoin index film bitcoin play bitcoin установка bitcoin bitcoin fox paidbooks bitcoin bitcoin курс 7. Prediction markets. Provided an oracle or SchellingCoin, prediction markets are also easy to implement, and prediction markets together with SchellingCoin may prove to be the first mainstream application of futarchy as a governance protocol for decentralized organizations.little bitcoin ico monero asics bitcoin верификация tether bitcoin antminer торговать bitcoin locate bitcoin india bitcoin bitcoin it
bitcoin programming tether верификация криптовалют ethereum программа ethereum
анонимность bitcoin проекты bitcoin Designbitcoin сети bitcoin joker public. In analogy with the embattled Dutch towns and the income hungrybitcoin футболка Phase 2: shard chains will be linked through the set-up of a common structured chain that supports smart contracts, external owned accounts, and assets.There has been much talk about Bitcoin within libertarian and economic circles. It’s becoming a buzzword, but like all new systems that break onto the public stage quickly, Bitcoin brings with it excitement, speculation, rumor, and downright confusion. To be sure, Bitcoin is complicated. After all, it’s an entirely new global monetary system — both a currency and a payment network for that currency.сборщик bitcoin майнинг monero
ethereum io The modern investor (if he is aware of the fundamental risks in a financialpolkadot ico mist ethereum
Bitcoin Strengthening Market Share and SecurityHowever, we are now able to gather renewable energy from our own devices, or from new grid systems called 'microgrids'. Microgrids allow people who own solar panels to sell their leftover energy to other people and renewable energy retailers without a third party. So, let's get another advantage of blockchain explained.Unlike other stablecoins, MakerDAO intends for dai to be decentralized, meaning there’s no central authority trusted with control of the system. Rather, Ethereum smart contracts – which encode rules that can’t be changed – have this job instead.bitcoin окупаемость space bitcoin bitcoin banks bitcoin торрент casinos bitcoin avto bitcoin nubits cryptocurrency
робот bitcoin monero free torrent bitcoin оплата bitcoin майнинга bitcoin bitcoin future doubler bitcoin linux ethereum
blue bitcoin space bitcoin раздача bitcoin tether wallet ethereum coin bitcoin зарегистрироваться
bitcoin казахстан jax bitcoin
bitcoin криптовалюта steam bitcoin tether usd bitcoin haqida сложность ethereum розыгрыш bitcoin новости ethereum bitcoin отследить bitcoin mmgp bitcoin куплю bitcoin таблица bitcoin suisse bitcoin робот bitcoin flip space bitcoin mine bitcoin galaxy bitcoin bitcoin uk uk bitcoin mastering bitcoin fpga ethereum акции bitcoin r bitcoin bitcoin earn hosting bitcoin ethereum supernova форк bitcoin monero пул символ bitcoin factory bitcoin As a miner, you’re unlikely to be able to mine ether on your own.вебмани bitcoin email bitcoin bitcoin purchase games bitcoin dark bitcoin weather bitcoin скачать tether statistics bitcoin
bitcoin окупаемость bitcoin goldman ethereum miners 