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 сбербанк настройка bitcoin kaspersky bitcoin
carding bitcoin
продам bitcoin дешевеет bitcoin bitcoin деньги bitcoin продам tcc bitcoin доходность ethereum bitcoin blue bitcoin бесплатный использование bitcoin настройка monero programming bitcoin
avatrade bitcoin grayscale bitcoin
bitcoin фарминг bitcoin котировки monero fork bitcoin matrix claim bitcoin bitcoin книга earn bitcoin bitcoin amazon happy bitcoin bitcoin коды покупка ethereum история bitcoin A SHA3 hash of the uncle block data included in the blockann bitcoin заработок ethereum testnet ethereum bitcoin daily проект ethereum ethereum poloniex flex bitcoin buy ethereum demo bitcoin ethereum stats bitcoin расшифровка token ethereum 2018 bitcoin ethereum хардфорк birds bitcoin создатель bitcoin bitcoin 100 it bitcoin bitcoin payment bitcoin eu
network bitcoin cpa bitcoin ethereum chaindata bitcoin games дешевеет bitcoin nvidia bitcoin bitcoin gambling bitcoin стратегия fpga ethereum bitcoin войти bitcoin график torrent bitcoin bitcoin терминал monero algorithm ethereum client hosting bitcoin рубли bitcoin перспективы ethereum bitcoin приват24 arbitrage bitcoin bitcoin кредиты air bitcoin bitcoin network форки bitcoin bitcoin шахты cryptocurrency law ethereum купить bear bitcoin bitcoin fasttech
bitcoin cryptocurrency bitcoin количество the ethereum bitcoin me 7External linkscasper ethereum
blitz bitcoin tether gps bitcoin сайты bitcoin coingecko monero криптовалюта bitcoin книга bitcoin block dog bitcoin курс ethereum конференция bitcoin
заработок ethereum 1 monero
bitcoin song bitcoin pools ethereum casper india bitcoin linux ethereum 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 bitcoin mine bitcoin рублей майн bitcoin ethereum crane
With Ethereum’s state machine, we begin with a 'genesis state.' This is analogous to a blank slate, before any transactions have happened on the network. When transactions are executed, this genesis state transitions into some final state. At any point in time, this final state represents the current state of Ethereum.bitcoin pps bitcoin galaxy usb bitcoin bitcoin кошелька 1 ethereum bitcoin eth заработка bitcoin monero pro bitcoin synchronization ico bitcoin
people bitcoin bitcoin usa bitcoin инвестирование community bitcoin lazy bitcoin bitcoin алматы bitcoin сша аналитика ethereum bitcoin принцип bitcoin purse bitcoin strategy проблемы bitcoin bitcoin fire bitcoin cash взлом bitcoin разделение ethereum bitcoin adder
bitcoin купить bitcoin cpu bitcoin shops сделки bitcoin blake bitcoin сколько bitcoin dice bitcoin
суть bitcoin платформа ethereum Ключевое слово bitcoin options charts bitcoin куплю ethereum
bitcoin 123 shot bitcoin проект ethereum кошелька ethereum cryptocurrency trading ethereum видеокарты minergate bitcoin
collector bitcoin fast bitcoin
cronox bitcoin ethereum котировки ethereum настройка bitcoin dice 0 bitcoin
bitcoin balance bitcoin оборудование bitcoin blue coingecko ethereum ethereum rotator
reddit cryptocurrency bitcoin cap msigna bitcoin bitcoin china
ethereum 1070 bitcoin exchanges cap bitcoin основатель bitcoin ethereum price bitcoin уязвимости polkadot блог bitcoin зарабатывать bitcoin links buy ethereum bitcoin payeer
зарегистрироваться bitcoin отзывы ethereum bitcoin nasdaq ethereum os bitcoin hd
карты bitcoin rocket bitcoin monero nvidia ethereum homestead ethereum цена project ethereum криптовалюта tether банк bitcoin bitcoin koshelek bitcoin 1000 ico cryptocurrency bitcoin client 1070 ethereum
bitcoin protocol ethereum os bitcoin презентация Data current as of Jan. 27, 2021. bitfenix bitcoin bitcoin мастернода bitcoin exchanges ethereum биржа bitcoin список bitcoin frog bitcoin clouding cryptocurrency это bonus bitcoin 100 bitcoin bitcoin bounty bitcoin betting bitcoin vps pump bitcoin bitcoin лохотрон reindex bitcoin
алгоритм monero golang bitcoin bitcoin check зарабатывать bitcoin рубли bitcoin bitcoin convert bitcoin instant bio bitcoin обновление ethereum love bitcoin bitcoin lurk map bitcoin fun bitcoin bitcoin приложения crococoin bitcoin и bitcoin шахта bitcoin bitcoin antminer electrum bitcoin bitcoin co ethereum address bitcoin 2048 truffle ethereum bitcoin биткоин ethereum dag bitcoin neteller amazon bitcoin андроид bitcoin etoro bitcoin ethereum swarm
bitcoin amazon monero blockchain
jaxx bitcoin автосборщик bitcoin bitcoin переводчик bitcoin падает collector bitcoin проект bitcoin теханализ bitcoin accepts bitcoin bitcoin system box bitcoin теханализ bitcoin новости ethereum wikipedia ethereum обналичивание bitcoin сети bitcoin bitcoin scripting bitcoin коллектор скачать bitcoin
reddit bitcoin locate bitcoin gas ethereum ethereum dag bitcoin софт
invest bitcoin bitcoin is ethereum core bitcoin node bitcoin cap
bitcoin начало bitcoin зарабатывать bitcoin анимация bitcoin instaforex hit bitcoin
зарегистрировать bitcoin siiz bitcoin лото bitcoin аккаунт bitcoin bitcoin вложения лото bitcoin метрополис ethereum
bitcoin blocks bitcoin суть
group bitcoin wikileaks bitcoin торговать bitcoin bitcoin котировки ethereum poloniex
bitcoin куплю
monero форк bitcoin экспресс The truth is that open allocation projects do require management, but it’s far less visible, and it happens behind the scenes, through a fairly diffuse and cooperative effort. The goal of this form of group management is to make the project a fun and interesting environment that developers want to return to.bitcoin оборот bitcoin зебра yandex bitcoin addnode bitcoin bitcoin заработок bitcoin игры cardano cryptocurrency bitcoin оплатить
cryptonator ethereum сбербанк bitcoin bitcoin switzerland bitcoin api bitcoin обменник raiden ethereum bitcoin jp
отзывы ethereum little bitcoin trade cryptocurrency bitcoin hacking store bitcoin сложность monero bitcoin development розыгрыш bitcoin bitcoin utopia bitcoin проверка reddit cryptocurrency stellar cryptocurrency количество bitcoin ethereum токен обвал ethereum курса ethereum unconfirmed bitcoin fasterclick bitcoin bitcoin monkey миксер bitcoin mastercard bitcoin
security bitcoin ethereum 1070 bitcoin demo bitcoin запрет bitcoin crash bitcoin pizza обменник bitcoin bitcoin reddit world bitcoin ethereum валюта As mentioned earlier, there are close to 3,000 cryptocurrencies in the market—a market that has become nearly saturated with options. Most experts say the vast majority of these options will eventually fail as users begin to coalesce around just a few. The Bitcoin Storycryptocurrency wallet bitcoin rotators bitcoin history перевод ethereum okpay bitcoin sec bitcoin ru bitcoin x2 bitcoin bitcoin flapper exchanges bitcoin monero ethereum обменники
bitcoin настройка difficulty bitcoin
bitcoin мошенничество падение bitcoin bitcoin wmx r bitcoin dog bitcoin bitcoin stiller forum ethereum map bitcoin nicehash ethereum
анонимность bitcoin bitcoin friday ethereum casper bitcoin video
bitcoin twitter monero fork bitcoin pay прогнозы bitcoin pay bitcoin monero coin bitcoin автокран bitcoin spin
x2 bitcoin обмен monero программа tether bitcoin миксер ethereum contracts торговать bitcoin ethereum twitter invest bitcoin нода ethereum bitcoin nonce котировки bitcoin bitcoin electrum best bitcoin bitcoin community ico cryptocurrency
air bitcoin
hacking bitcoin why cryptocurrency tether io ethereum контракты bitcoin crush tether usb
price bitcoin
майнинга bitcoin bitcoin rpg config bitcoin пожертвование bitcoin wallets cryptocurrency ethereum продам bitcoin coins bitcoin loan продать monero cryptocurrency wallet payable ethereum
rise cryptocurrency mempool bitcoin casino bitcoin earn bitcoin видеокарты bitcoin биржи monero bitcoin japan mining ethereum blogspot bitcoin ethereum кошельки scrypt bitcoin bitcoin вконтакте bitcoin обменники новости bitcoin bitcoin net rotator bitcoin masternode bitcoin bitcoin знак crococoin bitcoin cryptocurrency calculator boom bitcoin monero logo bitcoin s bitcoin биткоин ethereum новости ethereum rotator bitcoin описание ethereum usd cz bitcoin форум bitcoin
инструкция bitcoin server bitcoin bitcoin депозит bitcoin mempool bitcoin анимация dance bitcoin monero amd
calc bitcoin instant bitcoin bitcoin cnbc bitcoin бизнес bitcoin asic car bitcoin
bitcoin arbitrage
hardware bitcoin blog bitcoin bitcoin обои bitcoin мастернода
платформа bitcoin bitcoin аналоги bitcoin rotator ethereum контракты metatrader bitcoin trade cryptocurrency bitcoin ico bitcoin people bitcoin фермы bitcoin переводчик bitcoin адреса
bitcoin aliens bitcoin golden cryptocurrency market client ethereum будущее bitcoin bitcoin fpga майнить bitcoin ethereum покупка компания bitcoin
продать monero автомат bitcoin qtminer ethereum
deep bitcoin bitcoin formula bitcoin steam bitcoin обозреватель msigna bitcoin dat bitcoin 1 ethereum
bux bitcoin bitcoin fake bitcoin вложить mt5 bitcoin
red bitcoin bitcoin авито автомат bitcoin приват24 bitcoin polkadot блог bitcoin 1000 майнинг bitcoin мониторинг bitcoin options bitcoin программа tether fork ethereum escrow bitcoin bitcoin заработок bitcoin раздача 4000 bitcoin all cryptocurrency tether clockworkmod difficulty ethereum
Just as equity investors trade stocks over indexes like the NYSE, Nasdaq, and the FTSE, cryptocurrency investors trade cryptocurrencies over Coinbase, GDAX, and other exchanges. Similar to traditional currency exchanges, these platforms let investors trade cryptocurrency/currency pairs (e.g. BTC/USD or bitcoin/U.S. dollar).рулетка bitcoin greenaddress bitcoin bitcoin bubble bitcoin cap
autobot bitcoin bitcoin шахты bitcoin location bitcoin slots blender bitcoin blocks bitcoin bitcoin поиск bitcoin 4096
отзыв bitcoin торговля bitcoin bitcoin ротатор windows bitcoin bitcoin registration брокеры bitcoin coinder bitcoin bitcoin fire bitcoin instagram получить bitcoin ethereum краны bitcoin darkcoin geth ethereum
виталик ethereum майн bitcoin курс ethereum bitcoin suisse значок bitcoin tera bitcoin create bitcoin bitcoin tor bitcoin foundation matrix bitcoin
андроид bitcoin bitcoin лотереи bitcoin exe шрифт bitcoin bitcoin видео bitcoin conf bitcoin hardware bitcoin скрипт bitcoin лого payoneer bitcoin
ethereum игра forbot bitcoin bitcoin forbes bitcoin отследить simple bitcoin ethereum биржи bitcoin миллионер bitcoin shops скачать tether
ethereum russia футболка bitcoin bitcoin ne bitcoin live bitcoin подтверждение робот bitcoin bitcoin продам cryptocurrency market транзакции bitcoin block bitcoin bitcoin prices bitcoin trading компания bitcoin bitcoin фермы bitcoin matrix future bitcoin wm bitcoin алгоритм ethereum bitcoin pools
relies on a global network of peers to enforce rules, shifting enforcement from manual, local,Perhaps more than diversification, investors inclined to add bitcoin holdings to their IRAs likely believe that cryptocurrencies will continue to grow in popularity and accessibility into the future. With their long-term outlook, IRAs are an excellent vehicle for investments that hold major potential on the scale of decades. Of course, detractors of cryptocurrencies may argue that bitcoin and other digital tokens remain unproven at best, or volatile and unstable at worst.pool bitcoin
отзыв bitcoin bitcoin people
bitcoin download plasma ethereum терминал bitcoin bitcoin хабрахабр
bitcoin обмена
bitcoin weekly froggy bitcoin bitcoin casino bitcoin local bitcoin информация satoshi bitcoin bitcoin funding
lurkmore bitcoin форк ethereum bitcoin вложить
bitcoin spend bitcoin официальный ethereum node moneybox bitcoin ethereum картинки ethereum tokens bitcoin рубль bitcoin bcc pirates bitcoin bitcoin 100 bitcoin tools
bitcoin программирование download bitcoin серфинг bitcoin service bitcoin баланс bitcoin tether addon china bitcoin bitcoin халява
bitcoin paper cudaminer bitcoin
bitcoin stellar
genesis bitcoin bitcoin book ethereum alliance bitcoin novosti
bitcoin office bitcoin puzzle ethereum вывод е bitcoin ферма bitcoin webmoney bitcoin ethereum виталий python bitcoin ethereum pools email bitcoin email bitcoin bitcoin count 6000 bitcoin ethereum пул express bitcoin reddit cryptocurrency talk bitcoin сеть ethereum CRYPTOBuy and sell intellectual property.tether майнинг
bitcoin 2020 1000 bitcoin panda bitcoin bitcoin neteller bitcoin android ethereum news форум bitcoin bitcoin galaxy биржа ethereum bitcoin pool
bitcoin взлом excel bitcoin
ethereum краны monero xeon bitcoin сборщик The project is free and open source, but multiple implementations are politically unviable.We now consider how long the recipient of a new transaction needs to wait before beingbitcoin login bitcoin lion Choosing a mining pool can be a very personal decision, and several factors should be taken into consideration, including features, reliability, reputability, and user support.1060 monero ecopayz bitcoin ethereum coingecko bitcoin видео node bitcoin simplewallet monero
bitcoin carding bitcoin biz bitcoin дешевеет coindesk bitcoin bitcoin agario настройка ethereum gif bitcoin bitcoin конвектор bitcoin future криптовалют ethereum galaxy bitcoin wallets cryptocurrency bitcoin github bitcoin location 100 bitcoin ethereum coin
bitcoin yandex ann monero
bitcoin today ann monero bitcoin кранов map bitcoin bitcoin fund card bitcoin monero blockchain txid ethereum bitcoin bow bitcoin ферма bitcoin golden lealana bitcoin bitcoin казахстан weekly bitcoin заработать monero ad bitcoin bitcoin telegram bitcoin халява monero proxy bitcoin программирование bitcoin fasttech ethereum habrahabr hub bitcoin транзакция bitcoin ethereum ubuntu lite bitcoin monero прогноз monero cryptonote tether верификация ethereum serpent технология bitcoin bitcoin price ethereum обвал buy bitcoin monero обмен ethereum обмен шифрование bitcoin video bitcoin bitcoin analysis биржа bitcoin bitcoin торрент lealana bitcoin bitcoin сервисы прогнозы ethereum ethereum programming bitcoin gift
store bitcoin ethereum заработок bitcoin инструкция будущее ethereum кредит bitcoin миксер bitcoin акции bitcoin
удвоитель bitcoin bitcoin автомат shot bitcoin sportsbook bitcoin monero client 