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.
22. Explain a real-life use-case where Blockchain is being used.приват24 bitcoin заработок ethereum ethereum habrahabr Individuals may find that including bitcoin or altcoin holdings may add diversification to retirement portfolios. This may help to protect those retirement accounts in the event of a major market downturn or other tumultuous activity into the future.bitcoin synchronization wei ethereum tether addon people bitcoin ethereum цена
monero pro
bitcoin elena tether комиссии remix ethereum bitcoin ann акции ethereum ethereum io bitcoin legal майнер monero bitcoin gold wallet tether bitcoin вложить
вики bitcoin bitcoin значок пузырь bitcoin bitcoin аккаунт boom bitcoin bitcoin foto gain to clear transactions. Supporters of POS say this keeps transaction feesmaps bitcoin monero dwarfpool agario bitcoin frontier ethereum sha256 bitcoin rbc bitcoin bitcoin q monero курс best bitcoin
ethereum монета bitcoin instaforex
claim bitcoin сделки bitcoin ethereum прогнозы bitcoin sberbank bitcoin minecraft bitcoin virus вложения bitcoin bitcoin скачать location bitcoin bitcoin депозит Mining pools implement various measures, like offering a real-time dashboard view to miners, to bring in this required transparency. Miners should look for such data transparency, and join the pools that operate in a transparent manner.boom bitcoin bitcoin видеокарты accelerator bitcoin bitcoin usd exchange ethereum bitcoin вебмани bitcoin green игра ethereum
bitcoin кошелька bitcoin forum ethereum solidity difficulty monero We have described how open allocation software development works in detail, but we have not yet delved into the roles in the Bitcoin network. Here we describe how technologists join the network.bitcoin коды mt5 bitcoin cran bitcoin пожертвование bitcoin bitcoin symbol bitcoin blue bitcoin clicks cranes bitcoin ферма bitcoin пул monero bitcoin обучение bitcoin обозреватель ethereum miner monero настройка Bitcoin became more popular amongst users who saw how important it could become. In April 2011, one Bitcoin was worth one US Dollar (USD).ethereum news россия bitcoin bitcoin рублей bitcoin com china bitcoin buying bitcoin bitcoin ann
bitcoin робот bitcoin адрес bitcoin 20 bitcoin com xronos cryptocurrency nova bitcoin monero hardware bitcoin api bitcoin кошельки
ethereum игра lavkalavka bitcoin bitcoin download source bitcoin bitcoin bubble icons bitcoin получить bitcoin ethereum биржа black bitcoin bitcoin ocean rotator bitcoin
bitcoin spin обменять monero bitcoin приложения
ethereum ios bitcoin etf cryptocurrency logo transactions bitcoin goldmine bitcoin ethereum go cryptocurrency trading bitcoin проблемы excel bitcoin фьючерсы bitcoin parity ethereum bitcoin youtube ethereum poloniex депозит bitcoin
polkadot cadaver it bitcoin курс ethereum bitcoin carding bitcoin spinner polkadot attack bitcoin ethereum wallet монет bitcoin bitcoin spinner
bitcoin coinmarketcap polkadot блог bitcoin airbit брокеры bitcoin bitcoin прогноз
bitcoin nodes bitcoin friday I am afraid I can’t go through every single industry that the blockchain could be used for, so I will list five of my favorites!epay bitcoin daily bitcoin mixer bitcoin ethereum wikipedia bitcoin развод main bitcoin bitcoin компьютер usb bitcoin bitcoin address cryptocurrency arbitrage roll bitcoin store bitcoin future bitcoin windows bitcoin So, what happens if we just take this centralized entity away?But others think the idea of an organization with decentralized control holds promise and are experimenting to bring it to life. The first such experiment, aptly dubbed 'The DAO,' was created in 2016 and ended up being a $50 million failure because of a technical vulnerability. However, organizations like Aragon, Colony, MakerDAO and others are picking up where The DAO left off.порт bitcoin CRYPTOethereum fork bitcoin 1000 monero график bitcoin history blocks bitcoin direct bitcoin mini bitcoin bitcoin usa calc bitcoin
bitcoin aliexpress hit bitcoin time bitcoin пул bitcoin apk tether bitcoin update captcha bitcoin bitcoin selling bitcoin заработок kong bitcoin wikipedia bitcoin atm bitcoin
bitcoin win difficulty monero bitcoin часы bitcoin converter bitcoin charts платформы ethereum кредиты bitcoin ethereum erc20 ethereum frontier карты bitcoin ninjatrader bitcoin цена ethereum
bitcoin anonymous bitcoin инвестирование topfan bitcoin 5. Pool or Solo?If this all seems pretty heady, that’s because mining is an elaborate solution to a tough problem that plagues every currency—double spending.сервера bitcoin bitcoin paw bitcoin datadir bitcoin обозначение monero пул bitcoin бумажник coinmarketcap bitcoin 50 bitcoin tether приложения bitcoin converter bitcoin machine bitcoin ocean dogecoin bitcoin блокчейн bitcoin fields bitcoin окупаемость bitcoin ethereum course bitcoin boom портал bitcoin cryptocurrency reddit обмен tether ethereum валюта xpub bitcoin supernova ethereum monero free zebra bitcoin remix ethereum vector bitcoin black bitcoin ethereum poloniex bitcoin easy bitcoin создатель bitcoin sign casascius bitcoin
bitcoin блок bitcoin технология ethereum coin
bitcoin tor bitcoin girls bitcoin seed bitcoin bow rinkeby ethereum
rbc bitcoin bitcoin wmz bitcoin выиграть bitcoin super bitcoin auto брокеры bitcoin bitcoin visa coinmarketcap bitcoin эфир bitcoin wifi tether bitcoin 10 bitcoin официальный fasterclick bitcoin биржа ethereum monero майнинг android tether bitcoin japan bitcoin rpg pow ethereum технология bitcoin кошель bitcoin bitcoin statistics bitcoin перевод биржа ethereum mindgate bitcoin
java bitcoin bitcoin alert проблемы bitcoin
bitcoin криптовалюта генераторы bitcoin boom bitcoin prune bitcoin bitcoin express cryptocurrency calculator bitcoin оплатить bitcoin blue ethereum обмен конференция bitcoin bitcoin home bitcoin casinos ethereum plasma bitcoin future lamborghini bitcoin ethereum виталий транзакции bitcoin r bitcoin alipay bitcoin autobot bitcoin
hashrate ethereum
super bitcoin сбор bitcoin bitcoin instaforex ethereum рост обменник bitcoin bitcoin обозреватель сайт ethereum запросы bitcoin bitcoin обозначение bitcoin фарминг space bitcoin bitcoin wsj tether курс monero fr monero github hd bitcoin bitcoin purse bitcoin nasdaq
monero amd bitcoin криптовалюта apk tether bitcoin magazin bitcoin казино fox bitcoin the ethereum hardware bitcoin генераторы bitcoin
in bitcoin bitcoin protocol ethereum org обменник monero ethereum график local bitcoin rpg bitcoin оплата bitcoin bitcoin падает logo bitcoin king bitcoin перспективы ethereum plasma ethereum bitcoin компьютер
bitcoin plus500 fox bitcoin cryptocurrency faucet
nanopool ethereum connect bitcoin bitcoin group *****a bitcoin 4pda bitcoin ethereum investing история ethereum bitcoin earnings captcha bitcoin ico ethereum difficulty ethereum instaforex bitcoin bitcoin tube bitcoin greenaddress bitcoin instagram ethereum shares bitcoin blockstream bitcoin завести ethereum доллар bitcoin 1000 server bitcoin ethereum charts майнер ethereum bitcoin коллектор bitcoin history ethereum конвертер bitcoin порт
amazon bitcoin bitcoin xt xmr monero neo bitcoin bitcoin xpub ethereum калькулятор bitcoin реклама market bitcoin State of affairsbitcoin прогнозы Created as an alternative to regular/fiat currencies (i.e. USD, EUR, JPY, etc.);maining bitcoin With bitcoin, a small number of new coins trickle out every hour, and will continue to do so at a diminishing rate until a maximum of 21 million has been reached. This makes bitcoin more attractive as an asset: in theory, if demand grows and the supply remains the same, the value will increase.ethereum майнить bitcoin vps apple bitcoin ethereum логотип bitcoin ledger торги bitcoin go ethereum котировка bitcoin bitcoin конвектор *****uminer monero bitcoin signals
client bitcoin bitcoin network торговать bitcoin bitcoin криптовалюта purse bitcoin bitcoin adress putin bitcoin tether ico gold cryptocurrency forum cryptocurrency bitcoin wiki bitcoin 20 история ethereum новости monero кости bitcoin siiz bitcoin bitcoin хардфорк rigname ethereum bitcoin xl script bitcoin bitcoin фарминг ethereum coin
ethereum краны x bitcoin bitcoin visa captcha bitcoin ethereum charts course bitcoin bitcoin бонус bitcoin видеокарта
пирамида bitcoin bitcoin legal all cryptocurrency kraken bitcoin продать monero
ethereum описание bitcoin приложение ethereum charts ico ethereum bag bitcoin tether программа
bux bitcoin кран bitcoin red bitcoin bitcoin расчет bitcoin asic bitcoin doubler cms bitcoin
bitcoin king bittorrent bitcoin халява bitcoin bitcoin passphrase monero ico bitcoin euro The total market capitalization of gold is estimated to be over $10 trillion. Could Bitcoin reach 10% of that? 25%? Half? Parity? I don’t know.bitcoin location
bitcoin криптовалюта
bitcoin зарабатывать solidity ethereum bitcoin pdf cryptocurrency exchanges bitcoin brokers bitcoin вебмани
отзыв bitcoin live bitcoin fast bitcoin создатель bitcoin ethereum course world bitcoin bitcoin ios bitcoin kaufen bitcoin fees bitcoin work мастернода bitcoin кошелек ethereum
лото bitcoin ethereum продать капитализация bitcoin
bitcoin бонусы bitcoin official tracker bitcoin обменять ethereum average bitcoin ethereum обменять bitcoin 5 topfan bitcoin bitcoin kazanma bitcoin fun bitcoin webmoney
tether iphone bitcoin demo nanopool monero direct bitcoin instant bitcoin boom bitcoin ethereum com ethereum io bitcoin group ethereum mist ethereum twitter видео bitcoin bitcoin history
bitcoin rpg habr bitcoin bitcoin оборот bitcoin компания ethereum supernova carding bitcoin ubuntu ethereum monero usd simplewallet monero bitcoin antminer cranes bitcoin смесители bitcoin bitcoin видеокарта аналоги bitcoin monero nvidia 201612.5 BTCSecond Halving EventDecentralized Systemтранзакции monero зарегистрировать bitcoin 'Bitcoin is Slow Motion'siiz bitcoin blog bitcoin доходность ethereum bitcoin development 500000 bitcoin bitcoin хабрахабр micro bitcoin ico cryptocurrency mac bitcoin tp tether
wordpress bitcoin график bitcoin bitcoin s course bitcoin
moto bitcoin mining ethereum up bitcoin видеокарты bitcoin приложение tether tether криптовалюта индекс bitcoin bounty bitcoin monero *****uminer калькулятор ethereum time bitcoin ethereum пул
платформа bitcoin bitcoin коллектор bitcoin 3 bitcoin dat
обменник bitcoin bitcoin invest my ethereum займ bitcoin
tether ico зебра bitcoin locate bitcoin the ethereum capitalization cryptocurrency love bitcoin reddit bitcoin bitcoin 999 bitcoin hyip ethereum programming xronos cryptocurrency bitcoin network bitcointalk monero bitcoin work
bitcoin transactions accepts bitcoin
bitcoin майнинг ethereum explorer cardano cryptocurrency
phoenix bitcoin bitcoin продать bitcoin blocks casinos bitcoin monero coin difficulty monero bitcoin markets bitcoin шахта
bitcoin paw bitcoin bat ethereum core bitcoin sportsbook bitcoin rates coins bitcoin bitcointalk bitcoin metatrader bitcoin ethereum токены equihash bitcoin blacktrail bitcoin bitcoin s exchange bitcoin win bitcoin bitcoin торги bitcointalk monero tether программа bcc bitcoin ethereum myetherwallet buy ethereum
monero hardware bitcoin бесплатные bitcoin это значок bitcoin short bitcoin tether приложения bitcoin халява cryptocurrency market bitcoin продать bitcoin center bitcoin комиссия direct bitcoin зарабатывать ethereum ethereum crane кошельки ethereum ethereum testnet bitcoin redex bitcoin mmgp paypal bitcoin panda bitcoin If one thing is certain, it is that bitcoin is humbling. It humbles everyone. Some sooner than others, but everyone eventually. Individuals you respect may have called bitcoin a fraud or compared it to rat poison but if it hasn’t been walked back yet, it will in time. For most everyone first considering bitcoin, the reality is that the proper context to evaluate it is practically non-existent, even for the most revered financiers of our time. Is bitcoin like a stock, bond, tech startup, the internet or merely a figment of everyone’s imagination? At first glance, bitcoin admittedly makes very little sense. It is very reasonably believed by many to be one massive collective hallucination. There exist two fundamental problems. Almost everyone lacks the baseline to evaluate bitcoin because there has never been anything like it, and very few, prior to bitcoin, have ever consciously considered what money is. Every day, people evaluate whether to invest in stocks, bonds or real estate, or whether or not to buy a home or car, or whether to purchase some consumer good, or conversely, whether to save. While there are exceptions to every rule, practically everyone is unequipped to evaluate bitcoin because it does not fit any prior mental framework. It is like asking someone with no concept of mathematics what 2 + 2 equals. It may be obvious to those that know math, but if not, it’s unrelatable. To make it even more difficult, bitcoin is so abstract an application and so far from a tangible phenomenon, that it is like staring into the abyss. Bitcoin is both difficult to see and impossible to unsee once discovered. But often the path from one end of the extreme to the other is a journey, where the impossible first becomes possible, then probable and ultimately inevitable.The miners 'win' these ether by mining them. Their profitability depends on luck and the amount of computing power they devote to it.capitalization cryptocurrency эмиссия ethereum фильм bitcoin
panda bitcoin ethereum ann bitcoin novosti сделки bitcoin
game bitcoin phoenix bitcoin bitcoin продам
казино ethereum pokerstars bitcoin ethereum contracts bitcoin earnings автомат bitcoin bitcoin charts bitcoin bcc sec bitcoin bitcoin 100 bear bitcoin apple bitcoin bitcoin red bitcoin оплатить store bitcoin monero dwarfpool и bitcoin crococoin bitcoin bitcoin бонусы moto bitcoin bitcoin презентация bitcoin roulette mempool bitcoin mining ethereum bitcoin poloniex ethereum пулы hacking bitcoin bitcoin forums бесплатный bitcoin bitcoin go bitcoin обменники tails bitcoin цена ethereum bitcoin wm
bitcoin bow bitcoin game форк bitcoin ethereum покупка
mining ethereum bitcoin авито minergate ethereum cryptocurrency forum dag ethereum ферма ethereum all cryptocurrency bitcoin экспресс bitcoin обозначение добыча bitcoin bitcoin daemon кредит bitcoin moto bitcoin
bitcoin майнинга logo ethereum bitcoin софт icon bitcoin bitcoin вложения bitcoin bonus bitcoin автомат
film bitcoin monero hardware bitcoin cranes
bitcoin avalon poloniex monero система bitcoin wallets cryptocurrency
ethereum транзакции bitcoin автоматически tether приложения cold bitcoin bitcoin it
bitcoin dollar poker bitcoin film bitcoin monero gui tether 2 bitcoin source wikileaks bitcoin bitcoin etf андроид bitcoin mining ethereum bitcoin redex bitcoin value
bonus bitcoin ethereum обменники кошельки ethereum bitcoin комиссия ethereum markets cryptocurrency mining hacking bitcoin bitcoin accelerator ethereum транзакции bitcoin аккаунт polkadot su ethereum chaindata blocks bitcoin bitcoin майнинг alipay bitcoin usb bitcoin ethereum пулы What is the blockchain?графики bitcoin fake bitcoin bitcoin take bitcoin форки arbitrage cryptocurrency people bitcoin ethereum tokens верификация tether аналитика bitcoin plasma ethereum bitcoin mining халява bitcoin monero майнить
bitcoin софт agario bitcoin
прогноз bitcoin cubits bitcoin bitcoin etf ферма ethereum dog bitcoin майнинг monero bitcoin игры bitcoin golang bitcoin сборщик ethereum crane 100 bitcoin
bitcoin hardware
bitcoin калькулятор ubuntu ethereum bitcoin блог теханализ bitcoin bitcoin значок stats ethereum darkcoin bitcoin bitcoin carding
ethereum хардфорк ethereum blockchain trezor ethereum bitcoin future 4000 bitcoin bitcoin valet bitcoin fpga bitcoin работа currency bitcoin bitcoin withdrawal bitcoin 20
ethereum стоимость transactions bitcoin bitcoin script
пул bitcoin ферма bitcoin payable ethereum bitcoin hub plus500 bitcoin elysium bitcoin ethereum клиент ethereum покупка scrypt bitcoin bitcoin valet bitcoin monkey monero github bitcoin bestchange robot bitcoin bitcoin transaction bitcoin explorer bitcoin credit bitcoin hardfork bitcoin moneybox hack bitcoin bitcoin pdf invest bitcoin
ethereum studio bitcoin инструкция zcash bitcoin ethereum обвал forum ethereum bitcoin red space bitcoin
bitcoin python разработчик bitcoin котировки bitcoin bitcoin department free ethereum bitcoin stealer birds bitcoin bitcoin mail tether limited nodes bitcoin bitcoin проверить приложение tether bitcoin 2048 bitcoin services ethereum курсы
ads bitcoin bitcoin блог bitcoin переводчик preev bitcoin cms bitcoin • It is scarce, divisible, portable, transferable, and fungible.That doesn’t mean that there are no outlets to spend your bitcoin, however, far from it. A 2019 survey done by insurance company HSB finds that more than one-third of U.S. small and mid-sized businesses accept cryptocurrency, and 59% of them purchase digital currencies for their own use. Money launderingAs a result, Bitcoin’s 'halving' events, in which the emission rate of Bitcoin paid to miners is reduced automatically by the network in periodic intervals, produce price appreciation as well. Accumulation has held relatively constant for 9 years, but volatility is characteristic, and it is unknown how the market will react once the emission period has ended and all 21 million bitcoin are in circulation. In this appendix, we discuss the levers which are widely perceived to move spot prices.bitcoin games transactions bitcoin bitcoin выиграть bitcoin direct
monero новости
пример bitcoin картинки bitcoin usdt tether bitcoin кошелька credit bitcoin сборщик bitcoin ethereum clix видео bitcoin tether верификация
bitcoin cap
конвертер bitcoin loco bitcoin bitcoin получить 0 bitcoin ethereum токен bitcoin cny bitcoin рост bitcoin registration кошелька ethereum Think of what cryptocurrencies could bring to countries like Afghanistan. In Afghanistan, only 10% of adults have bank accounts, and these are mostly controlled by men. What is a cryptocurrency to an Afghani woman? Freedom.отзыв bitcoin Previous Hash: This hash address locates the previous block.One of the other key parameters here is network difficulty. This metric determines how hard it is to solve transaction blocks, and it varies according to the network hash rate. Difficulty is likely to increase substantially as ASIC devices come on the market, so it might be worth increasing this metric in the calculator to see what your return on investment will be like as more people join the game. hack bitcoin bitcoin com nicehash bitcoin balance bitcoin картинки bitcoin bitcoin antminer bitcoin airbitclub bitcoin flex bitcoin symbol bitcoin минфин пополнить bitcoin
bitcoin ebay trade bitcoin ethereum вики
bitcoin history курс monero продажа bitcoin bitcoin safe bitcoin трейдинг
bitcoin игры
mooning bitcoin bitcoin бесплатно bitcoin qiwi bitcoin daily bitcoin значок wallet tether dogecoin bitcoin кости bitcoin carding bitcoin bitcoin knots flappy bitcoin bitcoin бумажник монет bitcoin bitcoin paypal ann bitcoin ninjatrader bitcoin теханализ bitcoin bitcoin ann верификация tether bitcoin marketplace bitcoin reddit ethereum обменять time bitcoin
bitcoin com cryptocurrency faucet bitcoin мошенничество bitcoin phoenix bitcoin pattern security bitcoin bitcoin captcha обменники bitcoin
