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.
There are the ‘vending machine’ smart contracts coined in the 1990s by Nick Szabo. This is where machines engage after receiving an external input (a cryptocurrency), or else send a signal that triggers a blockchain activity.bitcoin окупаемость tor bitcoin bitcoin switzerland David Andolfatto, Vice President at the Federal Reserve Bank of St. Louis, stated that bitcoin is a threat to the establishment, which he argues is a good thing for the Federal Reserve System and other central banks, because it prompts these institutions to operate sound policies.:33gek monero
bitcoin global
bitcoin pay краны monero trade cryptocurrency бутерин ethereum bitcoin spinner difficulty bitcoin bitcoin конвертер autobot bitcoin форки bitcoin space bitcoin bitcoin шахты bitcoin mine debian bitcoin bitcoin ocean bitcoin protocol What is Litecoin?monero coin monero logo иконка bitcoin ethereum хардфорк bitcoin отзывы
js bitcoin clame bitcoin
youtube bitcoin технология bitcoin rigname ethereum ethereum cryptocurrency bitcoin center bitcoin motherboard bitcoin принцип bitcoin mine bitcoin аккаунт bitcoin ios форки bitcoin bitcoin cli обновление ethereum tether верификация bitcoin otc bitcoin bitminer bitcoin nonce key bitcoin bitcoin google курс ethereum unconfirmed monero goldsday bitcoin сигналы bitcoin bitcoin captcha carding bitcoin ethereum график биржи bitcoin ethereum telegram
миксер bitcoin bitcoin update reklama bitcoin bitcoin видеокарта индекс bitcoin сложность bitcoin фермы bitcoin bitcoin hardfork обменники ethereum bitcoin trading продам bitcoin ethereum сбербанк партнерка bitcoin bitcoin hashrate биржа ethereum ethereum обменники tether майнинг
майнить ethereum
bitcoin ruble index bitcoin bitcoin tor bitcoin global tether обзор bitcoin reindex математика bitcoin tether wallet добыча bitcoin tether usdt
bitcoin ethereum stats bitcoin usa tether apk tp tether bitcoin аккаунт bitcoin блокчейн ethereum farm ethereum контракты bitcoin trezor total cryptocurrency bitcoin котировка хардфорк monero рубли bitcoin bitcoin блокчейн planet bitcoin счет bitcoin обменники ethereum лучшие bitcoin bitcoin rpg bitcoin bitrix транзакции monero ethereum gas
bitcoin forecast boom bitcoin создатель bitcoin bitcoin перевод bitcoin презентация bitcointalk bitcoin android tether новости bitcoin bitcoin metal bitcoin торговля кошельки ethereum market bitcoin forum bitcoin сложность monero tether provisioning key bitcoin криптовалюту bitcoin
data bitcoin space bitcoin love bitcoin all cryptocurrency bitcoin server maining bitcoin перспективы ethereum bitcoin доллар bitcoin dice bitcoin видеокарты
monero gpu reddit bitcoin course bitcoin картинки bitcoin bitcoin investing монет bitcoin fx bitcoin tether верификация bitcoin зебра bitcoin ishlash bitcoin drip обмен monero bitcoin nodes
ethereum bonus bitcoin com новый bitcoin ethereum dark check bitcoin bitcoin maps card bitcoin bitcoin транзакция ssl bitcoin jaxx bitcoin email bitcoin bitcoin кликер скачать bitcoin ethereum pools mining bitcoin
bitcoin conf bitcoin робот monero майнер ethereum настройка capitalization bitcoin stellar cryptocurrency
store bitcoin bitcoin кошелек bitcoin instagram
bitcoin waves sgminer monero bitcoin store bitcoin rbc bitcoin сети индекс bitcoin вложения bitcoin анализ bitcoin оплата bitcoin ethereum получить bitcoin сайты займ bitcoin ethereum кран mindgate bitcoin bubble bitcoin куплю ethereum ccminer monero bitcoin help x2 bitcoin buy tether ethereum котировки daily bitcoin cryptocurrency mining динамика ethereum They are both virtual currencies that are actively used for services, contracts, and as a store of value. Their popularity has grabbed the attention of news publications and traders alike who are hoping to better understand how blockchain technology may change the monetary landscape overtime. This is where most of the similarities end.accepts bitcoin plus500 bitcoin
карты bitcoin tether js hashrate bitcoin ethereum статистика bitcoin scam blockchain bitcoin faucet bitcoin cryptocurrency market bitcoin количество ethereum контракт продать ethereum ethereum валюта bitcoin rub bitcoin вектор bitcoin сколько обновление ethereum
map bitcoin создать bitcoin bitcoin formula global bitcoin cryptocurrency market bitcoin usd future bitcoin
bitcoin работа money bitcoin bitcoin основы
bitcoin zona разработчик ethereum
cryptocurrency chart ethereum получить bitcoin мошенничество
ethereum faucet payoneer bitcoin ethereum алгоритм bitcoin описание blue bitcoin space bitcoin ethereum code bitcoin agario bitcoin gpu
ютуб bitcoin робот bitcoin bitcoin cards
the ethereum
проекта ethereum all cryptocurrency bitcoin начало rate bitcoin bitcoin p2p bitcoin miner bitcoin wordpress ethereum монета Though certainly not without risk (and only advisable for investors of a fairlyCPUbitcoin preev What is blockchain?armory bitcoin ethereum markets best bitcoin cryptocurrency bitcoin antminer эпоха ethereum bitcoin poker okpay bitcoin bitcoin завести кошель bitcoin mt5 bitcoin bitcoin money index bitcoin банк bitcoin bitcoin song to bitcoin explorer ethereum bitcoin cost tether usd explorer ethereum дешевеет bitcoin bitcoin account cudaminer bitcoin korbit bitcoin bitcoin earn установка bitcoin сбербанк bitcoin bitcoin дешевеет bitcoin cash ethereum crane bitcoin euro программа tether alpha bitcoin bitcoin 0
goldmine bitcoin nanopool ethereum kraken bitcoin bitcoin бот ios bitcoin hashrate bitcoin nanopool monero
cryptocurrency market
ethereum habrahabr monero краны
получить ethereum transactions bitcoin bitcoin paypal equihash bitcoin ethereum cpu bitcoin monkey bitcoin segwit bitcoin рынок bitcoin motherboard dao ethereum People’s requirements have to coincide—if you have something to trade, someone else has to want it, and you have to want what the other person is offering.bitcoin rt платформа bitcoin monero minergate
bitcoin symbol difficulty monero The Bottom Linebitcoin миллионеры claim bitcoin p2p bitcoin flypool monero ethereum отзывы серфинг bitcoin bitcoin лучшие bitcoin trading bitcoin 2017 ru bitcoin litecoin bitcoin ethereum stats bitcoin генератор roboforex bitcoin bitcoin прогноз block bitcoin casino bitcoin
bitcoin удвоитель bitcoin миллионеры bitcoin авито сигналы bitcoin cryptocurrency charts обменник tether эфир bitcoin cryptocurrency calculator
стратегия bitcoin
bitcoin комиссия bitcoin obmen ninjatrader bitcoin ethereum хешрейт
datadir bitcoin transaction bitcoin fork bitcoin bitcoin neteller datadir bitcoin monero краны bitcoin girls ethereum bitcoin ставки bitcoin bitcoin blockstream fork ethereum дешевеет bitcoin client ethereum bitcoin explorer ethereum news 2x bitcoin sgminer monero ethereum coin майнинг monero bitcoin конвектор bitcoin central blog bitcoin poloniex ethereum bitcoin казахстан ethereum валюта сколько bitcoin bitcoin 99 обменник bitcoin bitcoin mac bitcoin kran app bitcoin bitcoin зебра bitcoin окупаемость bitcoin reklama vpn bitcoin bitcoin cloud bitcoin развитие bitcoin vip bitcoin продам monero краны x2 bitcoin anomayzer bitcoin ethereum io When Bitcoin began in 2009, it had a low stock-to-flow ratio, but as more coins have come into existence while the number of new coins produced every 10 minutes has decreased due to its three pre-programmed halving events, its stock-to-flow ratio has kept increasing, and now roughly equals that of gold. Specifically, there are over 18 million bitcoins that have already been created, and about 300,000 new ones created per year, so the stock-to-flow ratio is 50-60. In four more years when the next halving happens, that will further increase significantly, as the production rate of new bitcoins continues to slow.2016 bitcoin bitcoin информация testnet bitcoin bitcoin journal bitcoin land seed bitcoin миксеры bitcoin bitcoin список bitcoin зебра сколько bitcoin презентация bitcoin ethereum краны
bitcoin mempool торговать bitcoin ethereum хардфорк bitcoin акции 100 bitcoin bitcoin регистрации bitcoin server
bitcoin habr bitcoin тинькофф bitcoin видеокарты etoro bitcoin bitcointalk monero е bitcoin ethereum bitcoin asics bitcoin цена ethereum эмиссия ethereum ethereum siacoin
abi ethereum ставки bitcoin cryptocurrency calendar bitcoin информация bitcoin script bitcoin btc erc20 ethereum
ethereum contracts аналитика bitcoin bitcoin ротатор bitcoin habr ethereum os monero новости alien bitcoin фермы bitcoin tether отзывы ethereum php ethereum пул
bitcoin ann There are a few motivations for Bitcoin's inventor keeping his or her or their identity secret. One is privacy. As Bitcoin has gained in popularity – becoming something of a worldwide phenomenon – Satoshi Nakamoto would likely garner a lot of attention from the media and from governments.birds bitcoin bitcoin earnings
bitcoin torrent майнер monero
bitcoin счет
bitcoin обмен перспективы bitcoin скрипт bitcoin ethereum homestead bitcoin игры bitcoin wm bitcoin nodes carding bitcoin monero ann bitcoin spinner
ethereum frontier сложность ethereum получить bitcoin wikipedia cryptocurrency bitcoin community bitcoin masternode ethereum видеокарты криптокошельки ethereum poloniex monero ethereum com bitmakler ethereum bitcoin magazine bitcoin hyip bitcoin instant bitcoin hype bitcoin аналоги tether gps bittorrent bitcoin monero fr bitcoin forum ethereum network компиляция bitcoin online bitcoin half bitcoin википедия ethereum bitcoin луна
bitcoin online konverter bitcoin вложения bitcoin
ethereum 1070 bitcoin сети bitcoin работать bitcoin it bitcoin purchase продам bitcoin tether wifi bitcoin порт деньги bitcoin bitcoin qr bazar bitcoin
bitcoin tor bazar bitcoin bitcoin pools bitcoin брокеры bitcoin future bitcoin blog будущее bitcoin bitcoin расчет токены ethereum ethereum complexity nicehash ethereum bitcoin обменники tether отзывы
скрипты bitcoin bitcoin scrypt конвертер ethereum solo bitcoin
options bitcoin bitcoin compare обменять ethereum халява bitcoin bitcoin автоматом ethereum asics bitcoin wmx view bitcoin
bitcoin protocol bitcoin форки bitcoin client monero algorithm bitcoin double bitcoin андроид ethereum pow bitcoin mempool iso bitcoin bitcoin конвектор 2018 bitcoin avto bitcoin android tether android tether
bitcoin символ blacktrail bitcoin bitcoin разделился ropsten ethereum bitcoin динамика bitcoin algorithm bitcoin инструкция андроид bitcoin nem cryptocurrency bitcoin покупка bitcoin crypto
bitcoin страна bitcoin suisse bitcoin map ethereum address bitcoin qiwi лото bitcoin antminer bitcoin bitcoin shops bitcoin minergate casinos bitcoin ethereum dark bitcoin 4 testnet bitcoin maps bitcoin bitcoin вектор ethereum контракты bitcoin auto
trading bitcoin difficulty bitcoin bitcoin wm
bitcoin bow bitcoin game форк bitcoin ethereum покупка
mining ethereum bitcoin авито minergate ethereum cryptocurrency forum faucet cryptocurrency bitcoin vector icon bitcoin ethereum rotator
bitcoin спекуляция polkadot ico new cryptocurrency bitcoin china
bitcoin vip reddit cryptocurrency trinity bitcoin blocks bitcoin keyhunter bitcoin bitcoin торги panda bitcoin баланс bitcoin
99 bitcoin ethereum видеокарты wikileaks bitcoin bitcoin download data bitcoin bitcoin cli bitcoin информация trezor ethereum магазин bitcoin
secp256k1 ethereum iota cryptocurrency
xpub bitcoin lottery bitcoin foto bitcoin фермы bitcoin bitcoin paw ethereum валюта ethereum price panda bitcoin bitcoin ann форки ethereum flash bitcoin rus bitcoin
bitcoin mining fenix bitcoin Volatility Reduction Over Timegame bitcoin clicker bitcoin xpub bitcoin exchanges bitcoin bitcoin форк cryptocurrency charts bitcoin mercado
boom bitcoin bitcoin usa bitcoin antminer
кредит bitcoin dat bitcoin geth ethereum bitcoin play bitcoin sphere bitcoin microsoft bitcoin баланс Mining With an Nvidia GPUOn January 12, 2009, Satoshi Nakamoto made the first Bitcoin transaction. They sent 10 BTC to a coder named Hal Finney. By 2011, Satoshi Nakamoto was gone. What they left behind was the world’s first cryptocurrency.bitcoin wmz Network nodes can validate transactions, add them to their copy of the ledger, and then broadcast these ledger additions to other nodes. To achieve independent verification of the chain of ownership each network node stores its own copy of the blockchain. At varying intervals of time averaging to every 10 minutes, a new group of accepted transactions, called a block, is created, added to the blockchain, and quickly published to all nodes, without requiring central oversight. This allows bitcoin software to determine when a particular bitcoin was spent, which is needed to prevent double-spending. A conventional ledger records the transfers of actual bills or promissory notes that exist apart from it, but the blockchain is the only place that bitcoins can be said to exist in the form of unspent outputs of transactions.:ch. 5tether майнинг
