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.
flypool ethereum monero logo майнинг monero bitcoin capital galaxy bitcoin
captcha bitcoin
bitcoin de bitcoin переводчик bitcoin heist cryptocurrency law clame bitcoin отзывы ethereum bitcoin trading bitcoin генератор обменники ethereum сложность monero cryptocurrency calendar bitcoin 4000 tether wallet форумы bitcoin bitcoin 100 клиент bitcoin bitcoin прогноз bitcoin nedir bitcoin wmz bitcoin rt tether addon ethereum картинки ethereum miners fork bitcoin 2x bitcoin ethereum краны bitcoin like курсы bitcoin bitcoin map blogspot bitcoin bitcoin автоматически bitcoin strategy bitcoin fire byzantium ethereum шрифт bitcoin ocean bitcoin Whoever has the private and public keys owns the cryptocurrency, so don’t lose your wallets! Cryptocurrency is pseudonymous, remember? There is no way to prove your own cryptocurrency unless you have the keys to it.эмиссия ethereum
курс ethereum блок bitcoin bitcoin комиссия капитализация bitcoin amazon bitcoin amazon bitcoin bitcoin wmx ethereum supernova keepkey bitcoin email bitcoin шахта bitcoin bitcoin nvidia bitcoin япония
icons bitcoin
ethereum майнеры bitcoin dance обозначение bitcoin difficulty bitcoin
alliance bitcoin bitcoin сеть bitcoin компьютер abi ethereum ethereum ann bitcoin talk information bitcoin mmm bitcoin cubits bitcoin froggy bitcoin bitcoin хешрейт 20 bitcoin bitcoin чат blocks bitcoin bitcoin 100 ethereum news создатель bitcoin bitcoin credit global bitcoin ethereum poloniex bitcoin кранов кредит bitcoin
tether apk bitcoin trinity bitcoin blue vip bitcoin ethereum classic bitcoin fees mastercard bitcoin bitcoin xbt fpga ethereum foto bitcoin ethereum supernova bitcoin seed bitcoin зебра 1) Controlled supply: Most cryptocurrencies limit the supply of the tokens. In Bitcoin, the supply decreases in time and will reach its final number sometime around the year 2140. All cryptocurrencies control the supply of the token by a schedule written in the code. This means the monetary supply of a cryptocurrency in every given moment in the future can roughly be calculated today. There is no surprise.calc bitcoin bitcoin пожертвование Insurance: Smart contracts can identify false claims and prevent forgeriesgoldmine bitcoin bitcoin grant community bitcoin
Let’s return to the central question of this section, 'Should I invest in Ethereum?'. For clarity, let’s limit the scope of the investment to the short-term.bitcoin airbit bitcoin frog компания bitcoin maining bitcoin ethereum википедия bitcoin blue api bitcoin описание bitcoin bitcoin биткоин
bitcoin expanse bitcoin capital bitcoin автосерфинг bitcoin чат приложения bitcoin асик ethereum dag ethereum location bitcoin ethereum заработок ccminer monero биржа ethereum
bitcoin конвертер decred ethereum bitcoin euro seed bitcoin bitcoin бонус bitcoin ann bitcoin фарминг отдам bitcoin
bitcoin tx 10000 bitcoin
bitcoin putin
bitcoin wmx vpn bitcoin
сложность monero my ethereum Sponsored Contentиграть bitcoin bitcoin paper vector bitcoin bitcoin ваучер bitcoin игры bitcoin visa P2P (Peer-to-Peer) Exchangesbitcoin doge bitcoin generation ethereum 1070 cold bitcoin cryptocurrency law bitcoin apple box bitcoin bitcoin лотерея ethereum rotator
bitcoin ebay community bitcoin 999 bitcoin bitcoin аналоги
tether android инвестирование bitcoin ethereum ethash подарю bitcoin bitcoin bitrix bitcoin development bitcoin pools
bitcoin xyz
технология bitcoin shot bitcoin обвал bitcoin tether android bitcoin spend bitcoin ico bitcoin nedir курс bitcoin bitcoin department bitcoin otc lurkmore bitcoin Ether is its currency, it powers transactions on the Ethereum blockchain;bitcoin forex кредит bitcoin bitcoin алгоритм wirex bitcoin
bitcoin шахта locate bitcoin secp256k1 bitcoin bitcoin рбк ethereum mist
bitcoin group bitcoin daily rates bitcoin monero pools service bitcoin
wechat bitcoin torrent bitcoin dark bitcoin
команды bitcoin шифрование bitcoin bitcoin кошелька краны monero bitcoin кредит bitcoin telegram сбербанк ethereum bitcoin reklama сложность monero ethereum dao addnode bitcoin
майнить bitcoin hd7850 monero bitcoin maps tether tools block bitcoin форум bitcoin компиляция bitcoin монета bitcoin bitcoin обзор bitcoin зарегистрироваться bitcoin конвертер tether usd bitcoin карта bitcoin server взлом bitcoin Bitcoin logobitcoin demo micro bitcoin
bitcoin office
blitz bitcoin bitcoin вконтакте
antminer bitcoin machine bitcoin lootool bitcoin that can be clawed back. There was potentially a cultural component as well, where customers felt more comfortable betting on a long life (annuity) thanразвод bitcoin сервера bitcoin bitcoin investment alpha bitcoin биржа ethereum добыча ethereum bitcoin store keyhunter bitcoin bitcoin millionaire tether верификация loans bitcoin фильм bitcoin datadir bitcoin использование bitcoin simple bitcoin bitcoin flex tether apk bitcoin stiller puzzle bitcoin bitcoin ваучер utxo bitcoin bitcoin рулетка
bitcoin me converter bitcoin bitcoin pool bitcoin fox 0 bitcoin bitcoin rus donate bitcoin iobit bitcoin bitcoin investment bitcoin настройка приват24 bitcoin ethereum проекты
bitcoin tails salt bitcoin transaction bitcoin bitcoin python форум bitcoin
bitcoin прогноз blitz bitcoin
bitcoin hub bitcoin тинькофф bitcoin nvidia bitcoin pools
bitcoin play ethereum dao трейдинг bitcoin ethereum info запросы bitcoin bitcoin click ico ethereum проверка bitcoin bitcoin auto фото bitcoin генераторы bitcoin pplns monero bitcoin доходность puzzle bitcoin форк bitcoin bitcoin client торрент bitcoin
автомат bitcoin bitcoin talk программа bitcoin фри bitcoin birds bitcoin bitcoin weekly е bitcoin rpc bitcoin bitcoin koshelek bitcoin государство bitcoin legal bitcoin wmx bitcoin анонимность bitcoin addnode atm bitcoin film bitcoin zona bitcoin bitcoin keywords tether верификация bitcoin блок ethereum calculator bitcoin бесплатно акции bitcoin bitcoin комбайн mining bitcoin
конец bitcoin bitcoin кэш ethereum course cryptocurrency law конвертер monero bitcoin форк bitcoin рубли bitcoin plugin
Since the network is transparent, the progress of a particular transaction is visible to all. Once that transaction is confirmed, it cannot be reversed. This means any transaction on the bitcoin network cannot be tampered with, making it immune to hackers. Most bitcoin hacks happen at the wallet level, with hackers stealing the keys to hoards of bitcoins rather than affecting the Bitcoin protocol itself.As long as you have access to the network, you have access to the data within the Blockchain. If you are a participant in the Blockchain network, you will have the same copy of the ledger, which all other participants have. Even if one node or data on one particular participant computer gets corrupted, the other participants will be alerted immediately, and they can rectify it as soon as possible.ethereum биржа A third reason is to build and participate in counter economics, which includes development of viable alternatives to banking systems, and development of alternative financial systems which provide the user with options for greater privacy or anonymity. Services like Silk Road and Black Market Reloaded made it possible to trade goods and services with little interference from the law. These are examples of centralized, and thus vulnerable, marketplaces, or tools. Similarly, web wallets employed by some Bitcoin users are also centralized and vulnerable. Decentralized and distributed marketplaces and currency exchanges are more difficult to target by law enforcement agencies and may provide more security to its end-users. An example of a decentralized and distributed marketplace in development is OpenBazaar or Particl.In this way, existing products and services can hire and retain high-quality engineering talent, on a completely pseudonymous basis, and totally ad hoc, simply by offering a Bitcoin payment. Signal is amongst the highest-rated products in its category of 'secure messenger applications.' It has been the chat application of choice for Hillary Clinton and her staff since at least August 2016, among other high-profile hacking targets.A blockchain wallet is a cryptocurrency wallet that allows users to manage different kinds of cryptocurrencies—for example, Bitcoin or Ethereum. A blockchain wallet helps someone exchange funds easily. Transactions are secure, as they are cryptographically signed. The wallet is accessible from web devices, including mobile ones, and the privacy and identity of the user are maintained. So a blockchain wallet provides all the features that are necessary for safe and secure transfers and exchanges of funds between different parties.бонусы bitcoin Ethereum builds on Bitcoin's innovation, with some big differences.мониторинг bitcoin
пожертвование bitcoin An important reason why annuities were popular so much earlier thangame bitcoin
all cryptocurrency котировки bitcoin
pps bitcoin bitcoin traffic bitcoin мошенничество eobot bitcoin mine ethereum nicehash bitcoin bitcoin scrypt bitcoin fasttech тинькофф bitcoin plasma ethereum calculator ethereum ethereum chaindata monero difficulty mooning bitcoin заработка bitcoin nonce bitcoin bitcoin trust бесплатный bitcoin accepts bitcoin bitcoin auto monero dwarfpool bitcoin карта alipay bitcoin ethereum монета bitcoin мониторинг
ethereum алгоритмы ecopayz bitcoin bitcoin calculator payoneer bitcoin swarm ethereum ethereum decred
bitcoin xt bitcoin hd
bitcoin trinity
love bitcoin best bitcoin ethereum логотип simple bitcoin click bitcoin продажа bitcoin bitcoin center nodes bitcoin сложность ethereum it bitcoin bitcoin спекуляция зарегистрироваться bitcoin bitcoin мерчант loco bitcoin bitcoin com кошель bitcoin bitcoin пожертвование bitcoin роботы история bitcoin
bitcoin logo цена ethereum bitcoin suisse bitcoin media ethereum новости технология bitcoin information bitcoin bitcoin картинка 2 bitcoin monero transaction bitcoin 2x trading bitcoin card bitcoin bio bitcoin bitcoin бонусы bitcoin euro mine ethereum ethereum faucet blog bitcoin daemon bitcoin часы bitcoin bitcoin ishlash
bitcoin dollar bitcoin payza instant bitcoin bcc bitcoin
tether addon monero прогноз bitcoin jp bitcoin review ethereum nicehash
film bitcoin обсуждение bitcoin vps bitcoin bitcoin reklama bitcoin p2p bitcoin selling
bitcoin hyip
tether provisioning обвал bitcoin ethereum complexity bitcoin комиссия bitcoin карты loan bitcoin bitcoin stellar bitcoin icons monero btc jax bitcoin san bitcoin ethereum вики bitcoin scam ethereum rub символ bitcoin bitcoin анализ bitcoin background dwarfpool monero tether mining bitcoin alliance ios bitcoin cryptocurrency bitcoin аналитика ethereum bonus bitcoin
ethereum обмен bank bitcoin и bitcoin l bitcoin mikrotik bitcoin бизнес bitcoin 9000 bitcoin bitcoin usd bitcoin баланс bitcoinwisdom ethereum logo ethereum bitcoin traffic exchanges bitcoin monero настройка monero hardware bitcoin x bitcoin конвектор monero fr rpg bitcoin gemini bitcoin to bitcoin
ethereum linux bitcoin баланс bitcoin алгоритмы bitcoin перевод bitcoin количество bitcoin services video bitcoin описание ethereum
bitcoin 99 sberbank bitcoin bitcoin faucet bitcoin кошелька покер bitcoin blue bitcoin часы bitcoin bitcoin конвертер bitcoin mining bitcoin лотерея ethereum сайт monero proxy bitcoin nvidia bitcoin blockstream bitcoin оборот ethereum валюта bitcointalk bitcoin cryptocurrency market перевод bitcoin bitcoin zebra maining bitcoin tp tether магазины bitcoin bitcoin database bitcoin network луна bitcoin ethereum создатель bitcoin zebra казахстан bitcoin ethereum news bitcoin bat ethereum mining аккаунт bitcoin game bitcoin 3d bitcoin автоматический bitcoin
tether usd data bitcoin dollar bitcoin bittrex bitcoin bitcoin сервисы ethereum bitcoin bitcoin converter wallet tether ethereum майнер счет bitcoin майнинга bitcoin асик ethereum bitcoin people
convert bitcoin cryptocurrency trading
халява bitcoin token ethereum
конвертер bitcoin получение bitcoin Note: The data is recorded in chronological order. Also, once the data is recorded, it cannot be changed.bitcoin сатоши 16 bitcoin зарабатывать ethereum bitcoin weekend bitcoin onecoin As you can see, then, these are five large industries the blockchain is already disrupting. Here are a few more where its influence is growing.A mining pool is a way for bitcoin miners to work together for a better chance at finding a bitcoin block. All the miners ‘pool’ their hash rate together so that they hit new blocks more frequently. If a mining pool finds a block, they distribute the bitcoin reward equally to all miners based on their contribution to the pools hash rate. Mining pools let smaller miners earn bitcoin without ever finding a block themselves. Most mining pools have a small fee of 1-2% for hosting the pool.bitcoin stock майнер monero покупка ethereum monero client dice bitcoin bitcoin capital express bitcoin
ethereum casper mt5 bitcoin bitcoin бизнес rpg bitcoin
average bitcoin bitcoin сложность кошелек ethereum
подтверждение bitcoin компания bitcoin bitcoin investing bitcoin donate bitcoin динамика bitcoin swiss json bitcoin bitcoin start bitcoin wordpress bitcoin formula
