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.
99 bitcoin No one knows who invented Bitcoin, or at least not conclusively. Satoshi Nakamoto is the name associated with the person or group of people who released the original Bitcoin white paper in 2008 and worked on the original Bitcoin software that was released in 2009. In the years since that time, many individuals have either claimed to be or have been suggested as the real-life people behind the pseudonym, but as of May 2020, the true identity (or identities) behind Satoshi remains obscured.ninjatrader bitcoin monero gui bitcoin location компьютер bitcoin порт bitcoin 100 bitcoin cryptocurrency wallets
bitcoin core
майнеры bitcoin monero rub портал bitcoin bitcoin explorer игра bitcoin bitcoin прогноз laundering bitcoin tether скачать bitcoin шахты bitcoin obmen clame bitcoin курс monero it bitcoin bitcoin kurs bitcoin maps ethereum coin bitcoin cryptocurrency bitcoin вирус love bitcoin теханализ bitcoin bio bitcoin взлом bitcoin
андроид bitcoin hourly bitcoin
asics bitcoin кошелька ethereum direct bitcoin delphi bitcoin mmm bitcoin sportsbook bitcoin chvrches tether
bitcoin hesaplama best bitcoin bitcoin spinner я bitcoin bitcoin теория bitcoin suisse проблемы bitcoin
cc bitcoin видео bitcoin phoenix bitcoin monero github token ethereum андроид bitcoin 2) No debt but bearer: The Fiat-money on your bank account is created by debt, and the numbers, you see on your ledger represent nothing but debts. It‘s a system of IOU. Cryptocurrencies don‘t represent debts, they just represent themselves. bitcoin russia банк bitcoin ethereum dao bitcoin отслеживание фарминг bitcoin отзывы ethereum
инструкция bitcoin monero mining халява bitcoin ethereum io local bitcoin 6000 bitcoin bitcoin авито автомат bitcoin bitcoin кости ethereum wiki
monero logo bitcoin инвестирование client ethereum bitcoin trader bitcoin 3
bitcoin visa bitcoin rbc bitcoin конец
store bitcoin status bitcoin forum bitcoin надежность bitcoin email bitcoin kupit bitcoin кран monero
money bitcoin bitcoin boom cryptocurrency capitalisation
bitcoin qazanmaq
bitcoin 4000 parity ethereum all bitcoin bitcoin genesis bitcoin keywords p2pool bitcoin деньги bitcoin bitcoin usd hardware bitcoin ethereum валюта bitcoin сша bitcoin anonymous download tether bitcoin qr moneybox bitcoin bitcoin gif cryptocurrency faucet bitcoin roulette
bitcoin trinity bitcoin grafik bitcoin capital bitcoin io bitcoin сервисы gold cryptocurrency кости bitcoin
machine bitcoin обновление ethereum bitcoin expanse bitcoin сайт korbit bitcoin новые bitcoin cryptocurrency nem bitcoin markets
bitcoin example mini bitcoin bitcoin играть ethereum blockchain usdt tether bitcoin clicker genesis bitcoin bitcoin mt4
bitcoin eu people bitcoin bitcoin prune bitcoin миллионеры bitcoin украина blocks bitcoin prune bitcoin контракты ethereum форки ethereum
nvidia monero bitcoin hashrate bitcoin принимаем secp256k1 ethereum bitcoin daily bitcoin novosti bitcoin book tether usdt truffle ethereum kinolix bitcoin get bitcoin 1080 ethereum bitcoin scam monero hardfork bitcoin рухнул cryptonator ethereum компания bitcoin bitcoin metal monero dwarfpool bitcoin nachrichten capitalization cryptocurrency
tether monero spelunker bitcoin atm Record keeping of data and transactions are a crucial part of the business. Often, this information is handled in house or passed through a third party like brokers, bankers, or lawyers increasing time, cost, or both on the business. Fortunately, Blockchain avoids this long process and facilitates the faster movement of the transaction, thereby saving both time and money.ethereum news bear bitcoin mining cryptocurrency bitcoin clouding 9000 bitcoin кредиты bitcoin bitcoin мошенничество
bitcoin сети торговать bitcoin транзакции bitcoin click bitcoin bitcoin майнить monero algorithm монета ethereum ферма bitcoin vps bitcoin 50 bitcoin The Concept. The technology. The unit of exchange. The protocol. It is all about the Bitcoin.bitcoin зарабатывать It has rightfully been pointed out that Bitcoin’s decentralization is but a means to an end — censorship resistance. This is in response to the decentralization fetishism that has characterized Bitcoin competitors and the blockchain industry in general. This is an appropriate response: cosmetic network decentralization is probably not sufficient if you plan on breaking any serious rules, and irrelevant if the industry you are seeking to disrupt is dentistry.Proof of Work challenge response.svgbitcoin rotator
bitcoin knots deep bitcoin nicehash monero bitcoin отследить математика bitcoin bitcoin poker приложение tether ethereum core dapps ethereum хайпы bitcoin bitcoin start компания bitcoin терминал bitcoin особенности ethereum bitcoin school key bitcoin bitcoin get bitcoin data rocket bitcoin
ethereum gold запрет bitcoin up bitcoin bitcoin настройка 2016 bitcoin rocket bitcoin ethereum падает to bitcoin converter bitcoin bitcoin debian bloomberg bitcoin bitcoin sphere
flappy bitcoin создатель bitcoin анализ bitcoin forecast bitcoin
monero js bitcoin strategy ethereum block faucet ethereum ethereum charts bitcoin future
bitcoin today сложность bitcoin bitcoin код bitcoin hardfork kinolix bitcoin ethereum linux курс ethereum ethereum аналитика обменник bitcoin network bitcoin проверить bitcoin zcash bitcoin plus500 bitcoin bitcoinwisdom ethereum bank bitcoin bitcoin journal > Today in 2011, there is still no audit that acknowledges that toxicyour bitcoin bitcoin дешевеет bitcoin играть картинка bitcoin pow bitcoin bitcoin status fpga ethereum monero майнеры claymore monero bitcoin адреса oil bitcoin bitcoin video water bitcoin tether limited buying bitcoin panda bitcoin 1080 ethereum bitcoin fire bitcoin fund bitcoin обменники bitcoin token tether перевод difficulty bitcoin bitcoin save bitcoin roulette bitcoin настройка withdraw bitcoin ethereum cryptocurrency bitcoin make ethereum russia bitcoin best ethereum wiki bitcoin приложение bitcoin ubuntu bitcoin 0 mining cryptocurrency geth ethereum bitcoin государство ethereum telegram stock bitcoin bitcoin dollar график bitcoin майнинг ethereum обмена bitcoin ethereum classic добыча bitcoin faucet cryptocurrency получение bitcoin mine ethereum scrypt bitcoin spin bitcoin bitcoin шахты bitcoin чат bitcoin make шифрование bitcoin запрет bitcoin bitcoin metal динамика ethereum обновление ethereum bitcoin knots биржа ethereum Nonetheless, many observers see potential advantages in cryptocurrencies, like the possibility of preserving value against inflation and facilitating exchange while being more easy to transport and divide than precious metals and existing outside the influence of central banks and governments.Ethereumdifficulty monero A Bitcoin wallet is a place that stores your digital Bitcoin and validates your transactions when you’re using your Bitcoin. A wallet keeps secret information, called a private key or a seed, which is used to validate transactions and 'sign' them so that your Bitcoin can be used to make purchases or exchanged for another asset. This prevents someone else from using your Bitcoin or the transaction being altered by a third-party.bitcoin crush
bitcoin usd blogspot bitcoin autobot bitcoin jpmorgan bitcoin wild bitcoin crococoin bitcoin polkadot блог bitcoin вирус bitcoin таблица bitcoin продам monero
bitcoin принцип asics bitcoin
When something becomes successful, the law of large numbers starts to kick in. It takes a small amount of money to move the needle on a small investment, but a lot of money to move the needle on a big investment. It’s easier for the network to go from $20 million to $200 million (requiring a few thousand enthusiasts), in other words, than to go from $200 billion to $2 trillion (requiring mass retail adoption and/or broad institutional buy-in).pk tether описание bitcoin bitcoin school datadir bitcoin
ann ethereum ethereum com ethereum russia криптовалюту monero rotator bitcoin порт bitcoin monero xmr monero address bitcoin оплатить faucets bitcoin bitcoin индекс bitcoin galaxy bitcoin вывести обмен tether bitcoin pdf асик ethereum bitcoin matrix bitcoin иконка bitcoin обналичить биржа ethereum
платформа bitcoin preev bitcoin bitcoin talk p2p bitcoin ethereum монета биржа monero bitcoin dark p2p bitcoin
stock bitcoin blockchain bitcoin bitcoin mail polkadot блог
bitcoin spinner bitcoin окупаемость doge bitcoin
ethereum homestead продам ethereum bitcoin crash carding bitcoin
monero хардфорк
in bitcoin roll bitcoin nova bitcoin cryptocurrency calendar p2pool ethereum get bitcoin apk tether ethereum free widget bitcoin bitcoin раздача
форк bitcoin
bitcoin команды bitcoin passphrase monero nvidia bitcoin banks bitcoin bloomberg bitcoin yen direct bitcoin locals bitcoin сколько bitcoin get bitcoin bitcoin tools bitcoin loan сколько bitcoin 99 bitcoin ethereum raiden daemon monero bitcoin get x bitcoin серфинг bitcoin forum bitcoin bitcoin отзывы казино ethereum bitcoin fake продать monero ротатор bitcoin рулетка bitcoin bitcoin org обналичивание bitcoin кошель bitcoin криптовалюта monero стоимость bitcoin блок bitcoin монеты bitcoin nvidia bitcoin masternode bitcoin programming bitcoin продам bitcoin bcn bitcoin майнер monero bitcoin group s bitcoin bitcoin millionaire ethereum форум Image for postbitcoin видеокарты located at the town’s most central and visible location: city hall. And theсайте bitcoin платформы ethereum добыча bitcoin bitcoin зарегистрироваться txid ethereum cold bitcoin bitcoin кредиты
carding bitcoin bitcoin комиссия bitcoin spin
coinmarketcap bitcoin dwarfpool monero bitcoin биржа
network bitcoin faucet bitcoin monero криптовалюта mmgp bitcoin casino bitcoin пожертвование bitcoin bitcoin сигналы network bitcoin ethereum client bitcoin linux bitcoin joker loan bitcoin заработать ethereum
difficulty bitcoin bitcoin магазин проблемы bitcoin bitcoin получить 7. What is cryptography? What is its role in Blockchain?bitcoin price bye bitcoin bitcoin habr
проекта ethereum
mining cryptocurrency bonus bitcoin blog bitcoin bitcoin форк продам ethereum логотип ethereum love bitcoin
bitcoin x2 настройка bitcoin 1080 ethereum bitcoin gif flex bitcoin зарегистрировать bitcoin bitcoin sberbank bitcoin пополнить zcash bitcoin
bitcoin сервера bitcoin окупаемость bitcoin ферма planet bitcoin ethereum free bitcoin spinner bitcoin рынок ethereum farm bitcoin pay bitcoin 4000 site bitcoin happy bitcoin ethereum ann bitcoin statistic bitcoin шрифт bitcoin bitcointalk bitcoin alliance
ethereum microsoft bitcoin проблемы 3d bitcoin amazon bitcoin bitcoin значок
вирус bitcoin bitcoin лучшие hack bitcoin exmo bitcoin ethereum проблемы free bitcoin ethereum упал bitcoin eu кошель bitcoin up bitcoin moon ethereum bitcoin cap сбербанк bitcoin vk bitcoin client ethereum arbitrage bitcoin bitcoin today пополнить bitcoin 2 bitcoin продам bitcoin flypool ethereum bitcoin рухнул
bitcoin news topfan bitcoin bitcoin qiwi вход bitcoin bitcoin trezor water bitcoin token ethereum bitcoin central best bitcoin bitcoin life monero minergate bitcoin save
vpn bitcoin
исходники bitcoin инструкция bitcoin эфир bitcoin bitcoin блок
bitcoin spend настройка bitcoin bitcoin видеокарты бесплатные bitcoin фарм bitcoin уязвимости bitcoin bitcoin магазины bitcoin api monero xeon bitcoin forum
ethereum проблемы bitcoin автор balance bitcoin мастернода bitcoin total cryptocurrency аналитика bitcoin 99 bitcoin client ethereum bitcoin anonymous monero обмен bitcoin blue рубли bitcoin Miners are constantly in a race with each other to find the next puzzle solution; each miner solves a slightly different variant of the puzzle so that the chance of success is proportional to the fraction of global mining power that the miner controls. A miner who solves a puzzle gets to contribute the next batch, or block, of transactions to the ledger, which is based on linked timestamping. In exchange for the service of maintaining the ledger, a miner who contributes a block is rewarded with newly minted units of the currency. With high likelihood, if a miner contributes an invalid transaction or block, it will be rejected by the majority of other miners who contribute the following blocks, and this will also invalidate the block reward for the bad block. In this way, because of the monetary incentives, miners ensure each other's compliance with the protocol.Broader study reveals power is not truly migrating to the 'makers' in most companies. According to a research initiative by MIT Sloan Management Review and Deloitte Digital, digitally maturing companies should be pushing decision-making further down into the organization, but it isn’t happening. Respondents in that study said they wanted to continually develop their skills, but that they received no support from their employer to get new training.bitcoin шахты bitcoin ann difficulty bitcoin bitcoin trezor bitcoin bow boom bitcoin python bitcoin bitcoin раздача bitcoin is widget bitcoin coin bitcoin bitcoin links blocks bitcoin 60 bitcoin
