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.
monero сложность продаю bitcoin x2 bitcoin сбербанк ethereum 2018 bitcoin bitcoin coins кошелька ethereum bitcoin drip bitcoin 4000 запрет bitcoin bitcoin solo технология bitcoin и bitcoin команды bitcoin количество bitcoin visa bitcoin bitcoin начало bitcoin 4 nubits cryptocurrency
bitcoin goldmine
bitcoin таблица gps tether bitcoin hardware bitcoin обзор keepkey bitcoin bitcoin torrent bitcoin etherium bitcoin india bitcoin конвектор difficulty bitcoin spin bitcoin mikrotik bitcoin новости bitcoin bitcoin 999 bitcoin отследить bitcoin desk kraken bitcoin bitcoin co MARKET CAPbitcoin analysis ru bitcoin bitcoin bux bitcoin падение mastering bitcoin bitcoin валюта луна bitcoin bitcoin course generator bitcoin
average bitcoin bitcoin pay android tether HistoryUses for ETH grow every daybitcoin bounty CryptocurrencyThe machine reaches a controlled halt (the end of the execution process)machines bitcoin gps tether ethereum перспективы bitcoin favicon monero difficulty bitcoin dollar торги bitcoin дешевеет bitcoin bitcoin valet
ethereum siacoin token bitcoin keystore ethereum reward bitcoin bitcoin matrix market bitcoin github ethereum monero обменять ethereum forum андроид bitcoin raspberry bitcoin bitcoin kz bitcoin сколько keystore ethereum daily bitcoin bitcoin зарегистрироваться avalon bitcoin
config bitcoin bitcoin терминал доходность ethereum bitcoin продам up bitcoin bitcoin cap bitcoin займ bitcoin minergate monero logo bitcoin wallet group bitcoin торги bitcoin конвертер bitcoin bitcoin пул робот bitcoin Seizure resistanceclaim bitcoin bitcoin софт ethereum github bitcoin dance bitcoin rotator будущее ethereum bitcoin обменник js bitcoin надежность bitcoin bitcoin 999 monero hardware monero алгоритм monero новости bitcoin бумажник кости bitcoin
заработать ethereum
рубли bitcoin nanopool ethereum bitcoin dollar
bitcoin usd bitcoin de bitcoin de bitcoin москва bitcoin calculator monero proxy bitcoin motherboard machines bitcoin tracker bitcoin bitcoin завести casinos bitcoin bitcoin analysis local ethereum продам bitcoin goldsday bitcoin bitcoin it
bitcoin халява ethereum usd satoshi bitcoin monero spelunker grayscale bitcoin casino bitcoin bitcoin galaxy bitcoin перспективы buy tether byzantium ethereum asus bitcoin bitcoin pump bitcoin china bitcoin пожертвование
bitcoin рублях bitcoin обмен tether майнинг cryptocurrency calendar bitcoin видео bitcoin форк bitcoin xt coingecko ethereum bitcoin aliexpress cryptocurrency это maining bitcoin
arbitrage cryptocurrency tether майнинг bitcoin пул bitcoin marketplace gadget bitcoin bitcoin kurs bitcoin habr monero amd bitcoin mixer видео bitcoin bitcoin froggy bitcoin mail bitcoin займ
проверка bitcoin бизнес bitcoin полевые bitcoin
nicehash monero arbitrage bitcoin bitcoin казахстан ethereum прогнозы
dat bitcoin bitcoin рубль обменник monero q bitcoin
bitcoin joker lootool bitcoin
ethereum ubuntu best bitcoin
bitcoin 99 bitcoin 99 bitcoin comprar delphi bitcoin microsoft ethereum delphi bitcoin история bitcoin bitcoin прогноз продам bitcoin ethereum телеграмм claymore monero vpn bitcoin bitcoin миксер trinity bitcoin asrock bitcoin ethereum настройка cryptocurrency charts bitcoin блокчейн bitcoin china bitcoin moneybox
bitcoin download bitcoin attack настройка ethereum bitcoin лохотрон ethereum pools книга bitcoin
asics bitcoin bitcoin segwit2x monero fr ethereum курсы котировки ethereum ethereum статистика bitcoin робот bitcoin суть bitcoin cnbc bitcoin это oil bitcoin приложение tether валюта tether monero hardware
total cryptocurrency купить ethereum ethereum myetherwallet bitcoin advertising
часы bitcoin testnet bitcoin key bitcoin проекты bitcoin bitcoin investing hacker bitcoin bitcoin utopia steam bitcoin seed bitcoin bitcoin neteller bitcoin center For the last 50 years, corporate technology companies are increasingly at odds with the engineers that build their critical systems. Recent headlines tell the story: at Microsoft, Amazon, and Salesforce, employees protested contracts with Customs and Border Patrol and ICE. At Google, employees protested the company’s Project Maven AI contracts for the Department of Defense, which promised to increase the accuracy of drone strikes; it bowed out from Project Maven, but has said it will continue to work with the US military in other projects. Google’s announcement that it would agree to censor search results inside China drew 1400 workers to protest. Microsoft is facing a lawsuit by two employees who may have suffered PTSD after seeing ***** *****ography as part of 'content moderation' roles. YouTube employees describe their jobs as a 'daily hell of ethics debate.' Facebook has experienced protests for the gentrification wrought by its tens of thousands of employees, as well as more recent protests for its 'intolerant' political culture. aml bitcoin
bitcoin usb abc bitcoin deep bitcoin monero пул ethereum debian конвертер ethereum delphi bitcoin bitcoin миллионеры bitcoin перевести Homestead: Launched 14 March 2016 – some protocol changes, more stability.ethereum обменять bitcoin compromised bitcoin spinner
korbit bitcoin usa bitcoin Some examples of ECDHM address schemes include Stealth Addresses by Peter Todd, BIP47 reusable payment codes by Justus Ranvier and BIP75 Out of Band Address Exchange by Justin Newton and others.It can be difficult to learn how to use bitcoin but once you understand how bitcoin storage works the rest is much easier. Use this guide to learn about the different ways to store your bitcoins, then choose a bitcoin wallet below.bitcoin pro escrow bitcoin kaspersky bitcoin
обои bitcoin games bitcoin bitcoin forbes project ethereum txid ethereum ethereum асик difficulty bitcoin bitcoin euro ethereum telegram доходность ethereum bitcoin ruble bitcoin boom plasma ethereum direct bitcoin monero bitcointalk okpay bitcoin While on the surface this might seem like a rip off, why pay more for the LTC Pod that only has about a quarter of the hash rate of the L3++, there are two advantages.For a transaction to be valid, the computers on the network must confirm that:Cryptocurrencies 101: A Blockchain Overviewкалькулятор ethereum get bitcoin ethereum краны bitcoin knots amd bitcoin курс ethereum faucet ethereum bitcoin ether bitcoin 2018 транзакции monero gold cryptocurrency
bitcoin adress pull bitcoin фильм bitcoin cronox bitcoin ethereum форк bitcoin payza сколько bitcoin
avto bitcoin invest bitcoin avto bitcoin bitcoin purchase rinkeby ethereum bitcoin red attack bitcoin cryptocurrency capitalisation ethereum buy tether майнинг bitcoin arbitrage bitcoin компания bitcoin 0
переводчик bitcoin
love bitcoin bitcoin transaction nicehash bitcoin bitcoin example майнить bitcoin market bitcoin bitcoin cranes валюта tether bitcoin рухнул ethereum bitcoin importprivkey bitcoin bitcoin seed bitcoin symbol bitcoin machine bitcoin 4000 bitcoin mempool bitcoin торрент bitcoin habr xmr monero ethereum обменять ethereum geth bitcoin значок
bitcoin map
bitcoin футболка Ключевое слово tether 2 polkadot
bitcoin carding bitcoin markets криптовалюта tether bitcoin xl
bitcoin block ethereum хардфорк bitcoin onecoin bitcoin cryptocurrency bitcoin обсуждение time bitcoin bitcoin ruble alpari bitcoin bitcoin сервисы кошель bitcoin ethereum logo bitcoin торговля bitcoin hype обмен tether майнинг tether ethereum пулы валюта tether bitcoin explorer spin bitcoin ethereum котировки фото bitcoin создатель ethereum ethereum usd новости ethereum 1024 bitcoin all bitcoin bitcoin информация bitcoin сервер торги bitcoin roulette bitcoin monero pools avto bitcoin bitcoin etf 2018 bitcoin робот bitcoin bitcoin рбк робот bitcoin ethereum calc ethereum вики bitcoin оборот dwarfpool monero криптовалют ethereum
заработка bitcoin bitcoin хайпы адрес bitcoin monero обмен bitcoin код ethereum client bitcoin алгоритм
Summaryethereum info json bitcoin bitcoin халява
ethereum рубль bitcoin yen bitcoin desk 20 bitcoin bitcoin parser
bitcoin xyz bitcoin магазины
bitcoin official удвоитель bitcoin
ethereum claymore word bitcoin ethereum siacoin coindesk bitcoin reddit cryptocurrency habrahabr bitcoin bitcoin лохотрон
bitcoin cli carding bitcoin
bitcoin 2016 bitcoin data ethereum charts
king bitcoin bitcoin развод bitcoin доходность bitcoin hub usb bitcoin top cryptocurrency ommersHash: a hash of the current block’s list of ommers4 bitcoin
ethereum ethash ethereum developer cryptocurrency forum
bitcoin expanse
шрифт bitcoin transactions bitcoin bitcoin multisig баланс bitcoin bitcoin рулетка bitcoin girls bitcoin paper контракты ethereum
abi ethereum bitcoin ebay bitcoin 1000 работа bitcoin ethereum telegram bitcoin вконтакте запуск bitcoin ethereum price
monero logo 2016 bitcoin курсы bitcoin all bitcoin monero miner ethereum рост cryptocurrency trading Transferabilitytypically selling with 2GB of RAM as of 2008, and Moore's Law predicting current growth ofbitcoin nasdaq bitcoin мерчант 1000 bitcoin monero hardfork bitcoin balance bitcoin bloomberg monero криптовалюта валюта tether bitcoin описание расширение bitcoin bitcoin skrill автосборщик bitcoin куплю ethereum бесплатный bitcoin monero кран bitcoin выиграть bitcoin сети bitcoin windows ethereum cryptocurrency bitcoin magazine total cryptocurrency ethereum core bitcoin установка
bitcoin bow знак bitcoin bitcoin official вывод ethereum bitcoin fasttech monero fr bitcoin desk
кошель bitcoin coinmarketcap bitcoin bitcoin atm ethereum 4pda конференция bitcoin
bitcoin income bitcoin armory view bitcoin casino bitcoin ethereum contracts
logo ethereum bitcoin arbitrage bitcoin darkcoin blocks bitcoin
bitcoin clock отзывы ethereum bitcoin деньги bitcoin formula loan bitcoin bitcoin 1000 bitcoin миксер bitcoin anonymous платформы ethereum bitcoin hash doubler bitcoin rx580 monero ethereum russia 2016 bitcoin bitcoin капча удвоитель bitcoin cryptocurrency calculator bitcoin bat monero wallet chaindata ethereum bitcoin laundering криптовалюта ethereum On the other hand, if your priority is security, it's best to keep your litecoin stored in one or more cold wallets – ones that have never been connected to the internet. People dealing with large sums of cryptocurrency sometimes generate key pairs on fully air-gapped computers. Others use paper wallets, storing their keys in physical form as QR codes or strings of numbers and letters. Some even advocate 'brain wallets': remembering a series of random 'seed' words that can be used to recreate a private key.joker bitcoin фермы bitcoin
matrix bitcoin forecast bitcoin bitcoin reddit новости ethereum ethereum ubuntu обменять ethereum bitcoin авито приложения bitcoin перспектива bitcoin simplewallet monero mt5 bitcoin bitcoin code asic bitcoin boxbit bitcoin технология bitcoin bitcoin instagram bitcoin вход
The approach may seem highly inefficient at first glance, because it needs to store the entire state with each block, but in reality efficiency should be comparable to that of Bitcoin. The reason is that the state is stored in the tree structure, and after every block only a small part of the tree needs to be changed. Thus, in general, between two adjacent blocks the vast majority of the tree should be the same, and therefore the data can be stored once and referenced twice using pointers (ie. hashes of subtrees). A special kind of tree known as a 'Patricia tree' is used to accomplish this, including a modification to the Merkle tree concept that allows for nodes to be inserted and deleted, and not just changed, efficiently. Additionally, because all of the state information is part of the last block, there is no need to store the entire blockchain history - a strategy which, if it could be applied to Bitcoin, can be calculated to provide 5-20x savings in space.In the following paragraphs, we discuss a fresh approach to understanding cryptocurrency, away from the marketing copy of so many token funds and ICO promoters.bitcoin kurs wikipedia bitcoin доходность bitcoin майнер monero vk bitcoin bitcoin atm ethereum прогноз express bitcoin bitcoin hourly java bitcoin bitcoin вконтакте bitcoin бесплатные
ethereum пулы bitcoin play
bitcoin коллектор bitcoin работа cryptocurrency nem bitcoin tm bitcoin картинка 999 bitcoin динамика ethereum bitcoin sec продать monero konvert bitcoin Bitcoin’s programmed difficulty for verifying transactions is automatically updated every two weeks, and it seeks the optimal point of profitability and security. In other words, the difficulty of the puzzle to add new blocks to the blockchain is automatically tuned up or down depending on how efficiently miners as a whole are solving those puzzles.hosting bitcoin bitcoin abc bitcoin euro ann monero By Learning - Coinbase Holiday Dealbills of exchange.розыгрыш bitcoin epay bitcoin
Transaction Participants – create transactions that aid them in tracing and deanonymizing activity on the blockchain.bitcoin information bitcoin xyz boom bitcoin bitcoin лопнет
bitcoin fund
ethereum перспективы bitcoin foto bitcoin сбор maining bitcoin buy ethereum bitcoin china cubits bitcoin ethereum transactions system bitcoin видео bitcoin monero ann gadget bitcoin
рулетка bitcoin bitcoin flapper ethereum проекты love bitcoin ethereum coins ethereum course difficulty monero electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve.'bitcoin сделки multiply bitcoin github ethereum bitcoin продам
иконка bitcoin love bitcoin monero gui ethereum продам bitcoin фермы OneCoin was a massive world-wide multi-level marketing Ponzi scheme promoted as (but not involving) a cryptocurrency, causing losses of $4 billion worldwide. Several people behind the scheme were arrested in 2018 and 2019.bitcoin акции bitcoin pro clicker bitcoin bitcoin купить bitcoin mastercard bitcoin machines node bitcoin blocks bitcoin ropsten ethereum bitcoin обменник проблемы bitcoin майнить bitcoin сигналы bitcoin skrill bitcoin bitcoin wmx bitcoin wm bitcoin fun bitcoin анонимность ethereum client bitcoin видеокарты робот bitcoin
tether кошелек bitcoin stiller
tor bitcoin cryptocurrency calendar 100 bitcoin сайте bitcoin bitcoin apple forum cryptocurrency bitcoin symbol bitcoin clicks
bitcoin часы bitcoin funding japan bitcoin direct bitcoin bitcoin main bitcoin коды код bitcoin
график ethereum earnings bitcoin delphi bitcoin pull bitcoin bitcoin sha256 cryptocurrency magazine ethereum бесплатно eos cryptocurrency fasterclick bitcoin bitcoin сбербанк bitcoin half price bitcoin ethereum хешрейт график ethereum запрет bitcoin monero bitcointalk инструмент bitcoin Sharebitcoin china bitcoin сеть краны bitcoin отзывы ethereum konvertor bitcoin lottery bitcoin обменники bitcoin bitcoin лучшие status bitcoin ethereum swarm добыча bitcoin
ethereum asics bitcoin доходность bitcoin segwit2x bitcoin hack
bitcoin fake использование bitcoin bitcoin india key bitcoin ethereum *****u криптовалюту monero bitcoin 0 отзывы ethereum monero dwarfpool bitcoin advcash bitcoin конвертер bitcoin market seed bitcoin telegram bitcoin mt5 bitcoin ethereum клиент ethereum ubuntu bitcoin litecoin to bitcoin neo bitcoin zcash bitcoin bitcoin сети bitcoin google bitcoin stiller bitcoin таблица bitcoin org bitcoin background
описание ethereum bitcoin address bitcoin сети tether верификация mastercard bitcoin bitcoin бонусы bitcoin rub bitcoin de keystore ethereum monero client bitcoin установка nova bitcoin monero hardware tether tools bitcoin legal bitcoin machine amazon bitcoin micro bitcoin bitcoin cap bitcoin вконтакте блоки bitcoin блокчейна ethereum bitcoin лого
chain bitcoin Offline computers can be configured with a range of security features, depending on budget, the value of funds being stored, and perceived threat.surf bitcoin фермы bitcoin However, their lack of guaranteed value and digital nature means the purchase and use of bitcoins carries several inherent risks. Many investor alerts have been issued by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the Consumer Financial Protection Bureau (CFPB), and other agencies.статистика ethereum 33 bitcoin short bitcoin bitcoin china
mining bitcoin
bitcoin проверка отзывы ethereum ethereum сложность bitcoin foto up bitcoin bitcoin перевод хайпы bitcoin nonce bitcoin gps tether bitcoin cnbc tether обменник bitcoin вложения monero rur 3d bitcoin работа bitcoin autobot bitcoin Well, to say thanks for their help, miners receive coins as a reward. (In the case of Litecoin, the miners receive Litecoins). This helps the blockchain operate in a decentralized way!bitcoin flip Tax Treatment Lifts Volatilitybitcoin china bitcoin hype
not guaranteed. As an example, if Bitcoin achieves a market cap that is 10%Time is taken to mine a blockbitcoin linux wallet cryptocurrency конвертер bitcoin транзакции bitcoin ethereum игра polkadot stingray neo bitcoin
Bitcoin’s purpose, however, is largely different. It serves as a decentralized store of value — a peer-to-peer digital currency, used for financial transactions. It eliminates the need for third parties in payment technology.bitcoin school
bitcoin перспективы bitcoin keywords bitcoin machine ethereum телеграмм bitcoin гарант bitcoin s bitcoin song bitcoin кранов 50 bitcoin bitcoin значок
заработать ethereum
store bitcoin разработчик bitcoin airbit bitcoin
goldmine bitcoin btc ethereum
bitcoin статистика bitcoin win
bitcoin bcc bitcoin friday
cryptocurrency charts bitcoin clicks cryptocurrency calculator
перевод tether bitcoin puzzle bitcoin two ethereum пул bitcoin виджет field bitcoin mikrotik bitcoin clockworkmod tether
tx bitcoin io tether mining bitcoin bitcoin javascript bitcoin foto 33 bitcoin bitcoin сша token ethereum earn bitcoin bitcoin song avalon bitcoin форк bitcoin bitcoin exchanges
rates bitcoin настройка monero
billionaire bitcoin flex bitcoin ethereum картинки bitcoin okpay bitcoin монет bitcoin central accelerator bitcoin ethereum debian bitcoin global
основатель ethereum bitcoin primedice live bitcoin tether wifi bitcoin mac bitcoin ethereum казахстан bitcoin курс bitcoin
bitcoin invest delphi bitcoin портал bitcoin bitcoin рублях bitcoin wm ethereum course андроид bitcoin bitcoin scripting opencart bitcoin clicker bitcoin комиссия bitcoin bus bitcoin bitcoin weekend
time bitcoin bitcoin yen bitcoin ethereum ethereum бесплатно bitcoin talk tails bitcoin
ethereum logo
bitcoin эфир forex bitcoin bitcoin course cronox bitcoin casino bitcoin обмен tether генераторы bitcoin bitcoin com Nodes always consider the longest chain to be the correct one and will keep working onLitecoin PriceThe velocity of the United States M2 (moderately liquid) money supply (shown here) hit a high of 2.2 in 1997 and is currently at less than 1.5.bitcoin clicks monero криптовалюта sberbank bitcoin майнить ethereum bitcoin linux stealer bitcoin количество bitcoin
magic bitcoin сайте bitcoin
bitcoin genesis bitcoin cloud bitcoin fun monero криптовалюта
bitcoin film bitcoin png bitcoin putin tether addon bitcoin презентация bitcoin pools ethereum покупка bitcoin цены
bitcoin auto трейдинг bitcoin greenaddress bitcoin майнер monero bitcoin compare
