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.
bitcoin команды The main advantage of this is that you do not need to share the mining rewards with anyone else, meaning that you can make more money! Unlike pool mining (which I will explain below), you don’t need to pay any fees.ethereum serpent продать monero auto bitcoin bitcoin развод пример bitcoin blog bitcoin bitcoin сервер удвоитель bitcoin analysis bitcoin monero пул дешевеет bitcoin bitcoin reddit bitcoin spinner bitcoin maps bitcoin zebra ethereum pools bitcoin datadir bitcoin waves remix ethereum bitcoin purse 999 bitcoin таблица bitcoin
ethereum free
смесители bitcoin ethereum chaindata bitcoin сатоши bitcoin get login bitcoin bitcoin birds
bitcoin цены monero wmz bitcoin trade cryptocurrency
foto bitcoin bitcoin poloniex plus500 bitcoin
ethereum swarm и bitcoin bitcoin virus ninjatrader bitcoin bitcoin hash Bitcoin vs. Ripple Exampleанимация bitcoin bitcoin python bitcoin map check bitcoin bitcoin registration bitcointalk bitcoin bitcoin кошелек bitcoin motherboard криптовалют ethereum video bitcoin bitcoin account cryptocurrency top gift bitcoin bitcoin hardware ethereum pow bitcoin explorer ethereum перевод bitcoin people bitcoin avalon
bitcoin исходники buy ethereum bitcoin symbol ethereum прогнозы ethereum pool bitcoin машины bitcoin ruble ethereum telegram siiz bitcoin
bitcoin конец
ethereum contracts bitcoin магазин ethereum биржа
ethereum coin bitcoin alert сети bitcoin обмен tether ledger bitcoin cap bitcoin bitcoin tx bitcoin рубль bitcoin котировки planet bitcoin платформ ethereum bitcoin развод
sec bitcoin monero пулы bitcoin rpg эмиссия ethereum создатель bitcoin bitcoin etherium sgminer monero blitz bitcoin wmz bitcoin wallets cryptocurrency автомат bitcoin bitcoin спекуляция конвертер ethereum cryptocurrency tech ethereum russia polkadot store логотип bitcoin bitcoin займ вход bitcoin forbot bitcoin bitcoin google bitcoin golden mixer bitcoin bitcoin блокчейн bitcoin отследить ethereum eth котировки bitcoin bitcoin database продам ethereum
ферма bitcoin фото ethereum ethereum рост bitcoin cryptocurrency tether bitcointalk cryptonight monero
asics bitcoin инвестирование bitcoin ⚙️майнеры monero верификация tether generation bitcoin деньги bitcoin bitcoin legal auction bitcoin китай bitcoin bitcoin таблица bitcoin 100 email bitcoin bitcoin kz
dao ethereum
bitcoin онлайн block bitcoin пицца bitcoin
coinmarketcap bitcoin депозит bitcoin xpub bitcoin joker bitcoin bitcoin миллионеры вклады bitcoin flypool ethereum
bitcoin gif bitcoin mmgp приложение bitcoin
bitcoin multiplier bitcoin pattern хабрахабр bitcoin рубли bitcoin
пример bitcoin bistler bitcoin bank bitcoin wm bitcoin tether валюта разделение ethereum lazy bitcoin bitcoin капитализация all cryptocurrency game bitcoin
casper ethereum хешрейт ethereum statistics bitcoin
monaco cryptocurrency bcc bitcoin ethereum erc20 bitcoin торговля bitcoin деньги pow bitcoin
cryptocurrency trading bitcoin buying konverter bitcoin dwarfpool monero ethereum info bitcoin phoenix bitcoin mail bitcoin компьютер ethereum акции forum ethereum cryptocurrency bitcoin bitcoin eu nicehash bitcoin mindgate bitcoin покупка ethereum capitalization bitcoin bitcoin чат калькулятор ethereum bitcoin generate gambling bitcoin unconfirmed monero описание ethereum получение bitcoin view bitcoin bitcoin advcash
bitcoin king buy tether bitcoin logo виталий ethereum moto bitcoin express bitcoin зарабатывать bitcoin tera bitcoin abi ethereum
bitcoin bitrix bitcoin buying topfan bitcoin bitcoin novosti кошель bitcoin bitcoin видеокарты clicks bitcoin bitcoin вывести bitcoin видеокарты математика bitcoin bitfenix bitcoin bitrix bitcoin bitcoin 50 вложения bitcoin nanopool monero пул monero 1000 bitcoin bitcoin стратегия x bitcoin alpha bitcoin bitcoin комбайн
panda bitcoin 1 ethereum bitcoin автосерфинг bitcoin agario lite bitcoin tp tether bitcoin qiwi 100 bitcoin wallpaper bitcoin
серфинг bitcoin cryptocurrency exchanges sec bitcoin bitcoin india monero майнер dark bitcoin bitcoin status tether gps bitcoin описание boxbit bitcoin node bitcoin bitcoin genesis
mikrotik bitcoin ethereum coingecko ethereum org
bitcoin сервера apk tether daemon bitcoin bitcoin doge lavkalavka bitcoin форекс bitcoin bitcoin usd bitcoin puzzle blogspot bitcoin
xapo bitcoin bitcoin mmm bitcoin x2 bitcoin перспективы blockchain bitcoin адрес bitcoin goldmine bitcoin 2016 bitcoin exchange cryptocurrency bitcoin bitrix ethereum mine monero продать ethereum алгоритм bitcoin dogecoin wild bitcoin multisig bitcoin bitcoin protocol
bitcoin 2 tether addon field bitcoin раздача bitcoin биткоин bitcoin ethereum coin заработать monero видеокарты ethereum bitcoin payeer
форумы bitcoin майнить monero
tether wifi alpha bitcoin bitcoin easy новости monero bitcoin отзывы ethereum падение tether валюта supernova ethereum bitcoin уполовинивание Is it worth your time to mine for cryptocoins?bitcoin кошелька bitcoin видеокарты
laundering bitcoin миллионер bitcoin tor bitcoin bitcoin исходники bitcoin services bitcoin etf ротатор bitcoin ethereum продать магазины bitcoin bitcoin crush bitcoin *****u
создать bitcoin
block bitcoin bitcoin отследить bitcoin de tether 2 обновление ethereum bitcoin 99 bitcoin ios bitcoin комиссия bitcoin advcash
That it exhibits Wyckoff Market Cycles. сети ethereum
loans bitcoin bitcoin bloomberg проекта ethereum bitcoin комментарии neo cryptocurrency ethereum заработок ферма bitcoin zcash bitcoin bitcoin аналоги bitcoin png bitcoin шрифт bitcoin maps monero simplewallet monero btc lamborghini bitcoin bitcoin nvidia bitcoin elena
reddit ethereum bitcoin nodes bitcoin транзакция cryptocurrency это kong bitcoin робот bitcoin up bitcoin bitcoin форекс ethereum график bitcoin nachrichten ethereum swarm monero майнить chaindata ethereum бонусы bitcoin bitcoin 20
bitcoin зарегистрироваться bitcoin лохотрон
bitcoin зарегистрироваться сбербанк bitcoin bitcoin пузырь ethereum форум криптовалюта monero bitcoin развитие
monero pro форк bitcoin
ltd bitcoin bitcoin usd bitcoin virus matrix bitcoin ethereum contracts
monero usd ethereum swarm ethereum статистика проект ethereum Easy to use. It’s just like any other software or a wallet that you use for your day-to-day transactions.mining monero динамика ethereum putin bitcoin 60 bitcoin seed bitcoin wallets cryptocurrency bitcoin торговля теханализ bitcoin
bitcoin торрент стоимость monero cryptocurrency tech ethereum логотип bitcoin trading monero hardware bitcoin json bitcoin приват24 котировки ethereum приложения bitcoin сложность monero bitcoin мерчант 16 bitcoin терминалы bitcoin To lower the costs, bitcoin miners have set up in places like Iceland where geothermal energy is cheap and cooling Arctic air is free. Bitcoin miners are known to use hydroelectric power in Tibet, Quebec, Washington (state), and Austria to reduce electricity costs. Miners are attracted to suppliers such as Hydro Quebec that have energy surpluses. According to a University of Cambridge study, much of bitcoin mining is done in China, where electricity is subsidized by the government.исходники bitcoin bitcoin weekly
bitcoin технология bitcoin galaxy it bitcoin flypool ethereum monero xmr индекс bitcoin ethereum кошелька bitcoin trinity Secondly, supply may also be impacted by the number of bitcoins the system allows to exist. This number is capped at 21 million, where once this number is reached, mining activities will no longer create new bitcoins. For example. the supply of bitcoin reached 18.1 million in December 2019, representing 86.2% of the supply of bitcoin that will ultimately be made available. Once 21 million bitcoins are in circulation, prices depend on whether it is considered practical (readily usable in transactions), legal, and in demand, which is determined by the popularity of other cryptocurrencies. The artificial inflation mechanism of the halving of block rewards will no longer have an impact on the price of the cryptocurrency. However, at the current rate of adjustment of block rewards, the last bitcoin is not set to be mined until the year 2140 or so.bitcoin update monero fr
bitcoin capital monero xmr cryptocurrency wallets краны monero bitcoin key ethereum homestead bitcoin hype ethereum монета fpga bitcoin
Whether you buy into ETH for the long term or the short term is entirely up to you and what your investment goals are. You can make money with either strategy. The best thing you can do is to always perform thorough research before you make an investment. It is wise to speak to a financial advisor or a professional that can give you some sound advice concerning your finances.This is the shorthand for 'the right to freely acquire Bitcoin.' No amount of decentralization in Bitcoin’s architecture itself can guarantee this. As many Bitcoiners will point out, free access to the asset requires a vibrant and competitive industry of fiat onramps. The existence of quasi monopolists attempting to build regulatory moats in order to raise barriers to entry threatens this. If acquisition of the asset can only occur in a couple large venues, they are not only susceptible to state action, but also liable to collusively deplatform individuals at will. Imagine what happens to the Venezuelan equivalent of Coinbase during a currency crisis: the government trivially shuts it down to preserve its monetary monopoly.bitcoin nachrichten Bitcoin does this using the blockchain. Bitcoin’s creator invented the blockchain technology!bitcoin mine bitcoin windows bitcoin fork bitcoin io bitcoin сбербанк Most computers are capable of mining Bitcoin but aren’t efficient enough to profit (earn a reward more than the cost of the electricity required to attain it.) This is why areas with the cheapest electricity costs have the highest concentration of mining power. casascius bitcoin фото bitcoin bitcoin окупаемость bitcoin explorer network connectivity is solvable by solutions to #1• It is a digital bearer asset similar to a commodity.ethereum pools Bitcoin Production Factsantminer bitcoin bitcoin оплатить bitcoin сигналы usa bitcoin проекта ethereum адрес bitcoin total cryptocurrency ethereum обмен bitcoin комиссия java bitcoin ethereum complexity полевые bitcoin обвал ethereum bitcoin инструкция bitcoin legal ethereum node bitcoin кошелька bitcoin rub сша bitcoin bitcoin conf best bitcoin
bitcoin markets bitcoin rpg bitcoin аккаунт cryptocurrency reddit
bitcoin tor bitcoin de bitcoin center
