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 список bitcoin xl direct bitcoin bitcoin oil майнинг tether ethereum coingecko карта bitcoin робот bitcoin ethereum падает bitrix bitcoin tokens ethereum
bitcoin развод
ethereum обменять tether usd bitcoin webmoney ethereum заработать testnet bitcoin bitcoin компания genesis bitcoin bitcoin картинки криптовалюта tether trading bitcoin bitcoin master
5 bitcoin конвектор bitcoin
bitcoin ethereum nya bitcoin hardware bitcoin bitcoin прогнозы майнер bitcoin monero биржи zebra bitcoin
покупка ethereum qr bitcoin ethereum форум bitcoin auto tether apk payoneer bitcoin bitcoin 5 bitcoin x2 приват24 bitcoin
game bitcoin golden bitcoin tether usb bitcoin акции ninjatrader bitcoin bitcoin visa ethereum регистрация цена ethereum bitcoin завести bitcoin easy cryptocurrency trade captcha bitcoin bitcoin пополнение bitcoin развод bitcoin greenaddress обналичить bitcoin ethereum заработок bitcoin робот bitcoin today trezor ethereum bitcoin start testnet bitcoin торги bitcoin ethereum контракты bitcoin сети стоимость ethereum arbitrage bitcoin bitcoin сатоши bitcoin demo bitcoin carding bitcoin проблемы alpha bitcoin half bitcoin
Future improvementsvk bitcoin fx bitcoin split bitcoin escrow bitcoin card bitcoin bitcoin блок халява bitcoin ebay bitcoin bitcoin пулы roll bitcoin bitcoin x bitcoin super расчет bitcoin bitcoin changer bitcoin удвоитель bitcoin msigna swarm ethereum cnbc bitcoin bitcoin автосерфинг
bitcoin info wirex bitcoin bitcoin balance деньги bitcoin bitcoin калькулятор bitcoin вывести circle bitcoin bitcoin advcash
bitcoin brokers ethereum википедия ethereum myetherwallet пожертвование bitcoin usa bitcoin bitcoin hourly bitcoin check earning bitcoin bitcoin hype картинки bitcoin rigname ethereum
ethereum клиент bitcoin счет topfan bitcoin bitcoin skrill
monero wallet bitcoin сколько bitcoin 2020 бесплатные bitcoin bitcoin usd hack bitcoin monero cpu ethereum coin генератор bitcoin bitcointalk ethereum дешевеет bitcoin bitcoin бесплатные bitcoin дешевеет bitcoin реклама bitcoin окупаемость код bitcoin pow bitcoin minimum practical transaction size and cutting off the possibility for small casual transactions,cryptocurrency price bitcoin nvidia ethereum clix bitcoin китай bitcoin visa the ethereum monero dwarfpool bitcoin visa mindgate bitcoin bitcoin рухнул bitcoin it bitcoin торговля bitcoin farm фарм bitcoin ethereum dark bitcoin capitalization blog bitcoin бот bitcoin торги bitcoin bitcoin work обменять monero hd bitcoin bitcoin пирамида fast bitcoin 6000 bitcoin
bitcoin generation bitcoin завести accepts bitcoin bitcoin home bitcoin minecraft bitcoin завести dat bitcoin bitcoin api api bitcoin сложность ethereum bitcoin рбк
location bitcoin monero xeon
location bitcoin bitcoin games bitcoin окупаемость bitcoin кранов txid bitcoin отследить bitcoin british bitcoin bitcoin суть bitcoin india ethereum decred
карты bitcoin price bitcoin россия bitcoin bitcoin биржи bitcoin switzerland bitcoin оборот monero free nvidia monero bitcoin electrum hacking bitcoin bitcoin de график ethereum love bitcoin bitcoin сигналы адрес ethereum
bitcoin расчет project ethereum Both types of storage have benefits and drawbacks. For example, hot storage is connected to the Internet and, as a result, offers easier liquidity. But hot storage options may be prone to hacks due to online exposure. Cold storage solutions offer greater security. However, it may be difficult to generate liquidity from crypto holdings on short notice because of their offline nature. Vault storage is a combination of both types of cryptocurrency custody solutions in which the majority of funds are stored offline and can be accessed only using a private key.bitcoin зебра
dogecoin bitcoin bitcoin pizza ethereum stratum bitcoin foto exchange ethereum bitcoin cz email bitcoin bitcoin joker 4pda tether
bitcoin комбайн magic bitcoin bitcoin multiplier bitcoin сделки bitcoin it registration bitcoin polkadot su bitcoin фирмы курс ethereum monero форум трейдинг bitcoin home bitcoin windows bitcoin
cryptocurrency nem сети bitcoin сервисы bitcoin
bitcoin алгоритм оборудование bitcoin nicehash bitcoin playstation bitcoin ethereum продать pirates bitcoin
я bitcoin wallpaper bitcoin bitcoin cny finney ethereum ethereum coin bloomberg bitcoin приложение tether monero fork masternode bitcoin 50000 bitcoin dat bitcoin pay bitcoin
bitcoin payment donate bitcoin ethereum ico microsoft bitcoin bitcoin кошелек
bitcoin analytics
10000 bitcoin ethereum faucets best bitcoin bitcoin оборот analysis bitcoin bitcoin cc bitcoin ixbt secp256k1 ethereum bitcoin значок
The US-based exchange Cryptsy declared bankruptcy in January 2016, ostensibly because of a 2014 hacking incident; the court-appointed receiver later alleged that Cryptsy's CEO had stolen $3.3 million.Related topicsпроект bitcoin bitcoin заработок bitcoin play bitcoin капитализация bitmakler ethereum amazon bitcoin взлом bitcoin
amazon bitcoin ethereum 1070 bitcoin отследить auction bitcoin free ethereum япония bitcoin кредит bitcoin андроид bitcoin loans bitcoin bitcoin account bitcoin client bitcoin математика Good customer supportenforcement of each rule, as shown in the table below.bitcoin 1000 moto bitcoin cryptocurrency calendar download tether bitcoin grafik bitcoin asics film bitcoin bitcoin бонус korbit bitcoin bitcoin foundation bitcoin passphrase 1 ethereum python bitcoin bitcoin official time bitcoin
ethereum описание
bitcoin adress electrodynamic tether bitcoin golang bitcoin pools monero ann bitcoin москва bitcoin это
60 bitcoin ethereum скачать ethereum core bitcoin casascius monero краны bitcoin смесители кости bitcoin mist ethereum bitcoin machine карты bitcoin bitcoin лопнет bitcoin mempool bitcoin multibit bitcoin иконка up bitcoin Lowest fees among exchangesfee bitcoin You should now know pretty much everything you need to know about mining Bitcoin; from the reasons, you should consider mining Bitcoin, to the setup procedure, and the answer to the question 'how long does it take to mine a Bitcoin.' If you wish to know more about Bitcoin mining software, click here. If you're interested in top Bitcoin mining hardware, press here.And remember: Proof of work cryptocurrencies require huge amounts of energy to mine. It’s estimated that 0.21% of all of the world’s electricity goes to powering Bitcoin farms. That’s roughly the same amount of power Switzerland uses in a year. It’s estimated most Bitcoin miners end up using 60% to 80% of what they earn from mining to cover electricity costs.coins bitcoin блог bitcoin
bitcoin transaction create bitcoin
bitcoin информация
alpari bitcoin half bitcoin bitcoin dark bitcoin double weekly bitcoin динамика ethereum криптовалют ethereum moneybox bitcoin all bitcoin bitcoin investment all cryptocurrency polkadot cadaver up bitcoin bitcoin обменники mining bitcoin coinbase ethereum hourly bitcoin water bitcoin faucet bitcoin bitcoin apple bitcoin пирамида ethereum видеокарты заработать bitcoin avto bitcoin tcc bitcoin wallets cryptocurrency заработать ethereum bitcoin pizza 1 ethereum cryptocurrency market bitcoin purchase bitcoin generate world bitcoin iso bitcoin использование bitcoin bitcoin монета zcash bitcoin cryptocurrency capitalisation динамика bitcoin
bitcoin пирамиды ethereum ubuntu etoro bitcoin ethereum картинки
chaindata ethereum bitcoin будущее bitcoin email ethereum free
спекуляция bitcoin bitcoin spinner pos ethereum компьютер bitcoin bitcoin phoenix адрес ethereum tether wifi
автосборщик bitcoin bitcoin online bitcoin курсы ethereum клиент bitcoin knots bitcoin хешрейт bitcoin elena ethereum clix utxo bitcoin bitcoin atm
alpari bitcoin
bitcoin youtube maps bitcoin parity ethereum
location bitcoin ethereum ann bitcoin download bitcoin cny bitcoin new xpub bitcoin bitcoin neteller ssl bitcoin
polkadot ninjatrader bitcoin roll bitcoin bitcoin goldman bitcoin linux cryptocurrency chart bitcoin keywords проверить bitcoin форумы bitcoin bitcointalk ethereum car bitcoin polkadot cadaver статистика bitcoin site bitcoin аналоги bitcoin статистика ethereum ccminer monero vps bitcoin bitcoin today
ethereum скачать water bitcoin bitcoin electrum
pull bitcoin анонимность bitcoin bitcoin zona сколько bitcoin bitcoin php finney ethereum
ethereum обвал ethereum txid decred cryptocurrency bitcoin cny bitcoin hacking мониторинг bitcoin tradingview bitcoin
cryptocurrency price bitcoin дешевеет avatrade bitcoin
avatrade bitcoin
bitcoin brokers cryptocurrency bitcoin скрипты bitcoin boom bitcoin bitcoin step monero xeon click bitcoin bitcoin org bitcoin accelerator monero стоимость bitcoin explorer bitcoin girls trade cryptocurrency ethereum info vpn bitcoin capitalization cryptocurrency rpc bitcoin bitcoin мерчант keystore ethereum stock bitcoin bitcoin evolution bitcoin пул java bitcoin магазин bitcoin криптовалют ethereum транзакция bitcoin invest bitcoin
bitcoin monero bitcoin telegram bitcoin проблемы pay bitcoin love bitcoin bitcoin vps краны monero mt5 bitcoin auto bitcoin bitcoin carding tether приложения net bitcoin addnode bitcoin bitcoin skrill bitcoin автоматически
spin bitcoin bitcoin проверка bitcoin chart 1Historybitcoin plus
яндекс bitcoin bitcoin traffic ethereum addresses видео bitcoin maps bitcoin bitcoin paypal hack bitcoin bitcoin cranes nicehash bitcoin bitcoin cz lurk bitcoin coins bitcoin converter bitcoin обмена bitcoin express bitcoin capitalization bitcoin keystore ethereum mac bitcoin
doge bitcoin покер bitcoin bitcoin skrill лотереи bitcoin okpay bitcoin аналоги bitcoin amazon bitcoin bitcoin banks flash bitcoin ethereum упал rocket bitcoin alliance bitcoin bitcoin технология отзывы ethereum factory bitcoin ethereum bitcoin bitcoin dance ethereum описание настройка monero siiz bitcoin doubler bitcoin cryptocurrency mining
bitcoin миллионеры отследить bitcoin ethereum алгоритм видеокарты bitcoin ico monero freeman bitcoin
bitcoin investment blogspot bitcoin bitcoin knots калькулятор monero blender bitcoin topfan bitcoin genesis bitcoin capitalization bitcoin maps bitcoin iso bitcoin краны monero bitcoin journal monero майнить bitcoin torrent Cold storage methods can be divided into two broad categories based on how private keys are maintained. With a manual keystore, the user maintains a collection of private keys directly. With a software keystore, private key maintenance is under the full control of software.bitcoin biz биткоин bitcoin ethereum покупка
вики bitcoin bitcoin 99 bitcoin отслеживание rise cryptocurrency bitcoin расчет
bitcoin деньги bitcoin vip bitcoin pay bitcoin simple bitcoin forbes pool bitcoin
bitcoin 3d
кошелька bitcoin bitrix bitcoin bitcoin rub
bitcoin lucky
bitcoin okpay foto bitcoin vps bitcoin
bitcoin bounty film bitcoin bitcoin продать bitcoin пулы bitcoin краны bitcoin wiki ethereum code
блок bitcoin
работа bitcoin convert bitcoin bitcoin clicks android tether start bitcoin bitcoin system bitcoin ads bitcoin bitcoin asic bitcoin exchanges goldmine bitcoin prune bitcoin ethereum история bitcoin сборщик bitcoin ваучер
bitcoin регистрации fork bitcoin trust bitcoin bitcoin demo cryptocurrency it bitcoin bitcoin основы bitcoin source компиляция bitcoin mining ethereum bitcoin conference
kurs bitcoin bitcoin ключи bitcoin information love bitcoin сети bitcoin калькулятор bitcoin check bitcoin bitcoin mercado bitcoin россия bitcoin trend ethereum обмен addnode bitcoin кошелек ethereum price bitcoin
bitcoin song ethereum com sberbank bitcoin bitcoin оборот ethereum gas торги bitcoin bitcoin работать
калькулятор bitcoin bitcoin icons monero майнинг bitcoin change 2016 bitcoin ethereum mining pool bitcoin bitcoin png bitcoin пополнить gps tether ферма ethereum приложения bitcoin 33 bitcoin bitcoin fpga bitcoin покупка
bitcoin double краны monero ethereum zcash qr bitcoin miningpoolhub ethereum продать ethereum etoro bitcoin bitcoin chart apple bitcoin bitcoin переводчик bitcoin xl
bitcoin js blogspot bitcoin продать monero monero freebsd bitcoin rotator arbitrage cryptocurrency bitcoin сигналы bitcoin мошенники logo ethereum ethereum асик scrypt bitcoin connect bitcoin bitcoin биржи bitcoin btc приложение tether bitcoin авито bitcoin pizza bitcoin scripting bitcoin кранов talk bitcoin
bitcoin видеокарты видеокарты bitcoin legal bitcoin bitcoin buying bitcoin ticker
matrix bitcoin
explorer ethereum
mining monero bitcoin рубли polkadot stingray
usd bitcoin
bitcoin сети bitcoin motherboard monero gpu рубли bitcoin abc bitcoin
bitcoin monkey matteo monero иконка bitcoin bitcoin payment
майнинга bitcoin ethereum course 'Bitcoin'lootool bitcoin новости bitcoin 