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Not a single code: what affects the operation of blockchain systems

A blockchain network is a structure that consists of many parts that constantly interact with each other. Understanding the work of this complex mechanism is impossible without a comprehensive analysis of its components, their dynamics and structure. In this article we will talk about the different types and levels of control of blockchain systems, as well as their main components.

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Management levels


Most of the blockchain-based decentralized applications have several interconnected management levels:

  1. Internet protocols — for example, TCP / IP;
  2. Blockchain - for example, Ethereum;
  3. DApp framework - for example, DAOstack;
  4. DApp (decentralized application) - for example, Sapien.

Each level has its own structure, rules and algorithms that can influence or be influenced from other levels. As a rule, their design and implementation is carried out by several different teams or communities operating independently of each other.
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Despite the fact that it is the “upper” levels that dictate the basic rules, the “lower” levels can also implement their own management structure.

For example, the DAOstack platform is built on the Ethereum blockchain, therefore it obeys the rules of this network. However, DAOstack also has its own protocols governing user interaction with the platform, as well as the creation of child applications. In turn, the Sapien application will also have its own control protocols.

Thus, any blockchain application operates according to its own rules, but it is also indirectly affected by the “laws” of the platform on which it is built.

Types of management


The management of each level can be divided into two types:


Depending on the specific situation, these mechanisms can be both endogenous and exogenous. Endogenous rules are created by the community itself, while exogenous rules are imposed from the outside.

Infrastructure management includes hard-coded rules embedded directly into the platform.

For example, in the case of Ethereum, endogenous rules will include a consensus algorithm and a blockchain protocol. If you look at the system from the DApp point of view, then decision-making procedures and technical rules governing smart contracts will be considered endogenous rules, whereas Ethereum will be considered exogenous.

When these rules are endogenous to a blockchain network, management in the infrastructure is called “networked”. In this case, they are encoded directly on the network, which guarantees its security and decentralization.

Sometimes the rules of management provide for the possibility of amendments and changes. For example, Tezos blockchain is self-adjusting - people can change not only the protocol itself, but also the rules for changing it.

If we talk about managing outside the infrastructure , this includes all the forces that are outside the platform, but that affect its development and activities. However, they do not operate at a technical, but rather at a social and institutional level.

At the same time, endogenous controls will include ethical norms, rules of conduct, and other social constructs elaborated and approved by the community. Failure to comply with these rules can lead to various sanctions or even complete exclusion from the community.

In most blockchain communities, they are presented in the form of informal mechanisms that are used to make decisions on protocol changes, including hard forks.

Exogenous rules are not chosen by the community and are not regulated, however, they can have a significant impact on its activities. Thus, the laws of various states may directly contradict the rules of the blockchain.

A striking example is the recent scandal around child pornography found in the Bitcoin blockchain. Hosting such content is illegal, but the endogenous rules of Bitcoin do not allow changing the blockchain.

A similar problem exists in countries where the “right to oblivion” exists, allowing people to demand that any information about them be removed from the Internet.

Thus, the government can impose exogenous rules and regulations on the community to ensure the public interest.

Summing up


At present, most discussions about the management of blockchain systems are centered around endogenous rules, with little or no consideration for exogenous rules.

At the same time, it is the combination of internal and external factors that dictates the features of the blockchain system. Thus, any community needs to implement an ecosystem approach to blockchain, analyzing all the forces that may affect the operation of the platform, as well as their interaction with each other.

Source: https://habr.com/ru/post/358086/


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