What about Ethereum’s Governance?

No one person owns or controls the Ethereum protocol, but decisions still need to be made about implementing changes to best ensure the longevity and prosperity of the network. Following a decentralised model, the blockchain operates around the notion of no centralised forms of control, however there is still the responsibility of updating and running the blockchain in a manner that allows it to continue to improve and run smoothly. So, how are improvements and advancements to the network then made and agreed upon?

Although Ethereum’s governance is decentralised, the process in which improvements and software advancements or changes are made is agreed upon by stakeholders, much like real world entities. The main three stakeholders of the Ethereum network are the users themselves, that is, holders of ETH & users of Ethereum applications, exchanges or developers building applications on top of Ethereum. Miners, the individuals or entities who mine the blocks in order to secure the network and validate all transactions. And core developers, who from as early as 2014, collectively coordinate the development and provide significant contributions to the low-level protocol and contribute to the node software. Any of these stakeholders can submit a proposal – an Ethereum Improvement Proposal (EIP), which ‘describe standards for the Ethereum platform, including core protocol specifications, client APIs, and contract standards’. Here, an EIP is used primarily as a mechanism in proposing new features, collecting community feedback on issues, and for documenting the decisions on design that have gone into Ethereum. There are three different types of EIPs, a standards track EIP, a meta EIP and an informational EIP. Further information on these can be found here.