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189 sats \ 2 replies \ @lightcoin OP 17 Jan 2023 \ parent \ on: Drivechain (BIP300-301) Bitcoin advanced sidechain discussion bitcoin
I am also mainly interested in a privacy sidechain. I hope the zSide (zcash-like) sidechain they are working on becomes a reality.
I agree that the "drivechains kill altcoins" narrative is overrated. Though I do also think there's a real possibility that a p2p sidechain protocol like Drivechain will further marginalize them and make it overwhelmingly clear that they are gambling tools, by killing the "bitcoin can't do x but we can" justification for their existence.
Yeah, that would be great. I saw Paul demoing a zcash sidechain at a conference. Looks great. Adam Back seemed supportive, but he's generally pretty positive with most things in the space.
On the subject of privacy, a project that should be dropping this year is Fedimint, promising a "Wallet of Satoshi-like" custodial Lightning experience with possibly reduced rugging potential due to custody of the Bitcoin being held by a federation. However, IMO, the more exciting part of the project is the privacy promised by Chaumian E-Cash. Any thoughts on this?
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I'll share what I posted on twitter a few months ago:
Fedimint has a place in the design space that could prove a worthwhile tradeoff between scalability, privacy, and security for certain users. But bitcoin users should also be able to get strong privacy with the same or very close to the same security as onchain bitcoin today.
Also worth noting that Chaumian e-cash has certain limitations that a Zcash sidechain (federated or drivechain or whatever kind of sidechain) would not have, such as:
- Ecash mint can arbitrarily inflate the ecash supply
- Ecash must be minted and redeemed in specific denominations
- Depending on the implementation details, it might be possible to link ecash redemptions to specific accounts (giving the server operator a sense of the user's balance)
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