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Just on reflection, would the eCash miners/nodes notice the inflation of 300 to 600 Zside when reverting back to eCash?
Because that would inflate the supply of eCash thereby invalidating the chain, correct?
Drivechain's pegouts are done via blind merged mining. This means a mining pool does not have to run a full node for any specific drivechain (but in a Nash Equilibrium, miners would bundle this drivechain operation to collect the extra marginal fee) to embed its state transitions on the base layer.
Good question!
So the exchange rate let's say is 1 eCash for 100 Zside for example
This unit conversion is unnecessary, Drivechains are supposed to be pegged 1:1, adding a multiple on top just makes it harder to reason about.
So the pool is drained, a, b and c go to remove their Zside and their attempts are refused because the pool is empty. Is that a legitimate concern?
Yes. This legitimate concern of "turnstyle" withdrawals extends to any bridged coin, even if it doesn't have extra privacy.
Ok I'll have a bash at asking a question
Zk stuff is highly technical and difficult to conceptualize
So Paul Sztorc's eCash is proposing a zcash style sidechain/drivechain
My question is, if alice, Bob and charlie deposited 1 eCash each into....let's call it 'Zside'
So the exchange rate let's say is 1 eCash for 100 Zside for example
So now a, b and c have 300 Zside combined in a zk pool
Let's say a hacker creates an inflation bug in the pool and creates an extra 300 Zside
The hacker then transfers their inflated 300 Zside from the pool and the 300 Zside from a,b and c (600 total) and assuming there's zk... the eCash miners process this bridge tx from Zside to eCash without question, as they have lol, zero knowledge
So the pool is drained, a, b and c go to remove their Zside and their attempts are refused because the pool is empty
Is that a legitimate concern?
As an aside my brain kept saying, well if there was a cryptographic hash on the tx from eCash to Zside then when the parties go to redeem, they can prove the authenticity of their bag, but then that's Bitcoin publicly viewable design and defeats the object of zk 🤣