pull down to refresh

10 sats \ 6 replies \ @0207a984de 3 Sep 2023 \ parent \ on: Sunday Survey: BIP300 soft fork scenario bitcoin
How is that different from me running an altcoin node?
Are we just talking about eliminating the need for crypto-exchanges to help me convert BTC into some altcoin? I thought atomic swaps could help make that secure?
The node is different, mining is different, resources are different, everything is different for the sidechain.
I'm not exactly sure why it needs to be "hooked up" to Bitcoin if I can't even use it automatically, and I have to run a whole bunch of different stuff to benefit.
write
preview
804 sats \ 5 replies \ @inverselarp 3 Sep 2023
Atomic swaps are for p2p. Trustless sidechain is more like wbtc without bitgo.
reply
21 sats \ 4 replies \ @0207a984de 3 Sep 2023
But fundamentally, I would need to "move" coins that are on-chain to coins that are on the side-chain right? Otherwise, I could double-spend.
But if I need to move coins, then how does anyone benefit from having it linked to Bitcoin? What are we going to name these sidechain coins? DC-Monero?
Each sidechain would have coins that have a different exchange value than pure on-chain BTC right? Or would it be more like Lightning where the value is the same because ultimately every sidechain transaction can be settled on-chain, or in this case, on-parent-chain?
reply
529 sats \ 0 replies \ @inverselarp 3 Sep 2023
Correct you will move them. Benefits are that it is trustless. If you want to get Monero because of it’s anonymity features you need to sell Bitcoin and buy Monero (on likely kyc exchange). With DC you dont have to. You dont even need to have free floating token and use 1:1 peg (like LBTC). Benefits for all other Bitcoin users are more fees for miners.
reply
0 sats \ 2 replies \ @ek 3 Sep 2023
then how does anyone benefit from having it linked to Bitcoin
you're leveraging the most secure computer network ever created
reply
0 sats \ 1 reply \ @0207a984de 4 Sep 2023
I didn't understand how it was leveraged, because once the coins were moved to the sidechain, if the sidechain had a crappy hashrate I thought it could just be attacked like any low hashrate altcoin
reply
0 sats \ 0 replies \ @inverselarp 4 Sep 2023
That is correct, crappy sidechain will be crappy. Bitcoin wont help there.
reply