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21 sats \ 4 replies \ @0207a984de 3 Sep 2023 \ parent \ on: Sunday Survey: BIP300 soft fork scenario bitcoin
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?
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.
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then how does anyone benefit from having it linked to Bitcoin
you're leveraging the most secure computer network ever created
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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
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That is correct, crappy sidechain will be crappy. Bitcoin wont help there.
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