Sentinel Chains: A Novel Two-Way Peg



Summary:

In the email, ZmnSCPxj asks two questions regarding mainchain nodes and the potential for malicious code in the sentinel chain software. In response to the second question, it is clarified that mainchain nodes do not validate sidechain blocks. Instead, sidechain nodes, known as sentinels, monitor Bitcoin for invalid withdrawals and publish signed attestations on a public broadcast network. These attestations are used by Bitcoin full nodes to hold miners accountable for improper withdrawals, effectively forking violating miners off the network. This approach mimics a user-activated soft fork without any changes to Bitcoin Core consensus logic.Bitcoin full nodes have the freedom to choose their own limited set of sidechain validators to trust. They can either run their own sidechain node and trust its results exclusively or rely on a set of trusted community members such as companies. However, launching a sidechain using this method presents similar challenges to those faced when launching a soft fork. Sufficient participation from nodes or miners is necessary to enforce the new rules prior to the sidechain's launch; otherwise, a minority of users may fork off the network. Additionally, maintaining a healthy network of sentinels for a sidechain is an important consideration.Moving on to the first question, ZmnSCPxj inquires about the potential consequences if the sidechain developers introduce malicious code into the sidechain node software. The response indicates that the impact of malicious Sentinel chains would be no different from any other sidechain proposal. In such a scenario, the sidechain users would be affected. The concept behind Sentinel chains does not impose restrictions on how these chains operate, but rather focuses on the functioning of peg-outs from sidechain to mainchain without advanced cryptographic techniques like zero-knowledge proofs (ZKPs).In conclusion, the email provides insights into the role of mainchain nodes and sidechain nodes (sentinels) in validating transactions and enforcing sidechain withdrawal rules. It also discusses the challenges associated with launching a sidechain and the potential consequences of malicious code in the sentinel chain software.


Updated on: 2023-08-29T02:16:20.779224+00:00