Published on: 2015-02-06T01:34:31+00:00
On February 4, 2015, Isidor Zeuner asked a question about adding Zerocoin to Bitcoin. Peter Todd clarified the meaning of OP_DEPTH and suggested using OP_CHECKLOCKTIMEVERIFY instead. Tamas Blummer proposed a new mining algorithm for side chains that involves burning Bitcoins to secure them. The difficulty to mine with burn would be dynamic and imply a floating exchange rate between Bitcoin and the side coin. Alex Mizrahi discussed the vulnerability of sidechains and merged-mined chains to collusion attacks, while Peter Todd mentioned the potential for replace-by-fee-scorched-earth thinking. Tamas Blummer and Isidor Zeuner discussed the concept of Proof of Burn and its value in an email conversation. They discussed the effectiveness of Proof of Burn compared to other approaches and the complexities involved in determining the most effective approach for Bitcoin mining. Tamas Blummer also proposed the idea of burn mining side chains to enable permission-less merge mining. He expressed surprise at the lack of feedback on the idea. On 12/10/2014, Tamas Blummer outlined the Proof of Burn algorithm for side chains, which creates a real cost for following the rules and avoids sybil attacks. The algorithm requires that block transactions on the Bitcoin block chain destroy Bitcoins with an OP_RET output containing the hash of the side chain's block header. Those who want to mine the side chain assemble side chain block candidates and submit a Bitcoin transaction burning to the hash of the block candidate. The difficulty to mine with burn would be dynamic and imply a floating exchange rate between Bitcoin and the side coin. Tamas Blummer's proposed mining algorithm for side chains aims to utilize the scarce resource within the digital realm by burning Bitcoins to secure them. By utilizing burn transactions, Bitcoin miner support or consent would not be needed, creating a "merged mining" system.
Updated on: 2023-08-01T10:56:22.654550+00:00