Author: Ruben Somsen 2020-12-31 23:39:10
Published on: 2020-12-31T23:39:10+00:00
The author of a post on the Bitcoin mailing list has proposed a fully decentralized two-way peg sidechain design called softchains, which would allow for new features and opt-in block space. Softchains are validated by everyone through Proof-of-Work Fraud Proofs (PoW FP), a consensus mechanism that only requires the validation of disputed blocks, and are pegged to the mainchain using a slow peg-out process. The design requires a soft fork and subsequent activation for each softchain. Potential dangers include non-deterministic consensus bugs and major reorgs, but these risks can be mitigated by basing softchain designs on Bitcoin Core and introducing a rule disallowing reorgs bigger than half the peg-out time. Softchain consensus still requires validation from mainchain users, with consensus bugs potentially causing a chain split. Each softchain must produce a non-trivial amount of PoW to maintain security and prevent cost reductions in creating forks. Merged mining could help maintain security, but it would also put an additional validation burden on miners.
Updated on: 2023-06-14T16:54:27.498087+00:00