Author: ZmnSCPxj 2021-12-18 01:00:14
Published on: 2021-12-18T01:00:14+00:00
The post shared by ZmnSCPxj talks about how covenants like CTV can solve the timeout/rollover issue and collusion issues on punishment, improving on-chain bitcoin signing oracles. The post also discusses the use of a protocol on top that can make 'branch free' attestation chains where the bonder risks losing funds on equivocation. Robin Linus has a whitepaper that gets into more detail on these concepts, which is linked in the post. Bonds are better if the bonder cannot recover their funds, and with a covenant, the bonder can definitely lose funds. While an oracle can still lie, it needs to consistently lie and not equivocate. If an oracle signs an invalid sidechain block, it could still do so, but it is prevented from later denying this by signing an alternative valid sidechain block. If it sticks to its guns, the sidechain stops operation, and everyone owning sidecoins loses their funds, while the bond remains safe.
Updated on: 2023-06-15T03:41:19.244963+00:00