Author: Robin Linus 2020-01-15 01:43:06
Published on: 2020-01-15T01:43:06+00:00
In an email thread shared via the bitcoin-dev mailing list, Robin Linus proposes a solution for Bitcoin's scalability issue by introducing Bitcoin-backed proof-of-stake (PoS) sidechains. He suggests using networks of thousands of anonymous altcoins built around Bitcoin as the central settlement layer to increase scalability. Linus proposes using sidechain assets as an instrument of BTC value transfer without a 1:1 peg to BTC, and discusses the consensus mechanism of custodial Lightning Network services.The proposed solution uses a protocol called Coins, which is designed for payments at scale. It aims to solve the double-spending problem by using a bitcoin-backed proof-of-stake. Validators vote on sidechain blocks with one-time signatures, forming a record that cannot be changed without destroying their collateral. Every user can become a validator by locking bitcoins. One-time signatures ensure that validators lose their stake for publishing conflicting histories.However, the author of the email thread expresses concerns about the proposed model. He argues that there are already excessive numbers of blockchain projects that can be used similarly just as the sidechain in this proposal. Furthermore, he believes that the proposal inflates the supply with a new token, which goes against what many people consider as a pillar of Bitcoin's value proposal. The author also raises concerns about the security of PoS sidechains and how they could be easily attacked if only a few participants are interested in it.Overall, the author is not convinced about the proposal and thinks that it would make the proposed sidechain indistinguishable from any other altcoin. He believes that the only interesting sidechain model is the theoretical one with a two-way peg with Bitcoin, preserving the issuance policy of Bitcoin.
Updated on: 2023-06-13T23:10:27.054395+00:00