Author: ZmnSCPxj 2020-01-15 05:46:04
Published on: 2020-01-15T05:46:04+00:00
In a communication, ZmnSCPxj discusses the issue of scalability in the blockchain space and how sidechains could be used to address this. They suggest that consensus mechanisms for sidechains need to be trust-minimized and scalable. ZmnSCPxj proposes proof-of-burn (PoB) as a secure mechanism for sidechains, but also acknowledges the limitations of sidechains due to their lack of scalability. They suggest that liquidity for atomic swaps to pay Lightning Network invoices denominated in BTC is the most important factor for sidechain network effects. ZmnSCPxj also considers the idea of pegging sidecoins to BTC and argues that it is essential for network effects. Finally, they outline a project combining mainchain-staking with 2-way pegs to increase security in federated sidechains. However, ZmnSCPxj notes that Lightning Network is still preferable to sidechains.
Updated on: 2023-06-13T23:11:56.099387+00:00