Author: Erik Aronesty 2017-06-22 13:45:33
Published on: 2017-06-22T13:45:33+00:00
The context discusses the concept of a proof-of-burn sidechain, which is described as the ultimate two-way peg where users would tolerate depreciation for the purpose of having a cheap and secure way of transacting using a two-way pegged chain that isn't controlled by miners. This system can be made even more secure with UTXO commitments and is better than messing with the main chain's incentive structure via merged mining. The conversation also touches on the correlation between the security of a network and its total economic value, as well as the potential issue of Bitcoin miners choosing to mine both/all chains, which could consume more resources without contributing to a higher hashrate. There is also a discussion around enforcing that a drivechain not have the same POW as Bitcoin to ensure that it doesn't destabilize the main chain and push more power to already dominant miners.
Updated on: 2023-06-12T02:09:47.245763+00:00