Author: Paul Sztorc 2017-06-22 20:30:39
Published on: 2017-06-22T20:30:39+00:00
In an email conversation, Erik Aronesty suggests a proof-of-burn sidechain that requires burning Bitcoin or side-chain tokens to mine the side chain. The size of the burn is the degree of security. He suggests this design would result in any bitcoins held in the sidechain depreciating in value at a rate of X% per year, which would pay for increased security. Paul Sztorc questions the competitiveness of this design, stating that users would not tolerate such depreciation when there are alternatives that do not require it. Additionally, he doubts that these transactions would be free of control by miners and argues that merged mining would be a better solution. In a separate post to bitcoin-discuss, Paul supports UTXO commitments for sidechains.
Updated on: 2023-06-12T02:14:15.402493+00:00