Author: Cloud Strife 2020-06-25 21:43:20
Published on: 2020-06-25T21:43:20+00:00
The proposal aims to construct childchains on top of Bitcoin without requiring any changes to the latter. The childchain would be Bitcoin-aware and simulate Proof of Work by mandating continuous burning of Bitcoin in exchange for fees on the childchain. The childchain tip is chosen based on the highest total accumulated Bitcoin burnt for that full chained set of childchain block commits, with the goal of simulating total accumulated work. The only asset on the childchain is a 2-way-peg coin secured in value without oracles or collateral, where each valid child chain block must use a small percentage of the burnt amount to deterministically reimburse withdrawals from the childchain. Users can burn child-BTC and add themselves to the withdrawal queue filled as part of validity requirements by childchain "miners" until filled 1:1 on the mainchain or more. Similarly, users can burn BTC independent of mining childchain and receive equivalent 1:1 child-BTC on the childchain.While childchains are less secure than the mainchain, both the childchain security and the 2-way-peg accuracy might be an acceptable option for lower-value transactions on a scale determined by the burning rate. Childchains could replace the need for additional Proof of Work chains for new blockchains to introduce any complexity while using Proof of Work done on Bitcoin as proxy for unforgeable costliness and benefiting from Bitcoin's censorship resistance and data availability. Large numbers of low-value transactions that might be priced out of using the main chain could possibly provide enough childchain fees combined through childchain miners to afford much higher mainchain fees like "batching for fees". It also has the benefits claimed by proof of stake like no energy consumption without relying on internal permissions or tokens, trusted distributions, or centralizing mechanisms like staking by simulating proof of work. It should allow both growing the Bitcoin ecosystem and replace the need to create alternative cryptocurrencies just to make a new blockchain. The proposal is available in more detail at https://bitcointalk.org/index.php?topic=5214173.0. The author is seeking a review for any overlooked issues or interest in creating a proof of concept.
Updated on: 2023-05-20T23:27:59.819835+00:00