Author: Adam Back 2014-03-16 22:58:19
Published on: 2014-03-16T22:58:19+00:00
Bitcoin developers have discovered that secure two-way pegging between side chains is possible with some changes to bitcoin. This allows interoperability, as users can move bitcoin into and out of a side chain. The side chain may have different parameters or experimental features subject to a minimum compatibility level that enables the production of an SPV proof of a given form. Greg Maxwell proposed a compact way to do two-way pegging using SPV proofs last year, which also provides a security firewall. Bitcoin has no mining reward on the beta chain network but allows users to mint coins at no mining cost by providing an SPV proof that the coin has been suspended in bitcoin.
Updated on: 2023-06-08T15:10:38.059112+00:00