2-way pegging (Re: is there a way to do bitcoin-staging?)



Summary:

In an email dated March 16, 2014, Adam Back discussed the process of moving coins to a side-chain by spending them on a script that suspends them and allows them to be reanimated by producing an SPV proof of burn on the side-chain. However, this process can be cumbersome due to security requirements, resulting in large and slow transactions. It's worth noting that atomic cross-chain transactions can be used instead of direct movement across chains. The use of cross chain swapping requires an untrusted counterparty on the other chain, while two-way peg migrations can be performed alone for providing liquidity and balancing demand. The provided links include information on fast atomic cross-chain transactions and CoinSwap as a trustless trading option.


Updated on: 2023-05-19T18:16:15.136821+00:00