Author: Tier Nolan 2017-05-22 19:12:54
Published on: 2017-05-22T19:12:54+00:00
The conversation on the bitcoin-dev mailing list revolves around the potential vulnerability of sidechains to theft. Unlike Bitcoin, a rich attacker could buy the entire reserve of a sidechain by paying the timeout multiplied by average transaction fees. Destroying a side-chain's value would not affect the value of the stolen bitcoins. However, restricting the amount of coin that can be transferred from the side chain to the main chain to a fraction of the transaction fee pay to the bitcoin miners could eliminate the incentive for such an attack. Main-chain miners could support fraud proofs ensuring side chain data is available for side chain validators. This means that miners must know the rules for the side chain and run SPV nodes for side chain headers to blacklist fraudulent ones. While transactions are validated by sidechain full nodes, unlike Bitcoin, sidechains hold assets on another chain making them vulnerable to theft.
Updated on: 2023-06-12T00:57:19.676631+00:00