Published on: 2022-05-16T11:26:38+00:00
ZmnSCPxj, a blockchain developer, has put forward a new proposal that involves dividing transaction fees from sidechains or ecash servers among fidelity bonds based on their respective values. This concept is reminiscent of ZmnSCPxj's previous idea of "mainstake," which entails locking up funds on the mainchain to construct new sidechain blocks. Under this scheme, the allocation of sideblocks would be proportional to the value of the mainstake that was locked up. Importantly, this approach can also be applied to other scenarios requiring federations. For instance, statechains, which function as federation-guarded CoinPools, could adopt a similar mechanism for selecting federation members. Additionally, fidelity bonds can guide users in choosing federation members for unchained smart contracts.The utilization of fidelity bonds aims to establish trust-minimized federations for chaumian ecash servers or sidechains. Fidelity bonds serve as a means of deliberately sacrificing bitcoin value in a manner that can be verified by a third party. This system has already been implemented in JoinMarket since August 2021, with approximately 600 BTC being locked up, some for extended periods. The value of a fidelity bond is calculated using a greater-than-linear power of the bitcoin sacrifice, thereby creating a strong incentive for distinct fidelity bonds to be controlled by different individuals. Rational behavior dictates that all bitcoins should be consolidated into one fidelity bond rather than distributed across multiple bonds, which mathematically penalizes sybil attackers seeking to distribute their bitcoins over numerous bonds. It is worth noting that fidelity bonds do not resolve the trust issue entirely, as an individual with a significant fidelity bond could still potentially steal funds from the ecash server or sidechain using their control over multisig keys. However, fidelity bonds greatly incentivize the ownership of distinct fidelity bonds by different individuals. Another advantage of fidelity bonds is that they align with the cypherpunk ethos, allowing anyone to create and advertise a fidelity bond on the market.To implement this scheme, each fidelity bond owner would generate a key within the multisig framework. Transaction fees from the sidechain or ecash server would then be distributed among fidelity bonds in proportion to their respective fidelity bond values. This approach effectively ensures that the benefits are shared based on the level of commitment represented by the fidelity bonds.
Updated on: 2023-08-02T06:30:43.484304+00:00