Author: Alex Mizrahi 2014-11-03 16:01:46
Published on: 2014-11-03T16:01:46+00:00
The article explains the concept of miners in blockchain technology and how they prove computational work to achieve stable consensus on the blockchain history. Miners are rewarded with fees and subsidies in the form of coins, incentivizing them to behave honestly. However, this incentive is not applicable in the case of sidechains, where anyone with sufficient hashpower can unlock a locked coin on the parent chain by producing an SPV proof. Thus, there is no incentive for miners to behave honestly in sidechains, as they only receive transaction fees as rewards. Whether this is enough depends on various factors, including the existence of other chains that miners can mine. The longer the contest period is, the harder it is to succeed with a fraudulent transfer. However, fraudulent transfers can happen without a reorganization, as an attacker can produce an SPV proof that is entirely fake, making it different from double-spending. The assumptions made in the article suggest that sidechain security will be similar to Bitcoin security in the long term.
Updated on: 2023-06-09T03:21:43.973820+00:00