Published on: 2017-09-10T05:33:06+00:00
In an email exchange, Bitcoin developers Paul and ZmnSCPxj discuss the concept of sidechains with merge mining and WT^ validity voting. Paul expresses concern that this approach would cause sidechain headers on mainchain (SHOM) to become mere extension blocks and inherit negative properties. He also disagrees with the idea that the power to determine the validity of a sidechain should rest with the economic majority rather than the miners, as he believes a 51% miner-group could manipulate transactions. However, ZmnSCPxj argues that if a miner rejects a bribe to prioritize their desired hash on the sidechain, it implies they value their hash more than the bribe. They both agree that some miners prioritize short-term profits over long-term interests, based on observations in Bcash and Bitcoin.The discussion also delves into the vulnerability of SHOM sidechains to collapse from theft attempts. While potential thieves may be disincentivized by understanding the dollar-auction irrationality, the problem lies in relying on rational behavior from thieves. Additionally, Paul raises concerns about the weakness of the side-to-main peg in SHOM and suggests that capping withdrawals further weakens its usefulness. They explore the possibility of deploying sidechains initially as federated pegs, with a potential transition to drivechain/sidechain-headers-on-mainchain at a later stage. This transition would involve moving controlled lockboxes to OP_WITHDRAWPROOFVERIFY lockboxes. Sergio supports this idea, but Paul sees it as a lack of faith in the design. Both parties agree that sidechains should only be softforked and never hardforked.The email thread also touches upon the mechanism supporting sidechains, which can facilitate any financial system, including centralized non-blockchain systems. ZmnSCPxj emphasizes the importance of not allowing permissioned methods for starting sidechains, while expressing support for an economic bond or proof-of-burn as a starting point. The discussion concludes with references to the specification for WT^ layout and available documentation on the topic.Overall, the email exchange presents both agreements and disagreements related to sidechains, highlighting concerns about regression to extension blocks, control over validity, miner behavior, security vulnerabilities, side-to-main peg strength, deployment strategies, and the inclusivity of different financial systems.
Updated on: 2023-08-01T21:50:51.676783+00:00