What is a Bitcoin Sidechain?

What is a [\#Bitcoin]( [\#Sidechain](

A Bitcoin sidechain is an independent blockchain that can securely transfer bitcoins internally and from/to the Bitcoin network without supporting a money token different from Bitcoin.

Bitcoin sidechains allow the vast majority of the innovation to take place on the Bitcoin network. Sidechains become a testing ground for new ideas and experimentation enabling more functionality for bitcoiners.

Current sidechains include Liquid by Blockstream and Rootstock/RSK by IOV Labs. However, these sidechains are controlled by unknown members of a federation. Making it very vulnerable to a state attack if they add features the goverment disagrees with like traceless transactions or enforcing KYC/AML compliance.

This is where Drivechain (DC) comes in. DC is made up of two BIPs, BIP300 and BIP 301. Drivechain allows for a decentralised 2 way peg without the need of a federation instead miners are trusted to mine the blocks making much less vulnerable to a state attack. With DC you can design sidechains that enable privacy, scalablity, smart contracts, etc while keeping bitcoin mainchain unaffected. Keeping bitcoin core values such as 21 million cap, security and decentralisation.


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One Comment

  1. Side chains remain within the current consensus and do not add to main chain risk.
    You want the benefits of Liquid go use Liquid if Liquid fails it doesn’t affect anyone but Liquid users.
    DC affects main chain; by adopting those two BIPs you will force everyone to become a DC user if DC develops a security flaw it will rek every single current and future Bitcoiner….GFY

Does anyone know what this is?

Does anyone know what this is?

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