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Main => General Discussion => Topic started by: JonnyB on January 26, 2016, 02:03:33 pm

Title: Bitcoin sidechain instead of bitBTC ?
Post by: JonnyB on January 26, 2016, 02:03:33 pm
The concept of sidechains is one where real BTC gets locked up in another blockchain contract and a token is issued in its place which can be redeemed at any time without human involvement.
So it is essentially a bitcoin IOU but from a decentralised smart contract instead of a company or person.

The guys at blockstream claim they have got sidechains working in a first version that they call liquid and say companies like bitstamp and bitfinex are using it.

If they really have made a working sidechain for bitcoin can't this be integrated into bitshares to replace BITBTC?
Title: Re: Bitcoin sidechain instead of bitBTC ?
Post by: TravelsAsia on January 26, 2016, 02:12:37 pm
In my thread, "Locking up Bitcoin for BitUSD", maybe a sidechain is the answer to that problem as well.  Bringing Bitcoin into our system would provide something that BTC holders could support. If there's ever something to put money towards in development, it's something like the OP suggests.
Title: Re: Bitcoin sidechain instead of bitBTC ?
Post by: xeroc on January 26, 2016, 02:19:57 pm
How are the locking up BTC in a "contract" that is NOT owned by a set of individual in a multisig account?!?!
Title: Re: Bitcoin sidechain instead of bitBTC ?
Post by: JonnyB on January 26, 2016, 02:33:17 pm
I'm not smart enough to understand how it it works I just understand the concept, but they have a whitepaper explaining the technicals on their website

https://blockstream.com/wp-content/uploads/2014/10/sidechains.pdf

Title: Re: Bitcoin sidechain instead of bitBTC ?
Post by: xeroc on January 26, 2016, 03:05:46 pm
it's about time for me to read through it :)
Title: Re: Bitcoin sidechain instead of bitBTC ?
Post by: Akado on January 26, 2016, 06:19:28 pm
If this is possible, my first impression is that it's a good idea. Again I dont now the technical details, but it's a good way to make use of Bitcoin and build a better relationship with other communities. People might also think it's safer since Bitcoin is more robust. And they wouldn't perceive us as a competing project, but one that complements bitcoin
Title: Re: Bitcoin sidechain instead of bitBTC ?
Post by: JonnyB on January 26, 2016, 06:23:45 pm
and ethereum have just announced a sidechain peg (dogecoin)

http://forklog.net/dogecoin-integrates-in-ethereum-for-application-in-smart-contracts/
Title: Re: Bitcoin sidechain instead of bitBTC ?
Post by: xeroc on January 26, 2016, 07:08:53 pm
(the hardest part there being implementing scrypt in EVM code […]),

Gonna be an expensive (gas) feature
Title: Re: Bitcoin sidechain instead of bitBTC ?
Post by: TravelsAsia on January 26, 2016, 07:11:22 pm
@bytemaster  Is it something CNX might be interested in tackling?
Title: Re: Bitcoin sidechain instead of bitBTC ?
Post by: fuzzy on January 26, 2016, 07:34:11 pm
oh yummy.  @JohnnyBitcoin if technically feasible (should be) this is a great idea.  perhaps we could reach out to the blockstream guys and try to hire them on to build it :)

One thought that comes to mind though....why not use something like what seraph was going to build where it was a multisig gateway that essentially automates all that without a sidechain.
Title: Re: Bitcoin sidechain instead of bitBTC ?
Post by: JonnyB on January 26, 2016, 07:54:03 pm
oh yummy.  @JohnnyBitcoin if technically feasible (should be) this is a great idea.  perhaps we could reach out to the blockstream guys and try to hire them on to build it :)

One thought that comes to mind though....why not use something like what seraph was going to build where it was a multisig gateway that essentially automates all that without a sidechain.

The only person who should be able to unlock the real btc should be the holder of the btc token.With a true sidechain there is zero need for committee control or any type of multisig. I hope it is feasible. Some say blockstreams implementation is not perfect yet and they've had $21 million in funding so far.
Title: Re: Bitcoin sidechain instead of bitBTC ?
Post by: BunkerChainLabs-DataSecurityNode on January 26, 2016, 07:57:13 pm
We can accomplish this with a pretty straight forward Smart Contract on Bitshares I believe.

The process would basically involve creating an EBA (UIA) that interfaces with a hosted wallet of said coin.

Similar to how blocktrades works, a deposit address associated with the EBA would be generated.

When the deposit hits the address a transaction is sent via the smartcontract to issue the EBA to the associated Bitshares account.

When the user wants to withdraw, they would perhaps send the amount they want to withdraw to a given bitshares address with a certain memo to specify the target address. The EBA is removed from their account and the coin is transferred to where ever they wanted it to go.

This would require maintaining a very secure environment.. but it's been done before.

This would effectively transfer coins in and out of bitshares in their full value.

It's doable.. I bet blocktrades is already like 90% of the way there. :)
Title: Re: Bitcoin sidechain instead of bitBTC ?
Post by: JonnyB on January 26, 2016, 08:04:54 pm
We can accomplish this with a pretty straight forward Smart Contract on Bitshares I believe.

The process would basically involve creating an EBA (UIA) that interfaces with a hosted wallet of said coin.

Similar to how blocktrades works, a deposit address associated with the EBA would be generated.

When the deposit hits the address a transaction is sent via the smartcontract to issue the EBA to the associated Bitshares account.

When the user wants to withdraw, they would perhaps send the amount they want to withdraw to a given bitshares address with a certain memo to specify the target address. The EBA is removed from their account and the coin is transferred to where ever they wanted it to go.

This would require maintaining a very secure environment.. but it's been done before.

This would effectively transfer coins in and out of bitshares in their full value.

It's doable.. I bet blocktrades is already like 90% of the way there. :)

There is no need for a secure bitcoin wallet with sidechains as bitcoin just gets frozen on the bitcoin blockchain and only the token holder can unlock it. AFAIK

Title: Re: Bitcoin sidechain instead of bitBTC ?
Post by: JonnyB on January 27, 2016, 02:31:00 am
another take on sidechains but slightly different and bitshares is even mentioned in the infographic.

http://www.truthcoin.info/blog/drivechain/
Title: Re: Bitcoin sidechain instead of bitBTC ?
Post by: jsidhu on January 27, 2016, 06:18:00 am
We can accomplish this with a pretty straight forward Smart Contract on Bitshares I believe.

The process would basically involve creating an EBA (UIA) that interfaces with a hosted wallet of said coin.

Similar to how blocktrades works, a deposit address associated with the EBA would be generated.

When the deposit hits the address a transaction is sent via the smartcontract to issue the EBA to the associated Bitshares account.

When the user wants to withdraw, they would perhaps send the amount they want to withdraw to a given bitshares address with a certain memo to specify the target address. The EBA is removed from their account and the coin is transferred to where ever they wanted it to go.

This would require maintaining a very secure environment.. but it's been done before.

This would effectively transfer coins in and out of bitshares in their full value.

It's doable.. I bet blocktrades is already like 90% of the way there. :)
You need acct for cross chain coin transfers...
Title: Re: Bitcoin sidechain instead of bitBTC ?
Post by: luckybit on January 27, 2016, 06:25:31 am
We can accomplish this with a pretty straight forward Smart Contract on Bitshares I believe.

The process would basically involve creating an EBA (UIA) that interfaces with a hosted wallet of said coin.

Similar to how blocktrades works, a deposit address associated with the EBA would be generated.

When the deposit hits the address a transaction is sent via the smartcontract to issue the EBA to the associated Bitshares account.

When the user wants to withdraw, they would perhaps send the amount they want to withdraw to a given bitshares address with a certain memo to specify the target address. The EBA is removed from their account and the coin is transferred to where ever they wanted it to go.

This would require maintaining a very secure environment.. but it's been done before.

This would effectively transfer coins in and out of bitshares in their full value.

It's doable.. I bet blocktrades is already like 90% of the way there. :)
You need acct for cross chain coin transfers...

Bitshares is capable of ACCT.
Title: Re: Bitcoin sidechain instead of bitBTC ?
Post by: xeroc on January 27, 2016, 06:33:26 am
but bitcoin is not
Title: Re: Bitcoin sidechain instead of bitBTC ?
Post by: jsidhu on January 29, 2016, 03:09:49 am
but bitcoin is not
Sure it is
Title: Re: Bitcoin sidechain instead of bitBTC ?
Post by: xeroc on January 29, 2016, 07:58:49 am
but bitcoin is not
Sure it is
care to elaborate?