Author Topic: The Bitshares blockchain as the first public sidechain for Bitcoin  (Read 6284 times)

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Offline Erlich Bachman

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Re: The Bitshares blockchain as the first public sidechain for Bitcoin
« Reply #45 on: March 07, 2016, 01:43:05 pm »
check this out

rootstock is doing this too:

https://medium.com/@CryptoIQ.ca/rootstock-smart-contracts-on-the-bitcoin-blockchain-e52b065421a8#.mkv9x51zt

and this sidechain conversation at bitcointalk:

Next Paradox:

Rootstock comes up with smart contacts using bitcoin: ( I do not see any Casper in yet... and no PoS  :-)   )

https://medium.com/@CryptoIQ.ca/rootstock-smart-contracts-on-the-bitcoin-blockchain-e52b065421a8#.npkfpas4w

Side-chains are insecure. DOA.

To the BTC chain itself? IMO it lowers the complexity,...

The security is reduced to that of the weakest side chain.

So the pegging needs to be transient !

I have no idea what you mean. Chain reorganizations in the weaker chain can cause people to lose their Bitcoins. The chains can get out-of-sync. There is no way for a block chain to securely reference any data point outside of itself. This is fundamentally why Augur and BitUSD can't function without centralization.

Yes - agreed, but I mean rather it has no negative effect to the main chain, if you don't care using the side chain.

I think the insecurity of the side chain can wreck the Bitcoin block chain. If I am mistaken, I request someone to point out why.

Please see pages 8, 9, and 12 of the Blockstream side chains white paper. It says that the coins on the Bitcoin block chain can be unlock by presenting a proof-of-work from the side chain, but that this can be invalidated by a longer proof-of-work. So this means that a lie-in-wait attack on the side chain could allow someone to unlock coins on Bitcoin's block chain, spend them, let others spend them in a fanout of derivative transactions, then reverse the Bitcoin transactions by presenting a longer proof-of-work from the side chain invalidating all those Bitcoin block chain transactions. In short, it seems to me a chain reorganization on the side chain can cause a chain reorganization on the Bitcoin block chain.

I am ready to go to sleep, so I am just skimming quickly with my re-reading of that white paper, so perhaps I missed something?
« Last Edit: March 07, 2016, 02:57:14 pm by Erlich Bachman »
You own the network, but who pays for development?