Drivechains Allow Sidechain Node Miners – Bitcoin Magazine

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This is an opinion editorial by Shinobi, a self-taught educator in the Bitcoin space and tech-oriented Bitcoin podcast host.

This time I’m going to be breaking down and discussing how drivechains work; they were initially proposed in 2015. Out of all the proposals discussed so far, drivechains are the oldest and the most fleshed out in terms of specific implementation details and design, documented in BIPs 300 and 301. Paul Sztorc, the creator of the concept, had a few chief design goals in mind, and while this is not at all comprehensive, here are a few:

  • Isolate each sidechain so any failure or problem would only affect those using it.
  • Allow sidechains to be spun up without needing a new fork for each one.
  • Enable the transfer of bitcoin in and out of a sidechain with a two-way peg.
  • Allow for free experimentation in design he hopes would obsolete the need for altcoins.

There are two primary aspects of the entire design, which is why there are two separate BIPs. The first is the peg mechanism (BIP300), which is what enables the two-way peg to function. Sztorc designed something called a hash rate escrow, which, in the most basic terms, is allowing miners as an amorphous group to collectively custody the coins in all the sidechains. The second is a “blind” merged mining scheme, where the goal is to allow bitcoin miners to be the block producers at a consensus level without being required to validate the sidechain to do so. Both of these pieces together present a two-way peg mechanism and a way for bitcoin miners to take part in mining the sidechains while attempting to mitigate the centralization risk that it presents.



Source link Bitcoin Magazine

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