confident_lemming

http://www.reddit.com/user/confident_lemming

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confident_lemming12 karma

Does anything prevent a sidechain from creating its own opcodes for implementing a recursive sidechain?

confident_lemming12 karma

Do sidechains, as currently conceived, allow internal dilution of the new issuance? That is, can a sidechain declare an inflation rate of 2% per year?

Can internal issuance be mediated by an oracle?

This would be useful for proponents of altcoins wishing to implement "price stability".

confident_lemming6 karma

Your ownership in the sidechain can be expressed as a percentage of a pie. Expressed in bitcoins, the size of the pie does not change. The redemption rules that allow sidechain coins to move back to bitcoins know how to do the conversion, based on how much dilution has occurred.

confident_lemming5 karma

Bitcoin seems like it might succeed not because it is perfect now, but because it can incorporate the best new ideas. In this viewpoint, the imperfect-but-fair distribution of bitcoins to pioneering early adopters so far serves a purpose that no altcoin/sidechain issued after Satoshi's genesis block can lay claim to. If a new sidechain takes over and wins in the marketplace of developer attention, Bitcoin's features could seem obsolete rather than upgradeable, and a new race to be on the sidechain could begin, diluting the value of bitcoin-the-currency-idea.

  • Should opcodes be considered so that sidechain issuance can declare an easily-inspected limit on the number of bitcoins that can transit to the sidechain?

  • Can a sidechain already encode a maximum number of bitcoins that it will accept?

  • Should every sidechain issuance declare a limit where that number of bitcoins closes the funding-experiement? After that limit, the only way forward would be another separate sidechain test, or integration into the main Bitcoin protocol.

confident_lemming4 karma

An early altcoin sidechain implementation could be especially harmful, because it would confuse the benefit of sidechains while providing a dead end. Value poured into a non-Bitcoin blockchain could never transit back to the Bictoin blockchain, and as it eventually decayed, it would attract an endless stream of increasingly more hapless buyers.