Peer-to-Peer Bitcoin Sidechains
Drivechain allows BTC to travel back-and-forth to other software applications (called “sidechains”). Thus, BTC-owners can opt-in to new features or tradeoffs. Those who don’t opt-in, never need to care what any sidechain is doing.
As with the Lightning Network, DC-users move their coins into a “layer-2” – a zone where BTC can change hands an unlimited number of times. Eventually, just the net effect of these transfers is recorded back on layer-1.
Bitcoin Core can’t observe any layer-2 (by design), so we need a way to discourage fraudulent “netting”. LN counters theft via “justice transactions”; DC via forsaken mining revenues. LN-netting is private and instant; DC-netting is public and VERY slow (once per ~3 months).
Key benefits – only obtainable via Drivechain:
- Three existential threats to BTC are neutralized – altcoin-competition, hard fork campaigns, and extension block campaigns.
- BTC development becomes anti-fragile with respect to CoreDev mistakes.
- BTC maintains hashrate security in the long run.
- BTC can scale to credit-card level txn-processing – without changing the CONOP of Bitcoin Core. These cheap txns have optimal fungibility and supply vital pretext to the BTC ecosystem.
- BTC gains new, experimental abilities, especially P2P event derivatives.
Drivechain is made of two BIPs, 300 and 301:
- Hashrate Escrows – “Container UTXOs” that compress 3-6 months of transaction data into a fixed 32-bytes.
- Blind Merged Mining – A technique to replace the act of running a sidechain node with the act of including a single high-fee transaction.
Selected Recent Interviews
- 51 Minutes (0:26:00 to 1:17:40) during an Oct 14 Whalepool Talk on Bitcoin, Drivechain, and Hivemind
- Let’s Talk Bitcoin – Episode #377
Critiques and Controversy
Please read the FAQ!
Go here for a guide on downloading and using this software. It has screenshots to help walk you through the process.
Even More Info
Problems With Today’s Mono-Chain Setup
- Blockchain technology has economic tradeoffs, and users disagree over the optimal tradeoff. But only one group can have their way at a time. Instead we need multiple heterogenous layers (Satoshi, Finney).
- Bitcoin investors must worry about competition from other projects (Ethereum, Z-Cash, Ripple).
- Satoshi, creator of Bitcoin, wanted to support many transaction types, but knew that his design was prohibitively inflexible.
- Bitcoin is supposed to be used as money, but if it cannot be used on some networks, it is constrained as a medium of exchange – and therefore at a competitive disadvantage.
Instead, sidechains are alt-chains that all use the same Bitcoin token. They start with zero coins; they accept Bitcoin deposits, conduct Bitcoin transfers, and finally dispense Bitcoin withdrawals.
- Permissionless Innovation: Anyone can create a new blockchain project, without facing the (near-impossible) task of also bootstrapping a new unit of money.
- Eliminates Competition: Bitcoin will always have the best code, because it can copy any code that exists.
- Freedom to Choose: Satoshi’s consensus protocol requires everyone to agree on everything, down to the very last byte. Sidechains allow users to choose which benefits they would like to pay for.
- Anti-Scam: SCs filter out get-rich-quick schemes (the ‘get rich’ part is now impossible). Therefore, good projects can stand out and receive our attention.
- Faster Progress: SCs let us test new features. The tests are safe – if these features fail, they won’t take down the main network. However, the tests are also informative – real BTC is on the line.
Email: truthcoin /at/gmail/
PGP Key: F162C410
I'm usually on Twitter 8-9 AM and 5-6 PM.