bitcoin-dev
Smart Contracts Unchained
Posted on: April 8, 2019 16:28 UTC
The conversation is about the comparison of Ethereum and Bitcoin sidechains.
The writer explains that a sidechain does not have to be a blockchain but a decentralized system allowing to secure off chain transactions until the final state is stored into the blockchain. The writer also points out that he prefers precision in his terminology, and for him, a sidechain is a blockchain of some sort. The conversation further discusses colored coins and their mechanism. The writer highlights the importance of giving humans the option to do the right thing. Regarding Lightning Network, the writer explains that he does not consider it a blockchain or a sidechain as it does not have a kind of Merklized singly-linked list containing representations of transformations of state. However, he believes that both federated sidechains and Lightning Network have a "federated" offchain structure. Each channel in LN is a 2-member federation, and the mechanism requires consensus (2-of-2) rather than a quorum (m-of-n), which greatly increases the security of LN.