Interoperability between chains.

stan.distortion

Well-known Member
Oct 30, 2014
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Imho this is the next major leap with cryptocurrencies, the market within the network. That depends on how things pan out, maybe they could evolve into a single network capable of handling every exchange of everything but I'm guessing parallelism will be essential for scale and the desire for sovereignty will give rise to many different chains.

How could it be achieved? Exchange nodes with SPV clients and script, shapeshift integrating an API into the message field, another type of chain for performing cross-chain transactions, idk.

It'd need a lot for it to happen, there's tools for any noob to create their own chain but securing it's not so simple. Mining as a service, renting hashes the same as renting server space or computing power but I've no idea how that could be done, maybe p2pool could have a trick up its sleeve? Any thoughts?
 
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Sub-Ether

Well-known Member
Mar 31, 2014
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The only side chain development I kind of followed was mastercoin, please correct my technical inacuracies

My 2 cents:

1) the side chain is not truly mined from the genesis block in the traditional sense, it is merely time stamped - not sure how this reduces security but I guess the lack of proof of work and easy to find blocks makes the them less secure somehow ?

2) side chains are not minable leading to lack of interest from open source coders.

3) less market liquidity due to stake holders being the large bag holders and no mining so no new coins coming to the market

4) 2 way pegging makes the side chain markets less volatile (aka boring, the chinese won't like to bet on them, probably stick to an alt for fun)

5) after the initial funding money has been spent, who is going to pay the dev's to continue work on a project that may be far from finished (Mastercoin is a good bad example of this so far)

6) the side chain has to be useful and profit making (again mastercoin has no real use so it become useless,dumped and then untraded)

7) the side chain will run at the same speed as bitcoin, meaning slowly, unless an alternative network is formed (i.e. lightning network, and that has not even begun), this may not be a problem if you don't mind waiting half a day for it to be placed into the blockchain properly, but who wants to wait that long ?
(payment channels will sort the speed problem out possibly using centralised exchanges?)

Someone else point out all the positives please, there must be lots! ...