There are two possibilities for this: Side just accidentally made a perfect business model chain google has been slowly but steadily been growing to take over! When bitcoin first started most exchanges miners reluctant to take up BCH, but now more and miners exchanges are accepting it. Seems like a sensationalist title IMO; they are orthogonal technologies trying to do two completely different things, and it simply incidentally just so happens that the developers of one project are skeptical of the side. However, this approach would be very difficult to implement into a side-chain, because the chain involved in validating proof-of-stake are likely too complex to effectively implement directly bitcoin a blockchain.
This scheme leaves the integrity of the block chain intact, while allowing a number of advantages. This creates a strong incentive towards centralization and is generally a very bad thing. As dantheman pointed out, the concern is that they could start eating into the fee revenue of the miners! Is Bitcoin a Good Investment? Having said that, there are ways to mitigate this issue. A script in Bitcoin is an address that, instead of being owned by a private key, essentially acts as a lockbox that unlocks the bitcoins only when given a transaction that satisfies certain conditions.
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It bitcoin like the jealous neighbor who side there house chain suddenly small than the person next door! Those using Bitcoin would simply ignore any other altcoin activity as malformed transactions, and vice versa. These limitations together suggest that the side-chains protocol, while great for many use cases, will certainly not be ideal miners all. Chain means that the sidechain is bitcoin to die. This could miners disaster and side is the exact issue raised by the mining company Bitmain. Using Rootstock as an example, in order to transfer assets from one chain to the other a user on the parent first has to send their coins to a special output address where they will consequently become locked and un-spendable. Quoting page 10 of the design document [PDF]:.
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This contract would then keep a running list of all block headers in Bitcoin 1. First, once sixty more Bitcoin 1. Alternatively, if someone else submits a cryptographic proof that the transaction is invalid for whatever reason eg. This would solve the security problem, but has one important flaw: Ultimately, the approach taken by Austin Hill and Adam Back may not look exactly like either of these strategies; however, the sheer complexity of the problem shows that there are still many challenges that lie ahead.
Another important question is: The standard mechanism for securing a blockchain is mining, but mining requires a mechanism for rewarding miners on that chain. In a side-chain, every unit of the side-chain currency must be backed by a script-lockbox containing a unit of BTC on the Bitcoin blockchain, so there is no simple opportunity to issue side-chain currency units out of nowhere. There are two possibilities for this: However, both of these provide a fairly low amount of revenue, and so it is not at all certain that plain old independent mining will solve the problem.
There are two approaches to get around this issue. One approach is to have the side-chain be secured by proof of stake , using the small revenue from transaction fees to compensate participating stakeholders with an interest rate. However, this approach would be very difficult to implement into a side-chain, because the computations involved in validating proof-of-stake are likely too complex to effectively implement directly on a blockchain.
However, as argued by Bitcoin developer Peter Todd, the concept of merge-mining does have one very important security flaw: To understand why, first consider the case of a more traditional altcoin, in our example running SHA for simplicity if the altcoin uses a custom algorithm, then Litecoin miners can pull off the attack instead. This is potentially possible, but is a costly move: In the case of a merge-mined side-chain, however, mining on the mainline of a side-chain or attacking it are both cost-free, so there would be no economic disincentive to attacking the alternative chain.
This is not a mere conjecture; there have been actual examples of mining pools attacking merge-mined chains in reality. Aside from security, this dependence on merge-mining also exposes another worrying limitation of the side-chains idea: These limitations together suggest that the side-chains protocol, while great for many use cases, will certainly not be ideal for all. If the technical issues around side-chains can be addressed, what is the promise that they bring?
Right now, cryptocurrency development can essentially be classified into four quadrants. The first quadrant consists of projects that use the Bitcoin currency and the Bitcoin blockchain — essentially, Bitcoin itself. The second quadrant is protocols that use the Bitcoin blockchain but not the Bitcoin currency; Mastercoin, colored coins and Counterparty are excellent examples of this. The third quadrant uses both an independent currency and an independent blockchain; this contains applications like to take widely disparate examples Ripple, Litecoin and NXT.
Now, with sidechains the last quadrant has also been filled: Especially since SPV can theoretically be tricked into crediting more coins than were originally deposited. If the attack will then transfer those coins back onto the parent it would take coins from another user on the Sidechain to fund the imbalance. And in the process create a permanent dissilience between the two chains. In order to strengthen the security of a Sidechain beyond just SPV, it would require the parent to soft fork and upgrade its core wallet software so that both chains can then validate transfers between them.
Whilst there are a few big hurdles to jump, Sidechains go a significant way to helping create a connected financial digital ecosystem. And even now its uses are just predominantly speculation. So who knows what the future holds and what other innovations this technology will bring. A big thanks to Diego Salvador for helping me write this episode. Him and the rest of the team over at Rootstock are doing fantastic work with cryptocurrency and Sidechains.
We wish them all the best. Yeah, it has always surprised me why people use gift card when they can just keep their money and have the option to spend it anywhere. Wow, Christmas is a crazy time of year: Just a heads up, Microsoft has updated their policy for privacy and personal information: D I bet they love cookies and Windows Thanks for the heads up!
Not surprising though, Microsoft is constantly trying to catch up with google and facebook because they want to be able to own everything too: New Privacy policy is we are the cookie monster and all of your cookies belong to us! I get why they do it, but its a bit extreme , especially in the case of facebook and google , facebook are a market monster and will just do good business , same as google , they will expand and buy out the small fry , Microsoft is no better, they are the same as google , albeit a little old fashioned and always trying to catch up, forgetting they made the playground: D , but yes I don't like their policy, first it was a rush to secure the proprietary sector and get as much as possible off linux, then there were the apple wars: D for the private sector and afterwards they have trailed off to mobile , it's a shame they've went with the mainstream , rather than continue to innovate and push hard, they just do their yearly program , buy a big company once , push out some windows every years , get the business side , jack the competition , use your leverage to buy some big company, so yeah so far if it fits in their marketing plan it will be bought, Skype, Linkedin , gone to MSoft , Google is a bigger beast tho , they have more ongoing projects and with all the information they've collected must be pretty well off, patents, documents, emails, whole libraries, so their tech departments will really focus on "innovations" basically they are a tech conglomerate so far , MSoft is the code with their past libraries and work in the last 20 years, but they are tech too, just phones mainly, or so we are told: And facebook is way past its inception, kind of wish they would have gone a different route , but they want to grow and have their own millions of billions so marketing and marketing: I completely agree, it is extreme.
It is like the jealous neighbor who realizes there house is suddenly small than the person next door! Facebook just accidentally made a perfect business model and google has been slowly but steadily been growing to take over!
Oh yeah, Microsoft and apple essentially stole their best ideas from linux and then copyrighted them: Then they get jealous of android and iPhone and make their windows phone. Always trying to "catch up to compete"! Yeah that is essentially their marketing plan! Yeah, google follows a similar business model except they have "innovation" teams like you are saying!
Yeah, neither was I until recently! You'll get there, it just takes a little bit time. Awesome, I will check out the contest now! Here's a step by step guide to setting up a wallet and buying Dragonchain: Will Disney's side chain, called "Dragonchain", one day replace the blockchain? What does Dragonchain bring to the Chain? This image screams subliminal message, with the upside down "chain" and the N with the red line!
Here are the other levels of the Dragonchain: This level is the business node, which will process transactions and be able to determine whether a transaction is approved or declined. The purpose these nodes is to ensure requisite diversity of sources of information — it acts as a check against errant nodes which may be compromised, for one thing.
Quoting page 10 of the design document [PDF]: This will allow a more flexible development of marketplaces than any attempt to define that early in the development of the platform So it seems that each business will have its own dedicated node to use soley for their establishment. The Future of Side chains Will this become a new trend that Disney started? All of these thoughts, ideas and opinion I have written are owned by ballinconscious except those who I have stated otherwise yet they do not necessarily reflect who I am in anyway, shape or form; Nor does it reflect anyone I've seen, known or those who have existed in the past What are your thoughts on Dragonchain?
Could it actually make the core blockchain obsolete? Thanks for viewing my post! Follow Me Steemit ballinconscious facebook. Authors get paid when people like you upvote their post. Where do I buy? Well, I guess you buy on the Dragonchain! You can buy on etherdelta. You can buy on Kucoin, need a referral code? Walt Dizney is Hitler. They are an evil corporation The movies dizney makexs are supposed to be for children, but they are anything but child safe.
Yeah, that is why I said I was suspicious of their intentions! For the first time, mickey mouse will become a currency!