reffreffreff on Nostr: From @bitcoindotrocks on the blue bird app... I've been reading more about BIP-300, a ...
From @bitcoindotrocks on the blue bird app...
I've been reading more about BIP-300, a proposal to scale #Bitcoin via sidechains.
Here's what you need to know:
1️⃣ FIRST, WHAT'S A BIP?
BIP stands for Bitcoin Improvement Proposal
BIPs are proposals written by developers with the goal of improving Bitcoin in some way.
Because Bitcoin is open-source, anyone can propose a BIP on the Bitcoin repo: github.com/bitcoin/bips
2️⃣ WHAT'S THE GOAL OF BIP-300?
The goal of BIP-300 is to allow developers to add features and functionality to the Bitcoin universe without actually modifying the Bitcoin Core code.
BIP-300 would allow developers to build on Bitcoin in exciting new ways without making risky changes to the Bitcoin protocol. Instead, developers would be able to build on Bitcoin sidechains.
Users could also transact on sidechains, offloading some demand for Bitcoin mainchain blockspace.
3️⃣ WHAT IS A SIDECHAIN?
A sidechain is essentially a piece of software that users can move their Bitcoin to and from.
Sidechains allow new applications to be built on Bitcoin that were previously only possible on other blockchains.
But, instead of creating a new token, sidechains just use Bitcoin.
4️⃣ WHAT IF I DON'T WANT SIDECHAINS?
BIP-300 is a backwards compatible Bitcoin upgrade, which means your node doesn't have to update to make sidechains possible.
"Non-upgraded nodes will see a number of phenomena that they don't understand. However, these phenomena don't affect them, or the validity of the money that they receive."
— Paul Sztorc, BIP-300 author
BIP-300 would enable a max of 256 total "sidechain slots" which can be proposed and enabled by Bitcoin miners.
5️⃣ WHAT ARE THE TRADE-OFFS?
Everything has trade-offs and BIP-300 is no different. Here's what the proposal says:
"Sidechains allow for competitive 'benevolent dictators' to create a new sidechain at any time.
These dictators are accountable only to their users, and (crucially) they are protected from rival dictators. Users can move their BTC among these different pieces of software, as *they* see fit."
In other words, you're trusting the person or people who are operating the sidechain.
This is very different from the Bitcoin mainchain which is designed to be trustless.
6️⃣ WHEN WILL BIP-300 BE ACTIVATED?
No date has been announced yet, and it's possible this proposal will never be implemented.
However, BIP-300 is a great example of Bitcoin developers innovating in a way that is backwards compatible and strengthens Bitcoin's network effect.
You can see the full proposal here: github.com/bitcoin/bips/b…
I've been reading more about BIP-300, a proposal to scale #Bitcoin via sidechains.
Here's what you need to know:
1️⃣ FIRST, WHAT'S A BIP?
BIP stands for Bitcoin Improvement Proposal
BIPs are proposals written by developers with the goal of improving Bitcoin in some way.
Because Bitcoin is open-source, anyone can propose a BIP on the Bitcoin repo: github.com/bitcoin/bips
2️⃣ WHAT'S THE GOAL OF BIP-300?
The goal of BIP-300 is to allow developers to add features and functionality to the Bitcoin universe without actually modifying the Bitcoin Core code.
BIP-300 would allow developers to build on Bitcoin in exciting new ways without making risky changes to the Bitcoin protocol. Instead, developers would be able to build on Bitcoin sidechains.
Users could also transact on sidechains, offloading some demand for Bitcoin mainchain blockspace.
3️⃣ WHAT IS A SIDECHAIN?
A sidechain is essentially a piece of software that users can move their Bitcoin to and from.
Sidechains allow new applications to be built on Bitcoin that were previously only possible on other blockchains.
But, instead of creating a new token, sidechains just use Bitcoin.
4️⃣ WHAT IF I DON'T WANT SIDECHAINS?
BIP-300 is a backwards compatible Bitcoin upgrade, which means your node doesn't have to update to make sidechains possible.
"Non-upgraded nodes will see a number of phenomena that they don't understand. However, these phenomena don't affect them, or the validity of the money that they receive."
— Paul Sztorc, BIP-300 author
BIP-300 would enable a max of 256 total "sidechain slots" which can be proposed and enabled by Bitcoin miners.
5️⃣ WHAT ARE THE TRADE-OFFS?
Everything has trade-offs and BIP-300 is no different. Here's what the proposal says:
"Sidechains allow for competitive 'benevolent dictators' to create a new sidechain at any time.
These dictators are accountable only to their users, and (crucially) they are protected from rival dictators. Users can move their BTC among these different pieces of software, as *they* see fit."
In other words, you're trusting the person or people who are operating the sidechain.
This is very different from the Bitcoin mainchain which is designed to be trustless.
6️⃣ WHEN WILL BIP-300 BE ACTIVATED?
No date has been announced yet, and it's possible this proposal will never be implemented.
However, BIP-300 is a great example of Bitcoin developers innovating in a way that is backwards compatible and strengthens Bitcoin's network effect.
You can see the full proposal here: github.com/bitcoin/bips/b…