The Bitcoin scaling debate is far from over, by the look of things. One potential way to scale Bitcoin is by using the so-called sidechains. Drivechain is a project aiming to provide sidechains to the Bitcoin ecosystem in the future. There are quite some benefits associated with this route. Now is a good time to look at what Drivechain has been working on so far.
It is always good to keep an open mind when it comes to different Bitcoin scaling solutions. Core, Unlimited, Extensions Blocks, and BIP 100 are just some of the many different proposals out there. However, there is also the option to use sidechains, as Drivechain suggests. This approach would solve the issue of using different currencies for different purposes and not being able to support different transaction types.
Sidechains should be seen as alternative blockchains of Bitcoin who do not sue their own token. Unlike most altcoins, who seem to borrow some of Bitcoin’s code in one way or another, a sidechain would still be part of Bitcoin itself, yet capable of offering different features. Moreover, using sidechains does not affect the total number of bitcoins in circulation. One can deposit BTC on the sidechain and have that converted to “mainchain Bitcoin” at any time.
There are quite a few advantages to using sidechains on the Bitcoin network. First of all, there are no limits as to what can be introduced to bitcoin, as every sidechain can virtually do its own thing. Moreover, there is no further need for additional cryptocurrencies, as the market is already getting flooded with thousands of useless cryptocurrencies.
More importantly, it will also eliminate the competition without stifling innovation. This does not mean there won’t be innovative features whatsoever, yet everything will be manifested under the overarching Bitcoin umbrella. This does not mean existing altcoins will go away, yet it may result in fewer new coins being created in the future. Moreover, it means the main branch of Bitcoin doesn’t need to change, yet sidechains can introduce their own features, such as bigger blocks, SegWit, anonymity, privacy, et cetera.
Drivechain is also trying to address some of the security concerns associated with sidechains. The project uses a rather straightforward model that ensures funds is safe at all time. Bitcoins are placed into special accounts which allow funds to be moved at any given time. However, the money deposited from the main chain to a sidechain can only be opened on special occasions. This also requires a large majority of miners to leave a note stating where the money will be transferred to. Stealing funds should be virtually impossible.
In the end, the concept proposed by Drivechain will allow for faster progress and more innovation. Or that is what the team hopes to achieve in the long run. Whether or not sidechains will ever be a part of Bitcoin, remains to be seen, though. However, it would give the user more options to support whatever they believe in while they remain an integral part of the main Bitcoin ecosystem. It is an interesting concept, to say the least.
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