Topic: [2019-10-22] Bitcoin Sidechains To Send Altcoins Prices to ZERO? - page 2. (Read 325 times)

Too much money needed to create a sidechain, it's a bit like mining bitcoins... not really for the average Joe. More money you will have to invest in, more "power" you'll get.  Another argument I found interesting, what could happen once we have a lot of sidechains built, couldn't it quickly become a real mess?

I know the advantages but It reminds me of powdered milk for newborns. We collect the milk from the cows, we process it into powder in the factories. To finally transform it back into liquid milk (what it was at first + everything chemical, as a gift )


https://blockstream.com/liquid/
I don't think Blockstream is imagining something   Nor ETH with Plasma or Lisk.

It's obvious that the idea has alot of potential (as well as technical hurdles, hence the distinct lack of Bitcoin sidechains in operation since the idea was first written up)

I like the experimental possibilities; Ethereum's EC20 protocol (?) could be viewed like a sidechain system, where many different tokens (that do not necessarily have to be currencies ) are run in parallel with the underlying Ethereum blockchain (Buterin always said "Ethereum is not designed to function as a currency", and to a certain extent that's true, you're buying shares in the overall platform when you purchase ETH). This direction was originally fulfilled with the "colored coins" approach in Bitcoin, and at least one noteworthy success (Omnilayer's hosting of the Tether stablecoins) has been using Bitcoin's main blockchain for this secondary purpose.

Having a sidechain for an internet domain name system, cryptographic shares in companies (even other financial contracts), or just for serving and querying keys (PGP system could use such a sidechain in light of this summer's keyserver flaw) could all be very aptly implemented as Bitcoin sidechains.

There's a problem with all the possibility though; freedom to experiment includes freedom to design deceptive or disastrous sidechains, and the corresponding freedom to make unwise decisions about using such chains. I expect that a breakthrough in Bitcoin sidechain tech and a subsequent explosion in marketing of new sidechains is going to lead to alot of fraud and losses of over-excited investors.

No-one's holding your hand to bail you out if you screw up, permissionless capitalism means all trades are final, even if "it isn't fair". Buyer beware.

An advantage of sidechains adding features is that it is then secured by the full value of bitcoin, thus it is distributed and has a lot of value securing it as compared to a new alt coin that has very low value and therefore lower security.

Tomorrow (a few hours from now), it will have been exactly five years since the original white paper on Bitcoin sidechains (PDF) was released. The basic idea explained in the paper was that Bitcoin users would be allowed to move their coins between multiple, completely different blockchains that could enable a wide range of new cryptocurrency features.

The end result of this functionality would theoretically be an end to the many altcoins that existed on the market at the time, as there would no longer be a legitimate reason to create a new cryptocurrency in an effort to experiment with new features. Instead, new features that were sufficiently complex could come to Bitcoin by way of sidechains.

Today, sidechains do exist, but they come with trade-offs in the areas of centralization and censorship resistance – at least for now. At the recent Transylvania Crypto Conference, a panel of experts on the topic, including Blockstream CEO and sidechains white paper co-author Adam Back, discussed the current state and future potential of sidechains for Bitcoin.

The source is here for more reading...





The claim is that Bitcoin Sidechains can eventually make all altcoins lose value and purpose as this functionally can easily adopt all the features that altcoins may have rendering them, in essence, very worthless and inutile. "...new features that were sufficiently complex could come to Bitcoin by way of sidechains."


Now, whether this claim can happen or not depends a lot if Sidechains can be implemented soon and if the market will be reacting in the way it is expected.

Do you think that Sidechains has this potential or maybe the guys behind this proposition is just imagining things? Please share here what you may know about this Sidechains...