Basic Smart-Contract that's completely decentralized
Let's start this part with Basic Smart-contract which could become the foundation for developing or building the advanced one. Basic contract in this context is peer-to-peer agreement that must be fulfilled before something of value is released to the receiving peer. Something of value like money, smartphone, etc is tied to an agreement which is released to the recipient when the agreement is fulfilled. But this smart-contract will be developed on the Sidechain
We start the contract by locking something of value in a contract address on the decentralized Sidechain system, with an agreement that if a given task is fulfilled the fund locked in the contract address is automatically unlocked and sent to the recipient.
The contract is written in a general language everyone including the system can understand and execute, and a copy of the contract is held by all nodes who are the witnesses. For example, a Node create the contract with a peer and it's locked in a contract address and synced by the rest of the Network participants who will act as witnesses to the agreement and also be part of approving the contract when it's fulfilled. The contract could be written like this (in codes or general language) "if an Address/Account A sends back borrowed ¢52 to this address in 3days then release to him back his bitcoins locked in the contract address. Once the peer fulfills this contract by sending back the borrowed fund, the network participants or witnesses verify that the contract has really been fulfilled and they allow the bitcoins to be released to the peer, then the latest State of the Contract is synced by the participating nodes. Very simple, but the words Smart-contract could sound really intimidating sometimes.
So, this in an idea how developers can simply build a basic Smart-contract on this Sidechain & even Mainchains
Next we will be dealing on Advanced Smart-contract.
Topic: Bitcoin Sidechain & Colored-coins Idea (Read 131 times)
For those who may be worried about the project DAO getting hacked.
Well, it's going to be extremely unlikely as long as the principles listed above are well implemented.
What you should be worried about is people losing their Sidechain private keys or seed phrase due to not taking proper measures to keep them secured. So, it could only happen at individual level while the rest of the decentralized users who take the right security measures, for example, by using a clean/secure laptops or phones, are uneffected.
Nevertheless, to protect against individual hacks, additional security measures can be implemented on this Project, close to the DAO, which involves the use of Multisig addresses by users to reverse unauthorized transactions. For example, if a thief steals someone's private keys or seed phrase and withdraws/transfers the victim coins from DAO pool, the coins will be automatically sent to multisig address initially set up by the user, then the user or the victim is alerted to reject the transfer, or authorize/allow legitimate ones he/she freely made himself. Once a transfer is rejected, it goes back to the DAO pool.
So, it's important that users (especially those with assets they consider big) individually set up this extra Multisig security. It's not necessary though.
Well, it's going to be extremely unlikely as long as the principles listed above are well implemented.
What you should be worried about is people losing their Sidechain private keys or seed phrase due to not taking proper measures to keep them secured. So, it could only happen at individual level while the rest of the decentralized users who take the right security measures, for example, by using a clean/secure laptops or phones, are uneffected.
Nevertheless, to protect against individual hacks, additional security measures can be implemented on this Project, close to the DAO, which involves the use of Multisig addresses by users to reverse unauthorized transactions. For example, if a thief steals someone's private keys or seed phrase and withdraws/transfers the victim coins from DAO pool, the coins will be automatically sent to multisig address initially set up by the user, then the user or the victim is alerted to reject the transfer, or authorize/allow legitimate ones he/she freely made himself. Once a transfer is rejected, it goes back to the DAO pool.
So, it's important that users (especially those with assets they consider big) individually set up this extra Multisig security. It's not necessary though.
Building the Sidechain on Bitcoin principles/Ideals
It's necessary that this Project or Sidechain be built on solid foundation to keep it secure and safe for users. This foundation we are talking about is the good principles Bitcoin Blockchain is built on. To be able to identify all the principles you need to know the characteristics of the Bitcoin blockchain. The most important ones we have identified so far are Decentralization, Transparency, Immutablity, Privacy/Anonymity features, Censorship Resistant, Permissionless/Trustlessness, Deflationary Currency etc
These are some of the most important principles of Bitcoin and we need to make sure the Sidechain have these characteristics or is built on the principles.
Summary on how the Bitcoin Principles should work on the Sidechain/sidechains:
Decentralization: we once explained decentralization to mean this: a properly decentralized system means Power & Control of the system are equally distributed to its participants, and the ability to abuse the system by anyone is checked and prevented by everyone or by the participants. The Sidechain should be built to enable any interested human to easily run its full node and participate in its Network activities. If the Sidechain becomes too large for everyone to run, we could have extra sidechains attached to the parent Sidechain or directly to the Bitcoin Mainchain. The extra sidechains could be customized to hold limited and unlimited amount of data or blocks. Once the limit is reached on limited sidechains they are automatically locked to prevent them from getting too large for certain people to run as full nodes.
These extra sidechains will rely on the parent Sidechain they are attached to for coins and DAO application, for exchanging the coins to/from Bitcoin and altcoin Mainchains. While the others sidechains could be standalone sidechains with their own DAOs for communicating directly with Bitcoin and altcoins Mainchains.
*Members should self-custody their funds/assets for decentralization sake.
Transparency: The Sidechain should be Open or Public. Some of the benefits of Transparency are, it helps make it easy for Network participants to monitor activities that should be public on the network, and for proving transactions to others. Private activities of individuals should be hidden from the rest of the network and probably only seen/known by their owners who have decryption or private keys to see them.
Immutablity: Public data and things of historic values must be kept immutable on the Sidechain. If changes are ever made to any data, the old record must remain unchanged & undelete.
Privacy/Anonymity feature: Private data on the Sidechain should be hidden from the public or other participants and only be known or seen by their owners. The data could be held by all nodes or the rest of the network in encrypted form. The private data includes participants identity, biometrics, ip address, etc. A participant becomes anonymous when his/her identity is hidden from the rest of the network.
Censorship Resistant: No transaction by any participant should be stopped/prevented for whatever reason (unless maybe the transaction could harm the network or the innocent)
Permissionless/Trustlessness: Interested participants require little to no permission to be part of the Network. In regards to Trustlessness, interested participants need little to no trust to be part of Network. So, no participant should be trusted not to fail you or the system even if he/she has high trust score. Every claim should be verified personally or/and by the network. Things should be done such that it is very difficult or almost impossible for anyone to abuse or cheat the system or other participants.. . And that is what decentralization can help achieve.
Deflationary Currency: The system main currency should be deflationary to serve as a good Store of Value. .
Additional principle that needs to be considered:
* Reputation and Merit points: Honest and "economic" Nodes are rewarded with points for contributing honestly to the network and helping to keep it functional. The more good points they accumulate the more opportunities/responsibilities they get in the Network. Fault-less(little to no fault) contributions have more good points.
Next is post on "Building basic and advanced Smart-contract system on the Sidechain"
Post edited Sept/22/2023, 12:50 PM (GMT)
Post before the edit can be found here: https://archive.fo/vYiMM
It's necessary that this Project or Sidechain be built on solid foundation to keep it secure and safe for users. This foundation we are talking about is the good principles Bitcoin Blockchain is built on. To be able to identify all the principles you need to know the characteristics of the Bitcoin blockchain. The most important ones we have identified so far are Decentralization, Transparency, Immutablity, Privacy/Anonymity features, Censorship Resistant, Permissionless/Trustlessness, Deflationary Currency etc
These are some of the most important principles of Bitcoin and we need to make sure the Sidechain have these characteristics or is built on the principles.
Summary on how the Bitcoin Principles should work on the Sidechain/sidechains:
Decentralization: we once explained decentralization to mean this: a properly decentralized system means Power & Control of the system are equally distributed to its participants, and the ability to abuse the system by anyone is checked and prevented by everyone or by the participants. The Sidechain should be built to enable any interested human to easily run its full node and participate in its Network activities. If the Sidechain becomes too large for everyone to run, we could have extra sidechains attached to the parent Sidechain or directly to the Bitcoin Mainchain. The extra sidechains could be customized to hold limited and unlimited amount of data or blocks. Once the limit is reached on limited sidechains they are automatically locked to prevent them from getting too large for certain people to run as full nodes.
These extra sidechains will rely on the parent Sidechain they are attached to for coins and DAO application, for exchanging the coins to/from Bitcoin and altcoin Mainchains. While the others sidechains could be standalone sidechains with their own DAOs for communicating directly with Bitcoin and altcoins Mainchains.
*Members should self-custody their funds/assets for decentralization sake.
Transparency: The Sidechain should be Open or Public. Some of the benefits of Transparency are, it helps make it easy for Network participants to monitor activities that should be public on the network, and for proving transactions to others. Private activities of individuals should be hidden from the rest of the network and probably only seen/known by their owners who have decryption or private keys to see them.
Immutablity: Public data and things of historic values must be kept immutable on the Sidechain. If changes are ever made to any data, the old record must remain unchanged & undelete.
Privacy/Anonymity feature: Private data on the Sidechain should be hidden from the public or other participants and only be known or seen by their owners. The data could be held by all nodes or the rest of the network in encrypted form. The private data includes participants identity, biometrics, ip address, etc. A participant becomes anonymous when his/her identity is hidden from the rest of the network.
Censorship Resistant: No transaction by any participant should be stopped/prevented for whatever reason (unless maybe the transaction could harm the network or the innocent)
Permissionless/Trustlessness: Interested participants require little to no permission to be part of the Network. In regards to Trustlessness, interested participants need little to no trust to be part of Network. So, no participant should be trusted not to fail you or the system even if he/she has high trust score. Every claim should be verified personally or/and by the network. Things should be done such that it is very difficult or almost impossible for anyone to abuse or cheat the system or other participants.. . And that is what decentralization can help achieve.
Deflationary Currency: The system main currency should be deflationary to serve as a good Store of Value. .
Additional principle that needs to be considered:
* Reputation and Merit points: Honest and "economic" Nodes are rewarded with points for contributing honestly to the network and helping to keep it functional. The more good points they accumulate the more opportunities/responsibilities they get in the Network. Fault-less(little to no fault) contributions have more good points.
Next is post on "Building basic and advanced Smart-contract system on the Sidechain"
Post edited Sept/22/2023, 12:50 PM (GMT)
Post before the edit can be found here: https://archive.fo/vYiMM
Concerning the 2 red links that connect the "Wallet DAO application" with the Sidechain, here: 
Their purpose is to pass message in between the Sidechain and the DAO on how much coins a user has sent to the DAO pool or has on his/her Sidechain address.
— Once the amount of coins a user sent to the DAO pool is verified it's communicated to the Sidechain via the red link, the users node on the Sidechain immediately print the equivalent amount of coins and it's sent to his Sidechain address.
— When the user decides to send the coin back to the Mainchain, his balance is verified by Sidechain nodes and communicated via the link to DAO. The equivalent amount of coins are released from the DAO pool and send to the user's Bitcoin/Mainchain address.
*It's important to note that the nodes on both the DAO and Sidechain help verify the amount of coins a user has on DAO pool and Sidechain before they allow the coins to be released to the user's Sidechain or Mainchain address. Verification of coins sent to DAO pool is done by checking the user's Bitcoin/Mainchain address the coins were sent from. The Bitcoin/Mainchain address could be linked to the user's Sidechain account to allow for this verification.
Next is post on "Building the Sidechain on Bitcoin principles"
Their purpose is to pass message in between the Sidechain and the DAO on how much coins a user has sent to the DAO pool or has on his/her Sidechain address.
— Once the amount of coins a user sent to the DAO pool is verified it's communicated to the Sidechain via the red link, the users node on the Sidechain immediately print the equivalent amount of coins and it's sent to his Sidechain address.
— When the user decides to send the coin back to the Mainchain, his balance is verified by Sidechain nodes and communicated via the link to DAO. The equivalent amount of coins are released from the DAO pool and send to the user's Bitcoin/Mainchain address.
*It's important to note that the nodes on both the DAO and Sidechain help verify the amount of coins a user has on DAO pool and Sidechain before they allow the coins to be released to the user's Sidechain or Mainchain address. Verification of coins sent to DAO pool is done by checking the user's Bitcoin/Mainchain address the coins were sent from. The Bitcoin/Mainchain address could be linked to the user's Sidechain account to allow for this verification.
Next is post on "Building the Sidechain on Bitcoin principles"
A blueprint for building a near perfect Sidechain that is really fast and has the ability to accommodate more chains(both altcoins and extra native chains) with their tokens which are called Colored-coins in Bitcoin language.
We need this for heavy & fast transactions for decentralized exchange, prediction market, defi, NFTs, micro/cheap transactions, etc. It should help the Mainchain remain light and free from clogs due to heavy usage. I personally believe the mainchain should be used mostly for occasional transactions and for storing light data, but if you are a heavy user or want to do lots of transactions then the Sidechain like this one we are proposing should be used.
It's Bitcoin Sidechain that allows users to transfer their bitcoins from the Mainchain to some sort of decentralized wallet application or DAO(a mix between Mainchain & Sidechain) which links the Mainchain to the Sidechain Network. Once a user deposits bitcoins on this dao wallet, equivalent amount of deposited coin is automatically printed and sent to the users address on the Sidechain. The Sidechain coin is pegged to the price of Bitcoin. That's if 1 bitcoin is 30,000,1 Sidechain coin is 30,000.
You can store your "bitcoins" as long as possible on the Sidechain, and a first time Bitcoin user can even buy "bitcoins" from the Sidechain and later have them transferred to the Mainchain.
To withdraw coins from the sidechain to the Mainchain, a withdraw button is clicked, the DAO wallet is immediately notified, it checks the total amount of spendable coins you have in your Sidechain address, deduct that from the pooled bitcoins, automatically generates an address on the Mainchain for you (or you probably type in your choice bitcoin address) and it sends your bitcoin balance there.
This Sidechain & DAO are completely decentralized, anyone is free to run their full node and participate in the Network activities. Altcoin chains can also be linked to the Sidechain via DAO to print pegged altcoins or colored coins and possibly exchange them with "bitcoins" on the Sidechain.
And more sidechains can be automatically created from parent Sidechain & attached to the Sidechain, Bitcoin & altcoin mainchains via the DAO
Will probably update this post in the future.
Locking it for now.
Post edited Sept/15/2023, 08:24 AM (GMT)
Post before the edit can be found here: https://archive.fo/T2wX4
We need this for heavy & fast transactions for decentralized exchange, prediction market, defi, NFTs, micro/cheap transactions, etc. It should help the Mainchain remain light and free from clogs due to heavy usage. I personally believe the mainchain should be used mostly for occasional transactions and for storing light data, but if you are a heavy user or want to do lots of transactions then the Sidechain like this one we are proposing should be used.
It's Bitcoin Sidechain that allows users to transfer their bitcoins from the Mainchain to some sort of decentralized wallet application or DAO(a mix between Mainchain & Sidechain) which links the Mainchain to the Sidechain Network. Once a user deposits bitcoins on this dao wallet, equivalent amount of deposited coin is automatically printed and sent to the users address on the Sidechain. The Sidechain coin is pegged to the price of Bitcoin. That's if 1 bitcoin is 30,000,1 Sidechain coin is 30,000.
You can store your "bitcoins" as long as possible on the Sidechain, and a first time Bitcoin user can even buy "bitcoins" from the Sidechain and later have them transferred to the Mainchain.
To withdraw coins from the sidechain to the Mainchain, a withdraw button is clicked, the DAO wallet is immediately notified, it checks the total amount of spendable coins you have in your Sidechain address, deduct that from the pooled bitcoins, automatically generates an address on the Mainchain for you (or you probably type in your choice bitcoin address) and it sends your bitcoin balance there.
This Sidechain & DAO are completely decentralized, anyone is free to run their full node and participate in the Network activities. Altcoin chains can also be linked to the Sidechain via DAO to print pegged altcoins or colored coins and possibly exchange them with "bitcoins" on the Sidechain.
And more sidechains can be automatically created from parent Sidechain & attached to the Sidechain, Bitcoin & altcoin mainchains via the DAO
Will probably update this post in the future.
Locking it for now.
Post edited Sept/15/2023, 08:24 AM (GMT)
Post before the edit can be found here: https://archive.fo/T2wX4
Jump to: