re: ideas for using sidechains here
1. Bryce seems to have indicated he's making UNO a sidechain friendly platform.
2. okay fine. makes us ready for the future.
3. what good are they? something about 'frozen equity' contained within the chain ... ohh I think in-house already has something like that
(my guess) sidechains are like any Altcoin
tech is one thing --- value is another thing
pegs don't work with a product that is traded on the free marketIf Uno was a sidechain of bitcoin with a peg 80btc to 1Uno it would have value: Zero (because no buyers and no more free market because pegged, so peg would likely fail and be useless, peg and free market can not exist side by side - i don't see how pegs should work. Creating a sidechain for BTC is nothing special and uno certainly shouldn't be one. Sidechains do not have a good value as moneytokens/store of value!)
If Uno would implement option for sidechains on itself is maybe a different story but then again: does it provide more value? Is it safe? Do we need it? Certainly we should not be in a rush about it!
I'm not even sure what the plan is!
Creating it is one thing but to foresee its impact on the market is an entirely different thing! Sidechains is not a one-man-show and blind trust is not advised!
Only because something is new doesn't mean it has value!
I'm just glad the issue is not imminent! I remain highly sceptical.
Seems to me that sidechains are the same concept of "proof of burn", but instead of burning into a non recoverable wallet, you are burning them into an algo that they can later be recovered from. I dont understand however, how UNO could be pegged to BTC with sidechains, both coins are already in existence and in order to go from one chain to the other, someone must fund the algo with pre existing coins in order for a transfer to work. Where will the BTC come from for one to cross chains? This scenario seems unlikely to succeed to me.
On the other hand, if UNO was made sidechain friendly and it was pegged to a NEW crypto that could only be created by Burning UNO into the algo, and equally redeemable back out, I could see that working.
An example of this working would be in creating a Distributed Autonomous Company(DAC). You sidechain UNO to company credits, and use the credits to pay for goods and services, the credits spent would then be distributed to the miners maintaining the network and the miners could then use the credits for goods and services with the network, or sidechain the credits back into UNO.
Why not just use UNO to pay the company in the first place? By sidechaining into company credits that live on there own blockchain, the miners are not only mining to secure the company credit blockchain on the front end, but also securing the network the company lives on in the back end.
I forsee a future where only a handful of exchangeable cryptos are needed and the rest of the industry will just sidechain off a specific crypto of choice. sidechain into one companys blockchain, pay for your good or service,then sidechain out the remainder back to the base crypto. What ever credits you sent in the sidechain can then be cashed out by the receiver into UNO or continue to be used within the sidechain.
cheers
guy