Author

Topic: Will sidechain tokens function like altcoins? (Read 774 times)

legendary
Activity: 1610
Merit: 1183
September 08, 2016, 10:12:18 AM
#3
That's an interesting thought. I wonder how people will value those sidechain tokens in the exchanges then. To my understanding, in order to receive tokens in the sidechain, a certain amount of BTC must be locked. How many tokens would that be would depend on the developers I think. So if 1 BTC = 10 RSK, then I think that would be a constant. So if RSK is listed in an exchange the fair price would always be 1 BTC = 10 RSK, but BTC's fiat value always changes. I think that would play a role in the changes of the value of RSK too. But bottom line you will receive 1 BTC back to the main chain if you have 10 RSK.



What I asumed is that since it's a one way pegged mechanism or sorts, then the ratio of price is always 1:1, so this means that it does not make sense to have an exchange for this... im not sure how this works anyway so im just asking.

I like the altcoin speculation aspect and making money on the altcoin markets it's fun, so it would suck if altcoins stop existing due sidechains making all of them irrelevant.
legendary
Activity: 2898
Merit: 1823
September 07, 2016, 12:38:49 AM
#2
That's an interesting thought. I wonder how people will value those sidechain tokens in the exchanges then. To my understanding, in order to receive tokens in the sidechain, a certain amount of BTC must be locked. How many tokens would that be would depend on the developers I think. So if 1 BTC = 10 RSK, then I think that would be a constant. So if RSK is listed in an exchange the fair price would always be 1 BTC = 10 RSK, but BTC's fiat value always changes. I think that would play a role in the changes of the value of RSK too. But bottom line you will receive 1 BTC back to the main chain if you have 10 RSK.

legendary
Activity: 1610
Merit: 1183
September 06, 2016, 08:57:16 AM
#1
Im still trying to understand the concept of sidechains and how they will work. My question is: the tokens from sidechains (for example, RSK token for rootstok) will be able to be bought in exchanges just like different altcoins, or they can only be converted directly without being able to speculate on the price? I hope it makes sense.
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