Does Bitcoin need any sidechains for its future? The DeFi community nowadays is split between “yes” and “no” as an answer to this question after the resurgence of a six-year-old proposal. Since the controversy around sidechains involves advanced crypto language, let’s cover the basics first and then take a deeper look into the pros and cons of the proposal as well as any potential solutions.
Before we delve into the specifics of BIP-300, it’s worth mentioning that there are alternative approaches to expanding Bitcoin’s utility that don’t involve sidechains. One such approach is merged mining, which allows Bitcoin’s Proof-of-Work (PoW) to be shared with more chains at no extra cost. This is not only economically viable but also creates a symbiotic relationship with Bitcoin rather than competing against it. For example, one manner of accomplishing this is to employ alternative economics like EIP-1559 on the merge-mined chains, which makes transactions more cost-effective.
The
We współpracy z: https://bitcoinmagazine.com/technical/bitcoin-beyond-bip-300-what-future-holds-for-defi-on-btc
