The idea behind sidechains is that they will allow multiple blockchains to work with one another, as opposed to traditional cryptocurrencies where each blockchain is independent. As such, sidechains are a key component of third generation blockchains in that they enable interoperability. An asset on one blockchain would be able to be moved to another and back without going through a counterparty.
Sidechains are being developed for use in Cardano, a third generation blockchain being designed and built by IOHK.
Wow this is amazing. It could potentially make life so much simpler. And if Cardano will be the first to present a usable version of this, it could be the game changer.
PoPoS for Cardano side chains does not need to be this complicated.
I’m toying around with a research proposal / whitepaper on it. It’s slow going as I am full time employed in an unrelated industry, with kids running amok.
Essentially, you’re positing a chaotic ecosystem with problems like potential reorgs and lack of synchronization, like what the original sidechain authors addressed, but that is not really the use case for Cardano.
Edit: let me amend this by saying, I recognize there are different use cases that will require different solutions, even within Cardano.
1.) I imagine such sidechains (or the parallel epochs generally?) are also a challenge for explorer-portals like www.cardanoexplorer.com, because if there is no single blockchain, they have to query multiple ones or all of them for a certain transaction id. A sidechain - to become traceable - would have to ask the explorer portal to become a node of the sidechain.
2.) NIPoPoWs are strongly compressed proofs of the right to own and not having spend. The goal is to have a strong proof without any unnecessary amount of data. And the into a sidechain transferred amount of coin X sometime later can be transferred back to the original chain.
This looks like an almost perfect mechanism for money laundering. I can set up my own sidechain, having a couple of nodes. Of course, they are not only confirming and trusting, but they all are under my full control. After having received amount x from main chain I can return this amount (eventually also split to parts) to the main chain without having ANY trace from the initial transaction.
Then I destroy the entire sidechain. Better than every mixing service.
Do I miss something or is this a side-effect of scalability and interoperability or is this something wanted on top of anonymity and privacy?
Yes there are legal hurdles, primarily KYC I think, which is why a few exchanges such as Coinbase specialise in fiat/crypto and others concentrate on crypto/crypto.
By the way if you want to pursue this you should do it elsewhere, this is very off-topic here.
btw, I spend some time to “normalize” the auto-generated subtitles. English is not my native language But from the spokesman’s name to all the “cardinals” and “ADDAS”, I think I’ve improved and clarified a lot, to have a base for the German translation.
As youtube subtitles are handled in a community manner, they require some confirmation or even further improvements by other members.
Simply click on the HD-settings icon > subtitles > add subtitle >
There you can simply confirm or elaborate my work.
(If your chrome browser becomes slow showing the timedtext-editor I recommend using Firefox)
I was talking about fiat->ADA, ADA->fiat is different regarding legalities, though for other reasons exchanges will tend to offer both or neither. I’d expect the debit card to be quite a long way off yet, given other priorities.
