Re:Bitcoin Sidechains
by williamcotton on Tuesday October 28, 2014 @03:26PM
(#8523010)
I'm not sure what you mean by "assuming the sidecoins aren't being used up by miners somewhere". Could you go in to detail?
What do you mean by "different sidechains picking different forms of payment?".
Doesn't all of this basically guarantee that the mining rewards of Sidecoin need to be exactly matched to Bitcoin? If so, what's the point of sidechains at all?
Yes; anything else would be madness. (If you got back less than 5btc, it would be a huge tax on any usage of creation of sidechains; if you got back more than 5btc, well, there's gonna be problems.)
> So for Sidecoins to be economically viable and therefor functional, someone would need to be constantly injecting Bitcoin in to the sidechain, right?
Yeah, assuming the sidecoins aren't being used up by miners somewhere. You have to pay for the security somehow; miners aren't charities - the transaction fees have to come from somewhere. In Bitcoin, the transaction fees currently come in the form of inflation+transaction fees, but probably different sidechains will pick different forms of payment depending on their goals.