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Drivechain makes Bitcoin the only crypto CryptoBlog

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This is an opinion piece by Nikita Chashchinskii, a software developer working on BIP300 sidechains.

The chain of transmission as defined in BIP300 and BIP301 offers a new vision for Bitcoin, in which the following issues are resolved:

  1. It offers an alternative to our existing contentious and political process for changing Bitcoin. The “Layer 1” rules never have to change, and new features are introduced instead by adding opt-in sidechains.
  2. It removes all reasonable arguments in favor of bitcoin’s competitors by copying all the useful features they might have, likely turning bitcoin into a monopoly in the cryptocurrency market, which is very helpful for an asset that aspires to to be “money”.
  3. It provides a workable way to generate enough transaction fees to support the Bitcoin security budget. This is particularly important, as the block grant will inevitably decrease due to halving over the years, and the existing alternatives for funding the security budget are highly problematic: the introduction of tail emission removes the limit from 21 million BTC via a hard fork, moving to proof of requires a substantial technical overhaul of Bitcoin and a hard fork, tying fee amounts to transaction values ‚Äč‚Äčopens up Bitcoin to competition from altcoins and fiat payment systems offering lower fees.

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