. This is similar to the economic security of a PoW blockchain. Like in PoW, each fork of the Stacks chain has its own independent "security budget" — an attacker must out-spend the security budget to carry out a reorg, and the security budget is a function of the block rewards. Sidechains, drivechains, and merged-mined chains all rely on external miners for their safety, since their safety is guaranteed in part by external miners validating their blocks. In PoX, the only difference is that the miners spend another blockchain’s tokens (BTC in Stacks’ case) instead of energy. Therefore, Stacks can’t be a sidechain, a drivechain, or a merge-mined chain, because none of these other systems’ security budgets are a function of their tokens’ worth. The onus on these systems is to get external miners to care enough to do so, and in the case of sidechains, drivechains, and blind merged-mined chains, there is an additional onus to encourage their nodes to mine blocks at all (since there is no on-chain reward for them to earn by doing so). By contrast, disinterested Bitcoin miners neither assist nor prevent a reorg in PoX — they only record the history of all Stacks forks.
Gold continued to trade globally as normal. Bitcoin will be the same. Also, the gold ban in the 30's meant that gold moved from the US to Switzerland etc. Capital control anywhere have never worked and gold has always worked. https://t.co/78nenyEVLs
— Raoul Pal (@RaoulGMI) November 12, 2020. I think this is a good thread.
Unless the attacker can attack the Bitcoin chain itself by quickly producing a better Bitcoin fork, a reorging miner must sustain the attack for at least N + 1 Bitcoin blocks. This gives honest miners and users ample time to notice and react to the reorg attempt. PoX offers two additional, unique security properties on top of PoW. First, no matter how much BTC a reorging miner can commit, the act of executing a reorg is going to be time-consuming .
He added: "I do not see how the government can put a ban in effect that can be enforced. I believe that the government will try to put regulation in place to control it—that's the best they can do at this point."
Abstract: In the Zendoo white paper, we introduced a novel sidechain construction for Bitcoin-like blockchains, which allows a mainchain to create and cryptocurrency communicate with sidechains of different types without knowing their internal structure. In this paper, we take a step further by introducing a comprehensive method for crypto sidechains to communicate amongst each other. We will also discuss the details of a cross-chain token transfer protocol that extends the generic communication mechanism. With the cross-chain token transfer protocol, it can enable a broad range of new applications, such as an exchange platform, that allows the ability to trade tokens issued from different sidechains.
In a message to Decrypt , Moon Capital doubled down on Dalio: "I still wouldn't be surprised if he [Ray Dalio] owns a small amount of Bitcoin just in case his analysis is off. If he doesn't then he's clearly not following one of his own principles—open-mindedness."
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Miners are financially incentivized, but not required, to build atop a canonical chain fork that the rest of the network follows. This fork is simply the Stacks fork with the most blocks, since this represents the fork in which miners spent the most time working on, as measured by number of Bitcoin blocks. This is a desirable property, because it means that honest miners can recover the chain in the event of catastrophic network partitions or periods of dishonest mining activity. Because anyone can become a miner only by spending BTC, the blockchain may fork. The Stacks blockchain provides a way for nodes to independently identify the canonical fork without consulting other nodes. Forks are a failure recovery mechanism.
In 2010 Satoshi Nakamoto left the project in the hands of Gavin Andresen and this decision made the quality of Bitcoin Software evolve in a very obvious way, as the new leader rewrote more than half of Nakamoto’s original code.
Moreover, the Stacks blockchain can fork, and there exists a protocol to rank forks by quality independent of the set of miners and the tokens they hold. The act of block production requires an extrinsic expenditure — it is not tied to owning the native token, as would be required in PoS. The only way to produce blocks in the Stacks chain is to transfer Bitcoin to a predetermined randomized list of Bitcoin addresses. Stacks is NOT a PoS chain. These two properties further distinguish it from PoS chains, which cannot fork due to the inability to identify a canonical fork without trusting a 3rd party to decree a particular fork as valid. The ability to fork allows the Stacks blockchain to survive failure modes that would crash a PoS chain.