La Bitcoin Improvement Proposal (BIP) 300, better known as Drivechains, finds himself at the center of many lively discussions. This proposal, which is not new (it dates from 2015), recently resurfaced, sparking passionate debates among members of the Bitcoin ecosystem.
Between those who defend the proposal as a major innovation and others who categorically refuse the proposal, here is what you need to know about drivechains and their implications for Bitcoin.
What is a Drivechain?
The proposal to create a "drivechain" was suggested by Paul Sztorc (@Truthcoin on X)Founder LayertwoLabs as part of the 300 BIP and 301 BIP. It proposes a new method for adding functionality to Bitcoin by creating side chains (sidechain) and additional commonly called layer 2. This would then allow Bitcoin to have bridges between distinct chains.
It is important to clarify here that a sidechain is a secondary blockchain that is "connected" to a main blockchain. It has its own characteristics and does not modify the main chain.
Paul Sztorc told the newspaper decrypt that "Sidechains are a kind of Holy Grail in terms of Bitcoin upgrades" adding that we can add all the features we want while knowing that they remain "optional" (Opt-in). Among the said functionalities, there are Smart contract or adding additional tokens.
What are the potential benefits of drivechains?
The main advantage of drivechains is that they would allow functionality to be added to Bitcoin without modifying its main layer. This is also the characteristic of all layers 2 in principle. This means that developers could build networks with all the alternative features they want while inheriting the security and robustness of the Bitcoin network.
Sidechains are intended to improve the processing speed of transactions on the blockchain tower by providing new functionalities. In addition, a drivechain would make it possible to transfer assets from one chain to another without compromising the integrity of the assets being moved. These transfers then work by locking the asset in a transaction on the main chain, and creating a transaction on the side chain that describes the locked asset.
Concerns raised by the community
Despite the enthusiasm of some who see many benefits in drivechains, some critics are not convinced that implementing drivechains would be beneficial. They fear that drivechains are just an excuse to introduce " shitcoins " on the Bitcoin network, without providing any real utility.
On this point, Paul Sztorc responds that the BIP300 differs from protocols such as that ofOrderls for example (which also raised a lot of controversy), to the extent that the drivechain tokens would only serve the Bitcoin blockchain. They will be used, for example, to increase the confidentiality and speed of transactions.
Another concern concerns the exit mechanism (peg-out )drivechain tokens to Bitcoin.
?THE peg-in and peg-out refer to the mechanism of moving digital assets between different blockchains. A peg-in involves moving assets from one blockchain to another, while peg-out refers to the return of assets to the original blockchain.
To do this, in fact, users will have to trust 51% of the hash rate for a specific period of 6 months in order to unlock the functionalities of the drivechains. If this does not happen then the tokens on the sidechain will be lost. Naturally, this is a risk that few people are willing to take, which is understandable.
Finally, other concerns concern the implications of a possible centralization of mining and the potential effects on the economics of bitcoin mining. For example, the “maximum extractable value” (MEV) by miners could quickly complicate Bitcoin’s economic incentives if miners perceived more benefit from processing drivechain transactions rather than mainnet transactions. This could ultimately harm the robustness and reliability of Bitcoin, which has so far shown no signs of weakness under the current reward system.
However, Sztork counters that miners would have every interest in maintaining these drivechains to obtain the rewards of the fees obtained.
He adds that a drivechain would not be that different from Lightning Networkk for example, which ultimately allows faster and cheaper transactions. We will add that ligtning is a sidechain but that it does not involve the creation of new tokens.
Final word
Ultimately, it is clear that the drivechains proposition is a complex topic that raises many important questions. This opens the classic debate between those who defend a conservative view of Bitcoin and those who wish to make changes they consider essential.
Obviously, this is the case for Sztorc who believes that drivechains will bring new features to Bitcoin and that this could ensure "its victory" over all other currencies, whether altcoins or fiat currencies.
It is good to conclude by recalling that the new proposals made to Bitcoin are often subject to controversy which demonstrates the difficulty of finding a balance between innovation and maturity of the network.
To learn more about the subject, you can consult the dedicated site “ Drivechain.info ".
Note: This is not investment advice. Always do your own research. Only invest amounts you are willing to lose.
