A side chain running some kind of consensus mechanism that bit coin can verify. So your bikcoin has the proof of work, consensus and the chain keeps adding new blocks over time. The key like feature that you need is bit coin needs some way to verify the side chains consensus. It needs to be able to check that coins want to be withdrawn, and then actually perform that withdrawal....
In this episode, Su and Hasu are joined by James Prestwich, one of the leading technical experts and thinkers in this space.
Topics covered:
- What is Blockstream Liquid
- The bug James found
- Disclosure and aftermath
- Sidechains, channels, plasma, and rollups
- How Bitcoin isolates itself from innovation happening on other chains (recommended reading)
- Bitcoin in DeFi
Su Zhu is the CEO and CIO of Three Arrows Capital.
Hasu is a cryptocurrency researcher and writer.
Together, they publish on Deribit Insights and uncommoncore.co.