CryptoMediaClub
Thursday, August 28, 2025
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
CryptoMediaClub
No Result
View All Result
Home All news

Are Bitcoin ‘Drivechains’ The Future of Scaling? BitMEX Analysis

13.08.2023
A A
0
124
VIEWS
ShareShare

With the Bitcoin (BTC) network’s programmability and scalability still relatively limited compared to other blockchains, developers continue mulling over ways to push the protocol’s capabilities to its limits.

One hotly debated idea comes from BIP 300 and BIP 301 – aka “Drivechains” – a soft fork proposal to allow Bitcoin to effectively scale through sidechains. In a blog post on Monday, analysts from BitMEX explored the benefits and tradeoffs of the proposal.

BIP 300: Sidechain Peg-Out

Proposed by developer Paul Sztorc, Drivechains is an “improved merged mined sidechain mechanism for Bitcoin.” A sidechain is another blockchain that connects itself to Bitcoin’s main network by using the same internal currency, BTC, for transactions and gas payments.

The upgrade’s first component part – BIP 300 – would imbue Bitcoin with the necessary peg-out mechanism for sidechains. This would allow users to “trustlessly” move their BTC between the main blockchain and connected sidechains without requiring centralized support – a glaring issue with sidechains like Roostock and Liquid today.

However, BitMEX claims the technicals of the peg-out mechanism are “controversial” and contain “many significant weaknesses.”

ADVERTISEMENT

Specifically, the proposal puts miners in charge of responsibly redeeming users’ peg-outs every three months. This gives miners the power to steal user funds if over 50% of the network’s hash rate conspires to do so, while also being very slow for users.

“In a way, Paul’s proposal embraces the reality that under any known peg-out system… Bitcoin miners could either censor data, fake data or cooperate with the administrator and steal the sidechain Bitcoin,” BitMEX wrote.

BIP 301: Blind Merged Mining

Meanwhile, BIP301 would unlock “blind merged mining” for sidechains. Regular merged mining is when a miner mines for two or more blockchains at the same time, leveraging the same hashing algorithm to score fees on both chains.

While most miners run some form of merged mining today, they must explicitly choose to run the sidechain’s software. Blind merged mining dispenses with this need by letting a third party run the sidechain, receive its fees, and later pass on those funds to miners as BTC transaction fees.

While BitMEX said this proposal may introduce complexity to Bitcoin, the benefits it provides could outweigh that complexity.

“Increased usage of sidechains could potentially be positive for Bitcoin’s utility, and blind merged mining may be an improvement over regular merged mining,” analysts wrote.

SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.

Share10Tweet6ShareSharePin2

Related Posts

Webull Launches Crypto Trading in Australia via Coinbase Prime
All news

Webull Launches Crypto Trading in Australia via Coinbase Prime

28.08.2025
0

US-based trading platform Webull has launched crypto trading in Australia, offering access to up to 240 digital assets through a...

Read moreDetails
TOKEN6900 Presale Ending in 24 Hours: Murad Says SPX6900 Will Be Bigger Than Bitcoin, While It Takes Aim at Ethereum

TOKEN6900 Presale Ending in 24 Hours: Murad Says SPX6900 Will Be Bigger Than Bitcoin, While It Takes Aim at Ethereum

28.08.2025
Trump Goes All In on DOGE But Maxi Doge Is the Only Meme Coin That Actually Goes All In – 15 Hours Left

Trump Goes All In on DOGE But Maxi Doge Is the Only Meme Coin That Actually Goes All In – 15 Hours Left

28.08.2025
Investigation Reveals South Korean Lawmakers Are HODLing PEPE, XRP, BTC

Investigation Reveals South Korean Lawmakers Are HODLing PEPE, XRP, BTC

28.08.2025
Jerome Powell’s Fed Chair Replacement Imminent? PolyMarket Odds Skyrocket as Trump Team Weighs 11 Candidates

Jerome Powell’s Fed Chair Replacement Imminent? PolyMarket Odds Skyrocket as Trump Team Weighs 11 Candidates

28.08.2025
Load More
Next Post
Troubling signs for Bitcoin as U.S. investors pull back

Troubling signs for Bitcoin as U.S. investors pull back

0 0 votes
Рейтинг статьи
Subscribe
Notify of
guest
guest
0 комментариев
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Recommended

Forget Trading Charts, Crypto’s Real Future is Boring Payments

Forget Trading Charts, Crypto’s Real Future is Boring Payments

5 days ago
Bitcoin Mining Firm Bitdeer Gets Listed on Nasdaq Post SPAC Deal

Bitcoin Mining Firm Bitdeer Gets Listed on Nasdaq Post SPAC Deal

2 years ago
NFT Certification Protocol Wakweli Enters Partnership with Polygon

NFT Certification Protocol Wakweli Enters Partnership with Polygon

2 years ago
Top Crypto Gainers Today on DEXTools – MEMEAI, FR33, GPUBot

Top Crypto Gainers Today on DEXTools – MEMEAI, FR33, GPUBot

1 year ago

Categories

  • All news
  • Altcoins
  • Analysis
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
No Result
View All Result

Highlights

Investigation Reveals South Korean Lawmakers Are HODLing PEPE, XRP, BTC

Bitcoin faces critical resistance at $113,700, breakdown below $107k threatens return to 5 figures

Jerome Powell’s Fed Chair Replacement Imminent? PolyMarket Odds Skyrocket as Trump Team Weighs 11 Candidates

Ex-PBOC Chief Warns of Stablecoin Crisis – Run Risk Echoes TerraUSD’s 2022 Meltdown

Finastra and Circle Bring USDC Settlement to $5T Daily Cross-Border Payment Flows

Every Fourth Briton Considers Crypto as Part of Their Retirement Savings

Trending

Webull Launches Crypto Trading in Australia via Coinbase Prime
All news

Webull Launches Crypto Trading in Australia via Coinbase Prime

28.08.2025
0

US-based trading platform Webull has launched crypto trading in Australia, offering access to up to 240 digital...

TOKEN6900 Presale Ending in 24 Hours: Murad Says SPX6900 Will Be Bigger Than Bitcoin, While It Takes Aim at Ethereum

TOKEN6900 Presale Ending in 24 Hours: Murad Says SPX6900 Will Be Bigger Than Bitcoin, While It Takes Aim at Ethereum

28.08.2025
Trump Goes All In on DOGE But Maxi Doge Is the Only Meme Coin That Actually Goes All In – 15 Hours Left

Trump Goes All In on DOGE But Maxi Doge Is the Only Meme Coin That Actually Goes All In – 15 Hours Left

28.08.2025
Investigation Reveals South Korean Lawmakers Are HODLing PEPE, XRP, BTC

Investigation Reveals South Korean Lawmakers Are HODLing PEPE, XRP, BTC

28.08.2025
Bitcoin faces critical resistance at $113,700, breakdown below $107k threatens return to 5 figures

Bitcoin faces critical resistance at $113,700, breakdown below $107k threatens return to 5 figures

28.08.2025
  • All news
  • Altcoins
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
  • Analysis
Editor: cryptomediaclub.com@gmail.com
Advertising: digestmediaholding@gmail.com

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

wpDiscuz