Home Bitcoin Solving Bitcoin's modularity problem with Blockstream's pegged sideschains

Solving Bitcoin’s modularity problem with Blockstream’s pegged sideschains

Towards solving Bitcoin’s modularity problem, Blockstream CEO Dr. Adam Back alongside Matt Corallo, Luke Dashjr, Mark Friedenbach, Gregory Maxwell, Andrew Miller, Andrew Poelstra, Jorge Timón, and Pieter Wuille proposed new technology, a pegged sidechain.

According to a white paper, the pegged sidechain would enable Bitcoin and other ledger assets to be transferred between multiple blockchains. This would solve what Adam Black calls Bitcoin’s modularity problem.

“It is difficult to introduce advanced or experimental features directly into Bitcoin for risk reasons. I could see that was a very valid concern. So I moved onto the next problem how can you make Bitcoin more modular.” Back said in an interview with Bloxlive TV.

Counting over 2 years back when the segregated witness was activated, Bitcoin has still not had any protocol upgrades to address the crypto’s woes.  The most recent development in the proposal which was published as a series of Bitcoin Improvement Proposals (BIPs) was a milestone in itself, even if it was not any kind of stamp of approval.

With the lightening network managing to take away the limelight in 2019, Blockstream has key developments in store for the Liquid sidechain. A sidechain focused on dealings between exchanges.

Regarding Liquids development, Back explained that Blockstream is operational on the “General Extensibility Framework” for Liquid which will be compatible with Bitcoin.

However, both Liquid as well Lightning is not well adopted. Except for private channels, liquid did gain some traction after November 2019.

In LongHasy’s latest study, if the halving event causes a bull run, a subsequent rise in fees could mean “a large percentage of Bitcoin’s total supply moving over to the Liquid sidechain so as to gain access to lower fees and lessen the impact of trading on the base blockchain.”

Bitcoin’s modularity problem

The bitcoin scalability problem is the limited rate at which the bitcoin network can process transactions It is related to the fact that records (known as blocks) in the bitcoin blockchain are limited in size and frequency.

The bitcoin scalability problem is the limited rate at which the bitcoin network can process transactions. It is related to the fact that records (known as blocks) in the bitcoin blockchain are limited in size and frequency.

Bitcoin’s modularity problem

The bitcoin scalability problem is the limited rate at which the bitcoin network can process transactions. It is related to the fact that records (known as blocks) in the bitcoin blockchain are limited in size and frequency.

Bitcoin’s blocks contain the transactions on the bitcoin network. The on-chain transaction processing capacity of the bitcoin network is limited by the average block creation time of 10 minutes and the block size limit of 1 megabyte.

Adam Back

Adam Back is a crypto-hacker and cryptographer born in London in 1970 and is currently living in Malta. Adam Back’s hashcash proof-of-work system is used in counter spam technologies and cryptocurrency mining. Adam Back is one of the first people to work on Bitcoin and was contacted by Nakamoto in 2009 to give his thoughts on hashcashes usage in Bitcoin.

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