BitMEX Research on Drivechains

"In this piece we evaluate Paul Sztorc’s BIP-300 and BIP-301 Drivechain proposals."

BitMEX Research on Drivechains
  • "We assess the sidechain peg-out system and the benefits of blind merge mining."
  • "In particular we discuss some of the Bitcoin mining economic and incentive arguments around sidechains."
  • "There are potentially higher mining costs associated with merge mining and the claim that these costs can never contribute to centralisation risks, is somewhat fanciful, in our view."
  • "However, a successful blind merge mined sidechain with significant MEV opportunities could offer Bitcoin significant benefits, which could more than offset the disadvantages."

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