With Drivechain, Bitcoin Will Make Altcoins Obsolete Today

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This is an opinion editorial by Nikita Chashchinskii, a software developer working on BIP300 sidechains.

Drivechain as defined in BIP300 and BIP301 offers a new vision for Bitcoin, in which the following problems are solved:

  1. It offers an alternative to our existing contentious and political process for changing Bitcoin. “Layer 1” rules never have to change, and new features are instead introduced by adding opt-in sidechains.
  2. It removes all reasonable arguments in favor of Bitcoin’s competitors by copying any useful features they might have, likely turning Bitcoin into a monopoly in the cryptocurrency market, which is very helpful for an asset that aspires to be “money.”
  3. It provides a feasible way to generate enough transaction fees to support the Bitcoin security budget. This is especially important, since the block subsidy will inevitably fall due to halvening over the years, and the existing alternatives for funding the security budget are highly problematic: introducing tail emission removes the 21 million BTC limit via a hard fork, switching to proof of stake requires a substantial technical overhaul of Bitcoin and a hard fork, tying fee amounts to transaction values opens Bitcoin to competition from altcoins and fiat payment systems offering lower fees.

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