@bybitcoin: Ok, I cannot say if this scheme can be a sidechain to Bitcoin since the paper does not provide a detailed description of a SPV proof. Without knowing that I would just be speculating. When Blockstream launches their "demo version" of a sidechain, the federated peg, there will be more information. But I wouldn't mind if the scheme became a sidechain instead of a altcoin.
Good news:
http://www.coindesk.com/blockstream-open-source-code-sidechains/We would all know much more soon, by their code release.