Where can I find a specification for this extension blocks proposal, so I can determine how this proposal is differentiated from a pegged side chain?
Mike Hearn is so obviously for centralization it is a requirement to separate his objective points, and appears he may have a point about Lightning networks being not viable for much but very specialized interactions (which was also my upthread point about them).
I continue to think existing PoW designs are stuck between a rock and a hard place, thus I am very interested to read more detail about this proposal.
Edit: I found it,
http://sourceforge.net/p/bitcoin/mailman/message/34157058/The only way I see this is differentiated from pegged side chains, is it could be optionally a one-way transfer of BTC to the extension block chain, thus removes the need for the reliance on federated servers.
I understand that if address formats are differentiated between the two chains, then it is claimed one could pay from one chain to other but I can't see how that can work because the miners on the lower bandwidth chain would be SPV miners on the extension block chain. Thus all the dominos (due to orphaned chains) insecurity ramifications of pegged side chains which I argued upthread is untenable, unless you allow the BTC on each chain to have a different value. Afaics, the only reliable way to move
pegged value back and forth between chains is as I wrote upthread with very long challenge periods on transferred funds and to use the Blockstream SPV proofs.
Thus one can view this proposal as a trojan horse to require Blockstream's pedded chains (and either the federated servers or the soft fork for the added OP code to eliminate the federated servers). Clever.
However, I still like the proposal for the same reasons I liked pegged side chains. But pleeeaaaase do it correctly. None of the mumbo jumbo about instant transfers between pegged chains. Sheesh.
And note this does nothing to solve the decentralization problem and rather just transfers the centralization to the extension block chain, because the 1MB chain can ultimately be 51% attacked because its relative block rewards will wither as debasement diminishes and transactions increase on the extension block chain (that is unless extension block transactions will have so extremely small fees and the 1MB chain sufficiently high enough fees which is very very unlikely because centralization by definition drives towards monopolistic pricing). Also because per
math and economic reasoning above,
solo mining is doomed any way.