Quote from: Odalv on October 23, 2014, 11:04:01 PM

Quote from: smooth on October 23, 2014, 10:50:43 PM

Quote from: Odalv on October 23, 2014, 10:46:18 PM

Quote from: cypherdoc on October 23, 2014, 10:28:24 PM

i'm missing something here.

why can't the scBTC develop an independent value in USD on their own on an exchange? and if that value starts going up relative to the BTC value b/c the SC turns out to be better functionally, then why wouldn't every BTC owner be forced to transfer their BTC over to scBTC along with a migration of direct mining hashpower to the SC? if the SC is better, the difference in value btwn BTC and scBTC can't be arbitraged away.

the end result being a destroyed Bitcoin and a "new" Sidechain dominance.

Because there is a MATH no 3D party -> how to convert(lock) BTC to scBTC

Rule #1
You can anytime convert BTC to scBTC using this conversion function (if btc protocol is not broken)

repeat(
1. Convert BTC -> scBTC
2. You sell scBTC for $
3. buy more BTC at Bitstamp
)

=> scBTC has only value of BTC (SideChain has value based on BTC)

Rule #2
There is conversion function (MATH) how to convert scBTC to BTC (unlock your/anybody previously locked coins ... if SideChain is not broken => you cannot unlock more, than was locked)

Those rules provide a 1:1 peg. It remains to be seen whether such a peg will be economically viable. It appears (somewhat) to be technically viable to implement.

Those particular rules however, are not required by the side chain concept, as the side chain developers have stated on Reddit and elsehwere. Different rules are possible, which gives rise to all manner of altchains/altcoins.

I think the side chain developers are wasting their time pathologically obsessing over scamcoins, both because scamcoin market value is tiny and because "killing altcoins" or "protecting scarcity" isn't the real value of side chains anyway. The value of side chains is as a safer and faster mechanism for extending and improving (though also damaging I suppose) Bitcoin, if they work.

A lot of functions are possible but only few are viable
-> I will not send bitcoin to sidechain if I'm not able to withdraw same amount.

SC's will always be less secure. you may not get them back if 51% attacked.

Quote

-> I'll only send bitcoin to sidechain if I can get some advantage e.g. fast transfer to buy coffe ( HOT wallet )

how are you gonna do this with a 1-2 day confirmation/contest period

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-> I can keep some coin in ExchangeSideChian to have advantage buy cheap coins -> then I'll store them to COLD BITCOIN wallet.

then you're speculating. introduces risk.