Can a sidechain restrict the number of BTC converted to sidechainCOIN?
If they can be restricted, than value of scCOIN can grow but only be obtained via direct purchase and not btc conversion when the cap is hit. This removes value from the mainchain and will only be converted back to BTC if the scCOIN becomes less valuable than BTC again.
If it cant be restricted then if the scCOIN value rises so does the value of BTC. Since anyone can use this extra value by converting BTC to it.
This should be true as far as both the mainchain and sidechain are representing value as a number. But what if the sidechain is more like a colored coin where an asset is represented by a token. I dont know how that would affect the mainchain positively or negatively restricted or unrestricted.
All options are feasible, even ugly tokens not pegged to the SideChain that is used to convert them.
All options including restricting the numbers of BTC able to be converted? That seems like a hard sell for miners to run that software if it can diminish the value of the mainchain. Thoughts?
There are use cases for all sorts of options that seem really weird. They don't all break markets.
For example this can be an on-chain fire marshal compliance:
When you enter the room that has a maximum capacity of 1243 people according to fire codes, you get an indivisible token. Its redeemed when you leave.
You then have an automated time-stamped compliance-assurance with the fire code. Hook in Age-coin and you know who can order alcohol without sloppy ink marks on the backs of hands...
That same feature can also be used to create an artificial scarcity on a side chain for other purposes.
There are millions of options, bajillions of use cases.
The SC potential is incredibly vast, touches everything, and is completely mind-blowing in what it can do.
If you think SC can't be the engine of Bitcoin mass adoption like nothing else, you don't grok side chains.
If you think SC can't be the downfall of and lead to the end of Bitcoin, you don't grok side chains.