Developers are competing to bring ZCash privacy functionality to a Bitcoin sidechain, as they are using the Drivechain technology created by Paul Sztorc, a decentralized prediction market pioneer.
On May 1, it has been reported that Sztorc has announced a prize fund of up to 6.1 Bitcoin (BTC).
Drivechain is an implementation that allows for the creation of Bitcoin sidechains with a true two-way peg, as this would allow Bitcoin holders to move their coins to any sidechain they choose.
By doing this, it could allow users to benefit from characteristics and features not found on the main Bitcoin blockchain.
However, this could be a sidechain with large blocks and low fees, with smart contracts, or even with the enhanced privacy features of an altcoin, like ZCash (ZEC).
Developers compete for 6.1 BTC bounty to implement ZCash privacy features into a Bitcoin sidechain https://t.co/ndgWr0l8p1 — Cointelegraph (@Cointelegraph) May 1, 2020
Zcash functionality provides an ideal complement to the transparency and auditability of Bitcoin. Likewise, Bitcoin is transferred to a sidechain, which is effectively held in escrow by miners, until it returns. To any outside observer, it is impossible to prove that the owner has been benefiting from ZCash privacy technology.
It has been analyzed that Sztorc has provided a Drivechain sidechain template and challenged developers to do a “code transplant” from ZCash. This would essentially turn the altcoin into a sidechain.
As both are code forks of Bitcoin, most of the source code already overlaps, which means much less work.
As per the report, the prize fund is to encourage developers to investigate his Drivechain technology and create a proof-of-concept for further testing.
The challenge was set on April 20, and at the time of publication, no one had claimed the prize. Hence, it is set to run until the upcoming Bitcoin halves on May 12.
It has also been analyzed that if any challenger is successful, this could open the way for various flavors of BTC, which are efficient of taking on the characteristics of any blockchain asset.
Thus, if that happens, it could possibly provide all altcoins obsolete.
Source: Cointelegraph | Image: GoodFon