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Since the introduction of Bitcoin[Nak09] in , and the multiple computer science and electronic cash innovations it brought, there has been great interest in the potential of decentralised cryptocurrencies. At the same time, implementation changes to the consensus- critical parts of Bitcoin must necessarily be handled very conservatively. As a result, Bitcoin has greater difficulty than other Internet protocols in adapting to new demands and accommodating new innovation. We propose a new technology, pegged sidechains, which enables bitcoins and other ledger assets to be transferred between multiple blockchains. This gives users access to new and innovative cryptocurrency systems using the assets they already own. Since sidechains are separate systems, technical and economic innovation is not hindered.

Since such extensions are usable only by a small subset of users.

Transaction malleability is a problem in Bitcoin which allows arbitrary users to tweak transaction data in a way that breaks any later transactions which depend on them.

Improvements to this have been suggested by Maxwell and Poelstra [MP Lamport signatures[Lam79]. By using a sidechain which carries bitcoins rather than a completely new currency. Some examples of such features are: Using this inflation to subsidise mining has been a successful complement to transaction fees to secure the network.

With sidechains. This effectively inflates the currency but it winds down over time according to a step-wise schedule. In pegged sidechains. An alternate mechanism for achieving block rewards on the sidechain is demurrage. Examples of complementary currencies include community currencies. It may be better aligned with user interests than inflation because loss to demurrage is enacted uniformly everywhere and instantaneously. These can be transferred to other sidechains and traded for other assets and currencies.

Demurrage creates incentives to increase monetary velocity and lower interest rates. Issued asset chains may also support more innovative instruments such as smart property. This allows external protocols to delegate ownership and transfer tracking to the sidechain on which the ownership shares were issued.

This keeps the currency supply stable while still rewarding miners. These technologies can also be used in complementary currencies[Lie01]. In a demurring cryptocurrency. All of these changes are difficult to do safely. Issued asset chains have many applications. This encourages adoption for the sidechain. Since changes like these affect only the transfer of coins.

A sidechain could also issue its own separate native currency as reward. This may incentivise miners to simply receive fees out-of-band. Introducing signers who must sign off on valid SPV proofs.

Some other ideas worth exploring in sidechains are: There is a wide spectrum of trade-offs available in this area: This results in a direct tradeoff between centralisation and security against a high-hashpower attack. Since only as much can be transferred to Bitcoin or another sidechain as was transferred out. Further discussion about the usefulness of this kind of trade-off is covered in Appendix A. Miners receive part of their fees in a block far in the future or spread across many blocks so that they have incentive to keep the chain operational.

These contracts could. These sorts of contracts are easy for a cryptocurrency to implement. Block subsidies can be given to miners through demurrage to incentivise honest mining.

A variation on this scheme is for miners to receive a token enabling them to mine a low-difficulty block far in the future. Ian Grigg. They could even commit to the full verification of all previous blocks. Corinne Dashjr. Daniel Folkinshteyn. Patrick Strateman. These proofs could also replace the DMMSes used to move coins from another chain by proving that the sending chain is valid according to some rules previously defined.

Appendix A Federated peg One of the challenges in deploying pegged sidechains is that Bitcoin script is currently not expressive enough to encode the verification rules for an SPV proof.

That is. SNARKs are space-efficient. The required expressiveness could be added in a safe. We use this term to emphasise that while functionaries have the physical power to disrupt transfers between sidechains. Mathias Dybvik. The key observation is that any enhancement to Bitcoin Script can be implemented externally by having a trusted federation of mutually distrusting functionaries13 evaluate the script and accept by signing for an ordinary multisignature script.

Shaul Kfir. Recall these difficulties were part of the motivation for pegged sidechains to begin with.

Then blocks could be constructed which prove their changes to the unspent-output set. Using this we can achieve a federated peg. What we want is a way to try out future script capabilities for Bitcoin without deploying them everywhere. Kat Walsh. The federation has secpk1 public points public keys P1. Because of these similarities. Go back to start. Because the transfer is made by paying to a standard P2SH address and can pay to any The result is a deterministic.

A redeemScript template describing the functionary requirements Output: A P2SH address Output: Nonce used for this instance 1: For small-scale uses.

For example: This approach is very similar to the approach of creating a multi-signature off-chain transaction system. A sidechain could adaptively use both of these approaches in parallel. Consider the example of a sidechain using a 3 of 5 federation of functionaries to implement a two-way peg with Bitcoin. Existing sidechains could simply migrate their coins to the new verification system. In order to aid third-party verification of the sidechain.

This approach also opens additional security options: It is the same underlying construction as a pay-to-contract transaction [GH12]. After generating the address.

Once sidechains with a federated peg are in use. The confidence in an SPV proof can be justified by modelling an attacker and the honest network as random processes [MLJ14]. While the hash value itself does not change the amount of work a block is counted as. Outputs can be easily recorded compactly. These random processes have a useful statistical property: The federated peg approach necessarily compromises on trust. To contrast. It should therefore be possible to greatly compress a list of headers while still proving the same amount of work.

We can exploit this fact to prove equal amounts of work with only a few block headers[Fri14]. This approach allows rapid deployment and experimentation and will allow the community to gain confidence in pegged sidechains before adopting any changes to the Bitcoin protocol.

These proofs should contain a a record that an output was created in the sidechain. A detailed analysis of this problem and its possible solutions is out of scope for this document. To illustrate this. This brings the DMMS size down into the tens-of-kilobytes range.

One such strategy is for the attacker to produce invalid blocks in which every backlink points to the most recent block. We can adapt our scheme to prevent this in one of several ways: These commitments can be stored in a Merkle tree for space efficiency: Consider the probability of finding a large enough proof to skip all the way back to the genesis within x blocks.

Assume for simplicity that difficulty is constant for the chain. The inspiration for compact SPV proofs is the skiplist [Pug90]. Then when extracting a compact proof.

The result is a short DMMS which proves just as much work as the original blockchain. We therefore expect that corrections which take into account the adjusting difficulty can be made. We require a change to Bitcoin so that rather than each blockheader committing only to the header before it. Note that we are assuming a constant difficulty. How much smaller is this? Suppose we are trying to produce an SPV proof of an entire blockchain of height N.

The result is that the expected total proof length is logarithmic in the original length of the chain. For a million-block chain. One such scheme.

On one chain. This makes the total cost to the parent chain proportional to the number of sidechains and their length. This discussion is not exhaustive. Suppose we have two parties. Appendix C Atomic swaps Once a sidechain is operational. A does not yet broadcast this. If we expect many transfers per sidechain. The expected proof size is smaller than a full list of headers by a constant proportional to the maximum skip size factor. Then transfer proofs would be required to always end at this tip.

This reduces the probability of attack while only increasing proof size by a constant factor. This is important. This output is moved by separate SPV proofs which may be compacted in one of the above ways. In fact. A and B. This is useful for creating refunds in interactive protocols which can only be redeemed if the protocol times out. A is able to spend the coins in O2.

A may safely broadcast the transaction moving coins to O1. As soon as A does so. A passes this transaction to B to be signed. Once B signs the locked refund transaction. B passes this transaction to A to be signed.

B may safely broadcast the transaction moving his coins to O2. B creates a transaction moving coins to an output O2 on the other chain. Since A knows a. A creates a second transaction returning the coins from O1 to A.

B does not yet broadcast this. Once A signs the locked refund transaction. Yale University. Pay to script hash. Mailing list post. The natural economic order. Bitcoin Improvement Proposal. Gerhardt and T. Verifying program executions succinctly and in zero knowledge. Block v2. Theoretical Bitcoin attacks with less than half of the computational power draft.

BitcoinTalk post. Friedenbach and J. Peter Owen Ltd. Hashcash — a denial of service counter-measure. Blind signatures for untraceable payments. References [AJK05] J. Sustainable nanopayment idea: Probabilistic payments.

Advances in Cryptology Proceedings of Crypto 82 Homomorphic payment addresses and the pay-to-contract protocol.

Exposing computationally-challenged Byzantine impostors. Cryptology ePrint Archive. Deterministic wallets. April A digital signature based on a conventional encryption function. The high-value-hash highway. A peer-to-peer electronic cash system. Retrieved on Lecture Notes in Computer Science.

LaViola Jr. The future of money. Random House. January October Alt chains and atomic transfers. A treatise on altcoins. Increasing anonymity in Bitcoin. Anonymous Byzantine consensus from moderately-hard puzzles: A model for Bitcoin. Constructing digital signatures from a one-way function.

Report CS-TR Maxwell and A. Email correspondence. Miller and J. Output distribution obfuscation.

Fidelity-bonded banks: Cryptonote v 2. Dealing with malleability. Communications of the ACM 33 The idea of smart contracts. Skip lists: A probabilistic alternative to balanced trees. Flag for inappropriate content. Related titles.

Difficulties of Confronting Unconventional Warfare. Cryptocurrency with Prime Number Proof-of-Work. Dialogue in Hell Between Machiavelli and Montesquieu. Agapit Popovici - Ecumenismul incotro? O noua viziune ortodoxa asupra ecumenismului sincretist. Jump to Page. Always a studious young. On the night of the planar anomaly.

Brath hurried back to the caverns to make for him and provided him with food and shelter. Pleased with his success. If the PC does not intervene. The town was plundered. Was he being denied the heavens celestial.

He told his benefactors only that became determined to kidnap the young celestial. Brath the As DM. Brath the Greater.

Afraid and confused. Over the course of several weeks. Unable to rescue his father and disinclined to do so anyway. He followed the light to Elton ported him here. The details of further and see whether any of its effects could be these dreams vary.

The sur- ogre tribe in the nearby hills. His son. Who were these people dressed in lagers and heard his first words. Human and half-elven villagers rush PCs to investigate the strange light that recently to and fro with water and bandages.

Read or paraphrase the following aloud when the kinda weird cross between ogres and giant bugs. You encounters in the ogre stronghold where Arithel is could find plenty of wrongs to right around here. They looked like some raid. What came last kidnapping. The injured are supernatural powers and has come for purposes of his the most willing to talk.

By the look of you. The village bears the marks of a recent night was. Savage Species. Four 3rd.

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The description of the boy matches that of a dead normal responsibilities. Read or paraphrase the follow- friend or relative of one of the characters. Consider adapting the adventure as follows. According to intact. Run the adventure as characters. She and her colleagues believe tending to the injured in the huts that remain the light to be extraplanar in origin.

Elton lies. In the center of town. Any PC who speaks Celestial recognizes it as this region. Sherla CG female half-elf Com 1. Whenever a villager would approach him at such a time. A distant dripping sound is audible. The ogre stronghold is in the hills north of town.

Burton agrees to guide them. A shadowed cleft between two hills. The lowing pieces of information no check needed. But his kidnappers were well equipped and probably have plenty of ill-gotten This rectangular chamber has obviously been hewn from the rock of the hill deliberately. The creatures kidnapped Arithel were four of them are involved in the keyed encounters.

Arithel fell through a brilliant white successful Wilderness Lore check DC The floor is damp and sandy. If the char- hole in the sky on a night that seemed filled with acters are not confident that they can find the strong- magic.

Conventional Human. AL if water were filtering through the limestone roof LG. They left in the direction of the as random encounters if desired. The can offer nothing but their grati. The people of Elton took him in. The lair contains twenty insectile ogres.

Authority Figures: Greel NG male human Com 3. Population Assets gp. Encounter A. Several of the townsfolk can make an effort characters come within sight of the ogre lair. Burton LG male human Com Arithel. Read or paraphrase the following aloud tude for his safe return—they had little enough before. Arithel would sometimes sit and wistfully description of the entrance to the ogre lair. Arithel learned to communicate in stronghold is in sight. The raiders were accompanied by a blue.

It is When the people of Elton realize that the PCs are inter. Our gift of the star. They took supplies and valuables. He was young and very weak. The ceiling is high. He speak Common.

The armed with weapons similar to those used by the DM may allow the PCs to meet others in groups of two local ogre tribe. Spd 30 ft.

Sidechains.pdf

Str Dex Large aberration. They cling to the Creatures: A second pair of insectile ogres is waiting ceiling in hopes of surprising the PCs by attacking with here for the PCs. AL CE. SQ darkvision 60 them from being flanked. Their bodies are covered in chitin. Huge great. They wears filthy furs similar to those a normal ogre might. One is dispatched to warn matically sense the location of anything within 60 feet Brath of the arrival of intruders. Cha 7. Huge longspear. Numerous Possessions: Hide armor.

AC Weapon Focus greatclub. Spot Development: As soon as the PCs enter the com. The insectile ogres do not fight together with any organized. The insectile ogres have developed a fondness for crea- Tactics: Like their comrades in area 1.

The insectile ogres have adopted the they have multiple arms and eyes. The two insectile ogres on guard in this chamber are clinging to the ceiling and attempting to hide in the The floor of this chamber is covered with a thick shadows Hide —6.

Skills and Feats: Read or paraphrase the following aloud when that is in contact with the same surface it is. Spot AREA 3: Wis Con Huge great- walls to avoid threatened areas. SQ darkvision 60 12 reveals a ring of climbing still attached to a well- ft. The scorpions attack if the PCs enter the room club. This chamber serves as the communal eating area for matically sense the location of anything within 60 feet the tribe.

Wide Vision Ex: Because of its multiple eyes ing two gems worth gp each. Hide —6. Int 6. Because of its multiple eyes and wide angle of vision. AREA 2: A search through the trash Search DC by 5 ft.. An insectile ogre can auto- presence by tremorsense. They display no coordinated tactics. Each Large monstrous scorpions that live here as pets. Like the previous chamber.

D Insectile Ogres 2: A successful Spot check by any PC reveals the ceiling suitable for passage by large creatures. D Large Monstrous Scorpions 3: If forced to retreat.

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Each insectile ogre has a pouch contain. Insectile ogres resemble ogres only superficially.. EL 5 Tremorsense Ex: An insectile ogre can auto. They hurl their longspears before attempting moved into the complex some time ago.

It appears that little if any traffic AREA 5: Cha At this level. If Lesser. Brath cannot regrow lost body parts. SR forewarned. Thus abilities. SQ darkvision 60 ft. He keeps his cone of cold in could be overwhelming. In the company of his insectile ogre minions. Read or paraphrase the following aloud Flight Ex: Brath the Lesser can cease or resume when they encounter him. A careful search of this room Search DC Trap: The weight of a character anywhere on the 15 turns up a set of four silver goblets.

Caster level 8th.

Fallen Angel.pdf

Prepare to be destroyed! It the complex. Brath intends to ensure that the intrud. Fortunately for the party. Brath attempts morph self. Brath begins the battle invisibly and uses gression of an ogre mage. This area contains a crude trap. Brath uses his polymorph self ability to assume the D Brath the Lesser: Male 9th-level ogre mage. Int SA spell-like tremorsense and sent a messenger to Brath.

Disable Device DC

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