Details

This demo is a proposal for the bridge from the Bitcoin Cash mainchain to the SBCH sidechain but is a general bridging mechanism for any future sidechains.

It builds further on the ideas of first SHA-gate concept with operators who propose withdrawal transactions and miners who vote on them but improves various shortcomings.

It is similar to the hashrate escrows of the Drivechain mechanism developed for BTC but instead of needing a specific protocol upgrade, it utilizes BCHs general smart contract capabilities to build a sidechain covenant.

The demo would work today on mainnet - only the software for miner voting based on the sidechain events would have to be written. The security of the contract would benefit from the proposed upgrade to 32bytes P2SH addresses.