Does Bitcoin need any sidechains for its future? The DeFi community nowadays is split between “yes” and “no” as an answer to this question after the resurgence of a six-year-old proposal. Since the controversy around sidechains involves advanced crypto language, let’s cover the basics first and then take a deeper look into the pros and cons of the proposal as well as any potential solutions.

Before we delve into the specifics of BIP-300, it’s worth mentioning that there are alternative approaches to expanding Bitcoin’s utility that don’t involve sidechains. One such approach is merged mining, which allows Bitcoin’s Proof-of-Work (PoW) to be shared with more chains at no extra…

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