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55 sats \ 1 reply \ @SequentiaSEQ OP 18 Jul \ parent \ on: Sequentia: A Bitcoin sidechain that doesn't need a peg/bridge bitcoin
Instead of L-BTC, Sequentia lets you propose transaction fees using any asset issued on it.
So if you're moving USDT over the sidechain, you'll probably want to pay fees directly in USDT. If you're moving an asset with much less liquidity such that no block producer is willing to take it (or an NFT I suppose), you'll probably need something else for fees, but in any case, any asset in your wallet is eligible to propose fees with.
You could even in theory issue L-BTC on Sequentia, pay fees with it and use it exactly as on Liquid, but it's just that the network wouldn't treat it any different than any other asset.
However, anchoring makes it so that p2p swaps between assets on Sequentia and "real" BTC (mainchain/LN BTC) are viable in real-time, unlike with Liquid.
That's what makes pegged BTC pretty much unnecessary (at least for most use cases) on Sequentia.
https://docs.sequentia.io/white-paper/3.-blockchain-architecture/3.4.-bitcoin-anchoring
Sequentia wallets will therefore always first and foremost be normal Bitcoin/Lightning wallets, which will also use your bitcoin seed phrase to generate Sequentia keypairs. In that sense, we're "replacing" L-BTC with just BTC, or BTC over LN.
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0 sats \ 0 replies \ @Bell_curve 18 Jul
The provided link leads to a section of Sequentia's white paper discussing Bitcoin anchoring. Here are the key points about Sequentia's Bitcoin anchoring mechanism:
  1. Sequentia uses a Bitcoin anchoring system to enhance security and provide a trustless bridge between the Sequentia sidechain and the Bitcoin mainchain[1].
  2. The anchoring process involves creating a commitment to the Sequentia chain state and embedding it into a Bitcoin transaction[1].
  3. This commitment is typically a hash of the latest block header or a Merkle root of recent block headers[1].
  4. The anchoring transaction is broadcast to the Bitcoin network and, once confirmed, provides a tamper-evident record of the Sequentia chain state[1].
  5. This mechanism allows users to verify the integrity of the Sequentia chain by referencing the Bitcoin blockchain, which acts as a secure and decentralized timestamp server[1].
  6. Bitcoin anchoring enhances Sequentia's security by making it computationally infeasible to alter the sidechain's history without also altering Bitcoin's blockchain[1].
  7. The frequency of anchoring can be adjusted based on security requirements and cost considerations, with more frequent anchoring providing stronger security guarantees but potentially incurring higher fees[1].
  8. Sequentia's Bitcoin anchoring system plays a crucial role in maintaining the sidechain's security and facilitating interoperability with the Bitcoin mainchain[1].
This Bitcoin anchoring mechanism is a fundamental aspect of Sequentia's architecture, ensuring the sidechain's security and maintaining a strong connection to the Bitcoin network.
Citations: [1] https://docs.sequentia.io/white-paper/3.-blockchain-architecture/3.4.-bitcoin-anchoring
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