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Drivechain, a Solution to Bitcoin Hardforks

Drivechain is a solution for the Bitcoin network that will permit variations of the protocol. The technology can do this by creating sidechains that interact with the network. The solution has been in development by Paul Sztorc over the past few years with the launch of the Testnet becoming the first P2P (Peer-to-Peer) sidechain for the Bitcoin network.

The Drivechain can offload message processing to another chain and uses incentives and an asymmetric process to ensure the correct settlement is made on the main chain. The technology has been developed due to the difficulty in modifying Bitcoin Core. Sidechains will allow for alterations without completely dividing the community and creating a hard fork.

The sidechain will use Bitcoin the same as the mainchain when conducting a transfer. When a transfer occurs to buy Bitcoin, the sidechain will accept the Bitcoin deposit, handle the transfer and dispense the Bitcoin withdrawal. These features will be the same with all sidechains created for Bitcoin, but additional sidechain processes may differ.

A sidechain can have their own coins with access to the liquidity on the main chain. Someone looking to buy Bitcoin could use liquidity in a sidechain and the main Bitcoin network.

The design of Drivechain will allow anyone to create a new blockchain project without the need to create a token to power the network. This increases the use cases to buy Bitcoin as it can interact with other blockchain projects. Though the sidechains are seen by many to bring innovation to the current Bitcoin network, they will be operated by third parties contrary to decentralisation.

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