The tech of skydogenet briefly explained
skydogenet is a layer-1 Proof-of-work blockchain, which combines two technologies. One one of them is the most secure and well established Bitcoin technology as a base layer and the other one the drivechain technology, which is implemented on it. Since Bitcoin is well known we explain the drivechain technology in the following.
What is a drivechain ?
The idea behind the drivechains comes from the Bitcoin Blockchain and is based on the ideas from Bitcoin Implementation Proposals (BIP) 300 & 301. A drivechain makes it possible to connect any existing blockchain with a fork. This means that you can create a parallel blockchain to the main blockchain that is connected to each other. These drivechains enable the seamless connection of different blockchains, which significantly expands the interoperability and possibilities for the use of cryptocurrencies.
One of the first drivechains to be developed by skydogenet is a fork of the Ethereum blockchain, also known as the ETHSide. This integration opens the door to seamlessly connecting skydogenet and Ethereum. Users can even pay on the ETHSide with the $kydoge coin. But that’s not all — with ETHSide, developers can also use the Ethereum Virtual Machine (EVM), which takes the integration and interoperability of the two platforms to a whole new level. This opens up a world of possibilities for developers and users who want to benefit from the advantages of both platforms.
Moreover, the new sidechains will allow users to experiment with new features and implement alternative rules for blockchains. Importantly, drivechain is designed to enable more features to exist for skydogers without necessarily introducing more monetary supply. The concept of drivechain is seen as being designed to maximize innovation and minimize seigniorage.
How does drivechain work?
As mentioned before there are two relevant BIPs named BIP 300 (Hashrate Escrows) and BIP 301 (Blind merged mining).
Hashrate escrow is the concept of a drivechain where coins are moved from the skydogenet blockchain to the various drivechains and back. It works similarly to a multi-signature escrow, but instead of a federation of sorts, the escrow is controlled by a decentralised group of skydogenet miners. This decentralised group of miners is responsible for arbitrating any disputes and directs the hash power to the escrow transactions instead of signing them with a private key, as is the case with federations. The security trade-off with a drivechain is the two-way pegging mechanism operated by the miners themselves.
To secure the drivechain and the pegging mechanism, a process called blind merged mining is used. This is a variation of the more general merged mining used. In this particular type of merged mining, the miners don’t have to take care of the drivechains — that is, they don’t have to run a drivechain node — but they can still collect all the transaction fees from them. They simply contract with someone to run a drivechain node.
The massive dynamic multitude of skydogenet miners play a vital role in the security model of the drivechains. The drivechains have their own consensus rules, allowing them to support new features. $kydoges can be transferred between the mainchain and sidechains, enabling users to access a wide variety of blockchain applications without the need to buy an altcoin.
To transfer $kydoge to a sidechain, a special transaction is used (a ‘peg in’ transaction). This transaction locks your $kydoge on the mainchain and simultaneously creates an equivalent amount of tokens on the desired sidechain. Once the transaction is confirmed, you can transact on the sidechain as you wish.
To transfer coins from a sidechain back to the main skydogenet mainchain, you’ll need to use a ‘peg out’ transaction. This transaction burns the sidechain tokens and unlocks an equal amount of $kydoge on the mainchain. After the transaction is confirmed, your $kydoge will be available for use on the mainchain.
This enable the use on layer 2 of trustless two way peg sidechains.
The technologies advancement of skydogenet are made possible using Drivechain (BIP-300 and BIP-301).
What are the potential use cases for sidechains?
The sidechains can support a wide variety of use cases, including:
Smart contracts:
Example: A rental company uses a sidechain to automate property rentals. When a tenant pays their deposit, a smart contract on the sidechain automatically unlocks the digital key to the rented property. If the rent isn’t paid by a specific date, the smart contract automatically locks the digital key, preventing access.
Privacy-focused transactions:
Example: Alice wants to send Bob some $kydoge without anyone knowing. On a privacy-focused sidechain, she can send her transaction in a way that hides the amount, sender, and recipient. Only Alice and Bob know the details, while the transaction on the main chain appears like any other.
Instant low-cost payment channels:
Example: A coffee shop chain decides to use a sidechain for their loyalty program. Customers can preload $kydoge onto the sidechain, and every time they buy a coffee, the payment is instantly processed on the sidechain with minimal fees. At the end of the month, the coffee shop settles the total on the main skydogenet blockchain.
Decentralized finance (DeFi) applications:
Example: On a DeFi-centric sidechain, users can lend out their $kydoge to earn interest. Borrowers can take out loans by putting up collateral. All of this is automated by smart contracts on the sidechain, allowing users to interact without middlemen like banks.
Tokenization of assets and securities:
Example: A real estate company wants to make property investment more accessible. They use a sidechain to tokenize individual properties. Instead of buying an entire property, investors can purchase tokens representing a fraction of that property. This allows multiple people to co-own and profit from the property’s rental income or appreciation.
Who benefits from drivechains?
BETTER FOR EVERYONE
Users — Get (eventually) every feature of every crypto-coin.
Users can benefit from experimenting with diverse rulesets without compromising skydogenet’s core security. This technology enables innovation, offers potential cost efficiencies, and provides enhanced privacy features, all while allowing users to opt-in based on their preferences. In essence, drivechain provides a platform for growth and evolution within the skydogenet ecosystem without jeopardizing its foundational principles.
Investors — Permanent solution to the problem of rival coins (and hard-forking).
Drivechain enables to try out new ideas without making new coins or splitting skydogenet through hard-forks. For investors, this means less market confusion, fewer coins to look at, a united community working together, and a stronger skydogenet system. Basically, drivechain makes change easier while keeping the crypto world more stable and united.
Miners — Automatically collect txn fees from all chains at once (no node software needed).
Drivechain integrates sidechains while keeping them connected to the main skydogenet network. For miners, this presents a unique advantage: they can earn fees not just from the primary skydogenet chain, but also from all its associated sidechains. This multiplies their earning avenues, ensures consistent revenue streams from various projects, and enhances the overall profitability. Simply put, drivechain lets miners earn from both skydogenet and its sidechains, increasing their income.
Developers — Freedom to manage your own blockchain.
Drivechain offers developers an avenue to test new concepts on sidechains without altering the core skydogenet structure. This means they can experiment easily, connect their work with $kydoge, save on costs, and benefit from skydogenet’s security and large user base. Essentially, it’s a more efficient and safe way for developers to innovate within the skydogenet world.
Conclusion
skydogenet is a very prominent demonstration of a technology where an established well-tried technology is ramped up with a new and innovative technology enabling new dimensions of a blockchain ecosystem.
This new technology enables many blockchains to be networked and used together without dangerous bridges! With the new ETHSide (Ethereum Drivechain) sidechain the world of Ethereum services will also be available for skydogenet users.
With an investment in skydogenet you take part in this great idea and you will not miss the future of the drivechain technology!
About skydogenet
skydogenet introduces a groundbreaking ability to clone any open-source software onto a sidechain. This innovation offers limitless possibilities for creative development while upholding the rock-solid security of the underlying Bitcoin core.
