http://www.coindesk.com/bitcoin-core-developers-bitcoin-side-chains/Interesting development ideas. Thoughts?
one team thinks that it’s found a way to do it responsibly – by creating “side chains” that can interact with bitcoin.
Two-way pegging
In October, Back had proposed a concept called one-way pegging, in which bitcoins could be ‘moved’ from the bitcoin block chain to another block chain called a side chain, that was merge-mined with bitcoin. Bitcoins would be marked in the bitcoin block chain as having been transferred. Another coin in the new block chain would be marked as a representation of the transferred bitcoin.
Throughput
So, that takes care of functionality. But what about throughput? The current transaction rate on the bitcoin network is relatively low, at something under seven-to-nine transactions per second, which is why all of those off-chain transactions happen, in exchanges and elsewhere.
