This paper describes a way for drivechain to be implemented on monero with minimal impacts on privacy, analyzes community sentiment in BTC and XMR communities, and goes in depth on the security flaws inherent to drivechain as well as the possible ways they can be fixed. Below is the paper’s abstract verbatim.
Abstract
Monero’s private by default design and lack of major exchange centralization makes it an attractive central currency to develop drivechains on. Through a minimal scripting system other applications of cryptocurrency can be implemented on sidechains of monero while mainchain currency remains unaffected. Additionally monero’s tx keys may allow for better truly trust-less implementations of drivechains by having a built in secret to attest to an action made. While drivechain is by far not a perfect protocol the benefits it would add to the monero ecosystem, such as increased adoption through expansion of use cases and ease of fiat by having legal entity compliant sidechains, makes preliminary research into implementing it on monero worthwhile despite the fact that drivechains as they are should not be implemented on monero. This paper sets out to be heavily criticized so developers experienced at improving monero can adjust the outline below into something that can expand monero without damaging the security of funds and stability of monero’s fiat currency valuation.
As you can see in my post on overlay networks I’m all in on DeFi. I just want to do it in a way that doesn’t ruin Monero in the process. Blind merge mining and hashlock escrows are NOT the way to implement it correctly. Twiddle sees the problems clearly and points them out, if you dare to read. (He got paid very little and invested a lot of time, so please read.)
I would implement dApps or scripting, first, not on monero core. One-way atomic swaps is all you need! BasicswapDex and Oxen are less known examples.
TL;DR: blind merge mining and hashlock escrows are an attack vector for monero security on the consensus layer and an entry point for trojan horses. We CAN have all the DeFi we want without compromising security.
https://yewtu.be/watch?v=9ZdWe5VZRuo [Kewde - BasicSwap: Increasing Monero’s Resiliency using BasicSwap DEX] https://www.monerotalk.live/104 [Creating L2 & Proof of Stake Infrastructure on Cryptonote w/ Kee Jefferys (Oxen)]