Ethereum-like Spiderchain Aims to Revolutionize Bitcoin’s Sidechains, How and Why?
Amid ongoing discussions surrounding Bitcoin drivechains, a new initiative designed to unlock the network’s programming capabilities has emerged as a promising contender.
Jameson Lopp, Co-founder and CTO of Casa, a mobile self-custody platform, has shed light on “Spiderchain” in a recent blog post.
Spiderchain is introduced as another innovative proposal aimed at establishing two-way pegged sidechains, effectively expanding Bitcoin’s functionality. The sidechains maintain a connection to the Bitcoin network and share its native currency, BTC.
This integration offers Bitcoin users access to enhanced features such as scalability, programmability, and improved privacy.
The primary challenge facing sidechains has always been the creation of a “2-way peg” mechanism, allowing BTC to move securely between the main Bitcoin blockchain and the sidechain without relying on centralized intermediaries. This is where Spiderchain, developed by Botanix Labs, enters the scene.
Spiderchain essentially functions as a Proof-of-Stake Layer 2 solution built on top of the Bitcoin network. It operates by enabling users to stake their BTC within decentralized multisignature wallets.
These decentralized wallets are managed by entities referred to as “orchestrators,” each of which operates both a Bitcoin node and a Spiderchain node.
When BTC needs to be transferred to the Spiderchain, a new multisignature wallet is generated, controlled by a random subset of 100 participants within the staking community.
In several respects, Spiderchain operates similarly to Ethereum, boasting compatibility with the Ethereum Virtual Machine (EVM), rapid 12-second block times, and a proof of stake consensus mechanism to secure the network.
Orchestrator nodes are required to stake BTC as part of their participation in securing the network.
One noteworthy aspect of Spiderchain is its “fully equivalent” EVM, which allows developers to seamlessly port existing Ethereum decentralized applications (dApps) onto the Spiderchain network.
Unlike Ethereum, Spiderchain mitigates the risk of malicious orchestrators conspiring to steal users’ BTC, and it achieves this without necessitating changes to the existing Bitcoin code. This distinguishes Spiderchain from other proposals like Paul Sztorc’s drivechains, which entail modifications to Bitcoin’s core code, a step that is met with some reluctance within the Bitcoin community.
While drivechains, initially introduced as BIP 300 and BIP 301 in 2015, continue to face limited adoption within the Bitcoin ecosystem, Spiderchain represents a novel approach that could enhance Bitcoin’s utility and expand its capabilities.
It empowers users by enabling them to control the movement of pegged BTC, allowing for the creation of numerous sidechains, each with unique properties, while leveraging the security of Bitcoin’s Proof-of-Work network through merge mining.
In response to the emergence of Spiderchains, Paul Sztorc, an advocate of drivechains, acknowledged their complexity compared to his proposal. He also dismissed the notion that drivechains require significant changes to Bitcoin’s core, likening it to users installing an app on their phones.
In Jameson Lopp’s blog post, he referenced the Rootstock proposal, which is nearly a decade old, and highlighted certain technical vulnerabilities associated with Spiderchain. One potential risk is the potential breakage of the BTC peg if the main Bitcoin blockchain experiences a reorganization lasting more than five blocks. However, this risk is likely to be non-catastrophic, given the dispersion of funds across numerous multisig wallets.
Additionally, Willem Schroé, the founder of Botanix Labs, the team behind Spiderchain, admitted that the network would initially be centralized as they await the participation of more users to stake their BTC.
This centralization is primarily related to staking permissions in the early stages of the network’s development.
