Hello all,

I was very surprised to learn that Blockstream will implement Sidechains for exchanges [1], [2] and has been working on this privately. Can somebody explain this “announcement”? Just a few comments on this “proposal”.

 

“This new construction establishes a security profile inherently superior to existing methods of rapid transfer and settlement, and is directly applicable to other problems within existing financial institutions.”

First of all, what does Bitcoin have to do with existing financial institutions? Secondly, what in do you mean by “rapid transfer” and "settlement"? Bitcoin is anonymous, digital cash. There is no such thing as settlement, there is only the transfer of digital cash and that's it (settlement is a bad word for this kind of transfer of property). If you make up new terms define them accurately and don't play the crypto-buzzword-bingo game.

“This, in addition to increasing the security of funds normally subject to explicit counterparty risk, fosters conditions that increase market liquidity and reduce capital requirements for on-blockchain business models.”

Again – what does Bitcoin have to do with “market liquidity” and “capital requirements”?

“Blockstream's innovative solutions are definitely a game changer for the Bitcoin industry.”

Does Blockstream have commercial products now?

"These initial launch partners include Bitfinex, BTCC, Kraken, Unocoin, and Xapo, and discussions are underway with another dozen major institutional traders and licensed exchanges. "