A Brief Introduction / History of Blockonomics
Blockonomics allows anyone to track / accept bitcoin payments. We started way back in 2014 and were built with constant help / feedback from the bitcoin community on bitcointalk/reddit [Wiki here]. For a long time we only supported Bitcoin. Recently few years back we added Bitcoin Cash to help merchants do payments when Bitcoin network was congested.
There are the few reasons why we endorse drivechains
Need of a Decentalized and Usable Payment System
- We cannot ignore users under the veil of bitcoin maximalism
- In our recent merchant survey, 59.3% of our merchants wanted more altcoin support
- Crypto Ecommerce needs a payment network that is decentralized, stable and usable. While bitcoin network is undoubtley most decentralized and stable, customers move to other altcoins when the it becomes congested like what happened in May 2023 when fee skyrocketed to 30USD
Need for Innovation
Everywhere is aware of the technical/social/political complexities in getting anything done on the bitcoin base layer. This definetly gives stability, however not doing any development opens the risk of bitcoin becoming irrelevent.
Drivechain offers an alternative to our existing contentious and political process for changing Bitcoin. “Layer 1” rules never have to change, and new features are instead introduced by adding opt-in sidechains
Future of Transaction Fee Economics
As of this writing, the block subsidy is 6.25 BTC (at around $23,600/BTC) and it will drop to 0.390625 BTC (a drop of around 94%) by 2040. We can’t expect users to be willing to pay transaction fees that are much higher than they are today, and in 2040 users are still very unlikely to pay much more than $1 or $2 (when adjusted for inflation) for a transaction.
So, to get a security budget in 2040 that is comparable to today’s security budget, either the bitcoin price will have to rise to around $350,000 (which would also make the Bitcoin network a 15-times more valuable target to attack) or the number of transactions will have to increase substantially.
Drivchains will allow miners to collect fee from various sidechains via BIP301 without solely depending on block subsiby/main chain transaction fee
Sidechains don’t create a new asset – SC:BTC maintain a 1:1 Rate
While even currently, users can easily convert bitcoin to a stable coin, this inherently comes with the risk of centralization / depegging.
Users can withdraw from bitcoin to sidechain and then back to bitcoin without worrying that it will lose value
Detailed information about drivechain is available on https://www.drivechain.info/