Made In Block (ex @ItaStakers)
Made In Block (ex @ItaStakers) 2 minutes reading from Bitcoin

6 Features from Nomic, a New Bitcoin PoS Platform

1/7 Bringing BTC to Cosmos!

Here are some technical highlights you may not know about @nomicbtc , a bitcoin PoS sidechain with PoW accountability, aiming to enable a faster circulation & SmartContract usage of bitcoin-pegged tokens (nBTC) in the Cosmos Interchain Hub.

2/7 BITCOIN-bridge design:

Instead of a centralized management of the bridge as many crypto projects do, the bitcoin-reserve is maintained through a bitcoin multisig contract, where the signatories in control of the funds are all the validators of the sidechain (64-100 sig).

3/7 The Reserve script:

Taking advantage of Taproot advanced bitcoin smartcontracts tools, a reserve script is used for enforcing spending conditions for the BTC

in the reserve. Read more about Taproot here:

The script works as follows👇🏼: (thread)

Taproot - new tools for bitcoin programming

4/7 Spending is authorized if a signature is produced aggregating signatures from a subset of validators representing over 2/3 of the total votingPower. If such a signature can't be produced (for any reason), the script will require a signature from all the active validators.

5/7 ProofOfWork

security:

Periodically the network will make transactions on the bitcoin timechain, called checkpoints. These serve the purpose of timestamping the in&out BTC's flow into Nomic, giving clients a tool to doublecheck the state coherence between the chains.

6/7 A secondaryMarket gives the chance to buy nBTC at lower prices (< 1)

Since BTC deposits in Nomic are not instant & need a confirmation time, unconfirmed tokens may be sold at lower prices to traders who have beliefs about the deposit's likelihood to eventually be confirmed.

7/7 Nomic devs outlined emergency withdrawals & deposit reclamations for facing every possible issue in the Nomic PoS network.

You can read the details and more infos about relayers incentives, BTC-collateralization & security handling here:

Nomic - a bitcoin sidechain
This post is based on this twitter thread.

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