On April 5th 2021 the third Bitcoin Cash Network Discussion took place over zoom.
The main topic of this discussion was the Group Proposal: Native Miner-Validated Tokens.
Currently Bitcoin Cash has the SLP token system. These tokens are not part of the consensus layer and while the transactions are included in blocks, they are not checked by miners. That work is done by wallets.
If implemented, the GROUP Proposal would allow the creation of a new type of token that is checked by the miners.
💡 Potential Positives:
GROUP tokens would be part of the consensus layer and therefore avoid the SLP problem of “silent forks”, “accidental burn” (for example by using a non-SLP wallet type) and improvements in validation speed.
This new type of token has the potential to bring in more use of the BCH network and therefore value and adoption.
Mobile SPV wallets would be more secure and faster for token use.
The script is not complicated and It uses minimal blockchain script space.
🤔 Things to Consider:
Added complexity incurs costs and technical debt across the entire network.
Risk of token "silent forks" due to implementation differences becomes risk of BCH network splits due to implementation differences.
Smart BCH may provide similar functionality and does not require a hard fork.
The proposal is complex and should be broken down into steps.
Market confidence in BCH is a larger issue than demand for a new token system.
More useful information & links:
Full transcript of the discussion:
https://read.cash/@blockparty-sh/bch-network-discussion-on-group-tokenization-b15b9c7d
The proposal is actively being discussed here:
https://bitcoincashresearch.org/t/chip-2021-02-group-tokenization-for-bitcoin-cash/311/15
The specification can be read here:
https://www.bitcoinunlimited.net/grouptokenization/groupbchspec
Bitcoin Cash Network Discussion website:
https://bitcoincashnetworkdiscussions.org/
Subscribe to the BCH Network Discussion Youtube channel: https://www.youtube.com/channel/UCmyoHmbSsChInLzZ9S5aAAw
