{"id":115963,"date":"2019-10-23T10:43:59","date_gmt":"2019-10-23T10:43:59","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=115963"},"modified":"2026-04-20T06:38:20","modified_gmt":"2026-04-20T05:38:20","slug":"blockstream-ceo-says-bitcoin-sidechains-will-kill-altcoins","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/blockstream-ceo-says-bitcoin-sidechains-will-kill-altcoins\/","title":{"rendered":"Blockstream CEO says Bitcoin sidechains will kill altcoins"},"content":{"rendered":"<p>The development of sidechains could transform Bitcoin into an all-useful blockchain protocol and make many altcoins redundant, according to sidechain pioneer and <a href=\"https:\/\/cryptoslate.com\/companies\/blockstream\/\">Blockstream<\/a> CEO <a href=\"https:\/\/cryptoslate.com\/people\/adam-back\/\">Adam Back<\/a>.<\/p>\n<p>Speaking on a panel at Transylvania Crypto Conference, <a href=\"https:\/\/www.forbes.com\/sites\/ktorpey\/2019\/10\/21\/when-will-bitcoin-sidechains-send-ethereum-ripple-and-other-crypto-prices-to-zero\/?utm_source=TWITTER&utm_medium=social&utm_content=2760906132&utm_campaign=sprinklrForbesCrypto#3532d541126f\">Forbes reported<\/a>, Back stated that altcoins would have \u201cless credibility\u201d when sidechain technology could facilitate \u201ceasy-to-use extension mechanisms\u201d for Bitcoin\u2014that is, allowing developers to augment the original layer-one cryptocurrency with new and innovative features.<\/p>\n<p>The comments reaffirm Back\u2019s long-standing reflections on \u201cuser-facing applications of sidechains\u201d in the original <a href=\"https:\/\/www.blockstream.com\/sidechains.pdf\">sidechain whitepaper<\/a>, authored in 2014 by his Bitcoin development firm Blockstream, which supposed that these parallel systems could offer faster, more sophisticated applications of BTC compared to the \u201cliquidity shortages\u201d and \u201cmarket fluctuations\u201d associated with smaller-cap altcoins.<\/p>\n<p>For the uninitiated, sidechains are standalone protocols linked to the main chain (in this case Bitcoin) via a two-way peg. Assets are locked on the main chain and then represented on the sidechain, where they can be transacted on a less encumbered, supposedly faster, network.<\/p>\n<h2>The state of sidechains<\/h2>\n<p>Back and his colleagues at Blockstream have for years spoken of a time that sidechains would administer the <i>coup de gr\u00e2ce <\/i>to many of the altcoins that have attempted to outdo Bitcoin in their various ways.<\/p>\n<figure id=\"attachment_88281\" aria-describedby=\"caption-attachment-88281\" style=\"width: 300px\" class=\"wp-caption alignright\"><a href=\"https:\/\/cryptoslate.com\/blockstream-launches-liquid-network-exchanges-can-now-transfer-bitcoin-in-under-2-minutes\/\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-88281\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/10\/blockstream-liquid-social-300x158.jpg\" alt=\"Blockstream Launches Liquid Network, Exchanges Can Now Transfer Bitcoin in Under 2 Minutes\" width=\"300\" height=\"158\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/10\/blockstream-liquid-social-300x158.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/10\/blockstream-liquid-social-768x403.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/10\/blockstream-liquid-social-1024x538.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/10\/blockstream-liquid-social.jpg 1200w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-88281\" class=\"wp-caption-text\">Related: <a title=\"Blockstream Launches Liquid Network, Exchanges Can Now Transfer Bitcoin in Under 2 Minutes\" href=\"https:\/\/cryptoslate.com\/blockstream-launches-liquid-network-exchanges-can-now-transfer-bitcoin-in-under-2-minutes\/\">Blockstream Launches Liquid Network, Exchanges Can Now Transfer Bitcoin in Under 2 Minutes<\/a><\/figcaption><\/figure>\n<p>Blockstream unveiled its first sidechain initiative in October last year, <a href=\"https:\/\/cryptoslate.com\/blockstream-launches-liquid-network-exchanges-can-now-transfer-bitcoin-in-under-2-minutes\/\">Liquid<\/a>, a Bitcoin sidechain connecting 23 major crypto exchanges and institutional trading shops. Offering sub-two-minute transactions with privacy features and an \u201cIssued Assets\u201d function for Ethereum-style assetization using the Bitcoin protocol, Liquid would certainly look like a step towards a future built on Bitcoin.<\/p>\n<p>But there\u2019s a tradeoff. Liquid uses a federated model that has its 23 members act as nodes for the sidechain, and is thus reliant on a significant degree of centralization\u2014reliant on trust. Rootstock, an open-source sidechain designed to bring smart contract functionality to Bitcoin, has a similar issue, relying on 25 high-profile blockchain companies to secure BTC transactions in and out of the peg wallet.<\/p>\n<p>One could look at these types of tradeoffs and draw comparisons to top-10 altcoins like XRP, which, in a similar fashion to Liquid, relies on centralization to increase transactional throughput. <a href=\"https:\/\/cryptoslate.com\/companies\/ripple\/\">Ripple Labs<\/a> (the company behind <a href=\"https:\/\/cryptoslate.com\/coins\/xrp\/\">XRP<\/a>) has pushed aggressively for international expansion in recent months, securing a series of <a href=\"https:\/\/cryptoslate.com\/moneygram-xrp-ripple-xrapid-cross-border-payments\/\">high-profile partnerships<\/a> intended to boost the coin's reach and liquidity\u2014their strategy <a href=\"https:\/\/cryptoslate.com\/why-liquidity-of-xrp-in-mexico-is-surging-after-moneygram-partnership\/\">seems to be working<\/a>.<\/p>\n<p>Until sidechains can help Bitcoin compete with its rivals in a more decentralized fashion, their usage may be limited to organizations already transacting in BTC.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The development of sidechains could transform Bitcoin into an all-useful blockchain protocol and make many altcoins redundant, according to sidechain pioneer and Blockstream CEO Adam Back. Speaking on a panel at Transylvania Crypto Conference, Forbes reported, Back stated that altcoins would have \u201cless credibility\u201d when sidechain technology could facilitate \u201ceasy-to-use extension mechanisms\u201d for Bitcoin\u2014that is, [&hellip;]<\/p>\n","protected":false},"author":175,"featured_media":115989,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29,61045,37],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Blockstream CEO says Bitcoin sidechains will kill altcoins<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/blockstream-ceo-says-bitcoin-sidechains-will-kill-altcoins\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Blockstream CEO says Bitcoin sidechains will kill altcoins\" \/>\n<meta property=\"og:description\" content=\"The development of sidechains could transform Bitcoin into an all-useful blockchain protocol and make many altcoins redundant, according to sidechain pioneer and Blockstream CEO Adam Back. Speaking on a panel at Transylvania Crypto Conference, Forbes reported, Back stated that altcoins would have \u201cless credibility\u201d when sidechain technology could facilitate \u201ceasy-to-use extension mechanisms\u201d for Bitcoin\u2014that is, [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/blockstream-ceo-says-bitcoin-sidechains-will-kill-altcoins\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2019-10-23T10:43:59+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-20T05:38:20+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/10\/bitcoin-sidechain-social.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Jonnie Emsley\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jonnie Emsley\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/blockstream-ceo-says-bitcoin-sidechains-will-kill-altcoins\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/blockstream-ceo-says-bitcoin-sidechains-will-kill-altcoins\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/jonnie-emsley\/#person\",\"name\":\"Jonnie Emsley\",\"url\":\"https:\/\/cryptoslate.com\/author\/jonnie-emsley\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/jonnie-emsley\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/jonnie-emsley\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/10\/author-jonnie-emsley.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/10\/author-jonnie-emsley.jpg\",\"caption\":\"Jonnie Emsley\"},\"jobTitle\":\"Contributor\",\"description\":\"Jonnie is a writer and blockchain enthusiast based in Ho Chi Minh City, Vietnam. 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