Received-SPF: pass (sog-mx-3.v43.ch3.sourceforge.com: domain of gmail.com
	designates 209.85.215.48 as permitted sender)
	client-ip=209.85.215.48; envelope-from=gmaxwell@gmail.com;
	helo=mail-la0-f48.google.com; 
MIME-Version: 1.0
In-Reply-To: <5331EF3D.4000504@monetize.io>
References: <20140322084702.GA13436@savin> <20140322150836.GG3180@nl.grid.coop>
	<20140322190825.GB6047@savin> <532DE7E6.4050304@monetize.io>
	<20140325122851.GA9818@savin> <5331EF3D.4000504@monetize.io>
Date: Tue, 25 Mar 2014 15:34:31 -0700
Message-ID: <CAAS2fgTovm7OtFFqdRYWDw5KxV+r5WD598JPnG5ydMYAs_gQWg@mail.gmail.com>
From: Gregory Maxwell <gmaxwell@gmail.com>
To: Mark Friedenbach <mark@monetize.io>
Content-Type: text/plain; charset=UTF-8
Content-Transfer-Encoding: quoted-printable
Cc: Bitcoin Development <bitcoin-development@lists.sourceforge.net>
Subject: Re: [Bitcoin-development] Tree-chains preliminary summary
Precedence: list

On Tue, Mar 25, 2014 at 2:03 PM, Mark Friedenbach <mark@monetize.io> wrote:
> More importantly, to your last point there is absolutely no way this
> scheme can lead to inflation. The worst that could happen is theft of
> coins willingly put into the pegging pool. But in no way is it possible
> to inflate the coin supply.

I don't think it would be entirely unfair to describe one of the
possible ways a secondary coin becoming unbacked can play out as
inflation=E2=80=94 after all, people have described altcoins as inflation. =
In
the worst case its no _worse_ inflation, I think, than an altcoin is=E2=80=
=94
however.

> I will look at your proposal in more depth. But I also think you should
> give 2-way pegging a fair shake as pegging to side chains and private
> accounting servers may eliminate the need.

I think that chain geometries which improve the scale/decentralization
trade-off are complementary. If PT's ideas here do amount to something
that gives better scaling without ugly compromise I believe it would
still be useful no matter how well the 2-way peg stuff works simply
because scaling and decenteralization are both good things which we
would pretty much always want more of...