Developers are competing to bring ZCash privacy functionality to a Bitcoin sidechain. To do this, they're using the Drivechain technology created by decentralized prediction marketplace pioneer, Paul Sztorc. As an added incentive, Sztorc has announced a prize fund of up to half dozen.ane Bitcoin (BTC). This compensation will reduce slightly if non claimed by midnight EST on May 1.

Drivechain adds altcoin functionality to BTC

Drivechain is an implementation which allows for the creation of Bitcoin sidechains with a true two-manner peg. This would allow Bitcoin holders to move their coins to whatever sidechain they choose. Doing this could allow users to benefit from characteristics and features non plant on the main Bitcoin blockchain.

This could be a sidechain with large blocks and low fees, with smart contracts, or even with the enhanced privacy features of an altcoin, like ZCash (ZEC). Zcash functionality provides an ideal complement to the transparency and auditability of Bitcoin.

Bitcoin which is transferred to a sidechain is effectively held in escrow by miners, until information technology returns. To whatever outside observer, it is impossible to evidence that the owner has been benefiting from ZCash privacy technology.

Motivated by cold hard Bitcoin

Sztorc has provided a Drivechain sidechain template and challenged developers to exercise a "code transplant" from ZCash. This would substantially turn the altcoin into a sidechain. As both are code forks of Bitcoin, most of the source code already overlaps, meaning much less work.

The prize fund is to encourage developers to investigate his Drivechain technology, and create a proof-of-concept for further testing. The challenge was set on April 20, and at time of publication, nobody had claimed the prize. Information technology is prepare to run until the upcoming Bitcoin halving on May 12.

If any challenger is successful, this could pave the fashion for various flavors of BTC which are capable of taking on the characteristics of any blockchain asset. If that happens, information technology could potentially render all altcoins obsolete.