I want to create a cryptocurrency that's backed by bitcoin, that's running on it's own different blockchain and consensus algorithm.
Is it possible have a decentralized exchange between bitcoin and the new currency so that the only way to get the new coin is to exchange your bitcoin and if you want you can get your bitcoin back by returning your new coin?
And this to be done in a safe way without a central exchange and ANYONE having access to all of the new coin, and without risk for your bitcoin as long as both the bitcoin and new crypto blockchains are both alive and by nodes running the blockchain.
Here's an example:
- You send 1 btc to a bitcoin address.
- When that's confirmed let's say with 6 confirmations the "decentralized system" sends you 1 coin of the new coin to your "new coin" address of choice.
And if you want you can trade your new coins back for bitcoin.
So the total supply of the new coin = the supply of bitcoin
And no one has access to the total supply of the new coin, the only way to get the new coin is to deposit bitcoin. And you can get your bitcoin back automated and decentralised whenever you want by returning your "new coin" to the system.
Is this possible?
I know about atomic swaps but that relies on 2 parties exchanging coins. What if 1 of the parties is the new blockchain itself? Is this even possible?