Sidechain is nothing but a separate chain as like blockchain, connected to the main blockchain via two-way-peg. Sidechains are considered as sub-chains or child chains and the first build blockchain are considered as a main chain or parent chain.
2. Introduction
Blockchain is becoming a game player in all industries, as blockchain technology
be the reasons for the improvement in all industries scope and visibility. This
trending technology too face some issues over the past years. To overcome all
issues of the blockchain, there emerges a new concept called sidechain, the
extension of the blockchain.
3. Major Issues in Blockchain Technology
1. Scalability :
The ability of the system to handle the growing amount of work by changing its
size is known as scalability. Blockchain finds it difficult to withstand its scalability
as there is a huge amount of applications of blockchains day-by-day.
2. Interoperability :
Interoperability refers to the ability of a computer software/system to operate,
exchange and uses the information instantly. Blockchain suffers from
interoperability issues over the years.
4. Major Issues in Blockchain Technology
3. Liquidity :
The term liquidity refers to the volume of activities performed by a product/brand in
the market. Liquidity of blockchain strikes to the bottom in recent days.
The chain fork, code fork, and sidechains are the solutions for blockchain issues.
But sidechain proves to the best solution out of all mentioned solutions.
All the above-mentioned issues of blockchain are overcome by this concept called
sidechains. Thus, sidechains are considered to the best solutions for all the
difficulties of the blockchain.
5. Sidechain
The main goal of this new concept of sidechain is to validate the transaction
without affecting the whole system or network.
Sidechain is nothing but a separate chain as like blockchain, connected to the
main blockchain via two-way-peg. Sidechains are considered as sub-chains or
child chains and the first build blockchain are considered as a main chain or
parent chain.
6. Benefits of Side chains
Connecting a side chain with a blockchain to overcome the scalability and
interoperability issues provides a lot more benefits.
1. Helps us overcome the blocking of scale. i.e., limiting the number of
transactions on the blockchain.
2. Provides flexibility of using the blockchain.
3. Increases the speed of transactions by limiting the time.
4. Proves to be cost-effective.
Sidechains are not private blockchains, Where as the private blockchain limits the
access to certain people inside the distributed networks.
7. How to connect sidechain with the main chain?
The side chains are connected with the main chain with the help of two-way peg,
which is a decentralized method and it uses SPV or Simple Payment Verification
process.
Two-way peg allows the transaction of cryptocurrency from the main chain to side
chains and also from side chains to the main chain. This concept of side chains is
built in such a way that it supports any kind of cryptocurrency transactions.
8. Working of Sidechain
To know more about how side chains are connected with main chain , the working
of sidechains , the properties of sidechains and recent use cases of sidechain with
blockchain , just have a look at the blog ,
Sidechain - An All New Blockchain Concept For 2020
9. Future of Blockchain with Sidechains
Blockchain with its new dimension called sidechains can surely make for a better
future. Developments in sidechains will go a long way in bringing better liquidity,
interoperability, and scalability of the blockchain and cryptocurrency globe.
Sidechains will sound louder within few days and by 2020, there will be no
blockchain present without its sidechains. Let us hope for good revolutionary
changes by " Sidechains- The back-end Player of Blockchain Technology. "
