WHAT IS A SIDECHAIN?

A sidechain is a separate blockchain linked to a main blockchain (like Bitcoin or Ethereum) that allows assets to be transferred between them.

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🕒 6:30 PM

📅 Jul 19, 2025

✍️ By faultybaba

Sidechain operates independently, with its own rules and features, often used to improve scalability, enable faster transactions, or test new functionalities without affecting the main chain.

KEY FEATURES OF A SIDECHAIN

1. Independent Blockchain: Has its own consensus mechanism. It also maintains its own block history and rules

2. Customizability: Developers can test new features, smart contracts, or protocols without risking the mainchain.

3. Connected to Mainchain: Assets can be transferred between the mainchain and sidechain using a mechanism called a two-way peg

4. Scalability: Reduces congestion on the mainchain by processing transactions separately.

HOW DOES A SIDECHAIN WORK?

1. Lock Assets on Mainchain: Users lock their tokens on the mainchain.

2. Transact on Sidechain: Fast, low-cost transactions can occur independently.

3. Redeem Back to Mainchain: Tokens on the sidechain can be burned to unlock the original tokens on the mainchain. 

4. Mirror Tokens on Sidechain: Equivalent tokens are issued on the sidechain.