Sidechain
A Sidechain is an independent blockchain that runs alongside a main blockchain (like Bitcoin or Ethereum) and allows assets to move between the two networks securely.
How Sidechains Work
Sidechains are connected to the main chain via a two-way bridge. This setup enables users to transfer tokens from the main chain to the sidechain, where transactions can be faster, cheaper, or more flexible. Each sidechain operates with its own consensus mechanism and rules but ultimately relies on the main chain for final settlement or asset validation.
Why Sidechains Matter
Sidechains help improve scalability and expand functionality without overloading the main network. They allow developers to experiment with features like new consensus models, smart contract upgrades, or privacy tools without risking the stability of the main blockchain. Projects like Polygon (for Ethereum) and Liquid Network (for Bitcoin) are popular examples of this concept in action.