Sidechains or sidechains seek to solve saturation problems that affect many blockchains. To achieve this objective, they allow the original features and specifications of these projects to be expanded quickly and relatively easily.
Una side chain o sidechain is an alternate blockchain that is used to improve the performance of a blockchain or blockchain it already exists.
This is possible because a side chain or sidechain allows this new chain of blocks can be connected and interact with an existing blockchain. This new chain contains completely different programming and features, but is compatible with the chain it joins. As a result, both chains can communicate and complement their capabilities.
An example of this may be the following. Imagine that a developer wants to create a DApp and unfold it over Bitcoin. Achieving this directly over Bitcoin at the moment is extremely complex. However, it is possible to develop a sidechain that adds such functionality to Bitcoin in a simpler way. This sidechain would have the ability to deploy DApps and interact bi-directionally with the Bitcoin chain.. The result is that it would be possible to develop DApps that take advantage of the potential of Bitcoin (its mining and other properties) thanks to the use of this sidechain.
How do sidechains work?
The operation of a side chain o sidechain It is not easy. Technically it is a huge challenge that has taken many years of development. But broadly speaking, the operation of the side chains is as follows:
Firstly, cryptocurrencies are sent to a specific address. Once there, the funds are frozen and no one can handle them. The only way to access such funds is to demonstrate that such cryptocurrencies are not being used elsewhere. Once it is confirmed that such funds are not used elsewhere, a notification is sent to the sidechain. After that, the sidechain will automatically create the exact same number of cryptocurrency assets that were shipped. This is clear using the token that said sidechain manages.
Control of these tokens will be entirely yours. From this moment, These tokens can be exchanged and moved to make use of the potential of that sidechain. All this following the guidelines and protocol that it has stipulated. For example, perhaps the speed of creating blocks is faster in this one or perhaps the transaction scripts in that chain are turing complete. From here and as you can see, the testing possibilities are practically limitless.
Projects with side chain technology today
The development of sidechain technology has been hard work but has paid off. In development since 2016, there are currently several functional sidechain technology projects that demonstrate the potential of this technology.
Among these projects we can mention:
Liquid Network
This is a project born from the hands of Blockstream, one of the world's largest cryptocurrency companies. Liquid Network It is a side chain or sidechain designed to work with Bitcoin. Liquid's goal is to enable faster Bitcoin transactions between companies and individuals with the use of its features. For this, Liquid has its own native asset called LiquidBitcoin (L-BTC) backed 1 to 1 with Bitcoin.
RSK
RSK is a sidechain solution designed to give Bitcoin the ability to generate and execute complex smart contracts. In other words, RSK is a sidechain to extend the functionalities of Bitcoin. RSK benefits from merged mining Bitcoin to secure your network and thus provide the best possible security.
Lisk
This is a sidechain platform that is characterized by allowing developers to implement DApps en javascript. Lisk It is a platform that has its own token and is capable of performing sidechains for any blockchain that needs its potential to generate DApps.
Best of all, Lisk offers high Scalability thanks to its protocol dPoS which gives it great speed. This, together with its enormous flexibility and development potential, have made Lisk one of the most recognized sidechain platforms.
Why are side chains important?
The side chains or sidechains have great relevance because They allow to dynamize in a unique way the operation of the blockchain. For instance, sidechains can enable the transfer of bitcoins and other cryptocurrencies to other blockchains. That is, thanks to the sidechain it would be possible to send BTC, to a sidechain that transforms said BTC to a certain token, and from there it goes to the Ethereum blockchain.
Likewise, sidechains can increase safety by avoiding problems that have occurred in other projects of altcoins. Also, sidechains can be used to add new unique functionalities to a blockchain without the need to alter its protocol.
Theoretically, sidechains can fix Bitcoin illiquidity, reduce volatility, increase security, reduce market fragmentation, or prevent fraud that has sometimes been observed with altcoin projects.
All of this would greatly enhance the current cryptocurrency ecosystem and open doors for new uses. In short, they are a perfect means to develop new technologies that can be adapted to those already created. All this without the need to make major changes and with the possibility of further expanding its potential.
At the same time, since sidechains remain independent blockchains, you can experience all kinds of functionalities without risk. This includes new transaction designs, trust or economic models, issuance of semantic assets, or new crypto functionalities.
Author
