Side Chain

What Is Side Chain?

Sidechains were made to address the escalating processing issue faced by all major crypto networks. Sidechains help this issue by taking calculations off the main blockchain and relieving the mainchain from processing. In addition, a two-way peg connects a sidechain to the main blockchain, or the parent chain, which means that the side chains offer the same security as the main blockchain. 

Side chains can connect with the blockchain in various ways. However, all the options have the primary ability to trade assets between chains by using a two-way peg. This peg consists of lockboxes on both chains. 

Lockboxes are temporary storage boxes for coins moving from the main block to the side chain. They go into lockboxes and out of total coin supply for a short while. Then, the lockbox address is used to transfer the coin. All details about the lockbox, side chain address, and other transaction details are included in the information. Once the transaction is completed, the side chain lockbox will release the coins to the primary address. 

The Side Chain Process Flow

There is an entire process for using side chains. First, the primary chain user sends coins or any digital asset to the output address (the lockbox), where the asset is locked and unavailable for use. Once the transaction is complete, information is sent all over the networks (both primary and side chains). There is a waiting period for additional security, and once that is over, the assets or coins are transferred from the lock box, which allows them to be used freely on the side chain. 

There are multiple side chain variations based on the exact purpose they are designed for. Many are specific to the network they are intended for use on. For example, RootStock and Liquid are two side chains designed for Bitcoin. But both have different purposes. 

Side Chains Examples:

Liquid Network

The Liquid Network is a side chain protocol designed for use on top of the Bitcoin network. The block discovery time on Liquid is just a minute, which makes it ten times quicker than what the leading Bitcoin network will take. 

Polygon

Polygon is a famous Ethereum side chain launched to offer scaling options for public blockchains. Polygon provides scalability for the overloaded Ethereum blockchain. It helps ensure that users have an improved experience without conceding security. Polygon is only compatible with Ethereum, but there are efforts to make it compatible with other blockchains for offering blockchain interlinkages and scalability.