Sidechains- A Boon for Blockchain Community!
Blockchain technology is evolving day by day with new tech trends adding to the space. Sidechains are considered to be the latest mechanisms that carry the tremendous potential to enhance the existing capabilities of the current blockchains.
Let’s Discover What are Sidechains in Blockchain Development!
A Sidechain is defined to be a separate blockchain network that links to a different blockchain i.e. the parent blockchain through a two-way peg. A crucial element of Sidechains is their ability to ensure smoother asset exchange between the secondary blockchain and the parent blockchain. This parent chain is referred to as the main chain or the mainnet. The secondary blockchains carry their own set of consensus mechanisms facilitating the blockchain network to enhance privacy and security.
- Sidechains are termed to be separate blockchains that branch out from the main chain.
- Side chains are often connected to the main chains through a two-way peg.
- Potential use cases of Sidechains are mainly in Blockchain Scaling Solutions.
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Crucial Components of Sidechains You Need to Explore!
A Two-way Peg
The development of sidechains was aimed to facilitate digital asset transfers between the blockchains irrespective of the owner or holder of the assets. There should be a smooth transfer of digital assets without any third-party or secondary actor pausing the transfer. Here, a two-way peg becomes important to facilitate the seamless transfer of digital assets between blockchains.
A Two-way peg is termed as the mechanism through which coins are transferred between the sidechains. It is like a tunnel that connects both the parent chain and the side chain enabling coin transfers back and forth.
It is interesting to note that, digital asset transfer is imaginary where the assets aren’t actually transferred. The assets are locked into the mainnet i.e. the parent blockchain and the equivalent amount is locked into the sidechain. These assets are locked and released on either end of the blockchains once the smart contracts validate the transactions.
Smart Contracts play a key role in minimizing foul play by the enforcing validators on the parent blockchain and sidechain. The smart contracts notify the transactions to the parent blockchain once the transaction has occurred. Now, the off-chain process communicates the transaction information to the smart contracts on the sidechain and verifies the transaction.
Once, the funds are verified by the smart contracts the digital assets can be transferred across both blockchains.
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Let’s Dig into the Roots of Polygon
Polygon is an Ethereum layer 2 solution based on the concept of Sidechains. It leverages the Ethereum framework termed Plasma, which enables the creation of child chains. These chains facilitate transaction processing before being finalized on Ethereum Blockchain. Polygon is EVM compatible and issues its own native token i.e. Matic through the proof-of-stake validators. It features 2 Two-way pegs, out of which one is through Plasma and the other through Proof-of-stake Validators.
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Let’s Wrap Up
Hopefully, the above article was informative and has helped you resolve your queries on sidechains. If you are looking for a reliable Blockchain Development Company, we can be the right choice for you! Explore our Enterprise Blockchain Development Services and schedule a meeting with us now!
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