Sidechain in blockchain
- 2. Introduction Blockchain is becoming a game player in all industries, as blockchain technology be the reasons for the improvement in all industries scope and visibility. This trending technology too face some issues over the past years. To overcome all issues of the blockchain, there emerges a new concept called sidechain, the extension of the blockchain.
- 3. Major Issues in Blockchain Technology 1. Scalability : The ability of the system to handle the growing amount of work by changing its size is known as scalability. Blockchain finds it difficult to withstand its scalability as there is a huge amount of applications of blockchains day-by-day. 2. Interoperability : Interoperability refers to the ability of a computer software/system to operate, exchange and uses the information instantly. Blockchain suffers from interoperability issues over the years.
- 4. Major Issues in Blockchain Technology 3. Liquidity : The term liquidity refers to the volume of activities performed by a product/brand in the market. Liquidity of blockchain strikes to the bottom in recent days. The chain fork, code fork, and sidechains are the solutions for blockchain issues. But sidechain proves to the best solution out of all mentioned solutions. All the above-mentioned issues of blockchain are overcome by this concept called sidechains. Thus, sidechains are considered to the best solutions for all the difficulties of the blockchain.
- 5. Sidechain The main goal of this new concept of sidechain is to validate the transaction without affecting the whole system or network. Sidechain is nothing but a separate chain as like blockchain, connected to the main blockchain via two-way-peg. Sidechains are considered as sub-chains or child chains and the first build blockchain are considered as a main chain or parent chain.
- 6. Benefits of Side chains Connecting a side chain with a blockchain to overcome the scalability and interoperability issues provides a lot more benefits. 1. Helps us overcome the blocking of scale. i.e., limiting the number of transactions on the blockchain. 2. Provides flexibility of using the blockchain. 3. Increases the speed of transactions by limiting the time. 4. Proves to be cost-effective. Sidechains are not private blockchains, Where as the private blockchain limits the access to certain people inside the distributed networks.
- 7. How to connect sidechain with the main chain? The side chains are connected with the main chain with the help of two-way peg, which is a decentralized method and it uses SPV or Simple Payment Verification process. Two-way peg allows the transaction of cryptocurrency from the main chain to side chains and also from side chains to the main chain. This concept of side chains is built in such a way that it supports any kind of cryptocurrency transactions.
- 8. Working of Sidechain To know more about how side chains are connected with main chain , the working of sidechains , the properties of sidechains and recent use cases of sidechain with blockchain , just have a look at the blog , Sidechain - An All New Blockchain Concept For 2020
- 9. Future of Blockchain with Sidechains Blockchain with its new dimension called sidechains can surely make for a better future. Developments in sidechains will go a long way in bringing better liquidity, interoperability, and scalability of the blockchain and cryptocurrency globe. Sidechains will sound louder within few days and by 2020, there will be no blockchain present without its sidechains. Let us hope for good revolutionary changes by " Sidechains- The back-end Player of Blockchain Technology. "