Blockchain technology remains to be a momentous invention at this age. It has changed the business from the old normal to a new normal, which is currently embraced in nearly all fields. Its influence is felt in nearly all fields. It is used in manufacturing, healthcare, art, finance, education and many others. The wide influence of blockchain makes it known by most people, but very few know about the side chain closely related to it. Sidechain is block chain’s sibling. Blockchain suffers a few challenges, and one of them is scalability and flexibility, which is addressed by side chains.
A side chain is a separate blockchain attached to a parent blockchain using a two-way peg that makes the interchangeability of assets between the parent blockchain and the side chain at a given rate. In other words, blockchain sidechain technology allows the safe use of nodes from blockchain in another. A sidechain concept allows blockchain to scale by allowing the flow of information from one blockchain to another while deriving security from the main chain. The flow of reliable information from a blockchain to a side chain and back helps amplify blockchain security into global systems.
Sidechains allow more transactions per second (TPS) because a given sidechain can handle unrelated transactions simultaneously, thus allowing scalability. Additionally, side chains will help increase blockchain flexibility by working with multiple currencies because each side chain can work for a given sidechain transferable to the main blockchain.
Bitcoin and Ethereum transaction rates are quite low, making things like supporting a game, a financial transaction or IoT systems. Sidechain comes to rescue the situation by making blockchain networks scalable to a great state of updates per second. An increased number of updates per second helps ease decentralized financial applications around the world.