Sidechains

As the ecosystem of a blockchain grows in size (transactions) and scale (peers) as time passes, the blockchain also increases in length and storage space. This has led to the concept of a sidechain, which is an independent ledger that is linked directly to the main blockchain without affecting its speed and performance. A sidechain ensures that the main chain is as secure as possible while it makes it possible to explore other options that would never be used on the main chain. Sidechains provide powerful cases such as anonymity, transparency, confirmation times, and Turing-complete options.

Because a blockchain can increase substantially in length and storage space, consequently, it makes it more difficult to manage the network. Thus, most sidechains are developed solely to enhance the scalability of the existing system by forming an interoperable blockchain network, or pegged sidechain, without undermining speed and performance. This means that it allows data from one blockchain to be securely used within a completely separate blockchain, but it still can be moved back to the original chain if necessary. Since sidechains are separate systems, they allow innovators to develop new technical and economical applications safely without jeopardizing the main blockchain code and putting valuable data at risk. In the event of a malicious design flaw in a sidechain, the damage is confined just to that particular sidechain.