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AnalyticsTrade Team
AnalyticsTrade Team Last updated on 26 Apr 2023

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A sidechain is a separate blockchain that is attached to its parent blockchain using a two-way peg. The two-way peg enables interchangeability of assets at a predetermined rate between the parent blockchain and the sidechain. A sidechain is used to extend the capabilities of a blockchain by allowing users to transfer assets from one chain to the other and back. This process is known as โ€œpeggingโ€ and is used to enable the transfer of assets between different blockchains and to facilitate the development of new and innovative applications.

History of Sidechain

The concept of sidechains was first proposed in 2014 by Adam Back, Austin Hill, and Sergio Lerner. The idea was to create a separate blockchain that could interact with the main blockchain, allowing users to move assets between the two chains. This would enable developers to create new applications and services on the sidechain while still being able to use the main blockchain for security and trust. Since then, the concept of sidechains has been further developed and is now being used in various projects and applications.

Comparison Table

Mainchain Sidechain
Security Security is provided by the mainchain
Scalability Scalability is improved by the sidechain
Speed Speed is improved by the sidechain
Cost Cost is reduced by the sidechain


A sidechain is a separate blockchain that is attached to its parent blockchain using a two-way peg. This enables users to transfer assets between the two chains and to develop new and innovative applications. Sidechains are used to extend the capabilities of a blockchain and to improve scalability, speed, and cost. For more information about sidechains, you can visit websites such as Bitcoin Magazine, Blockgeeks, and CryptoCompare.

See Also

  • Two-way Peg
  • Blockchain
  • Cryptocurrency
  • Smart Contracts
  • Proof of Work
  • Proof of Stake
  • Decentralized Applications
  • Distributed Ledger Technology
  • Consensus Algorithms
  • Interoperability

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