The post What Is A Sidechain In Blockchain And How Does It Work? appeared on BitcoinEthereumNews.com.

Learn about the Sidechain that Blockchain networks use to solve major issues, including scalability, flexibility, and interoperability.  Story highlights – – A Sidechain helps blockchain networks in boosting their scalability and interoperability.– Assets are transferred securely with two-way peg and smart contracts.– Advanced security measures are used to protect the assets. Scalability, flexibility, and interoperability are the issues plaguing most major blockchain networks. For example, blockchains like Bitcoin and Ethereum have a lot of transactions, which slows down the network. A sidechain has been created to address those issues. They help Blockchain networks by increasing scalability and interoperability. In this blog, you learn what a sidechain is and how it operates. What is a Sidechain?  A sidechain is a separate network that connects to another Blockchain with the help of a mechanism known as the two-way peg. Assets can be transferred from one chain to another with the help of a sidechain. A Sidechain is also called the sibling Blockchain or side Blockchain, helping increase the security and scalability of the parent Blockchain or the main Blockchain. Source: trustmachines.com How Does a Sidechain Operate?  The following steps reveal the operating procedure of a Sidechain: – Mainchain transaction: The user has to lock assets like crypto coins or tokens on the mainchain to initiate the transaction. – Pegging protocol: The pegging protocol then checks the assets locked in the main chain. – Sidechain generation: The pegging protocol helps to create a corresponding amount of assets on the sidechain, which is pegged to mainchain assets.  – Sidechain Transaction: The assets created on the sidechain, which are separate from the mainchain, can be transferred by the users. – Sidechain validation: To ensure Sidechains are integrated, nodes or validators check Sidechain transactions. – Cross-chain bridge: Users can use the cross-chain bridge to transfer their…

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Filed under: News - @ June 22, 2024 12:18 pm