What Are Sidechains and How Do They Work?

A sidechain is a separate blockchain attached to a main blockchain (often referred to as the "parent" chain) via a two-way peg. The two-way peg enables assets to be transferred from the parent blockchain to the sidechain and back. In addition, sidechains allow for the creation of new features and capabilities that may not be supported on the parent chain, such as smart contracts or different consensus mechanisms. Sidechain Benefits There are several potential benefits of using sidechains, including: Scalability:…