Monday, April 23, 2018

How Will the Use of Sidechains Benefit Blockchain Implementation?

Friends, sidechains are separate Blockchains which are 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. The parent Blockchain is commonly referred to as the ‘main chain’ and all additional Blockchains are referred to as ‘sidechains’. Any transactions occurring on a sidechain can be picked up by nodes on the main chain to record it. Every sidechain will trust the main chain for cross-chain transactions of any kind. Mounting transaction fees and growing confirmation delays have been problems for quite some time now. The developers of Ethereum Classic wish to avoid these issues with the help of a sidechain protocol, rather than an on-chain block size increase a la Bitcoin Cash. Bottom line: Will the continued use of sidechains benefit Blockchain integrity and adoption?  Our belief is yes they will until such time as a new mechanism is developed to test new functionality without putting the parent Blockchain at risk. Let us know your comments. Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

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