Steemit Crypto Academy Contest / S14W3 -Sidechains
For over a month now in steemit crypto academy engagement contest, we have been considering what can be done to impeove the scalability and speed of layer one chains. Layer 2 is the answer and currently web3 is the toast of the market.
Among the layer 2 protocols which provides solution to the issue of scalability is Sidechains.
What are side chains and how do they resolve the problem of scalability in layer 1 chain? This will be the basis of this engagement contest.
What is a sidechain in the context of blockchains and how does it work to improve the scalability of a blockchain network?
We can define a sidechain as a chain that can easily interact with another chain. It is able to carry out it's transaction within other chains using a two way-like bridge. With this bridge, it can transfer tokens to and from another Blockchain.
We have about 2 types of Sidechains,
° the ones that are two independent blockchains. In this case, both chains are sidechains, having their own native tokens and are equal. It has its own tokens, protocol, consensus mechanism, may be public or private and have its own security as an independent Blockchain.
° A case where one chain is dependent on the other. In this case, one is said to be the main chain while the other one that is dependent on it is referred to as the child chain.
In this scenario, the side chain does not have it's own assets but makes use of the main chain native token.
Generally, Blockchain apps can be run on them like DAPPS, which takes off some computational burdens from the main chain, helping to scale the main chain.
Another point to note about Sidechains is that so many of them can run the same time on a particular main chain depending on the main chains design. Also you can communicate among the Sidechains using the main chain as the relay network.
As I said earlier it uses a bridge to move assets from one chain to another. Not only is the bridge used for movement of assets, it can also be used to swap assets.
So the transaction is totally taken off from the main chain and transferred to the sidechain via the bridge where the actual processing of the transaction takes place.
By removing the processing of transactions from the main chain, it creates space within the main chain and relieves it of that responsibility, giving it more room to handle other pressing transactions. This in turn makes the main chain to become more scalable, faster in transaction speed and have reduced transaction cost.
What are the main differences between a sidechain and the main blockchain, and how do these differences help solve scalability issues?
| Sidechains | Parent Chains |
|---|---|
| Sidechains are very scalable | main chains are less scalable compare to sidechains |
| It is usually faster, ensuring cheaper transaction cost | it is very slow in its speed and transactions. |
| New techniques can easily be used on the sidechains | It is usually difficult in parent chains. |
| Adding any upgrade or experimenting within it does not require much consensus | require all the consensus mechanism before any upgrade is done. |
| Helps with diversification of assets to other chains (interoperability) | Does not encourage interoperability. |
I have highlighted the major differences between sidechains and main chains. This ability to handle transaction processing of the main chain, easy upgrade within the sidechain and interoperability, all help in making the main chain more scalable than before.
Are there any concrete examples of successful implementations of sidechains in blockchains, especially in the context of the Steemit platform?
The steem blockchain have a side chain linked to it. This is known as the steem sidechain. It is designed in such a way that programmers can launch their smart contracts on it and interact with existing ones.
This sidechain enables a more efficient and faster rate of transaction processing within the steem Blockchain, thereby making it more scalable.
It makes use of the technology infrastructure of the steem Blockchain and uses the JavaScript language as its base language in creating any smart contract running on it.
For any user to make use of it, they will need to pay some gas fees to be able to connect the sidechain to their wallet and interact with it on the steem Blockchain.
Then the transaction is verified and confirmed by the smart contracts on the sidechain. The transaction is then confirmed, and finally processed by the sidechain.
So this steem sidechain is known as steem keychain. steem keychain
With the link above, we can explore the side chain known as steem keychain.
Many dapps and smart contracts run on this sidechain and probably, the steemit platform dapps run on this sidechain too.
We can use the steem keychain to create personal token for use on the steem Blockchain.
Many other smart contracts also run on this sidechain.
How could sidechains be used to diversify functionality on the Steemit platform beyond simple cryptocurrency transactions?
Like stated above, sidechains can bring about a whole lot of improvements and help diversify the operation of the steemit platform.
As at present, steemit platform cannot interact with other chains except the steem Blockchain. So sidechains can bring about such interoperability.
The sidechains can be used to create liquidity pools within the steemit platform. With a good APR rate offered by the steemit platform, many liquidity injections would be provided, creating more awareness to the steemit platform and steem being the native token of the Blockchain will enjoy the positive volatility.
How could sidechains help attract new users and developers to the Steemit platform by offering improved functionality and reduced transaction costs?
One of the major benefits of sidechains is improved scalability and less transaction cost. With the the sidechain we have in steem Blockchain, it will be easy to run smart contracts, and DAPPS that will specifically handle a particular problem within the steemit platform. Additionally, the coding language used is a global and easy language, which will make it easy for developers to use and create their own dapps.
The sidechain can help to improve the steemit platform interface, making it become more user-friendly and easy to use by new entrants into the platform.
Conclusion
Sidechains are good for the improvement of the main Blockchain. it aids in improving scalability, speed of transaction and less transaction cost. Applying it would help the platform to become more functional and diversified.
I will like to invite @steemdoctor1 @sahmie and @yancar to take part. The contest link it here. I wish you all success!
This is my introductory post here
Greetings ma'am.
Once again, you've nailed it with your fantastic contribution. Your words were super helpful in helping me understand sidechains and how they work.
So basically, sidechains are like these extra chains that work together with the main chain (layer 1) to process transactions outside of it. This teamwork helps make things more scalable and efficient. I'm wishing you all the success in the world, and thanks for inviting me. Good luck
Upvoted. Thank You for sending some of your rewards to @null. It will make Steem stronger.
Hola hermosa amiga, como siempre nos envías una gran participación, excelente palabras para darnos a entender las sidechain y su funcionamiento, sabemos ya que son cadenas laterales que funcionan con ayuda de la capa 1 y realizan transacciones fuera de ella para así mejorar la escalabilidad, te deseo el mayor de los éxitos, gracias por la invitación.
Thank you so much for engaging
Congratulations, your post has been upvoted by @scilwa, which is a curating account for @R2cornell's Discord Community. We can also be found on our hive community & peakd as well as on my Discord Server
Felicitaciones, su publication ha sido votado por @scilwa. También puedo ser encontrado en nuestra comunidad de colmena y Peakd así como en mi servidor de discordia
Thank you, friend!
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We can define a sidechain is the one that can easily attach with another chain. Perfectly said. But the chain which the side chain is going to attach must be the main Blockchain.
You have also defined the two types of side chain. In first case we have both side chain and are completely independent on each other in all aspects. The other is is when we have one dependent chain and the other is independent. In this the dependent chain is sidechain.
You have beautifully explained the function of sidechain in Steemit. It's really nice to read out your post here.
I wish you very best of luck here in the contest.
Fantastic breakdown of sidechains! Your explanation is crystal clear making complex concepts easily understandable. I appreciate how you used the steem sidechain example adding a practical touch to the theoretical discussion. The comparison between sidechains and parent chains along with the emphasis on scalability speed and interoperability gives a comprehensive view. Your vision of creating liquidity pools within the Steemit platform using sidechains is innovative and could attract more users contributing to positive volatility for steem.
Wishing you the best of luck in the contest! Your insights not only educate but also inspire a deeper exploration of the potential sidechains hold for blockchain improvement. Keep up the excellent work
Your explanation of the interdependence between chains, designating one as the main chain and the other as the child chain, is straightforward and easily digestible. This clear distinction sets the stage for understanding the dynamics of sidechains.
You can also check out my point of view to the challenge here.