Steemit Crypto Academy Contest / S14W3 -Sidechains
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INTRODUCTION |
It's been about a month since we started talking about side chains in the blockchain world. This week, we're continuing our discussion to deepen our understanding of this fascinating concept.
What is a Sidechain in the context of blockchains and how does it work to improve the scalability of a blockchain network? |
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In chemistry, a side chain is known as a group of atoms attached to the main chain or the backbone of a molecule.
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Hence in the context of blockchain, a sidechain is an additional or auxiliary blockchain connected to the main blockchain to help provide additional functions and improve the main blockchain. It is more of an alternative chain or a support chain that assists the Main Blockchain in carrying out certain tasks to help with the overall functioning of the Main Blockchain.
In layman's terms, a sidechain is like an extra lane beside the main highway that helps ease the traffic and make things faster. Hence, it is a separate chain that is connected to the main blockchain, to execute certain functions and operations.
A Sidechain is practically designed to handle specific tasks or provide extra functionalities that may not be doable or efficient to execute directly on the main blockchain. Hence, Sidechains can have their own rules, consensus mechanisms, and even features that cater to their specific use. But then, there are different types of Side Chains serving different purposes, such as;
Pegged Side Chains:
These side chains are linked to the main blockchain through a two-way peg mechanism. They enable the transfer of assets between the main chain and the side chain, allowing for interoperability and asset portability.
Federated Side Chains:
In federated side chains, a group of trusted validators or entities are responsible for validating transactions and maintaining consensus. This approach can enhance scalability and privacy while maintaining a certain level of decentralization.
Drive chains:
Drive chains are a type of side chain that allows for the creation of new blockchain networks that are secured by the main blockchain. They enable the deployment of custom rules and features while leveraging the security of the main chain.
Child Chains:
Child chains are side chains that are dependent on a parent chain. They inherit the security and consensus mechanisms of the parent chain while providing specific functionalities or applications.
However, the main purpose of all these Side Chains is to improve the scalability and functioning of the Main Blockchain as the Main Blockchain can get packed up where there are a lot of tasks or transactions sometimes, slowing down the whole system. Hence the Sidechain takes some of these tasks or transactions away from the Main Blockchain.
By doing so, the Main Blockchain becomes less packed, giving it room to handle more tasks or transactions efficiently just like the extra lanes on the highway help to relieve the traffic and keep things moving smoothly.
When these transactions are processed on the sidechain, they are sent to the Main Blockchain thereby improving the scalability of the network as more transactions are being processed at the same time without cluttering the main blockchain.
Sidechains improve the scalability of the Main Blockchain by;
Offloading Transactions:
Sidechains allow certain transactions to be processed on a separate chain, relieving the burden on the Main Blockchain. By moving transactions to the Sidechain, the Main Blockchain can handle more transactions without getting overwhelmed.
Faster Transaction Processing:
Sidechains can have their consensus mechanisms and rules, which can be designed to process transactions more quickly than the main blockchain, this helps reduce the time it takes to confirm and validate transactions, improving overall scalability.
Customized Features:
Sidechains can be tailored to specific use cases or applications, allowing for specialized features or functionalities enabling different types of transactions to be processed efficiently, and enhancing scalability by optimizing resource allocation.
Improved Privacy:
Sidechains can provide additional privacy features, such as confidential transactions or improved anonymity. This can attract users who value privacy and encourage more transactions to be conducted on the sidechain, reducing the load on the main blockchain.
Experimental Development:
Sidechains offer a testing ground for new features and innovations before they are implemented on the main blockchain, helping to prevent potential disruptions to the main network while still allowing for experimentation and scalability improvements.
All these are what Sidechains can do to improve the Main Blockchain.
What are the main differences between a sidechain and the main blockchain, and how do these differences help solve scalability issues? |
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There are certain differences between a sidechain and the main blockchain and they are:
| Main Blockchain | Sidechain |
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| The main chain is like the big boss, handling all the important stuff in the blockchain network. It's where the main transactions and operations take place. | Side chains are like specialized units that focus on specific activities or features. They're like smaller teams working on specific tasks. |
| Main chains have a lot of traffic because they handle all the important transactions. Sometimes, this can slow things down and make it harder to process everything quickly. | Side chains help with this by taking some of the load off the main chain, handling their transactions and activities, and making everything more efficient and faster. |
| Main chains usually have a set of rules and features that apply to the entire blockchain network. | Side chains can have their own unique rules and features that are specific to their purpose. |
| The main chain is the central hub of the blockchain network | Side chains are separate units connected to the main chain, communicating and sharing information with the main chain when needed. |
Are there any concrete examples of successful implementations of sidechains in blockchains, especially in the context of the Steemit platform? |
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Several Side Chains have been implemented in different blockchain projects to deal with scalability, privacy, and other specific use cases of which notable examples include:
Liquid:
Liquid is a sidechain developed by Blockstream for the Bitcoin blockchain. It enables faster and more confidential transactions between participating exchanges and institutions.
RSK:
RSK (Rootstock) is a sidechain being used to extend the functionality of the Bitcoin Blockchain by enabling smart contracts to provide compatibility with Ethereum's virtual machine, allowing developers to build decentralized applications on the Bitcoin network.
Loom Network:
Loom Network is a platform that offers multiple side chains for scaling Ethereum-based applications. It provides faster transaction speeds and allows developers to build scalable DApps with their dedicated sidechains.
Matic Network:
Matic Network is a Layer 2 scaling solution for Ethereum. It uses side chains to achieve faster and cheaper transactions, improving the scalability of the Ethereum network.
In the context of Steem, there was a side chain in the Steem blockchain known as STEEM ENGINE. Steem Engine is a side chain that allows for the creation and management of custom tokens on the Steem platform. It provides more functionalities and flexibility for token creation, transfers, and smart contract capabilities. But was later moved from steem-engine.com to steem-engine.net
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With Steem Engine, you can make your tokens, trade them, and even create decentralized apps (DApps) on the Steem blockchain. Steem Engine and the Main Steem Blockchain work together through a two-way peg system. This means that the tokens created on Steam Engine are linked to an equivalent amount of STEEM tokens on the Main Steem Blockchain.
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When you transfer tokens from Steem Engine to the Main Steem blockchain, you initiate a withdrawal process. This burns the tokens on the side chain and releases an equal amount of STEEM tokens on the main blockchain.
Similarly, when you deposit STEEM tokens on Steem Engine, you initiate a deposit process. This locks the STEEM tokens on the main blockchain and mints an equal amount of STEEM tokens on the Steem Engine side chain.
This two-way peg mechanism allows for the smooth movement of tokens between Steem Engine and the main Steem blockchain, keeping them connected and enhancing the functionality of the Steem ecosystem.
One example of a token created on Steem Engine is the PALcoin (PAL). PALcoin is a token that was created to support the PALnet community on the Steem blockchain.
It serves as a means of reward and incentive for content creators, curators, and community members who contribute to the PALnet platform. PALcoin can be earned by participating in PALnet activities, such as creating posts, commenting, and upvoting content.
Additionally, another example of a side-chain implementation is the Hive blockchain, which is a fork of the original Steem blockchain. It operates as a separate chain with its governance and community, while still being compatible with the Steem Blockchain.
This allows users to have an alternative platform that shares similarities with Steemit but operates independently. Hence we can say Hive is an example of how side-chain implementations can provide different experiences and communities within the broader Steem Ecosystem.
How could sidechains be used to diversify functionality on the Steemit platform beyond simple cryptocurrency transactions? |
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Sidechains can offer a way to expand and diversify the functionality of the Steemit platform beyond just cryptocurrency transactions by implementing various side chains that take care of certain aspects such as;
Enhanced Content Creation:
A sidechain dedicated to content creation can introduce features like improved content discovery, reputation systems, and enhanced rewards for high-quality content, empowering creators on Steemit, and making it easier for them to showcase their work and earn recognition for their contributions.
Gaming and NFTs:
A sidechain can be implemented to focus on gaming and non-fungible tokens (NFTs), providing a platform for in-game asset ownership, virtual item trading, and provably fair gameplay allowing users to earn rewards and engage in gaming-related activities within the Steemit ecosystem.
Decentralized Finance (DeFi):
A financial sidechain can enable decentralized financial services within Steemit. It could include features like decentralized exchanges, lending platforms, and the integration of stablecoins. This way, users would have more options for managing their finances and participating in DeFi activities.
Social Interactions:
A social sidechain can improve the social aspects of Steemit by introducing features like private messaging, groups, events, and collaborative content creation, fostering stronger connections and interactions among users, and making Steemit a more vibrant and engaging social platform.
Do you think the future of cryptocurrencies is more stable? Give your own opinion. |
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How could sidechains help attract new users and developers to the Steemit platform by offering improved functionality and reduced transaction costs?
The implementation of sidechains can attract new users and developers to the Steemit platform by:
Enhancing Functionality:
Sidechains act like different zones within the Steemit universe, each with its unique features and capabilities. It's like having different themed areas in an amusement park. For example, one sidechain could focus on video content, allowing users to upload and share videos seamlessly. With another devoted to e-commerce, enabling users to buy and sell products directly on the platform. This will attract new users who are looking for specific experiences and services.
Creating Developer Opportunities:
By using sidechains, Steemit can attract developers who are excited about the opportunity to contribute to a growing ecosystem and showcase their skills as sidechains provide developers with a playground to create and innovate. This will bring fresh ideas and expand the platform's functionality, making it more appealing to users.
Reducing Transaction Costs:
By utilizing sidechains, Steemit can help reduce transaction costs, making it more affordable for users to engage with the platform which in turn attracts new users who are mindful of their expenses and encourages existing users to continue using the platform.
Offering Scalability and Speed:
Sidechains can improve the scalability and speed of the Steemit platform by moving certain activities to sidechains, freeing the main Steemit Blockchain to focus on core functionalities, and ensuring smoother and faster transactions, which will help attract users who value efficiency and responsiveness.
CONCLUSION |
In conclusion, sidechains offer a way to improve blockchain networks by enabling the creation of specialized apps, enhancing scalability, and promoting better connectivity between different chains, making sidechains an exciting solution with lots of potential.
I wish to invite @starrchris, @ngoenyi and @suboohi
Thank You for your Time
NOTE: Always have a smile on your face, as you are never fully dressed without one.
hello @sahmie Your detailed explanation of sidechains in the context of blockchains, using the analogy of an extra lane beside the main highway, is both accessible and insightful. The breakdown of different types of sidechains, such as pegged side chains, federated side chains, drive chains, and child chains, adds depth to the understanding of how sidechains can serve various purposes.
Your emphasis on the primary goal of sidechains, improving scalability and offloading transactions from the main blockchain, is well articulated. The analogy of relieving traffic on a highway through additional lanes effectively conveys the concept of sidechains optimizing the efficiency of the main blockchain.
You've also highlighted the ways in which sidechains contribute to scalability, including faster transaction processing, customized features, improved privacy, and serving as an experimental development ground. This comprehensive overview provides a well-rounded understanding of the potential benefits of sidechains.
The comparison between the main blockchain and sidechains, illustrating their differences in handling transactions and specific tasks, effectively communicates their respective roles in the blockchain network. The clarity in your presentation makes the complex concept of sidechains more approachable for readers.
Lastly, your mention of concrete examples of successful sidechain implementations in various blockchain projects adds practical relevance to your discussion. This inclusion enriches the narrative and provides real-world context to the theoretical concepts discussed.
Overall, your contribution is thorough and well-structured, making it a valuable resource for readers seeking to understand the intricacies of sidechains in the blockchain ecosystem. Great job!
Thanks for your detailed feedback on my explanation of sidechains. I'm glad you found it accessible and insightful.
The analogy of an extra lane on a highway really helps convey how sidechains optimize the main blockchain's efficiency. Sidechains offer faster processing, customized features, improved privacy, and serve as experimental grounds. It's great that you appreciated the concrete examples I provided, as they make the concept more relatable.
Overall, I must say your comment alone is worthy of an entry.
Saludos gran amigo sahmie, felicidades por tu nueva presentación en el reto con muy buenos resultados, gracias por darnos una clase de lo son las cadenas laterales o sidechain, están mejoran la escalabilidad de las L1 al trabajar en conjunto. Exito y bendiciones.
Hey there, my amazing friend.
Thank you so much for the kind words and appreciations on my presentation. I'm really happy to hear that you found the class on sidechains helpful. Sidechains are like a team that helps make the main blockchain work better and faster. It's all about working together to make things more efficient! Wishing you lots of success and good vibes too. Thanks again for your support.
Upvoted. Thank You for sending some of your rewards to @null. It will make Steem stronger.
What an Insightful read! Your analogy of sidechains being like extra lanes on a highway to ease traffic on the main Blockchain makes this Complex concept so much clearer. The breakdown of different sidechain types and Their functions provides solid Understanding.
The examples you gave especially with Liquid for Bitcoin and Steem Engine within the Steemit Ecosystem help to bridge the theoretical with the practical. It's impressive how you have explored the potential functionalities sidechains could bring to steemit from content creation to decentralized finance.
I appreciate your well structured and easy to follow explanations. Best of luck in the contest!
Thank you so much for your kind words, I'm happy that you found my explanation of sidechains insightful and helpful. The analogy of sidechains being like extra lanes on a highway to ease traffic on the main Blockchain is a great way to make this complex concept clearer.
I'm glad that the breakdown of different sidechain types and their functions provided you with a solid understanding. And the examples I gave, such as Liquid for Bitcoin and Steem Engine within the Steemit Ecosystem, were meant to bridge the theoretical with the practical.
It's fantastic to hear that you appreciate the well-structured and easy-to-follow explanations. I put a lot of effort into making sure they are clear and accessible. Thank you for your support.
Hello friend greetings to you. Hope you are enjoying your life there.
You said that side chain is an auxiliary or additional chain associated or linked with the main chain. Main Blockchain always carry out major functions while the side chain dealt with minor. Main Blockchain is independent while side is depend. I want to add something that side chain somehow resemble to the plasma chain in characteristics.
You have mentioned different projects lunched on the side chain of the main Blockchains. I want to add it here that HIVE is a project lunched on Steemit main Blockchain. Side chain have many benefits to the main Blockchain, the most primer one is it provide scalability to the main Blockchain.
I wish you very best of luck here in the contest.
Greetings friend,
I agree with you that Side chains handle minor functions while the main chain takes care of the major ones. The main purpose of Side chains is to provide scalability to the main Blockchain, which is super important. It's awesome to see how side chains bring so many benefits to the main Blockchain.
Greetings!
Your succinct explanation of the main purpose of sidechains is on point. The focus on improving the scalability and functioning of the main blockchain is crucial, especially when faced with congestion due to a high volume of tasks or transactions.
You can also check out my point of view to the challenge here.
Thanks for your feedback on my explanation of sidechains. I'm glad you found it on point. You're absolutely right, improving scalability and functionality of the main blockchain is crucial, especially when there's a lot of congestion. It helps handle the high volume of tasks and transactions more efficiently. Trust me, I've been to your page on this one.
Mary within your articles give me reasons to know that you are really smart and very intelligent especially in the crypto wall and for that reason hi nicknamed you young crypto proof I really learned a lot and understood everything you wrote on your article thanks for sharing such credible and knowledgeable assets to us
Thanks for sharing wishing you success please engage on my entry https://steemit.com/hive-108451/@starrchris/steemit-crypto-academy-contest-s14w3-sidechains
I must say, at first I was confused on what you meant with "Mary" but then I must say I'm flattered by your words and again, I wish to decline that position as I'm still nowhere near a proof but just continue to improve myself and learn like everyone else. In all, thank you so much for your kind words and wonderful wishes... On to the next one.
Greetings, dear @sahmie! 🌟
Your comprehensive breakdown of sidechains' role in enhancing blockchain scalability is exceptional! Sharing more in-depth insights like this enriches discussions and fosters growth.
Keep up the brilliant work, unraveling the complexities of blockchain innovations!
Success for you .