Steemit Crypto Academy Contest / S14W3 -Sidechains
A sidechain in the crypto ecosystem can be refers to a separate blockchain that runs hand in hand with a main blockchain, this sidechains were developed for the execution of some special activities to improve processes while still linked with a parent blockchain.
The side chain works individually but is can still be accessed through the main blockchain, so that the would be easier transfer of data and information between the side chain and main blockchain. The main purpose of Sidechains is to help improve a Blockchain scalability, interoperability, and functionality limitations seen on main blockchains like Bitcoin and Ethereum.
Scalability has been a serious issue for old and big blockchain, most especially for the oldest like Bitcoin, Litecoin and Ethereum. As the number of transactions increases, the network faces scalability issues. So therefore causing a much slower transaction speeds and higher transaction fees. With the help of Sidechains these issues can be easily resolved by giving some duties of the main blockchain to an efficient and effective Sidechain, so therefore reducing the workload on the main blockchain
The basic mechanism that supports the development of sidechains that improves scalability is known as pegging. Pegging can be defined as the process of locking a certain amount of cryptocurrency (e.g., Steem) on the main blockchain and minting an similar or equal amount of new tokens on the sidechain platform. These tokens are what is used in the sidechain to run activities like processing transactions and running smart contracts.
Sidechains has different consensus mechanisms and architectures depending it main purpose, which could be for faster transaction in the Blockchain or transaction confirmations
For instance, a sidechain sole aim could be lower power consumption then the Proof of Authority (PoA) consensus algorithm, which is known to support lower power consumption can be used, also Delegated Proof of Stake (DPoS) could be employed if the side chain main goal is for voting on a Blockchain or Proof of History (PoH) could be used if side chain os used for a secured transaction because Proof of History (PoH) is known for advancing security of a Blockchain.
The communication between the main blockchain and sidechain is very important. Because it's necessary for users to move assets or data to and fro the both Blockchain through the desired consensus mechanisms. This must
happen in both directions, thats to say the main chain can send and receive data and information and the allowing assets to be locked or transferred back to the main chain when needed and the side chain can also send and receive data and information from the main chain.
| Feature | Main Blockchain | Sidechain |
|---|---|---|
| Primary Function: | This is the primary blockchain that maintains the core ledger and performs necessary transactions for the Blockchain | As the name implies works with the main blockchain but handles some cumbersome activities like smart contracts or running transactions to improve scalability of the main chain. |
| Consensus Mechanisms: | The Main blockchain is the one that runs or work with the core consensus mechanism of the blockchain, this consensus mechanism is focused on making the blockchain achieve it main goal. | On other hand the side chain uses a mechanism that would help solve the scalability issue on the blockchain that is to say a site chain might use a consensus mechanism that I increase the speed of the blockchain or help enhance security of the blockchain. |
| Security | because of the fact that this is the core primary or main chain the main chain is usually more secured than they side chain or a second layer blockchain | because this is not the main chain there are lesser concern of security and lower security protections on the side chain. |
| Native Asset Usage: | The main chain usually host the native asset and also utilize it use in the blockchain, It's uses the blockchain native asset to run transactions or as a medium for transaction | side chains on the other hand uses tokens which were pegged from the main blockchain to run transaction in the side chain. |
| Flexibility : | The main chain is usually less flexible than the side chain because it's performs more valuable and high priority transactions or activities for the blockchain | Side chains on the other hand performs just few or specified transactions for the blockchain so therefore making it more flexible than they parents chain. |
As i have said Sidechains were imployed as a solution solve blockchain scalability and functionality issues in older block blockchain technology. There are numerous successful implementations of sidechains in the Blockchain technology and these technology has been known to be effective in their duties:
• Liquid Network (Bitcoin Sidechain):
Liquid network is a very popular and powerful side chain developed by Blockstream, Liquid is a sidechain created specifically to help Bitcoin trive better than it initial. It was created for Bitcoin to help Bitcoin Blockchain experience faster transaction and a more secured transactions between exchanges. As u have said before each token is pegged to an equivalent Bitcoin coin on the Blockchain, wo therefore causing better liquidity and a faster transactions between Blockchains.
• RSK (Rootstock):
Just like Liquid network RSK is a side chain in, Bitcoin Blockchain but the difference is that RSK sole purpose is a enhanced on Bitcoin Blockchain. The main goal of the rootstock side chain is to bring or perform the duties of a smart contract for Bitcoin Blockchain, rootstock also help improve the security of Bitcoin Blockchain. Also permits developers who build decentralized applications (dApps) and execute smart contracts ro do that efficiently.
• POA Network:
POA is a public sidechain developed to help Ethereum's Blockchain, the POA Network uses Proof of Authority consensus mechanism because it speed and efficiency, This sidechain focus on increasing scalability and faster transaction speeds on Ethereum Blockchain.
Talking about steem blockchain technology, there used to be a side chain that help developers with smart contact and create token on the steem blockchain, but unfortunately this feature or cide chain closed up because of reasons best known by the developers.
Steem engine was very effective and efficient but along the lines it was left, probably it had so many Disadvantages, both before it closed there were so many Decentralized Applications and token created from it. For example we had block-explorer that was developed by @inertia
From discord
The steem engine could allow people or account create their own community that didn't rely on the steem reward pool by rewarding it's users with their own newly created token, just as zzan community runs on steem blockchain. Also we had BANJO created by @banjo to reward its community member on discord through emojis, i know you might say you are surprised of steem engine power but i am too.
The most interesting part is that creating this token is easy and very cheap, there are very fast to produce. Infact in Just few minutes this token are produced by the sidechain, this would really reduce the workload on the steem main chain. Also it would reduce the dependence on steem curator account, making the work easier for the steemit team.
There are so many ways side-chain can help diversify the steem blockchain functionality, this ways are listed below
• More decentralized applications on steem blockchain:
Again I would be using steem engine as a use case, for example if we still had Steem engine and it still handled the smart contact of the blockchain then creation of application and creation of new tokens would be easier and faster. So therefore bringing more decentralized applications onto the Blockchain. Hopefully with a sidechain we would see more game's on the Blockchain, more messaging application, more, steem swapping or steem lending applications on the Internet.
In turn it would cause more use case of steem blockchain , which would bring more users into the steem blockchain and improve the price of steem currencies.
• More developers into the Blockchain:
As we have seen in the case of steem engine side chain can help bring new developers easily to use smart contact to develop new decentralized applications that would help make steem blockchain more famous and efficient. With the help of side chain this decentralized applications would easily interact, communicate and interoperate with the steem blockchain without slowing the network or higher charge fees.
This would bring more developers into the steam blockchain which it turn would allow us steemians see more technological upgrade and development all the steem blockchain because there would be more skill developers and creative individuals on steem blockchain this in turn would make this developers compete by trying their best to become the best developer on the blockchain.
• Scalability:
The birth off a new side chain on steemit would improve steem blockchain scalability so well , because this side chain would reduce the workload on the Blockchain. For example in the case of steem engine the use of smart contact to develop decentralized application would cause relieve to the main chain from carrying out such duties, so therefore giving the Blockchain opportunity to run more important Blockchain activities over a short period of time.
When the workload of the blockchain is reduced other primary duties of the blockchain would occur faster, for example if a side chain handle steem smart contact then creation of block from the the main chain would be easier and faster than normal, so therefore making things much easier for both chain over a long period of time.
• Improve Interoperation:
As I had said before side-chain can help utilize and advance the interaction, connection and communication between Steem Blockchain and other decentralized applications easily. This sidechains usually works as a bridge between a Blockchain and the decentralized applications, with the help of Sidechains the interoperation would be excellent and faster.
Indeed bring side chains into steam ecosystem would be a lovely upgrade because indeed it's comes with so many attractive offers and powerful features that could take steem blockchain to the sky
• Enhanced Scalability:
Sidechains is the solution to Steemit's scalability cases by allowing some functions or transactions to be ran on the sidechain. This action of reducing workload from the main Steem blockchain helps in reducing congestion and increasing Blockchain efficiency.
As a result, steemians better and faster transaction speeds and efficient interactions with steem Blockchain, so therefore attracting new users who admirers it efficiency and performance in carrying out it's social media activity.
• Reduction in Transaction Costs:
Sidechains help trigger lower transaction fees by diverting a part of transactions task away from the main blockchain, this reduction in transaction fees becomes very beneficial to steemians engaging in smaller transactions, and other social media activities like voting and commenting.
Lower transaction fees would attract more individuals into the platform, making it very much more accessible to a larger crowd, especially to users living in the grassroots that want to engage on social media. For developers, reduced costs facilitate the creation of applications without the burden of high transaction fees, thereby attracting them to build and innovate within the ecosystem.
• Experimentation:
Sidechains serve as an experiment platform for developers, and upcoming innovation idea, project into the Steemit ecosystem. Sidechains provide a sandbox environment where new and old developers can make experiment on new protocols, decentralized application, consensus mechanisms, before connecting it directly into the main blockchain. This would help the team find and resolve any bug before its adding to the main chain.
• Scalability and Speed:
The basic goal of a side chain is to enhance the scalability of a the blockchain, Scalability of a Blockchain can be defined as the process of a Blockchain to change it size and scale in adoption to the processes and the transaction date of the blockchain technology.
Because of the large data gotten from Blockchains and large amount of users on the Blockchain technology, side chain do help reduce the data on the Blockchain. This act reduce workload on the main blockchain, so therefore causing the Blockchain to become more effective, efficient and scalable.
Sidechains have really proven to be very effective and efficient in the solving of scalability issue which are common in old and big Blockchain technology. Hopefully the steem blockchain technology would also imply an effective and efficient sidechain technology more advanced than steem engine.
Thanks for going through please remember to engage, remember starrchris cares ❤️. I am inviting my friends @khursheedanwar @uzma4882 @yancar @sahmie
Greetings friend,
You did nailed it with your participation as I was genuinely impressed by how well you explained the concept of side chains and their functionality. Your words were clear, concise, and made it easy to understand. It's evident that you have a strong grasp of the topic. All the best mate
Awwn thanks for such awesome remarks, it's an a pleasure having you on my blog thanks for sharing your thoughts on my post
The pleasure is all mine. I had great time reading through, I was most interested in STEEM ENGINE part as I wrote something similar on that, even though I took a lot of research from me, it looked inclusive to me. But, seeing yours give me assurance I needed.
If you've got the time though, I think you missed the contest hashtag. If you could just fix that in, it will be perfect.
Yea thanks bro, resolved bro
Oooh! I can see that, well done. All the best.
Thank you, friend!
I'm @steem.history, who is steem witness.
Thank you for witnessvoting for me.
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Saludos amigo gracias por la invitación casualmente ayer realicé mi participación.
Genial tu participación encontraste las palabras adecuadas para explicarnos las cadenas laterales y su funcionamiento.
Éxitos
Oppss friend, it's really an honor seeing your comment I appreciate your good response. Thanks for going through and wishing you all the best in your entry.
TEAM 5
Congratulations! Your post has been upvoted through steemcurator08.Greetings!
Your insight into the main purpose of sidechains, addressing scalability, interoperability, and functionality limitations seen on main blockchains like Bitcoin and Ethereum, is well-stated. It's essential for readers to understand how sidechains contribute to overcoming challenges faced by prominent blockchains.
The reference to Steem Engine's effectiveness and efficiency, followed by its closure and potential disadvantages, gives readers a glimpse into the dynamic nature of blockchain technologies. The recognition of numerous Decentralized Applications and tokens created during its existence provides a historical perspective on the evolution of the Steem ecosystem.
You can also check out my point of view to the challenge here.
It's such an honor having you on my blog, I am glad we share and fully believe in same motive
hello @starrchris Your comprehensive explanation of sidechains in the context of blockchains, particularly their role in improving scalability, is commendable. You've provided a clear and detailed overview, covering the fundamental concepts such as pegging, consensus mechanisms, and the communication between main and side chains.
The breakdown of the main differences between sidechains and main blockchains, considering factors like security, native asset usage, and flexibility, adds depth to your explanation. Your use of examples, including Liquid Network, RSK (Rootstock), and POA Network, enhances the understanding of successful sidechain implementations in the broader blockchain landscape.
In the context of the Steemit platform, your mention of Steem Engine and its role in enabling developers with smart contracts and token creation adds a practical and relevant dimension to your discussion. It's unfortunate that the Steem Engine sidechain closed, but your acknowledgment of its past contributions, such as the creation of decentralized applications and tokens, adds historical context.
your entry demonstrates a strong grasp of the topic effectively blending theoretical concepts with real-world examples. Well done!
Awwn I am touched by your awesome comment friend I really appreciate your good work
Greetings dear 🌟
Your thorough explanation of sidechains within blockchains and their impact on scalability is fantastic!
Keep sharing such insightful content that educates us about these intricate concepts, & it's amazing to see your dedication and hard work in breaking down these complex topics for us!