The Benefit of Sidechain In The Context of Blockchain Technology

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Hello fam,

It is your favourite blogger @mato445 and I am happy to make this interesting post in this community today.

We have probably learned about blockchain, and in one of our post, we discussed a little about plasma chains, well that is for that lecture.

Today, we will be learning about side chains, please stay tuned.

SIDE CHAINS

In the context of blockchain, side chains can be explained to be an innovative and Interesting approach, addressing some of the challenges that are inherent in the traditional blockchain architectures.

In order to gain proper understanding on the operation of side chains, let us first understand some things about the blockchain.

A blockchain can be explained to be a distributed and decentralized ledger that records data across a node of network.

The transparent and Immutable feature of the blockchain makes it very attractive as it brings about solutions to various applications within the range of supply chain management and financial transaction.

However, as the blockchain technology continue to evolve, there are some challenges that it begins to face, challenges such as interoperabilty, scalability etc.

And this is where the role of the sidechain is needed.

The sidechain in itself is an essentially different blockchain that is interoperable with the main blockchain, which is known as the main chain or in some cases the parent chain.

The main goal of the sidechain is to facilitate the transfer of data or assets between different blockchains, thus making available a mechanism for customization and scalability, without the need to compromise the decentralization and the security of the mainchain.

BENEFIT OF SIDE CHAINS

There are several benefit of sidechain in the context of the blockchain and we shall be discussing them below.

• SCALABILITY:

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Scalability is one of the primary advantage of the sidechain.

As the blockchain application grows in popularity, so also does the transaction volume of the main chain, and this results to potential congestion and slower transaction processing.

This issue of slower transaction is being solved by the side chain through the provision of additional capacity for the transaction.

Transaction can be conducted by users on the side chain and as such they can enjoy lower fees for their transactions and a faster transaction times, without the need of adding burden to the main chain

This scalability improvement is very essential for the mainstream adoption of the blockchain technology.

• INTEROPERABILITY:

Another significant advantage of sidechains is what we know as interoperability.

Different blockchain often lack effective communication channel as they operate in silos, and this gap is being bridged by sidechains as they offer the feature of interoperability between different blockchains.

With the help of sidechains, it has become possible to transfer data and assets between the main chain and side chain, and this helps to improve the interconnectedness of the blockchain ecosystem.

This interoperability offered by the sidechain makes it possible for various blockchain network to collaborate, thus leveraging each other strength and capacity.

• ENHANCED PRIVACY AND CUSTOMIZATION:

Another advantages of sidechains is the contribution it made to an enhanced privacy and customization.

Not all transactions require the same level of transparency, there are some transaction that shouldn't be available for the public, and by making use of sidechains, a user can select the chain that fits perfectly into their preferred requirements.

For example, a sidechain can be created in a way that it gives priority to transaction privacy, that being the case, confidential transaction can be conducted by users without the need of them compromising the whole blockchain.

This customization gives users the opportunity to channel their blockchain to solve their personal challenge

• SECURITY:

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Security of a blockchain is of paramount importance in any blockchain network, and the sidechain plays an interesting role in enhancing it, rather than compromise it.

While it's operations is not dependent on each other, sidechain through a two-peg mechanism is being connected to the mainchain and help to ensure that assets and data can be shared between the two chains in a secured manner.

This connection serves as a security against any vulnerability on the side of the sidechain.

CONCLUSION

The sidechain helps to function as a significant advancement in the blockchain technology, as it offers solution to some of the pressing concerns faced by the blockchain.