SideChain

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.

• 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.

• 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.

• Because this is not the main chain there are lesser concern of security and lower security protections on the side chain.

• Side chains on the other hand uses tokens which were pegged from the main blockchain to run transaction in the side chain.

• 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.

• This is the primary blockchain that maintains the core ledger and performs necessary transactions for the Blockchain.

• 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.

• 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.

• 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.

• 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.

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.