A ledger that runs parallel to a blockchain. There is a link between the primary chain and sidechain, enabling two-way communication.
Sidechains are important for the scaling of blockchains. These are considered Layer 2 solutions.
To envision how sidechains fit, picture a global network of decentralized blockchains. They each had their own rules, purposes, and use cases. Each is independent yet they form on major ecosystem.
The best example of a sidechain is the Lighning Network that is interacts with the Bitcoin network.
Posted Using LeoFinance Beta