A tale of two side chains

A Tale of two side chains

Today I look at two side chains which each provide utility to two much more famous legacy blockchains whose transactions per second speed SBD transaction fees have combined to prevent the full exploitation of their famous names and otherwise solid security of their blockchains. I speak of the Lightening Network, a side chain for Bitcoin. And smart chain, a side chain for Ethereum.

Binance recently announced the launch of Binance SmartChain. This new project called Binance Smart Chain, which is separate blockchain running in parallel with Binance Chain. A newer, modern blockchain with high transaction speeds, and it has several traits including it will host smart contracts and have cross blockchain swaps via a common currency BNB. This blockchain is carefully designed to be compatible with all the applications running on the Ethereum blockchain. This feature along with the set-up with smart contracts would allow decentralized applications on the Ethereum blockchain to migrate to this blockchain with no modification of their code.

source While some may see this new blockchain with smart contracts and built-in blockchain compatibility as a direct competitor to the Ethereum blockchain, Binance Press Releases have so far only described it as an addition to the ecosystem, designed to work with the Ethereum blockchain. This development, is an instance of another high profile blockchain providing a faster alternative to Ethereum fortune needs of crypto investors interested in DeFi.

The Bitcoin Lightning Network is a similar Bitcoin blockchain sidechain, which helps to relieve congestion on the Bitcoin main blockchain, but the transactions which occur on the Lightning Network Sidechain are recorded on the Bitcoin blockchain. This Bitcoin sidechain is built to conduct micro transactions, through micro transaction fees and to have a very high transaction per second transaction speed. This enables micro transactions in Bitcoin that are not economically feasible on the Bitcoin Main Chain.
This in turn enables smaller economies to function on this sidechain, but conduct business in Bitcoin. This economy in Satoshi’s provide a deflationary, trusted currency for micro-economies all over the world. This includes video gaming and micro-loans for businesses in developing countries. These are just some of the think opportunities are presented by this development and I will be watching it closely. I suggest you do some research and consider how this may fit into your financial plan.

Written by Shortsegments. ✍🏼

Posted Using LeoFinance