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If you have been in the crypto world for a long time, surely you are clear about what blockchain is and how it works, so it will not be a major problem to understand what a sidechain is and how it can help the operation of blockchains.
What is a sidechain?
Sidechain or Lateral Chain could be a good name for a Heavy Metal group but the term has been used for another purpose, which is to define those alternative block chains that are used to improve the operation of an existing block chain.
Although the side chain may have a different programming and purpose than the main blockchain, both are fully compatible and complement each other to improve the features offered.
A good example is RSK (Rootstock) that has developed a sidechain that allows smart contracts to be executed on the Bitcoin blockchain. In this way and through a side chain Bitcoin can incorporate a feature that it did not have before.
The possibilities are endless, since with sidechains it is not necessary to deploy development directly on the original blockchain (something that would be tedious and time consuming). Furthermore, it is possible to communicate many sidechains with each other and not just one.
Sidechain technology projects
These are some of the most prominent projects that use this technology to complement other blockchains.
As I have told you before, RSK is a side chain whose objective is to allow the execution of smart contracts and decentralized applications on Bitcoin.
Lisk’s goal was to create a side chain that would improve the speed and privacy of Bitcoin transactions to improve the service of brokerages and financial institutions.
- Liquid Network
This sidechain is focused on providing faster and more confidential transactions for Tether and Bitcoin traders and exchanges.
Now that you are clear about what a side chain is and what it is not a Heavy Metal group, we invite you to read more articles on our blog that will help you learn more about the exciting world of cryptocurrencies.