What is Sidechain technology.Sidechain is widely known outside crypto projects. In music, a sidechain is a way to control musical channel or device with the help of another one, that connected “from the side”, in addition to the main line. Also, the term “side chain” is used in the field of organic chemistry, when an additional group of chemical elements is added to the main part of the molecule. In the cryptosphere, this is an additional chain of blocks, running in parallel to the main chain. Sidechain works alongside the main chain and doesn’t load it by data stream. This is an additional block, which has a two-way connection with the main chain. So it is possible to tatsfer data in both directions.
The technology sidechain was mentioned in 2014, as a mechanism that allows you to move coins from one chain of blocks to another without loss. One of the important impulses that contributed to the development of side chains was the problem of scalability of bitcoin. Also one more acute problem was the so-called “plasticity of the transaction” — small minor changes in the transaction, because of which the transaction could be rejected by the nodes. Moreover, this did not allow the introduction of new technologies. The solution to the problem was SegWit, a protocol that took additional data into a separate block, which made the transaction confirmation much simpler. The technology has been further developed, in the form of forks and bitcoins and alternative crypto currency. But now the scope of side chains is significantly expanded. Besides, to working with the crypto currency, it is possible to realize transfers of funds from one crypto currency to another without additional costs, conducting tests without loads on the main network, creating smart contracts, fast, customizable and safe, working with shares, futures and other securities, registering copyrights and many other tasks that can be realized with the help of their additional lock-ups, connected to the main. The recording of information in sidechain blocks will not burden the main network, allowing the blockchain to remain fast and stable.
There comes a time when the technology of blockchain stops to be just a crypto currency, a financial instrument. New developments in the crypto industry are increasingly entering in the our life, allowing technologies to become more perfect, safer and more convenient. Using the blockchain, all the data will be recorded forever, without the possibility of making changes that will protect against falsification the area of finance, the sphere of banking, protection of copyright and private property, allowing to make all changes as visible and secure.
Thanks to the BitWhite platform and the sidechain technology, you can implement new products and services and customize them as conveniently and efficiently as possible.
Original article: https://medium.com/@BitWhite/what-is-sidechain-technology-cf2c3881d5b6