Sidechainbased
Sidechain-based refers to blockchain architectures that rely on sidechains—separate blockchains connected to a main chain. In these designs, assets or data can be moved from the main chain to a sidechain and back, typically through a two-way peg or cross-chain bridge. The sidechain operates with its own consensus rules and can implement features different from the main chain, such as faster finality, different validation requirements, or alternative virtual machines, while benefiting from the security or liquidity of the main chain when appropriate.
Key advantages include scalability, the ability to experiment with new features or governance models, and the
Risks and challenges include security trade-offs, as the sidechain’s security model may differ from the main
Examples of sidechain-based approaches include Bitcoin’s Liquid Network, which provides faster settlements for exchanges and traders;