Select Page

How does a Sidechain work?

1st. The sidechains user sends bitcoins to a Bitcoin address in question. Once sent you will have no control over them. They will be immobilized and can only be used if someone proves that no one else is making use of them.

2nd. When the transaction receives sufficient acknowledgments, a notification is sent to the other blockchain. The one the user wants to use. In which it is justified that those bitcoins were sent by the user to that address. The same number of assets that were sent will then be created in the sidechain. Giving the user control of them. That is, bitcoins are moved from one chain to another.

3rd. From this moment coins can be exchanged to make use of the sidechain following the rules of the sidechain, such as the speed of creation or the transaction scripts.

The possibilities are endless between the two chains.

To return the bitcoins sent to a sidechain you have to perform the reverse process.

Important! Sidechains must be isolated to prevent transfers between them. Preventing one's mistake from hurting the other.

Cryptocurrencies created on a sidechain can take advantage of the effect of the Bitcoin network. Because, in their inner workings, two-way pegs are exchanged transaction tests of both strings ("merge mining"). The hash is sent to the sidechain. In this way, security increases, because hashes are used in both strings and The greater hashing power of Bitcoin is accessed.

Another project with sidechains that is currently operating inside, and one of the most outstanding, is Lisk. It was created as an alternative to Ethereum. It's an open source platform. In which smart contracts can be developed and executed in the form of decentralized applications or cross-platform DAPPS. A great advantage is that it is developed in the Javascript programming language, which is more used and known. And an important difference with Ethereum is that in Lisk each application runs on its own sidechain and not on a single string.

If I had bought 100 euros of Bitcoin 8 years ago how much I would have won?

In 2017 alone, 1366% has been revalued.

If you had invested 100 euros on July 11, 2010 at the price of 0.008 cents of Euro per Bitcoin, you would now have 87 and a half million euros.

Everything points out that over the next 10 years the cryptocurrency market is going to have a very similar progression.

If you are interested in the topic we recommend you also

What are Sidechain?

Call Now ButtonLLámanos