What are Sidechains?
Sidechains are separate blockchains that connect with Cardano. They enable unique blockchains to connect together. Users can transfer digital assets securely between these linked networks.
What are the Benefits of Sidechains?
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Scalability: Side chains help process some transactions instead of the main Cardano chain. This helps ensure users can get transactions through quickly and cheaply.
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Flexibility: Different sidechains offer different attributes, providing users more options. Some are optimized for fast transaction speed, low fees, privacy, and other specialized purposes.
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Security: Sidechains can leverage the security and decentralization of existing Cardano nodes. This allows them to bootstrap their networks with a secure foundation. Over time they can transition to more independence.
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Interoperability: Sidechains allow users to transfer their assets between blockchain networks. This means users can move to the ideal blockchain system for their needs. Asset movement is secured using a secure and carefully-designed 2-way peg mechanism.