Sidechain
An independent blockchain that runs in parallel to a main chain and is linked via a bridge or pegging mechanism.
A sidechain is a separate blockchain interoperable with a main chain through a two-way peg or bridge. Assets can move between chains to use different features, fee markets, or execution environments.
"Users lock coins on the main chain and receive pegged assets on the sidechain to use unique smart contract features, later redeemable back to the main chain."
Security depends on the bridge and validator set. Some designs inherit less security than the main chain, introducing additional trust assumptions and potential bridge risks.
"A federated sidechain relies on a set of signers; if compromised, funds in transit could be at risk."
Related Terms
Bridge
→Infrastructure that enables moving assets or messages across blockchains.
Layer-1
→Layer-1 refers to the base blockchain layer that provides consensus, data availability, and settlement for transactions and smart contracts.
Layer-2
→Layer-2 solutions build on top of Layer-1 to increase throughput and reduce costs, settling results back to the base chain.
All terms and definitions may update as the Cryptionary improves.
