Unlock the Power of Side-Chains in Blockchain Technology – BitRss

Cryptocurrencies and blockchain technology continue to attract attention for their potential to significantly alter financial systems. One of the key concepts emerging in this transformation is the side-chain. A side-chain, or secondary blockchain, operates independently while being linked to and able to interact with the primary blockchain. The main objective here is to enhance the transaction capacity of the main blockchain network and introduce new functionalities. So, how exactly does this system work? Let’s take a closer look.

What is a Side-Chain and How Does It Work?

A side-chain is connected to the main blockchain through a bidirectional link. This connection facilitates secure transfer of assets between the two blockchains. For instance, to transfer BTC ($105,146.98) from the main Bitcoin $105,086 chain to a side-chain, it is first locked at a predetermined address. Then, equivalent tokens are generated on the side-chain. Once transactions are complete on the s…