Sidechain
Definition
A separate blockchain that runs parallel to a main chain (parent chain) and is linked to it via a two-way peg, allowing assets to be transferred between chains while operating with independent consensus rules and faster transaction speeds.
Example
Polygon is a sidechain solution for Ethereum that processes transactions faster and cheaper while leveraging Ethereum's security for final settlement.
Related Terms
Frequently Asked Question
What is a Sidechain?
A Sidechain is a separate blockchain linked to a main chain via a two-way peg. It operates independently with its own rules but allows assets to move between chains, enabling faster and cheaper transactions.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.