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Sidechain Architecture

Definition

Sidechain architecture refers to a design where a separate blockchain operates alongside a main blockchain, connected via a two-way peg. This setup allows assets to be moved between the main chain and the sidechain, enabling the sidechain to handle transactions with different rules, greater speed, or specialized functionalities. Sidechains reduce congestion and computational load on the primary network, thereby enhancing overall scalability and flexibility. They are crucial for extending the capabilities of existing blockchains without altering their core protocol.