Sidechain Protocol

Definition ∞ A sidechain protocol is a separate blockchain linked to a main blockchain, allowing assets to move between them. This refers to a distinct blockchain network that operates independently but is cryptographically tethered to a main blockchain, often called the parent chain. Assets can be transferred between the main chain and the sidechain through a two-way peg mechanism, enabling the sidechain to process transactions or execute smart contracts with different rules or greater scalability. This architecture offloads traffic from the main chain while leveraging its security.
Context ∞ Sidechain protocols are a prominent scaling solution in blockchain technology, aiming to enhance transaction throughput and introduce specialized functionalities without altering the core mainnet. The discussion frequently centers on the security models of these sidechains, particularly the mechanisms for asset transfer and the potential for centralization if validators are few. Interoperability and secure bridging remain critical areas of development.