Sidechains are emerging mechanisms that allow tokens and other digital assets from one blockchain to be securely used in a separate blockchain and then be moved back to the original blockchain if needed.
Sidechain functionality holds tremendous potential to enhance the capabilities of existing blockchains.
A sidechain is a separate blockchain that is attached to its parent blockchain using a two-way peg.
The two-way peg enables interchangeability of assets at a predetermined rate between the parent blockchain and the sidechain.
The original blockchain is usually referred to as the main chainand all additional blockchains are referred to as ‘sidechains’.