What is Sidechains

Sidechains, such as Polygon PoS, are auxiliary blockchains that run concurrently with a primary blockchain and are linked to it through a bidirectional bridge. They have their own consensus protocols, like Proof-of-Stake, which allows for innovation and enhanced performance. However, this independence in consensus means that the security of sidechains is not directly upheld by the primary blockchain’s protocol.

Sidechains are anchored to the main blockchain, enabling the transfer of tokens between the two via a two-way peg system. Users can lock their main chain tokens into a smart contract, which then issues equivalent tokens on the sidechain. These sidechain tokens can be used for transactions within the sidechain and later converted back to main chain tokens.

The interoperability offered by sidechains is crucial. It allows for frequent transactions, such as token minting, to occur without engaging the primary chain’s consensus process. The minted tokens can then be moved back to the main chain as needed.

Importantly, sidechains rely on the main chain solely for the movement of assets, not for security or consensus. No critical sidechain data is recorded on the main blockchain, ensuring the sidechain’s autonomous operation.