A Side Chain is a distinct blockchain connected to a main blockchain, enabling the transfer of assets between the two systems. This setup addresses the limitations of the main blockchain in terms of transaction speed and capacity by offloading certain transactions to a parallel chain. Side chains can operate under their own rules and may employ different consensus mechanisms from the main blockchain, which allows for tailored solutions to specific problems and faster transaction processing.

By introducing side chains, the blockchain ecosystem becomes more scalable and versatile, accommodating a wider variety of applications and use cases. They allow for innovation and experimentation without the risk of congesting or compromising the main network.

“I view Side Chains as essential tools for enhancing blockchain’s capabilities, allowing for more flexible and scalable solutions.”