Overview
Sidechains have their own consensus mechanisms and security parameters. They allow for the transfer of assets between the main chain and the sidechain, enabling experimentation and scaling.
How it Works
Assets are 'locked' on the main chain and an equivalent amount is 'minted' on the sidechain. When the user wants to move back, the sidechain assets are burned and the main chain assets are unlocked.
Pros and Cons
- Pros: Can have different rules (e.g., faster blocks), reduces congestion on the main chain.
- Cons: If the sidechain's security is compromised, the assets on it can be lost, as it doesn't inherit the L1's security like a true Layer 2.