The automatic transfer of funds through a #sidechain contract should not be interpreted as a deliberate act of currency creation or as a regulatory concern. Instead, it aligns with the inherent nature of decentralized and automated blockchain processes.
Sidechains are secondary blockchains which are connected to the main blockchain, also known as the main chain. Commonly, sidechains are connected to the main chain through two-way pegs, a mechanism which allows the bidirectional transfer of native digital currencies between the chains.
In a way, sidechains allow users to “move” Bitcoin through blockchains, where they’re subject to different protocol rules, which allows greater transaction capacity, more confidentiality, enhanced privacy protection in Blockchain.
Sidechains can have a different protocol or consensus algorithm from the main chain, which can provide benefits when it comes to flexibility & functionalities.
https://youtu.be/DhU6nsB5Z-0 nostr:note1uw5k4r8mgnj0g7pvywjamelhlxtrg46jp2yengda0x3qn9sa6wgqqgcmx9
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