Yep. Sidechains don’t have liquidity limitations like lightning has.

You don’t need LSPs in the middle to route payments from one party to another.

Merged mined Sidechains/L2sjust require btc miners to follow their self-interest like on L1.

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Discussion

Is fedimint considered a sidechain?

Not really, it’s more a multisig which a community gives a person trust over.

Does it create an internal token that can be spent inside that fedimint?

the history of merged mining is that the chains rapidly lost their market relevance, most of them are literally dead now.

Rootstock is the only bitcoin merge mined sidechain and it’s not really a sidechain because it’s run by a federation. But it’s the best we got atm.

Bip300 enables sidechain withdrawals without any federators just miners.