Sidechains are some special kind of blockchains that is usually linked to another blockchain which is already existing and this blockchain it is linked to is known as the main chain and this is done through a two way pegging.
Sidechains are more or less an alternative to an existing blockchain which aim is to improve the service rendered by that blockchain, sidechain mainly focus on solving the issue of the existing blockchain.
Although sidechains are a separate blockchain they aren't totally independent as they depend on the main blockchain. This sidechains are likened to a community or ecosystem whereby different races are present in one area with each of their own distinctive features but living in peace and connected to one source, just like the example cited sidechains are a global Decentralized network having various blockchains with each of their own functionalities z vision and purposes which aren't dependent on each other but form a seamless ecosystem.
The sidechains are usually connected to the main blockchain and this enables free movement of assets between both networks and to ensure that the funds transfer or asset transfer between the two network is secured, one of the best alternative used is that the funds or assets are sent to a special address from the main blockchain.
This complex cryptographic mechanism allows tokens and other assets to move to and fro freely. Examples of sidechain is settlement later that allowes trading platforms and traders to enjoy faster transactions and still keep it private, and also allow them to create their own digital assets, this sidechain is known as liqiluid network which is pegged to Bitcoin.
HOW SIDECHAIN WORKS
Firstly the main chain user will have to send some coins or digital asset to an external address where the asset is locked and unable to be spent somewhere else, then after the trànsaction is completed a verification is done across the chains to confirm the trànsaction.
There will then be a little waiting period for security sake, after which the coins or assets will then be transferred to the sidechains. It is not the exact token that is been sent to the sidechain but rather after confirmation the sidechain automatically creates the same amount of asset or tokens that has been sent on the sidechain network and gives the user access to use it.
After the user is done using, he or she can then decide to move back to the main chain he just have to reverse the process by sending the sidechain coin to the main chain.
Sodechains are in various forms depending on their functionalities, for example liquid and Rootsta k are both Bitcoin sodechains but they offer Different functions.
Sodechains has some fundamental characteristics which main objective is to solve the problem it saturation if the main entwirk which gives speed and scalability to transactions.
IMPORTANCE OF SIDECHAINS
One of the importance of sidechains is that it makes trànsactions on the blockchain faster.
It helps in connecting Different blockchains together for example connecting of Ethereum blockchain and the binance smart chain together.
It helps in adding new features to a blockchain without the need of tampering with the main blockchain protocol.
Sidechains can be used to test new technologies and experiment new features to a blockchain and see if it will function properly
SIDECHAIN IN RELATION WITH ZK-ROLL UPS
Zk rollups also known as zero knowledge rollups is a layer 2 solution for scalability which allows blockchains trànsactions to be validated faster while also making sure that the gas fee remains as minimal as possible.
The traditional layer 1 or let's say etheruem mainnet uses only the on chain activities to process trànsactions while the layer 2 zk rollups proffers solutions by bringing an innovation of off chain functionalities as well, another reason why the transactions are validaated successfully and faster are the Merkle Trees shwon in the screenshot above.
A Merkle tree is a mathematical structure that allows that there is no fake data on a blockchain on chain records of a zk rollups. The zk-rollup comprises of two Merkle tree which are both ok the smart contract simply put which are both on chain, and these are in charge of storing accounts and storing balances, every other data generated is then used on the off chain network.
The off chain storage of data is the reason why zk rollups perform better than the layer 1. The data stored on the Merkle tree is the most important data relevant to the smart contract uvh are usually requested for whenever an output information is needed which is quite infrequent and this saves lot of amounts used for processing power and time on the blockchain.
Since the blockchain is not frequently used for trànsaction validation, this helps in reducing the gas fee which makes zk rollups a preferred solution for small time traders.
Zk rolluos are beginning bro get popular among developers, traders and investors who are looking for faster and cheaper trànsaction processing network. Zk rollups and sidechain solutions are the begining of the new era of blockchain technology and advanced crypto systems.
LIQUID NETWORK SIDECHAIN
Liquid is a sidechain which is also an inter exchange settlement network linking cryptocurrency exchanges and institutions around the world together and also enabling faster Bitcoin trànsactions and issunafe of digital assets.
It is a sidechain of Bitcoin that allows users to move Bitcoin between two networks using a two way pegg. The Bitcoin used on the liquid network is known as L-BTC and eacg L-BTC is backed with BTC in a ratio 1:1 and this BYC is secured by the liquid members called functionaries.
There are some features in which liquid provides traders who echanges Bitcoin which are listed below;
The Bitcoin miner to the liquor sidechain recieves a final settlement within two minutes.
They help in keeping users financial data safe as the amount and the type of asset transacted are hidden by liquid from the public.
It allows for secured tokenization whereby new tokens can be issued on the sidechain to represent assets or securities.
It allows for Bitcoin style of multi signature and also allows atomic swaps because all tokens are based on the same standard of the liquid integration.
HOW LIQUID WORKS
There are two ways at which the trànsactions on liquid is carried out which are the peg in and peg out.
PEG IN
The movement of BTC from Bitcoin to Liquid is known as a peg in, a user of liquid sends Bitcoin to an address which is generated by the liquid client software and then develop a peg in trànsaction on the Liquid Network to get it's equivalent L-BTC from the liquid Network.
A total of 102 confirmations is required for a peg in trànsaction on the Bitcoin network before the asset can be claimed on the liquid Network, this is done so as to secure the assets of the users.
PEG OUT
This is the reverse of the peg in, here the user moves assets from liquid back to Bitcoin blockchain. The watchmen are the ones who processes the trànsaction in batches and this peg out takes approximately 17 minutes to complete. It is to be noted that the peg out processing time can't be specific as it takes from 11 to 35 minutes depending on the condition of the network, like the number of peg out initiated at that time and the watchmen status.
CONNECTING METAMASK WTH POLYGON NETWORK.
To connect your metamask wallet to the polygon network first you need to get the details to input in the wallet settings. Let me put you through on how to do so.
Matic Polygon
Network Name: Matic Mainnet
RPC URL: https://rpc-mainnet.matic.network
Chain: 137
Symbol: MATIC
Explorer URL: https://explorer.matic.network/
Firstly, we launch the app after it has been loaded we then click on the 3 horizontal line at the top left side of the wallet and then we click on the settings button, then we navigate to the network features and click on the button, after clicking on the network button we then click on the add network button and input the details given above into the required space.
After inputting the details we then click on add and the network has been successfully added.
EXPLORING POLYGONSCAN
The website for checking out polygon trànsactions is known as polygon scan and we will be exploring it in this lecture. Firstly we need to load the website on our browser which is polygonscan.com
After it loads it shows us some informations on the homepage like the price of magic which is the native token of the polygon network. It also shows the market cap of the token and also the amount of block that has been created on the network.
We can search for any trànsaction carried out on the network by searching the hash of the transaction or searching for a block number, I will be searching for a block number 12000000
After searching for the block number it brought out the details under it like the time at which it was created which was 230 days ago and the time created, it also showed the address that validates the trànsaction. It also showed the price of MATIC at that time which was $0.38 and some more data.
Then I want to know when the block 25000000 will be created, all I had to do was to search the number 25000000 in the search bar and it brought out the time when the block will be created
As seen in the screenshot above the block will be created in 107 days to come which is around Feb 15 2022.