[{"data":1,"prerenderedAt":326},["ShallowReactive",2],{"api/learn-center-post-en-GB-what-are-sidechains":3,"en-gb/learn/blockchain/what-are-sidechains-en-GB-seo":57,"footer-en-GB":62,"navigation-en-GB-learn-center":235,"api/learn-categories-en-GB":286},{"seo":4,"locale":28,"breadcrumbs":29,"excerpt":37,"featuredImage":38,"components":39,"title":5,"formattedPublishedAt":50,"geofencings":51,"category":52,"pagination":54,"campaignExternalId":8},{"title":5,"metaTitle":6,"metaDescription":7,"keywords":8,"metaRobots":8,"structuredData":9,"metaImage":10,"metaSocial":18,"canonicalURL":8,"localizations":19},"What are sidechains?","What are sidechains? - Bitstamp Learn Center","What are sidechains? How are they used in certain blockchains? - Learn more on the Bitstamp Learn Center",null,{},{"url":11,"mime":12,"ext":13,"width":14,"height":15,"name":16,"alt":17},"bitstampImageUrl/1920x1080px_illustrations_learningcenter_18svg_918131b330_bbe3bfa16e.svg","image/svg+xml",".svg",192,108,"1920x1080px_illustrations_learningcenter_18svg_918131b330.svg","",[],[20,23,26],{"pathname":21,"locale":22},"/learn/blockchain/what-are-sidechains/","en",{"pathname":24,"locale":25},"/es/learn/blockchain/what-are-sidechains/","es",{"pathname":27,"locale":28},"/en-gb/learn/blockchain/what-are-sidechains/","en-GB",[30,34],{"id":31,"text":32,"url":31,"asUrl":33},"/learn/blockchain/","Blockchain technology",true,{"id":35,"text":5,"url":27,"asUrl":36},"what-are-sidechains",false,"\u003Cp>Sidechains in blockchain technology are separate chains attached to the main blockchain. They were designed so as to move certain aspects of blockchain’s functionalities off the main chain. Even so, a sidechain is still linked to the main blockchain, enabling the two chains to interact with each other.\u003C/p>\n",{"url":11,"mime":12,"ext":13,"width":14,"height":15,"name":16,"alt":17},[40],{"component":41,"props":42,"content":43,"secondaryContent":47,"ctas":48,"secondaryCtas":49,"ctasNoMarginTop":36},"section.full-text",{"centered":36,"withoutSectionContainer":36},{"text":44,"width":45,"align":46},"\u003Cp>Sidechains in blockchain technology are separate chains attached to the main blockchain. They were designed so as to move certain aspects of blockchain’s functionalities off the main chain. Even so, a sidechain is still linked to the main blockchain, enabling the two chains to interact with each other.\u003C/p>\n\u003Cp>Sidechains have a number of use cases. Perhaps most importantly, they provide a platform for the development of certain \u003Ca href=\"/en-gb/learn/blockchain/what-is-blockchain-scaling/\">scaling solutions\u003C/a>, which allow the main chain to be relieved of a certain amount of traffic, considerably improving the transaction throughput. One such example was Ethereum’s Plasma.\u003C/p>\n\u003Ch3>Sidechain Essentials\u003C/h3>\n\u003Cul>\n\u003Cli>Sidechains are separate blockchains that stem from the main chain.\u003C/li>\n\u003Cli>They are often attached to the main chain via a two-way peg.\u003C/li>\n\u003Cli>Sidechains have potential in the development of blockchain scaling solutions.\u003C/li>\n\u003Cli>Ethereum’s layer 2 solution Polygon is a network based on the concept of sidechains.\u003C/li>\n\u003C/ul>\n\u003Ch2>How do sidechains work?\u003C/h2>\n\u003Cp>A sidechain is a \u003Ca href=\"/en-gb/learn/blockchain/what-is-a-blockchain/\">blockchain\u003C/a> that stems from the main blockchain and runs in parallel to it. It is (not necessarily, but commonly) attached to the main blockchain by means of a two-way peg. This enables the interchangeability of digital assets between the parent blockchain and its sidechain.\u003C/p>\n\u003Cp>If they would like to transfer funds to a sidechain, users must send an amount of crypto from the main chain to an \u003Cstrong>output address\u003C/strong>. Once having done so, the coins are escrowed and the user cannot spend them anyplace else. Next, a waiting period begins in order to provide extra security. As this period passes, an amount of coins equal to the amount locked at the output address is released on the sidechain. The same thing happens with transfers from a sidechain to the main chain.\u003C/p>\n\u003Ch2>The potential of sidechains\u003C/h2>\n\u003Cp>Sidechains have the potential to revolutionize the way blockchains operate. For instance, they facilitate the interaction of separate blockchains and cryptocurrencies (this is sometimes referred to as an \u003Cstrong>atomic swap\u003C/strong>).\u003C/p>\n\u003Cp>The greatest potential of sidechain technology probably lies in their utility value for the development of \u003Cstrong>\u003Ca href=\"/en-gb/learn/blockchain/what-are-layer-2-solutions/\">layer 2 scaling solutions\u003C/a>\u003C/strong>. These are aimed at improving the transaction throughput, which is a major limitation in cryptocurrencies being established as major global payment protocols.\u003C/p>\n\u003Cp>Sidechains can take some of the traffic from the main chain and divert it onto the sidechain. A possible use case for sidechains is conducting (micro)transactions that would have been too expensive on the main chain due to fees associated with \u003Ca href=\"/en-gb/learn/crypto-101/what-is-crypto-mining/\">crypto mining\u003C/a>, for instance.\u003C/p>\n\u003Ch2>Child chains\u003C/h2>\n\u003Cp>An example of sidechain design was Ethereum’s \u003Cstrong>Plasma\u003C/strong>. The idea of Plasma was to build upon sidechain technology to create so-called \u003Cstrong>child chains\u003C/strong>. The basic principle would remain the same: a child chain stems from the root blockchain to move certain operations off chain. But a child chain could spawn a child chain of its own, creating a hierarchical tree of side chains layered on top of the parent chain.\u003C/p>\n\u003Cp>However, despite enjoying a lot of support, Plasma encountered many unforeseen barriers and was never fully-developed. Its developers have since moved on to other projects to look for other blockchain scaling methods. Nevertheless, through the Plasma project, we have learned a lot about what sidechains have to offer and how we may effectively scale blockchains in the future.\u003C/p>\n\u003Cp>Sidechains can overcome several obstacles that blockchains and cryptocurrencies are currently facing. Along with other novel technologies, they are transforming the way blockchains work.\u003C/p>\n","full","left",{"text":17},[],[],"July 29th, 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Kingdom",{},{},{"title":195,"content":17,"items":196},"Contact",[197,202,206,210,214,218,223,228],{"noFollow":36,"isExternal":36,"name":198,"value":199,"isEmail":36,"isPhoneNumber":36,"isText":36,"showOnDesktop":33,"showOnMobile":33,"attachment":200,"geofencings":201},"Customer 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20 3868 9628","+442038689628",{},{},{"noFollow":36,"isExternal":36,"name":224,"value":225,"isEmail":36,"isPhoneNumber":33,"isText":36,"showOnDesktop":33,"showOnMobile":33,"attachment":226,"geofencings":227},"+1 800 712 5702","+18007125702",{},{},{"noFollow":36,"isExternal":36,"name":229,"value":230,"isEmail":36,"isPhoneNumber":33,"isText":36,"showOnDesktop":33,"showOnMobile":33,"attachment":231,"geofencings":232},"+352 20 88 10 96","+35220881096",{},{},"\u003Cp>Please read the general \u003Ca href=\"/legal/risk-warning/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Risk Warning\u003C/a>, and \u003Ca href=\"/legal/uk-investment-risk-warning/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Risk Summary\u003C/a> for UK residents before investing in crypto-assets. \u003C/p>\n\u003Cp>Crypto-assets services are provided by the following Bitstamp legal entities depending on client residency: (1) Bitstamp Europe S.A., which is authorized by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg as a payment institution (licence number Z00000012) and crypto-asset service provider (licence number N00000003); Registered address: 40, avenue Monterey, L-2163 Luxembourg, Grand Duchy of Luxembourg; Registration number: B196856; (2) Bitstamp UK Ltd., which is registered with the Financial Conduct Authority (FCA) in the UK for the provision of certain cryptoassets activities under the Money Laundering Regulations (Firm Reference Number 978690); Registered address: 5 New Street Square, EC4A 3TW London, United Kingdom; Registration number: 14174243; (3) Bitstamp Ltd.with its registered address at 5 New Street Square, EC4A 3TW London, United Kingdom and registration number: 8157033; (4) Bitstamp Global Ltd., which is registered as a Virtual Asset Service Provider in the British Virgin Islands and is supervised by the British Virgin Islands Financial Services Commission (FSC); Registered address: Floor 4, Banco Popular Building, Road Town, Tortola VG1110, British Virgin Islands; Registered number: 2086429; and (5) Bitstamp Asia Pte Ltd, which is authorized by the Monetary Authority of Singapore (MAS) as a major payment institution (licence number PS20200667); Registered address: 63 Chulia Street, OCBC Centre East, #15-01, Singapore 049514; Registered number: 202016687K;\u003C/p>\n\u003Cp>Virtual currency services to US residents are provided by Bitstamp USA, Inc., which is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Licensed as a Money Transmitter by the New York State Department of Financial Services. Review a \u003Ca href=\"/legal/usa-inc/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">list of its licenses and other registrations\u003C/a> (NMLS number \u003Ca href=\"https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1905429\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">1905429\u003C/a>) for more information; Registered address: 85 Willow Road, Menlo Park, CA 94025, United States of America; Registered number: 5481543.\u003C/p>\n\u003Cp>Investment services with regards to trading in crypto derivatives are provided by Bitstamp Financial Services Ltd., which is authorized and supervised by the Slovenian Securities Market Agency (ATVP) as a MiFiD investment firm. Trading crypto derivatives carries significant risks and may result in substantial losses. Please trade responsibly and ensure you understand the associated risks. You can find more about the risks \u003Ca href=\"/legal/financial-services/general-terms-and-conditions/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">here\u003C/a>. To help you understand the risks involved we have put together a series of \u003Ca href=\"/derivatives/key-information-documents/\" target=\"_blank\" rel=\"noopener noreferrer\">Key Information Documents (KIDs)\u003C/a> highlighting the risks and rewards related to each derivatives contract. Crypto derivatives trading is not available to customers in the US, Canada, Japan and some other countries. Bitstamp Financial Services Ltd. does not provide crypto-asset services.\u003C/p>\n\u003Cp>To find out more about which Bitstamp entity you receive services from, please check the Profile/My information in your Bitstamp account. You can read more about our legal terms, policies and disclosures \u003Ca href=\"/legal/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">here\u003C/a>.\u003C/p>\n","\u003Cp>All rights reserved © 2026 Bitstamp by Robinhood. \u003Ca href=\"https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1905429\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">NMLS #1905429\u003C/a>\u003C/p>\n",{"items":236,"ready":33,"platformButtonText":282,"backButtonText":283,"logInButtonText":284,"signUpButtonText":285},[237,242,248,251,255,260,265,268,273,278],{"headerName":238,"sidemenuName":119,"url":239,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":240,"submenu":241,"tag":17},"Institutions","/en-gb/institutional-trading/",{},[],{"headerName":243,"sidemenuName":243,"url":244,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":245,"submenu":246,"tag":247},"Derivatives","/perpetual-futures/",{},[],"NEW",{"headerName":134,"sidemenuName":134,"url":135,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":249,"submenu":250,"tag":17},{},[],{"headerName":252,"sidemenuName":252,"url":107,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":253,"submenu":254,"tag":17},"Mobile App",{},[],{"headerName":256,"sidemenuName":256,"url":257,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":258,"submenu":259,"tag":17},"Markets","/markets/",{},[],{"headerName":261,"sidemenuName":261,"url":262,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":263,"submenu":264,"tag":17},"Earn Stake","/en-gb/crypto-staking/",{},[],{"headerName":111,"sidemenuName":111,"url":112,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":266,"submenu":267,"tag":17},{},[],{"headerName":269,"sidemenuName":269,"url":270,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":271,"submenu":272,"tag":17},"Blog","https://blog.bitstamp.net/",{},[],{"headerName":274,"sidemenuName":274,"url":275,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":276,"submenu":277,"tag":17},"Learn","/learn/",{},[],{"headerName":279,"sidemenuName":279,"url":107,"noFollow":36,"showInHeader":36,"showInSidemenu":33,"geofencings":280,"submenu":281,"tag":17},"Get Bitstamp by Robinhood app",{},[],"Go to platform","Back","Log in","Get started",[287,290,294,298,302,306,310,314,318,322],{"title":32,"url":288,"geofencings":289},"/en-gb/learn/blockchain/",{},{"title":291,"url":292,"geofencings":293},"Company profiles","/en-gb/learn/company-profiles/",{},{"title":295,"url":296,"geofencings":297},"Crypto 101","/en-gb/learn/crypto-101/",{},{"title":299,"url":300,"geofencings":301},"Crypto definitions","/en-gb/learn/crypto-definitions/",{},{"title":303,"url":304,"geofencings":305},"Crypto trading","/en-gb/learn/crypto-trading/",{},{"title":307,"url":308,"geofencings":309},"Cryptocurrency guide","/en-gb/learn/cryptocurrency-guide/",{},{"title":311,"url":312,"geofencings":313},"People profiles","/en-gb/learn/people-profiles/",{},{"title":315,"url":316,"geofencings":317},"Security","/en-gb/learn/security/",{},{"title":319,"url":320,"geofencings":321},"Tutorials","/en-gb/learn/bitstamp-tutorials/",{},{"title":323,"url":324,"geofencings":325},"Web3","/en-gb/learn/web3/",{},1776943681292]