Sidechain
Layer 2● Common
A separate blockchain pegged to Bitcoin, allowing BTC to move between chains. Enables experimentation with new features without changing Bitcoin's base layer. Examples: Liquid (federated), proposed Drivechains (BIP-300/301).
Technical Notes
Two-way peg: lock BTC on mainchain, mint equivalent on sidechain, burn to unlock. Liquid: federated peg with 15-of-15 functionaries, 2-minute blocks, confidential transactions. Drivechains: hashrate-secured peg (proposed, controversial). Trade-off: different trust models.
Metadata
Visibility: Public
Created:1/3/2026by System