1.12.4.4 Sidechains

As demonstrated in Figure 1.18, Sidechains are another type of

architecture where different Blockchain networks work in parallel to

the mainchain, as follows:

Figure 1.18: Sidechain Architecture

However, in this model, they are pretty much decoupled and work

independently on their own. All the sidechains get connected to the

mainchain through the two-way gates. They are pretty popular in the

market and are widely adopted by many leading Blockchain

solutions.

Some of the most popular examples of Sidechains are Microsoft’s

Sidetree solution for Decentralized Identity ION, Plasma Sidechain

on Ethereum, Liquid Sidechain for Bitcoin, Cosmos etc.

1.12.4.5 Rollups

Rollups is another L2 architecture where the transactions get

executed off-chain; however, the smart contracts as well as the proof

of the transactions reside on the mainchain. There are two types of