Side Chain
By CoinGecko | Updated on Mar 03, 2020
A blockchain ledger that runs in parallel to a primary blockchain, where there is a two-way link between the primary chain and sidechain. This allows the sidechain to operate independently of the primary blockchain, using their own protocols or ledger mechanisms. Cryptocurrencies in the sidechain is connected to the main chain with the two-way peg, allowing users to transfer their assets to and fro.
Related Terms
Venture Capital
capital (funds) that is invested in a company that needs a substantial pool of funds to initiate.
Transaction Fee
A payment to the network for performing a transaction to be recorded on the blockchain.
Rug Pull
Sudden removal of liquidity which typically leads to asset prices crashing from the lack of liquidity to absorb buy/sells.
Token Burn
An event in which tokens are verifiably removed permanently removed from circulation.
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