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
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Stablecoin
Cryptocurrency with a price peg to fiat currencies or commodity.
Derivatives
A financial instrument which derives its value from the performance of an underlying asset or index (eg. gold, crude oil)
Cryptography
A discipline or field of study which practices using cryptography to convert human-readable information that can only be deciphered by individuals who have the knowledge to.
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