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Onchain Economics

Sidechain

An independent blockchain connected to a parent chain through a two-way peg, enabling asset transfers between them.

In-Depth Explanation

Sidechains run their own consensus while allowing assets to move to/from the main chain. They can experiment with different features or scaling approaches without affecting the parent chain. Unlike L2s, sidechains have their own security model—they don't inherit L1 security. Polygon PoS started as a sidechain (now also building L2 solutions).

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