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What is a side chain?

A sidechain is a separate blockchain that is connected to a main blockchain through a two-way peg. This two-way peg allows assets to be transferred from the main blockchain to the sidechain and back again, allowing for increased flexibility and interoperability between different blockchains.

Sidechains are often used to address scalability and functionality limitations of main blockchains, as they can be designed to handle specific types of transactions or applications without requiring changes to the main blockchain itself. For example, a sidechain may be designed to handle microtransactions or privacy-focused transactions, while the main blockchain remains optimized for security and decentralization.

Sidechains can also be used to enable the creation of new assets or tokens that can be traded independently of the main blockchain, providing greater flexibility for developers and users. Some popular sidechain projects include Liquid, RSK, and Plasma.


The Drivechain project is a proposed sidechain solution for Bitcoin. The Drivechain project aims to enable the creation of custom sidechains that are interoperable with the Bitcoin blockchain, allowing for increased scalability, privacy, and functionality. It is designed to allow users to move their Bitcoin funds to the sidechain and back again, without the need for trusted third parties or custodians.

The project was initially proposed by Bitcoin developer Paul Sztorc in 2015 and has since seen contributions from several other developers. The idea is to allow Bitcoin users to utilize new features or experimental technologies that might not be available on the main Bitcoin blockchain.

The project proposes to create a "drivechain" as a sidechain, which can operate independently while still being anchored to the Bitcoin blockchain. Drivechain transactions would be secured by the same mining power as Bitcoin and would enable Bitcoin users to transfer their Bitcoins to the sidechain, where they could be used to perform various activities, such as smart contracts or other decentralized applications.

One of the main advantages of Drivechain is that it allows for experimentation and innovation without the need for a hard fork, which can be a slow and contentious process. With Drivechain, the sidechain can operate as an opt-in feature for Bitcoin users, providing a seamless and user-friendly experience.

The Drivechain project is still in development and is being actively worked on by a community of developers. The project aims to provide a practical solution for scaling and innovation on the Bitcoin blockchain, while still maintaining the security and stability of the Bitcoin network.