Solutions
Sidechains offer solutions to combat various problems such as low TPS, inflexibility in trading between currencies and high innovation cost by allowing transactions across various currencies and facilitating innovation.
In their current state, blockchains such as Bitcoin and Ethereum can handle a limited amount of transactions per second, which is way behind what current centralized systems such as VISA and Mastercard offer.
The flexibility between trading various crypto and non crypto currencies is a huge problem right now as there does not exist flexibility for such exchanges across countries.
There is a significant chance of failure when new innovation takes place within a blockchain and as well the information system of a company. Data can be lost because the security of infrastructure of the chain can be compromised.
Side chains provide a two way peg solution which enables the developers of the blockchain to allow users to switch from one blockchain to the other to facilitate increase in Transactions per second (TPS) i.e scalability.
Side chains provide such flexibility by incorporation of side chains that are connected to the main blockchain on which a crypto may be traded. This allows the parent blockchain and side chain to work seamlessly to facilitate trading.
Sidechains allow room for innovation. By keeping the main chain stable, we can experiment with new ideas and see how they perform in the real world.
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