Altcoins have existed for many years and there are many hundreds of different ones already. A more recent concept is sidechains and drivechains.
What are sidechains and drivechains?
How do they differ from regular altcoins?
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1 Answer
Sidechains are supposed to make it possible for users to move bitcoins between different bitcoin-based blockchains with different rule sets. For example, in this way, new techniques for preserving the privacy of transactions or a smart contract system similar to ethereum's could be added to a bitcoin blockchain, without changing the bitcoin blockchain. They are as an architecture for building semi-decentralised products and services for Bitcoin that were simply impossible before. With sidechains, users won’t be affected at all by any new programming.
Drivechain is a two-way peg for interacting with the sidechain. The key difference between drivechains and regular sidechains is who ultimately submits the necessary information to transfer the bitcoins back and forth: the users or the miners.
The side chain idea allows the native cryptocurrency to compete and win out over other competitors, as they are faster confirmed.
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seems like sidechains can have 2 way pegs as well? coindesk.com/learn/an-introduction-to-sidechains Commented Jan 31, 2023 at 1:46