OKX Blockchain 60 Lectures | Episode 23: What is Sidechain Technology?
Hello everyone, this is Xiao K. Today we're going to talk about: "What is Sidechain Technology"?
As we all know, blockchain is composed of four core technologies, but there are still some problems that even these four core technologies cannot fully solve, such as the efficiency issues that have drawn widespread criticism, as well as scalability issues — meaning that as time goes by, many functions of the system cannot be improved accordingly.
To solve these problems, blockchain has introduced many new technologies, and one of the more mainstream solutions is sidechain technology.
A sidechain is essentially a protocol that enables assets to be securely transferred from one blockchain to another and then safely transferred back, i.e., a technology that allows value interaction between chains.
To put it simply, a sidechain is a new blockchain established that can one-to-one with the original blockchain, allowing assets to be transferred between the two chains, thereby compensating for certain deficiencies in the original chain — much like a symbiotic relationship. The original independent blockchain is called the main chain, and the newly created chain that relies on the main chain is called a sidechain.
Generally speaking, assets on one chain can only circulate within that chain. The reason sidechains can achieve asset transfers between chains is through a two-way pegging mechanism — meaning that one side takes the other's actions as the standard.
Here is how it works:
Using Bitcoin as an example, when Bitcoin wants to transfer to its sidechain, the corresponding amount of Bitcoin is locked on Bitcoin's main chain, and an equivalent value of sidechain tokens is released; conversely, when Bitcoin wants to transfer back to the main chain, the corresponding amount of sidechain tokens is locked, and the corresponding Bitcoin is released. Therefore, the standard for this two-way pegging is whether the other side releases the corresponding tokens when one side locks them.
As for how to manage the locking and releasing of assets, there are generally two methods. The first is single custody through a third-party institution — finding a trusted third-party institution to lock assets and oversee both parties' assets, with assets managed by the institution. When assets need to be transferred between the two chains, the institution only proceeds with locking and releasing assets on both chains after verifying that everything is in order.
The other method is federated custody with multiple reliable individuals, which is more decentralized — much like the People's Congress system. Assets to be transferred between chains are jointly supervised by this federation. Each person gets one vote, and every asset transfer's locking and releasing requires verification from multiple people. Assets are only unlocked once the number of confirmation votes reaches a certain threshold. In this way, cross-chain asset transfers are achieved.
Overall, sidechain technology can indeed relatively effectively solve efficiency and scalability issues. For example, when transactions on the main chain cannot be processed fast enough, assets can be partially transferred to the sidechain for分担 processing. Another example: when there are too many users on the main chain, making major changes difficult, modifications can be made on the sidechain to complement the main chain's functionality.
It is precisely based on these advantages that sidechains are one of the more mainstream solutions today. We believe that over time, sidechain technology will become increasingly refined and ultimately bring us a more perfect blockchain world.
Special thanks to Instructor Xu Zhifeng for his assistance and guidance on the content of this episode.
Sina Weibo: @区块链峰哥
"OKX Blockchain 60 Lectures" is a blockchain educational animation video jointly produced by OKX and Sina Technology. Aimed at users with zero foundation in blockchain, through series articles, educational animations, and other formats, it provides vivid and engaging explanations of blockchain concepts from the perspectives of concepts, technology, and applications across 5 major sections and 60 knowledge points. The content of this episode was guided by Xu Zhifeng, Executive Deputy Director of the Blockchain Research Center at Harbin Institute of Technology.
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This article may contain product-related content not applicable to your region. This article is committed to providing general information only and does not accept responsibility for any factual errors or omissions. This article represents the author's personal views only and does not represent the views of OKX. This article is not intended to provide any advice, including but not limited to: (i) investment advice or investment recommendations; (ii) offers or solicitations to buy, sell, or hold digital assets; or (iii) financial, accounting, legal, or tax advice. Holdings in digital assets (including stablecoins) involve a high degree of risk and may fluctuate significantly, or even become worthless. You should carefully consider whether trading or holding digital assets is appropriate for you based on your financial situation. For questions about your specific circumstances, please consult your legal/tax/investment professional. The information in this article (including market data and statistical information, if any) is provided for general reference purposes only. Although we have taken all reasonable precautions in preparing such data and charts, we accept no responsibility for any factual errors or omissions expressed herein. © 2025 OKX. This article may be reproduced or distributed in its entirety, or excerpts of 100 words or less may be used, provided that such use is non-commercial in nature. Any reproduction or distribution of the full article must prominently state: "This article is copyrighted © 2025 OKX, used with permission." Permitted excerpts must cite the article title and include attribution, e.g., "Article title, [author name (if applicable)], © 2025 OKX." Some content may have been generated or assisted by artificial intelligence (AI) tools. Derivative works and other uses of this article are not permitted.
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