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Bitcoin Layer 2: Sidechains

  • Bitcoin sidechains concept was proposed in 2014 by key industry figures.
  • Sidechains allow for experimentation without compromising main Bitcoin blockchain security.
  • They consist of peg for coin transfer and consensus mechanism for operation.
  • Merge mining and SPV proofs are key components in sidechain operation.
  • Numerous sidechain designs have been proposed, but adoption levels remain limited.

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