The Sidechain Elements, as it is called, is focused on being an interoperable blockchain network on which users can do a variety of settlements — without disrupting the original Bitcoin blockchain. The new technology simply leverages from its mentor to host new, middlemen-free business models, allowing them to take use of an altogether separate database that stores and protects records indefinitely. It also provides users the opportunity to transfer Bitcoin price units from the original blockchain.
Perhaps the most wonderful benefit of a sidechain is its separability from Bitcoin, for it never tends to jeopardize the digital currency’s core infrastructure to make its own. On the contrary, It indirectly taps the Bitcoin’s underlying technology to create a parallel software platform that is utterly flexible, speedy and secure to support a variety of functions — including digital trades, record keeping, and other dozen tasks.
The Blockstream’s sidechain prototype therefore has much to offer to this evolving new and seasoned markets, especially for Nasdaq and NYSE that are currently taking huge interest in Bitcoin’s public ledger system to improve their settlement periods. However, the sidechain project is still undergoing a rigorous testing exercise, for which Blockstream has decided to open source it for further reviews.
“With the release of Sidechain Elements, Blockstream is moving this effort into the community,” the company blogged. “We’re inviting developers to work with us, to test and use the code for their projects, and to share their proposals and code for additional capabilities.”