Sidechains with specific purposes could be formed with specific features while still enjoying the widespread adoption and value that Bitcoin holds.  Most importantly it can add these features without consensus from the Bitcoin community. Sidechains have the potential to replace many Cryptocurrencies as it allows features that were previously unique to these currencies to be available on Bitcoin. It also allows developers to experiment with sidechains and scope its full potential while still keeping coins linked to Bitcoin.
Step back from the details for moment and consider what’s been described.  We now have a way to move coins from Bitcoin onto another platform (a sidechain) and move them back again.   That’s pretty much what we do when we move them to a wallet platform or an exchange.  The difference is that the “platform” they’ve been moved to is also a blockchain… so it has the possibility of decentralised security, visibility and to gain from other innovation in this space.
The second option will be to use sidechains. Blockstream first announced side chain in 2014 and published its whitepaper (https://blockstream.com/sidechai...). I believe in the future, bitcoin will have its desired flexibility with its sidechains. The idea of the sidechain is you can innovate and design your solution freely in the sidechains. These sidechains are independent, if they are failed or hacked, they won't damage other chains. So damage will be limited within that chain, for that reason you can be less conservative. Otherwise you would be more risk averse, if you had 42.5 billion dollar market cap like Bitcoin.
For example, Banks A and B often settle thousands of transactions per day. It would be extremely expensive for all of those transactions to be committed to the main blockchain, so A and B set up a side-chain. At the end of each day, at most one transaction is committed to the main blockchain (the only possible outcomes are A and B's balances remain the same, or one of their balances decreases and the other's increases).
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Open blockchains are more user-friendly than some traditional ownership records, which, while open to the public, still require physical access to view. Because all early blockchains were permissionless, controversy has arisen over the blockchain definition. An issue in this ongoing debate is whether a private system with verifiers tasked and authorized (permissioned) by a central authority should be considered a blockchain.[36][37][38][39][40] Proponents of permissioned or private chains argue that the term "blockchain" may be applied to any data structure that batches data into time-stamped blocks. These blockchains serve as a distributed version of multiversion concurrency control (MVCC) in databases.[41] Just as MVCC prevents two transactions from concurrently modifying a single object in a database, blockchains prevent two transactions from spending the same single output in a blockchain.[42]:30–31 Opponents say that permissioned systems resemble traditional corporate databases, not supporting decentralized data verification, and that such systems are not hardened against operator tampering and revision.[36][38] Nikolai Hampton of Computerworld said that "many in-house blockchain solutions will be nothing more than cumbersome databases," and "without a clear security model, proprietary blockchains should be eyed with suspicion."[9][43]
Bitcoin se acerca a los 10,000 millones de capitalización, con una infraestructura y usuarios que requieren que todas las ideas e innovación que se desarrolla a su alrededor cumpla con un nivel de seguridad y testeo tan elevados como el propio Bitcoin. Es por esto que, al menos hasta no ser algo totalmente definnido y fiable en la blockchain test de Bitcoin, no se podrá empezar a presionar para una posible implementación en la blockchain live.
However, the Lightning Network would, again, require a change to the existing Bitcoin protocol. (Though again it would be a “soft fork,” i.e. the existing blockchain would remain fully valid.) And/or — you guessed it — a Lightning sidechain. What’s more, one of the changes it requires, the elimination of transaction malleability, is handled by the Segregated Witness work in Sidechain Elements. (correction: all of of the changes required are incorporated into Elements Alpha — it’s Lightning-ready out of the box.)
As an engineer and an entrepreneur, I truly believe blockchain technology is going to revolutionize the world. One of the biggest hurdles we need to tackle in the blockchain industry is scalability. Ethereum can only handle 15 transactions per second. I previously wrote about why that will prevent blockchain from going mainstream and how DAG could potentially be a winner.
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– The manipulation of the blockchain: It is indeed possible to come back at any time on the transactions that have already been added to the blockchain and therefore change the balance of the members. In a public blockchain, such operation would require that 51% of the hashing power (i.e capacity to mine) is concentrated in the hands of the same entity. This not theory anymore since it happened beginning 2014 when the cooperative of GHash minor reached the 51% threshold.
Cuando esta transacción recibe las suficientes confirmaciones, se manda una notificación a la otra cadena de bloques (la que tú quieres utilizar) en el que se adjunta la prueba de que las monedas han sido enviadas por ti a esa dirección especial de la red. Tras ello, en la sidechain se creará, de forma automática, el mismo número exacto de activos que bitcoins se mandaron, dándote a ti el control de los mismos. Es decir, replica en el nuevo activo la cuantía que has enviado de la cadena principal a la sidechain. ¡Muy importante! Recordar que no se han creado o destruido nuevos bitcoins. Simplemente se han movido hasta que no estén usándose en la sidechain.
Note: Some would argue that such a system cannot be defined as a blockchain. Also, Blockchain is still in it’s early stages. It is unclear how the technology will pan out and will be adopted. Many argue that private or federated Blockchains might suffer the fate of Intranets in the 1990’s, when private companies built their own private LANs or WANs instead of using the public Internet and all the services, but has more or less become obsolete especially with the advent of SAAS in the Web2.

“We believe that public blockchains with censorship resistance have the potential to disrupt society, when private blockchains are merely a cost-efficiency tool for banking back offices. One can measure its potential in trillions of dollars, the other in billions. But as they are totally orthogonal, both can coexist in the same time, and therefore there is no need to oppose them as we can often see it.” 

Contrary to popular belief, aided by deceptive blockchain marketing, blockchains are not a good solution for storing data. Each piece of information that you store in the blockchain sits in hundreds or more nodes (more than 100,000 in the case of Bitcoin) making it an extremely costly solution. This is why the Iryo Network doesn’t store data on blockchain but instead, uses blockchain to ensure the transparency of transactions. As a disclaimer, competitors also don’t save medical data on the chain itself (even those who use private chains). Instead, only the fingerprint aspect of a medical record file or a hash is stored on the blockchain.
“Such a move could allow retailers to lower prices and incentivize consumers to shop at one retailer over a competitor,” Cohen noted. “This idea is not as ludicrous as it might seem. Amazon recently registered three cryptocurrency-related domain names, suggesting a potential move into the cryptocurrency space. If large companies like Amazon, Walmart or Starbucks issued digital coins that inspired public trust, blockchain-based cryptocurrencies might gain acceptance by the public and other retail giants.”

Using Rootstock as an example, in order to transfer assets from one chain to the other a user on the parent first has to send their coins to a special output address where they will consequently become locked and un-spendable. Once the transaction is completed, SPV then confirms it across the chains and after waiting out a contest period, which is just a secondary method to help prevent double spending, the equivalent amount will be credited and spendable on the Sidechain and vice versa.

– we provide no uniqueness of names, unlike the domain registrars, social networks, namecoin, onename.io, etc. There is no uniqueness of names in real life either. Instead the identity is just a hash of a [json] object that contains a public key. Identity object can not be modified directly, but a new version of it can be created, pointing to a previous version. The owner of the identity object can optionally connect it with the real life credentials, e.g. the social account, internet domain, email, etc. by proving the proof of ownership of that account the way onetime.io does it, the way Google Analytics does it, etc. This allows a spectrum of identities from fully anonymous to fully disclosed and verified. This also allows a person to have multiple identities, for work, for social, for gaming, for interest-specific forums. To simulate OAUTH2, a new site-specific identity can be created and signed with person’s other identity.

Using Rootstock as an example, in order to transfer assets from one chain to the other a user on the parent first has to send their coins to a special output address where they will consequently become locked and un-spendable. Once the transaction is completed, SPV then confirms it across the chains and after waiting out a contest period, which is just a secondary method to help prevent double spending, the equivalent amount will be credited and spendable on the Sidechain and vice versa.
A blockchain is a decentralized, distributed and public digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network.[1][18] This allows the participants to verify and audit transactions inexpensively.[19] A blockchain database is managed autonomously using a peer-to-peer network and a distributed timestamping server. They are authenticated by mass collaboration powered by collective self-interests.[20] The result is a robust workflow where participants' uncertainty regarding data security is marginal. The use of a blockchain removes the characteristic of infinite reproducibility from a digital asset. It confirms that each unit of value was transferred only once, solving the long-standing problem of double spending. Blockchains have been described as a value-exchange protocol.[13] This blockchain-based exchange of value can be completed quicker, safer and cheaper than with traditional systems.[21] A blockchain can assign title rights because, when properly set up to detail the exchange agreement, it provides a record that compels offer and acceptance.
RSK is the first open-source smart contract platform with a 2-way peg to Bitcoin that also rewards the Bitcoin miners via merge-mining, allowing them to actively participate in the Smart Contract revolution. RSK goal is to add value and functionality to the Bitcoin ecosystem by enabling smart-contracts, near instant payments and higher-scalability.
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There is a whole other issue of identity theft that needs to be addressed. Just a short note here as this is a big subject: If the private key to identity object is stolen, the true owner of the identity needs to have a way to change the key. One approach to that would be to use the private key of the bitcoin transaction that created the first version of the identity object. Another way could be to prove the ownership of other public keys on the identity object, like the one used for encryption (PGP key management suggests a separate key for each purpose, signing, encryption, etc.). Other non-automatic ways could include a trusted third-party, social proof, etc.

A federation is a group that serves as an intermediate point between a main chain and one of its sidechains. This group determines when the coins a user has used are locked up and released. The creators of the sidechain can choose the members of the federation. A problem with the federation structure is that it adds another layer between the main chain and the sidechain.
Private blockchains, or as I like to call them, shared databases, have a place in improving efficiency for financial institution for back-office settlement processes. They should not be seen as controversial, or part of some dialectic struggle between punks and police. To the extent that the identifying shroud of AML/KYC can be placed into public blockchain metadata (possible in Omni Layer transactions over the Bitcoin blockchain) there may even be interoperability between these two sides of the train tracks. Right now, due to state-granted monopolies to issue credit, most of the world's liquidity is still in banks. However, we believe that in the long-term, public blockchains, especially those based on work, will come to take a more significant part in the ‘System D’ informal economy, which is where most of the global economic growth will originate.” 
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