Implemented by	The initial design was published by Blockstream in 2014, but the implementation is blocked by the lack of native support for SPV proofs in Bitcoin (which may not be added at all). Rootstock workaround this by sacrificing decentralization (still work in progress).	The Ardor platform created by Jelurida is the first to propose and implement the concept of Child Chains. Already running on testnet, the production Ardor launch is scheduled for Q4 2017.

Consider a proof-of-existence application, where you want to authenticate your document in the Ethereum (for example) network, but you do not need your document to be online. So, you will store the hash generated from your document in the blockchain, but the document itself will be in your local machine, out of any blockchain-related structured, being off-chain.
NPD said the next step for retailers is to develop their own cryptocurrency to prevent customers from having to use credit cards when shopping online. NPD said the practice makes sense for the retailer, because if the customer could send the payment transfer via blockchain, it would avoid third-party clearing house fees retailers pay for processing card payments.

Instant Payments: Since the creation of Bitcoin there has been a race for faster transaction confirmations. Instant payments allow new use cases, such as retail store payments, and transactions in online games. RSK carefully chosen parameters and new theoretical protocols (such as DECOR+GHOST) allow creating blocks at 10 seconds average interval, with low stale block rate, and no additional centralization incentives.
NPD said the next step for retailers is to develop their own cryptocurrency to prevent customers from having to use credit cards when shopping online. NPD said the practice makes sense for the retailer, because if the customer could send the payment transfer via blockchain, it would avoid third-party clearing house fees retailers pay for processing card payments.
Necessity is the answer to that question, well for the short term anyway. Currently public & private blockchains still have a lot of challenging technological problems that need to be sorted out, with privacy and scalability being foremost. Gallactic’s blockchain can certainly help with scalability due to its multi-chain architecture that allows for massive scaling to rival and in most cases surpass other blockchains in the market with transactions at 300 per second on mainchain with the ability to scale up to hundreds of thousands per second when the multi-chain model is configured for speed.
Perhaps blocks are created faster on that sidechain. Perhaps transaction scripts are “turing complete”. Perhaps you have to pay fees to incent those securing that sidechain. Who knows. The rules can be whatever those running that sidechain want them to be. The only rule that matters is that the sidechain agrees to follow the convention that if you can prove you put some Bitcoins out of reach on the Bitcoin network, the same number will pop into existence on the sidechain.

The main point of a side-chain is to allow cryptocurrency networks to scale and interact with one-another. For example alt-coins and Bitcoin run on separate chains, however side chains allow for these separate currencies to be transferred through these two-way 'portal's or interfaces via a fixed conversion amount. Added benefits of side-chains are different asset classes like,stocks, bonds etc being integrated through a converted price onto the main chain, along with additional functionality like smart contracts,unique D-Apps, micro-payments and security updates that can be later incorporated into the primary network from these side-chains.
“The reason why you put up private blockchains is potentially because you want to have control over the participants in the blockchain. So as we have banks and financial institutions, who have to worry heavily about regulations, they can’t use the public blockchains right now because they are open and permission-free, and anyone can participate, and that’s contradictory to the regulations to which they must abide.
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The Blockstream Satellite network broadcasts the Bitcoin blockchain to the entire planet. The satellite network provides an opportunity for nearly 4 billion people without Internet access to utilize bitcoin while simultaneously ensuring bitcoin use is not interrupted due to network interruption. Utilizing the latest open source Software Defined Radio (SDR) technologies, the Blockstream Satellite network offers a breakthrough in the cost effectiveness of satellite communications.

Governance: Every enterprise needs to design standards, processes, methods, and tools to develop and operate a private blockchain. To achieve this they will need tools and frameworks such as IDE, testing framework, security auditing tool etc. For long-term successful operation, they also need to develop high-quality documentation. This requires proactive governance. Read more about the importance of the “Fundamental challenges with public blockchains” here.
In September 2015, the first peer-reviewed academic journal dedicated to cryptocurrency and blockchain technology research, Ledger, was announced. The inaugural issue was published in December 2016.[91] The journal covers aspects of mathematics, computer science, engineering, law, economics and philosophy that relate to cryptocurrencies such as bitcoin.[92][93]
Governance: Every enterprise needs to design standards, processes, methods, and tools to develop and operate a private blockchain. To achieve this they will need tools and frameworks such as IDE, testing framework, security auditing tool etc. For long-term successful operation, they also need to develop high-quality documentation. This requires proactive governance. Read more about the importance of the “Fundamental challenges with public blockchains” here.
So if you want to create a more secure Sidechain, we would seriously need to have a look at incentivizing miners in other ways. These could include things such as the Sidechain raising outside funding from investors in order to pay the miners. Staggering mining award so miners have an incentive to keep mining as they will be paid later on rather than at the time or the Sidechain could issue its own mining award on top of the already existing transaction fees and essentially just become an Altcoin.

Sidechain is a blockchain that runs parallel to the main blockchain. It extends the functionality of interplorable blockchain networks. Interpolable blockchain networks signifies the ability to share data between different computer systems on different machines. It means that data can be sent and received between interconnected networks eliminating the possibility of negative impact to the networks. Sidechain enables this to be done in a decentralised manner to transfer and synchronise tokens between two chains.
The problem with Ethereum is that transactions are executed one after another. However, Aelf differs in its parallel computing blockchain capability. It scales transaction computing power inside a single side chain. Now imagine the power when you have thousands of side chains. For any unrelated transactions, it is safe to execute them concurrently.

Cabe destacar el papel de la gente de Blockstream, una de las compañías centradas en la búsqueda de este objetivo (con un extremeño en sus filas, Jorge Timón). Blockstream está trabajando actualmente en el desarrollo de un protocolo que permita crear sidechains. Son los responsables de uno de los papers más conocidos sobre el tema, publicado en Octubre del 2014:
Imagine over several hours, the camps produced a chain of messages that each required intensive Proof of Work. This means that the majority of the camps had to agree on this chain of messages and each camp can confidently trust the final outcome. It’s important to note here that Proof of Work does not care about the message itself, only that the nodes agreed to the final message. This majority network consensus keeps it secure and provides a solution to the Byzantine Generals Problem, leading to Byzantine Fault Tolerance.
The “three-part” transaction structure is very general but it only allows you to transfer ownership of Bitcoins. Some people would like to transmit richer forms of information across these sorts of systems. For example, a decentralized exchange needs a way for participants to place orders. Projects such as Mastercoin, Counterparty, NXT and others either build layers on top of Bitcoin or use entirely different codebases to achieve their goals.
State of the art public Blockchain protocols based on Proof of Work (PoW) consensus algorithms are open source and not permissioned. Anyone can participate, without permission. (1) Anyone can download the code and start running a public node on their local device, validating transactions in the network, thus participating in the consensus process – the process for determining what blocks get added to the chain and what the current state is. (2) Anyone in the world can send transactions through the network and expect to see them included in the blockchain if they are valid. (3) Anyone can read transaction on the public block explorer. Transactions are transparent, but anonymous/pseudonumous.
2. Ardor’s Blockchain as a service platform for business: Ardor uses the Proof of Stake consensus mechanism. Ardor calls its sidechains ‘childchains’, and they are tightly integrated into the main chain. Security is enhanced because all transactions are processed and secured by parent chain forgers. Most transactions are pushed down to the childchain level, as the parent mainchain retains minimal features. Global entities such as assets and currencies across chains can be accessed through childchains.
That might sound like a problem, but it isn’t because the box can only be opened infrequently (two or three times a year), and a super-majority of miners must leave a note on the box in advance. This note states exactly where the miners intend to transfer the money. The “correct” note is automatically generated by sidechain software, and is easy to check.
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The sidechains vision of the future is of a vast globe-spanning decentralized network of many blockchains, an intertwined cable rather than a single strand, each with its own protocol, rules, and features — but all of them backed by Bitcoin, and protected by the Bitcoin mining network, as the US dollar was once backed by gold. Sidechains can also be used to prototype changes to the fundamental Bitcoin blockchain. One catch, though: this will require a small tweak to the existing Bitcoin protocol.
Unlike the other two-way peg mechanisms discussed in this article, SPV sidechains do not give direct control of real bitcoins on the main chain to a custodian; however, the ability for a majority of miners to produce and build upon fraudulent SPV proofs gives them indirect control over the funds, including the ability to send to themselves. Having said that, there are ways to mitigate this issue.
Walmart recently filed patents that could allow the retailer to store vendor and consumer e-commerce payment data using blockchain technology to improve security. This application would encrypt payment information in digital shopping systems and create a network able to automatically conduct transactions on behalf of a customer. The payments would be received by one vendor or more, depending on the services and who provided them.
There are many critics of payment channels. Finding the quickest path between unconnected nodes is no trivial exercise. This is a classic “traveling salesman” problem that has been worked on by top computer scientists for decades. Critics argue that it is highly unlikely payment channels like Bitcoin’s Lightning and Ethereum’s Raiden will work as expected in practice due to complexities like the traveling salesman problem. The key for you is just to know that these projects and potential solutions to blockchain scalability issues exist. Many of the smartest minds in the industry are working actively to bring them to life.
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Since extension blocks can be implemented via soft forks, the features of the extension blocks are essentially opt-in for users. Even in the case of extension blocks with a larger block size limit, users are not forced to upgrade and validate or propagate blocks that are much larger in size. Those who wish to enjoy the level of decentralization offered by 1MB blocks can continue to do so, while those who would like to experiment with much larger block size limits can do so on an opt-in basis.
This type of blockchains can be considered a middle-ground for companies that are interested in the blockchain technology in general but are not comfortable with a level of control offered by public networks. Typically, they seek to incorporate blockchain into their accounting and record-keeping procedures without sacrificing autonomy and running the risk of exposing sensitive data to the public internet.
Public blockchains are just that, public. Anyone that wants to read, write, or join a public blockchain can do so. Public chains are decentralized meaning no one body has control over the network, ensuring the data can’t be changed once validated on the blockchain. Simply meaning, anyone, anywhere, can use a public blockchain to input transactions and data as long as they are connected to the network.