Setting up an environment to test and research blockchain requires an ecosystem with multiple systems to be able to develop research and test. The big players in the cloud industry like Amazon(AWS), Microsoft(Azure), IBM(BlueMix) have seen the potential benefits of offering blockchain services in the cloud and started providing some level of BaaS to their customers. Users will benefit from not having to face the problem of configuring and setting up a working blockchain. Hardware investments won’t be needed as well. Microsoft has partnered with ConsenSys to offer Ethereum Blockchain as a Service (EBaaS) on Microsoft Azure. IBM(BueMix) has partnered with Hyperledger to offer BaaS to its customers. Amazon announced they would be offering the service in collaboration with the Digital Currency Group. Developers will have a single-click cloud-based blockchain developer environment, that will allow for rapid development of smart contracts.
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.
Zestminds is an IT consulting and services provider, providing end-to-end consulting for global clients. Zestminds has partnered with several start-ups to SME in building their next generation information infrastructure for competitive advantage. The Zestminds portfolio of services includes legacy application maintenance, large application development, e-strategy consulting and solutions. The offshore Model of the company leverages talent and inf ... Read more

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.

Jump up ^ Redrup, Yolanda (29 June 2016). "ANZ backs private blockchain, but won't go public". Australia Financial Review. Archived from the original on 3 July 2016. Retrieved 7 July 2016. Blockchain networks can be either public or private. Public blockchains have many users and there are no controls over who can read, upload or delete the data and there are an unknown number of pseudonymous participants. In comparison, private blockchains also have multiple data sets, but there are controls in place over who can edit data and there are a known number of participants.
Eris Industries, aims to be the provider of shared software database using blockchain technology. Blockstack, aims to provide financial institutions back office operations, including clearing & settlement on a private blockchain. Multichain, provider an open source distributed database for financial transactions. Chain Inc., a provider of blockchain API's. Chain partnered with Nasdaq OMX Group Inc., to provide a platform that enables trading private company shares with the blockchain.
Public blockchains are also expensive, and not just in terms of money. The time and energy required to process transactions on public chains is more intensive than that of non-public chains. This is because every single node on the chain must authorize each new transaction before it is added to the chain, which requires a large amount of electricity and time (not to mention money).

Sidechain is a chain of blocks based on the main parental blockchain. Sidechains realize the new financial ecosystems via integration into Bitcoin. Relatively new to Bitcoin, the sidechain is an extension that enables the ability both to build a link between BTC and an altcoin and to create new independent services that work via the main Bitcoin blockchain. Using sidechains allows for the creation of various types of smart contracts, stocks, derivatives, etc. It is possible to develop a limitless number of Bitcoin or Ethereum-based sidechains with different tasks and features, assets of which will depend on the main blockchain’s volatility. It allows traditional blockchains to support several kinds of assets, payments, smart contracts and also to increase the level of security and anonymity of transactions.

Tú, o el usuario en cuestión de las sidechains, envía los bitcoins a una dirección Bitcoin específica, sabiendo que, una vez mandados, estarán fuera de tu control y fuera del control de cualquier otra persona. Estarán completamente inmovilizados y sólo se podrán desbloquear si alguien puede demostrar que no se están utilizando en ningún otro lugar.


“Private blockchains are valuable to solve efficiency, security and fraud problems within traditional financial institutions, but only incrementally. Private blockchains will not revolutionize the financial system. Public blockchains, however, hold the potential to replace most functions of traditional financial institutions with software, fundamentally reshaping the way the financial system works.” 
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.
Third option is to write your own blockchain protocol according to your needs. You will be able to answer all your what if questions if you design it by yourself. Ripple, Hyperledger projects (Fabric, Burrow, Indy), Corda, Multichain and most flexible and popular one Ethereum can be examples of that option. That option is the most costly and risky one. You have to invest a lot, and after you create your blockchain, you have to find people & companies to use it. Also you need to attract community of developers to upgrade, enhance your blockchain for coming requirements in the future. Above blockchains are the ones I remember immediately, also there are others.

2) Yea, blockchain could be a suboptimal MQ Series, a slower append only persistent wire that has a lot of ready-made tools for audit and security analysis (ecosystem argument). As blockchain ecosystem grows all kinds of data transformation tools will appear (e.g. we are working on such). Inside blockchain could be tuned to be less PoW intensive and to cut blocks faster. Besides, the variations of PoS or a hybrid PoW + PoS scheme are emerging which could use the fact that inside, as you say, all network participants can have clear identities, unlike on the public bitcoin’s blockchain.

“Not only is decentralization, open protocols, open source, collaborative development and living in the wild a feature of Bitcoin, that’s the whole point. And if you take a permissioned ledger and say, that’s all nice, we like the database part of it, can we have it without the open decentralized P2P [peer-to-peer] open source non-controlled distributed nature of it, well you just threw out the baby with the bathwater.” 
“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.
Given all of this, it may seem like private blockchains are unquestionably a better choice for institutions. However, even in an institutional context, public blockchains still have a lot of value, and in fact this value lies to a substantial degree in the philosophical virtues that advocates of public blockchains have been promoting all along, among the chief of which are freedom, neutrality and openness. The advantages of public blockchains generally fall into two major categories:
“Not only is decentralization, open protocols, open source, collaborative development and living in the wild a feature of Bitcoin, that’s the whole point. And if you take a permissioned ledger and say, that’s all nice, we like the database part of it, can we have it without the open decentralized P2P [peer-to-peer] open source non-controlled distributed nature of it, well you just threw out the baby with the bathwater.” 
It doesn’t matter if you’re moving $1bn or 0.01c across the Bitcoin network, you get the same security guarantees.   And you pay for this in fees and time.   What if you were prepared to trade safety for speed?   Today, your only real option is to send the coins to a centralized wallet provider, whom you must trust not to lose or steal your coins. You can then do all the transactions you like on their books, with their other customers and you never need touch the Bitcoin blockchain. But now you lose all the benefits of a decentralized value-transfer network.
Confidential Transactions — At present, all Bitcoin transactions are completely public, albeit pseudonymous. Confidential Transactions, as the name implies, conceal the amount being transferred to all except the sender, the recipient, and others they designate. The resulting transaction size is significantly larger, but includes a sizable “memo” field that can be used to store transaction or other metadata, and is still smaller than eg Zerocoin.(Note that this isn’t as confidential as Zerocash, which conceals both the amount and the participants involved in any transaction, through the mighty near-magic of zk-Snarks. Mind you, Zerocash would require an esoteric invocation ritual to initiate its network. No, really. But that’s a subject for a separate post.)
The Loom Network recently released their SDK which supports what they call “Dappchains,” an Ethereum layer-2 sidechain solution with each sidechain comprised of their own DPoS consensus mechanism. This enables highly scalable dapps, specifically games built using their tools. Loom emphasizes the earlier comment about sidechains enabling innovation in scalability, rather than providing it directly. Loom’s sidechains have their own set of rules and are used to offload computation from the primary Ethereum chain. Their sidechains are application-specific, meaning that they enable highly scalable dapps through an efficient consensus mechanism and can periodically be settled on the main Ethereum chain depending on their security needs. You can find more information on their model here.
2) Yea, blockchain could be a suboptimal MQ Series, a slower append only persistent wire that has a lot of ready-made tools for audit and security analysis (ecosystem argument). As blockchain ecosystem grows all kinds of data transformation tools will appear (e.g. we are working on such). Inside blockchain could be tuned to be less PoW intensive and to cut blocks faster. Besides, the variations of PoS or a hybrid PoW + PoS scheme are emerging which could use the fact that inside, as you say, all network participants can have clear identities, unlike on the public bitcoin’s blockchain.
A blockchain is a continuously growing list of records called blocks, these blocks are linked and secured using cryptographic algorithms. Each block typically contains a hash (a link to a previous block), a timestamp as well as transaction data. Full nodes validate all the transactions, but are unable to settle the disagreements in regards to the order in which they were received. To prevent double-spending, the entire network needs to reach global consensus on the transaction order. It achieves this by using centralised parties or a decentralised proof of work or proof of stake algorithm (and its derivatives).
The Bitcoin White Paper was published by Satoshi Nakamoto in 2008; the first Bitcoin block got mined in 2009. Since the Bitcoin protocol is open source, anyone could take the protocol, fork it (modify the code), and start their own version of P2P money. Many so-called altcoins emerged and tried to be a better, faster or more anonymous than Bitcoin. Soon the code was not only altered to create better cryptocurrencies, but some projects also tried to alter the idea of blockchain beyond the use case of P2P money.

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.)
Las sidechains son otro de los conceptos más famosos entorno a Bitcoin, no los pierdas de vista. La teoría indica que permitirían añadir funcionalidades nuevas a Bitcoin, pero sin necesidad de modificar constantemente el código de éste, ya que la funcionalidad es desarrollada utilizando otra cadena de bloque para finalmente ser conectada a la de Bitcoin. Al mismo tiempo esto evitaría la saturación de una sola cadena de bloques, como actualmente ocurre, al utilizar cadenas diferentes para cada caso de uso.
Peer-to-peer blockchain networks lack centralized points of vulnerability that computer crackers can exploit; likewise, it has no central point of failure. Blockchain security methods include the use of public-key cryptography.[4]:5 A public key (a long, random-looking string of numbers) is an address on the blockchain. Value tokens sent across the network are recorded as belonging to that address. A private key is like a password that gives its owner access to their digital assets or the means to otherwise interact with the various capabilities that blockchains now support. Data stored on the blockchain is generally considered incorruptible.[1]
The two-way peg is the mechanism for transferring assets between sidechains and is set at a fixed or predefined rate. Bitcoin’s Dynamic Membership Multi-Party Signature (DMMS) plays a vital role in the functionality of the two-way peg. The DMMS is one of Bitcoin’s lesser known but incredibly important components. It is a group digital signature — composed of the block headers in Bitcoin — that has no fixed size due to the computationally powered PoW nature of its blockchain. The Pegged Sidechain paper further describes it as:
Blockstream has also released an “Alpha” sidechain with all of those features up and running except the last, coupled to the Bitcoin testnet. (Used for testing Bitcoin software without putting real value at risk.) In the absence of the Bitcoin protocol change that will cryptographically secure the programmatic transfer of value between Bitcoin and sidechains, they’re cooperating with several external organizations to perform and validate those transfers. If and when that protocol change happens, though, pegged sidechains will be as permissionless, and as decentralized, as Bitcoin itself.
My chief concern is not with the concept of side chains per se (yet). I have still much to learn about how they are being considered. I am only concerned with the way the concept is being presented here. However, I am sure that much of this was due to space restrictions as much as anything. The concept of side chains is an intriguing one. It is also clearly attempting to address a major problem with the whole Bitcoin scheme- namely the verification latency it introduces for transactions. This is only one of the hurdles facing Bitcoins acceptance into the world of commerce, but it is a considerable one.
This comparison might make you think that private blockchains are more reasonable to use as they are faster, cheaper, and protect the privacy of their members. However, in certain cases, transparency is more crucial than the speed of transaction approval. So, every company interested in moving their processes to a blockchain evaluates the needs and goals and only then selects a particular type of distributed ledger.
Jump up ^ Redrup, Yolanda (29 June 2016). "ANZ backs private blockchain, but won't go public". Australia Financial Review. Archived from the original on 3 July 2016. Retrieved 7 July 2016. Blockchain networks can be either public or private. Public blockchains have many users and there are no controls over who can read, upload or delete the data and there are an unknown number of pseudonymous participants. In comparison, private blockchains also have multiple data sets, but there are controls in place over who can edit data and there are a known number of participants.
Send your Bitcoins to a specially formed Bitcoin address. The address is specially designed so that the coins will now be out of your control… and out of the control of anybody else either. They’re completely immobilized and can only be unlocked if somebody can prove they’re no longer being used elsewhere (I’ll explain what I mean by this in a minute).   In other words, you’ve used the core bitcoin transaction rules I described above to lay down a specific condition that the future owner – whoever it ends up being – needs to fulfil in order to take control
A consortium blockchain is often said to be semi-decentralized. It, too, is permissioned but instead of a single organization controlling it, a number of companies might each operate a node on such a network. The administrators of a consortium chain restrict users' reading rights as they see fit and only allow a limited set of trusted nodes to execute a consensus protocol.
Eris Industries, aims to be the provider of shared software database using blockchain technology. Blockstack, aims to provide financial institutions back office operations, including clearing & settlement on a private blockchain. Multichain, provider an open source distributed database for financial transactions. Chain Inc., a provider of blockchain API's. Chain partnered with Nasdaq OMX Group Inc., to provide a platform that enables trading private company shares with the blockchain.
The original Litecoin we started out with are now Rootstock Litecoin, which I can use for creating smart contracts and as previously mentioned Sidechains can exist for all types of digital assets with propositions of not only smart contracts but the ability to provide more freedom for experimentation with Beta releases of core software and Altcoins, as well as the taking over of traditional banking instruments such as the issuing and tracking of shares, bonds and other assets.
In private blockchains, only specific, pre-chosen entities have the ability to create new transactions on the chain (this is known as “write permissions”). Thus, a private blockchain is a closed network that offers constituents the benefits of the technology, but is not necessarily decentralized or distributed, even among its members. The extent to which each constituent can view (“read”) and create and validate transactions (“write”) is up to the developers of the chain.
×