Performance at scale: It is not uncommon for large businesses to process 100,000’s of transactions per second (TPS). Therefore, enterprise blockchains need to scale so that they can deliver performance accordingly. To achieve this, they can compartmentalize processes using containers or similar approaches. Read more about this requirement in this article “Enterprise blockchain ready to go live”.
Blockchain, trust, decentralization, Bitcoin, transparency, anonymity, blockchain, blockchain, blockchain. These words seem to appear randomly on the Web regardless the theme of an article you read. Don’t you know how to implement blockchain in art? There’s definitely someone who can tell you. Do you wonder how banking can benefit from blockchain? No worries, some projects already do it – just search for the use cases.
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:
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.
Saying that, Interoperability has been the missing link in conquering the obstacles faced by both private and public blockchains by empowering them to interact and exchange values across platforms seamlessly. Developers use of the Gallactic blockchain technology, that allow for private and public blockchains within its eco-system, will drive the potential to combine both public and private blockchains with innovative new solutions, designed to accomplish cross-chain exchange and greater compatibility is the way forward for all parties and their concerns.

“Such brazen theft would indicate [1] that Bitcoin would be (in the near future) without sidechains of any kind, and [2] that Bitcoin itself may be in danger from the miners (and we may need to consider using an alternate proof-of-work hash function),” he explained the impact of this setup in his original post on the topic. Like SPV sidechains, drivechains require a soft-forking change to Bitcoin.


The paper outlines some critical developments and associated problems that were both currently trending and forward-thinking at the time, many of them still very much relevant today. At the time, altcoins were quickly gaining prominence and the problems associated with their volatility, security, and lack of interoperability with Bitcoin raised concerns. The paper primarily addressed 6 issues that pegged sidechains aimed to provide a solution:
New organizational structures will emerge that will make inside/outside much less clear. These clear boundaries started to erode with the extranets in the 90s, then with the multi-tenant cloud platforms, and lately with the smartphones and the IoT. As we move forward we will see value chains where participants have multiple roles and affiliations. We will be designing token based systems that produce gains for any participants, internal or external.
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.

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.
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An important distinction to be made about sidechains that needs to be understood is that sidechains themselves help to fuel innovation through experimentation. Rather than providing scalability directly, they allow for trivial experimentation on sidechains with various scalability mechanisms. Using sidechains, one can avoid the problems of initial distribution, market volatility, and barriers to entry when experimenting with altcoins due to the inherent derivation of their scarcity and supply from Bitcoin. That being said, each sidechain is independent and flexible to tool around with various features.
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.
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