# How Is a "Sidechain" Different from the Main Blockchain? ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

---

## How Is a “Sidechain” Different from the Main Blockchain?

A sidechain is a separate, independent blockchain that is connected to the main blockchain (parent chain) by a two-way peg. This peg allows assets, typically the parent chain's native currency, to be transferred back and forth between the two chains.

Sidechains are often used to test new features or provide greater scalability by offloading transaction processing from the main chain, without compromising the main chain's security.

- [Can a UTXO Transaction Be Replayed on a Sidechain?](https://learn.greeks.live/path/can-a-utxo-transaction-be-replayed-on-a-sidechain/)

- [What Are the Security Risks Associated with the Two-Way Peg or Bridge Mechanism of a Sidechain?](https://learn.greeks.live/path/what-are-the-security-risks-associated-with-the-two-way-peg-or-bridge-mechanism-of-a-sidechain/)

- [What Is a ‘Sidechain’ and Its Purpose?](https://learn.greeks.live/path/what-is-a-sidechain-and-its-purpose/)

- [What Is the Difference between a Rollup and a Sidechain?](https://learn.greeks.live/path/what-is-the-difference-between-a-rollup-and-a-sidechain/)

- [In a Sidechain, How Is the Merkle Root Used for Inter-Chain Communication?](https://learn.greeks.live/path/in-a-sidechain-how-is-the-merkle-root-used-for-inter-chain-communication/)

- [What Is the Difference between Hashing and Encryption?](https://learn.greeks.live/path/what-is-the-difference-between-hashing-and-encryption/)

- [How Does the Two-Way Peg Mechanism Work for a Sidechain?](https://learn.greeks.live/path/how-does-the-two-way-peg-mechanism-work-for-a-sidechain/)

- [How Does the Black-Scholes Model Handle the Early Exercise Feature of American Options?](https://learn.greeks.live/path/how-does-the-black-scholes-model-handle-the-early-exercise-feature-of-american-options/)

## Glossar

### [Main Blockchain](https://learn.greeks.live/area/main-blockchain/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Architecture ⎊ The Main Blockchain refers to the primary, canonical distributed ledger network upon which a cryptocurrency, such as Bitcoin, is fundamentally secured and transacted.

### [Sidechain](https://learn.greeks.live/area/sidechain/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Architecture ⎊ A Sidechain represents a distinct blockchain network that operates independently but is cryptographically linked to a main chain, typically through a two-way peg mechanism allowing assets to be transferred between the two ledgers.

## Discover More

### [How Can a Decentralized Autonomous Organization (DAO) Manage Compliance Updates across Different Legal Systems?](https://learn.greeks.live/path/how-can-a-decentralized-autonomous-organization-dao-manage-compliance-updates-across-different-legal-systems/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Can a Decentralized Autonomous Organization (DAO) Manage Compliance Updates across Different Legal Systems?](https://learn.greeks.live/wp-content/uploads/2025/10/Streamlined-Cryptographic-Asset-Custody-Encapsulation-Representing-Decentralized-Autonomous-Organization-Governance-Module.webp)

A DAO can use a legal sub-committee to propose compliance updates that are then voted on and implemented via upgradeable contracts.

### [How Do Different Blockchain Architectures (E.g. DAGs) Handle Transaction Confirmation and Finality?](https://learn.greeks.live/path/how-do-different-blockchain-architectures-e-g-dags-handle-transaction-confirmation-and-finality/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Do Different Blockchain Architectures (E.g. DAGs) Handle Transaction Confirmation and Finality?](https://learn.greeks.live/wp-content/uploads/2025/10/Geometric-Abstraction-of-Self-Balancing-Electric-Unicycle-as-Financial-Hedging-Mechanism-Analogy.webp)

DAGs use transactions confirming other transactions in a graph, achieving finality through a different consensus process.

### [How Do Different Blockchain Consensus Mechanisms (E.g. Proof-of-Stake Vs. Proof-of-Work) Impact the Level of Non-Repudiation?](https://learn.greeks.live/path/how-do-different-blockchain-consensus-mechanisms-e-g-proof-of-stake-vs-proof-of-work-impact-the-level-of-non-repudiation/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Do Different Blockchain Consensus Mechanisms (E.g. Proof-of-Stake Vs. Proof-of-Work) Impact the Level of Non-Repudiation?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Engineering-of-Digital-Asset-Volatility-Management-Through-Spherical-Interface-Mechanisms.webp)

Proof-of-stake makes it more expensive for attackers to rewrite blockchain history, thus providing a stronger guarantee of non-repudiation than proof-of-work.

### [How Do Retail Brokers Profit from Routing Orders to Different Venues?](https://learn.greeks.live/path/how-do-retail-brokers-profit-from-routing-orders-to-different-venues/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Do Retail Brokers Profit from Routing Orders to Different Venues?](https://learn.greeks.live/wp-content/uploads/2025/10/Geometric-Equilibrium-Visualization-of-Implied-Volatility-Surface-Contraction-in-Decentralized-Finance-Structures.webp)

Retail brokers profit via Payment for Order Flow (PFOF) from market makers and by capturing the bid-ask spread through order internalization.

### [How Do Market Makers Use Different Moneyness Options to Manage Their Risk?](https://learn.greeks.live/path/how-do-market-makers-use-different-moneyness-options-to-manage-their-risk/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Do Market Makers Use Different Moneyness Options to Manage Their Risk?](https://learn.greeks.live/wp-content/uploads/2025/10/Exotic-Derivatives-Hedging-Utilizing-A-Smooth-Ivory-Sphere-Against-Teal-And-Indigo-Substrates.webp)

Market makers trade options of all moneyness levels to hedge their positions and profit from spreads, not market direction.

### [How Did the SEC V. Ripple Labs Case Influence the Application of the Howey Test to Different Types of Crypto Sales?](https://learn.greeks.live/path/how-did-the-sec-v-ripple-labs-case-influence-the-application-of-the-howey-test-to-different-types-of-crypto-sales/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Did the SEC V. Ripple Labs Case Influence the Application of the Howey Test to Different Types of Crypto Sales?](https://learn.greeks.live/wp-content/uploads/2025/10/Temporal-Vector-Decomposition-Across-Multi-Asset-Class-Strike-Price-Stratification.webp)

Differentiated between "Institutional Sales" (securities) and "Programmatic Sales" (non-securities) based on buyer's expectation of profit.

### [How Does an exchange'S'matching Engine' Process Different Types of Orders?](https://learn.greeks.live/path/how-does-an-exchanges-matching-engine-process-different-types-of-orders/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does an exchange'S'matching Engine' Process Different Types of Orders?](https://learn.greeks.live/wp-content/uploads/2025/10/Geometric-Abstraction-Modeling-Time-Decay-and-Volatility-Surfaces-in-Decentralized-Finance-Pricing.webp)

The matching engine pairs orders based on price/time priority, placing limit orders on the book and immediately executing market orders against the best limits.

### [How Do Different Strike Prices Create a Vertical Spread?](https://learn.greeks.live/path/how-do-different-strike-prices-create-a-vertical-spread/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Do Different Strike Prices Create a Vertical Spread?](https://learn.greeks.live/wp-content/uploads/2025/10/Macro-Visualization-of-Hardware-Security-Module-Cryptographic-Key-Material-Securitization-Mechanism.webp)

Vertical spread is buying and selling options of the same type and expiration but different strikes.

### [Can the Wash Sale Rule Be Triggered by Trading Different Strike Prices of the Same Option?](https://learn.greeks.live/path/can-the-wash-sale-rule-be-triggered-by-trading-different-strike-prices-of-the-same-option/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Can the Wash Sale Rule Be Triggered by Trading Different Strike Prices of the Same Option?](https://learn.greeks.live/wp-content/uploads/2025/10/Macro-View-of-Black-Hardware-Assembly-Featuring-Segmented-Optical-Surface-Indicative-of-On-Chain-Governance-Calibration.webp)

Yes, trading different strike prices can trigger the wash sale rule if the options are deemed "substantially identical" based on facts and circumstances.

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**Original URL:** https://learn.greeks.live/learn/how-is-a-sidechain-different-from-the-main-blockchain/
