Post
Topic
Board Bitcoin Discussion
Re: Bitcoin Scalability
by
squatter
on 09/03/2020, 22:45:05 UTC
I know that LN is considered as a Off-chain , what about sidechain Pegged may it be also considered Off-chain ? I find many resources on the internet and the opinions do not match. Someone say that it is a off-chain solution but someone consider it as a third possibility : 1) On-chain 2) Off-chain 3) Sidechain

That's probably because there are multiple types of sidechains, each with different effects on scalability.

Federated sidechains have a trusted group of validators that enforces the sidechain consensus. It's basically an altcoin that can interact with Bitcoin. This would be an off-chain solution, since the sidechain consensus doesn't involve Bitcoin miners or mainchain consensus.

Drivechains or merge-mined sidechains are enforced by miners and/or full nodes. While they are not on-chain in the sense of the Bitcoin mainchain, they increase mining and full node overheads the same exact way that an on-chain block size increase would.