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Advantages

  1. 1.
    Improved Functionality: Sidechains offer a wide range of functionality like smart contracts, asset and confidential transactions which can be used to improve platform functionality.
  2. 2.
    Fast transactions: Sidechain transactions are usually faster than Bitcoin-L1, and depending on construction, faster than Stellar.
  3. 3.
    Easy integration with Bitcoin-L1 and Lightning: Sidechain pegs are easy to get in and out of. Onboarding is therefore easier since one can leverage the partner ecosystem of Bitcoin to get into a sidechain.
  4. 4.
    More secure decentralised than Stellar: Sidechains usually have more running nodes than Stellar and therefore, it is less likely a transaction will be censored. Since sidechains are used in combination with Bitcoin-L1, sidechains borrow from Bitcoin-L1's security.
  5. 5.
    Low fees: Sidechains usually have negligible fees as compared to Bitcoin-L1, and sometimes, Stellar.