Phaeton’s Sidechain and how we are building the future with IoT.
Blockchain is recognised as a revolutionary technology, but some challenges restrict Blockchain’s applicability and adoption. The success of Blockchain relies on a trilemma of three elements. No Blockchain platform can achieve all three which includes Decentralisation, Security, and Scalability, working together. While the first two have been addressed, the missing element is Scalability.
Scalability in the Blockchain network has been neglected due to the priority given to decentralisation and security. However, the need for scalability has been growing exponentially in the shadows as Blockchain looks for scalable solutions.
Sidechains have become one of the clever ways to achieve scalability in the Blockchain ecosystem. It is one of the core elements of Phaeton Blockchain Technology.
What is a Sidechain?
A Sidechain can be compared as a Child Blockchain that is connected to the Mother Blockchain. In essence, a Sidechain is a small Blockchain that creates a separate ecosystem. The transactions or activities done inside the Sidechain are secured by the Mother Blockchain.
There is a two-way peg between a Sidechain and the Mother Blockchain that ensures no intricacies. With the use of Sidechains, traffic of the main Blockchain can be diverted, leading to lesser network congestion, more scalability, and lesser transaction fees.
But just implementing a Sidechain does not qualify for a viable solution. It is where Phaeton Blockchain introduces its version of Sidechains, strategically implemented to provide a better solution.
The concerns regarding the security of a Sidechain have been a barrier to its adoption. Phaeton Blockchain facilitates the creation of an interoperable network and addresses security concerns by maintaining a standard.
The main Phaeton Blockchain is a public network that can be joined and accessed by anyone. In addition to that, Phaeton accommodates the creation of Sidechains that allow a private network. When these Sidechains are connected with the main network, they create a hybrid network. Therefore, the Phaeton Blockchain ecosystem can be used to develop an application that requires a public, private, or hybrid network.
Future of IoT with Phaeton’s Sidechain
Blockchain with IoT is one of the important synergies. One thing common in any IoT application is that it needs to store a tremendous amount of data and then use it for several purposes.
When there is one single Blockchain, the data is stored on the nodes belonging to that Blockchain, resulting in network congestion and poor performance. Building an IoT solution on Phaeton Blockchain removes such intricacies.
Two points can be considered here:
- Phaeton allows the creation of a private ecosystem. If an IoT solution is built on a public Blockchain, there is a possibility of the data being available to people who should not have access to it. Creating an IOT application on a Phaeton Sidechain allows the user to keep the data private while still enjoying the benefits of a public ecosystem by creating the blocks or the data hash available in the main chain.
- The use of Phaeton’s Sidechain ecosystem allows the network to have better performance through enhanced scalability and transaction speed.
Other benefits include:
- The immutable ledger of Phaeton’s Blockchain allows the IoT data to be stored in a distributed ledger.
- The data by the IoT device becomes more credible as it cannot be modified or deleted.
- The encryption and hashing techniques involved in securing the data make it a reliable platform, eradicating the need for additional security measures.
- The data from the IoT devices can be traced to their origin, establishing provenance.
Head to our website to learn more about Phaeton Blockchain. https://phaeton.io