What is a Secondary Blockchain?
A secondary blockchain is a separate blockchain that runs alongside the primary blockchain. It allows for the creation of new data or transactions on the secondary blockchain without affecting the primary blockchain. This feature is particularly useful in situations where there are conflicting interests or requirements within an organization or community.
Advantages of Creating a Secondary Blockchain
1. Increased Privacy and Security
One of the primary benefits of creating a secondary blockchain is increased privacy and security. By separating sensitive data onto a separate blockchain, businesses can ensure that this information is not accessible to unauthorized parties. Additionally, by creating a private network, businesses can protect their intellectual property and trade secrets from potential competitors or hackers.
2. Improved Transparency and Efficiency
A secondary blockchain can improve transparency and efficiency in a business or organization. By maintaining two separate chains, companies can keep track of transactions and data on the primary chain while still allowing for new data to be recorded on the secondary chain. This feature enables businesses to maintain a clear and accurate record of all transactions, making it easier to manage operations and identify potential issues.
3. Reduced Costs
Creating a secondary blockchain can also reduce costs for businesses. By separating data onto a separate chain, companies can avoid the need for costly upgrades to their existing systems. Additionally, by creating a private network, businesses can avoid the high fees associated with public blockchains.
4. Increased Flexibility
A secondary blockchain allows for increased flexibility within an organization. By creating a separate chain, businesses can tailor the data and transactions on this chain to their specific needs. This feature enables companies to create customized solutions that meet their unique requirements, rather than being limited by the capabilities of the primary blockchain.
5. Improved Decision Making
Creating a secondary blockchain can also improve decision making within an organization. By maintaining two separate chains, businesses can keep track of all data and transactions in one place while still allowing for new information to be recorded on the secondary chain. This feature enables companies to make informed decisions based on accurate and up-to-date data.
Real-Life Examples of Secondary Blockchains
1. The Bitcoin Cash Fork
In 2018, the Bitcoin community split into two separate chains: Bitcoin Core and Bitcoin Cash. This fork resulted in a new secondary blockchain that maintained the same functionality as the primary chain but with increased scalability and transaction speeds. While this fork caused some controversy within the Bitcoin community, it ultimately led to increased adoption and usage of the technology.
2. The Ethereum ERC-721 Token Standard
In 2017, the Ethereum community created the ERC-721 token standard, which allows for the creation of non-fungible tokens (NFTs) on the Ethereum blockchain. This standard has since been used to create a variety of NFTs, including digital art, collectibles, and virtual real estate. By creating a separate chain for NFTs, Ethereum was able to maintain the integrity of its primary blockchain while still allowing for new data to be recorded on the secondary chain.
Summary
Creating a secondary blockchain can offer several advantages for businesses and organizations. From increased privacy and security to improved transparency and efficiency, a secondary blockchain can help companies streamline operations and make informed decisions based on accurate data. While this technology is still in its early stages, it has the potential to revolutionize the way we conduct transactions and store data in the future.