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The mutual portability between a mainchain and a sidechain is referred to as a "two-way peg" due to the way that the value of an asset is "pegged" 1:1 when minted on a sidechain i.e. The blockchain that an asset is imported from is the "mainchain" or "parent chain", and the blockchain that the asset is imported to is the sidechain. a pegged asset minted on a sidechain should always be redeemable 1:1 (minus any fees) for the asset it represents on the mainchain.

Merkle tree is constructed on these hash values and the Merkle root is recorded in the root hash field. Yes …..this value is computed using the Merkle tree. While the field- timestamp stores the time at which the block got created, nonce seems to be a random number. The transactions within the block are first converted to hash values using the SHA256 algorithm. Root hash value is a unique representation of all the transactions recorded in a block.

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The overviewed coins exclude stablecoins and Binance asset-backed cryptocurrencies. Notably, according to the Blockchain Center Altcoin Season Index, an altcoin season is declared once 75% of the top 50 coins perform better than Bitcoin over three months(90 days).

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Based on observations by the author, this is the definition that most people probably think of when they use the term "sidechains", as opposed to the older and simpler definition given by Back et al. And so, while technically what is being referred to here is a "pegged sidechain", the same concept is now colloquially referred to simply as "sidechain" and this is how the term is used in this project as well.

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Thus, crucial to the definition of a pegged sidechain, in the author's humble opinion, cryptocurrency is that the portability of assets between a mainchain and sidechain should be permissionless; that is, no permission from any third part(y)(ies) should be required to import an asset into and export an asset from a sidechain. Back et al say as much as well:

Assets should be moved without counterparty risk; that is, there should be no ability for a dishonest party to prevent the transfer occurring. Assets which are moved between sidechains should be able to be moved back by whomever their current holder is, and nobody else (including previous holders).

Block stores the hash value of the previous block in the header, thereby acting as a pointer to the previous block. The previous hash field is the binding force or the glue for chaining. Adjacent blocks are linked by hash pointers, forming a chain of blocks.

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So starting from HK, let us traverse the tree in an upward direction, recalculating the hash values on each node in the branch which connects Merkle root and HK. Finally, when we reach the root node, we will get the root hash value. If it is the same as the root hash value which Amith holds, we can assure him that his transaction is successfully recorded in the blockchain. Since every peer in the network has a copy of the blockchain, we can query the network for the missing values.

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