SIDECHAINS

NCOG DeFi will use a sidechain protocol to allow tokens, and other digital assets, from one Blockchain to be used in a separate Blockchain securely. If required, they can move back to the main Blockchain. The primary reason why NCOG considers sidechains is because of the immense potential it holds to scale existing Blockchains through a two-way peg. Assets can be interchanged at a predetermined rate, and a user on the parent chain will have to send their coins to the output address. Here, they will be locked to disable their expenditure anywhere else.

As soon as the transaction is completed, a confirmation goes across the chains. For extra security, a waiting period ensues, after which an equivalent number of coins are released on the sidechain. Users can now access the coins and spend them in the designated space.

NCOG side chains will be responsible for their security, which essentially means they need their own miners. The miners are motivated through 'merged mining' - the mining of two cryptocurrencies, simultaneously based on the same algorithm. The challenges of scalability and speed corresponding to the main Blockchain can effectively be solved by integrating sidechains to the NCOG system