According to @binance, sidechains are independent blockchains that run in parallel to a parent chain like Bitcoin (BTC) or Ethereum (ETH), connected via a two-way bridge peg that allows assets to move between chains while the sidechain maintains its own consensus and security, not inheriting the parent chain’s security like typical Layer-2s do, which is critical for trading execution and risk assessment, source: Binance Academy. According to @binance, the primary trading benefit is higher throughput and lower transaction fees on sidechains, enabling more complex applications and offloading activity from the main chain, which can improve execution speed for on-chain strategies during periods of congestion, source: Binance Academy. According to @binance, the core risks are concentrated in bridges and the sidechain’s validator set, meaning funds bridged from the parent chain depend on the integrity of the bridge and the sidechain’s security assumptions, making operational security and custody risk key considerations for traders, source: Binance Academy. According to @binance, this architecture allows value to remain pegged to main-chain assets while transactions occur off-chain on the sidechain, but traders should recognize that failure or compromise of the bridge or sidechain can impact access to funds and settlement reliability even if the parent chain remains secure, source: Binance Academy.