<blockquote>
<p><strong>Can coins from sidechains to be moved to mainnet and to be converted to bitcoin?</strong></p>
</blockquote>
<p>That seems to be intrinsic to sidechains. Assuming we use the word &quot;move&quot; loosely.</p>
<p>According to <a href="https://help.blockstream.com/hc/en-us/articles/900001408623-How-does-Liquid-Bitcoin-L-BTC-work" rel="nofollow noreferrer">Blockstream</a></p>
<blockquote>
<p>Using something called a two-way peg, BTC can be “transferred” back and forth between the Bitcoin mainchain and the Liquid sidechain.</p>
</blockquote>
<blockquote>
<p>Transferring BTC from the Bitcoin mainchain to the Liquid sidechain is called a peg-in, and involves sending BTC to a multisig wallet controlled by the Liquid Federation. Once confirmed, an equivalent amount of L-BTC can be claimed by the user that initiated the peg-in. Anyone with a Liquid node can complete a peg-in.</p>
</blockquote>
<blockquote>
<p>Transferring BTC out of the Liquid sidechain back to the mainchain is called a peg-out, and involves a Liquid Federation member burning L-BTC that they hold. Once confirmed, an equivalent amount of BTC is sent from the Liquid Federation’s multisig wallet to one of the member’s whitelisted addresses.</p>
</blockquote>
<p>So the underlying reality isn't that money disappears from the Bitcoin blockchain and reappears in a side-chain but that an amount of money is locked in the Bitcoin blockchain and an equivalent amount is created in the side-chain. By destroying that amount in the side-chain the equivalent amount locked in Bitcoin is released.</p>
<p>At a technical level the money doesn't <em>move</em> from side-chain to Bitcoin main-net, instead a previously locked amount of money is unlocked. It is designed that, from the end user's perspective, it just looks like money has moved.</p>

CC BY-SA 4.0
2024-04-04T16:58:01.930Z
2024-04-04T17:03:35.997Z
2024-04-04T17:03:35.997Z
RedGrittyBrick
<p>Can coins from sidechains to be moved to mainnet and to be converted to bitcoin?Can you give me practical example of such transaction?</p>

<transactions><sidechains><off-chain>
Questions about sidechain
juhasa
# Questions about sidechain

(Asked by: username_0 on 2024-04-03)

Can coins from sidechains to be moved to mainnet and to be converted to bitcoin?Can you give me practical example of such transaction?

**Tags:** transactions, sidechains, off-chain


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## 1 answers

### Answer by username_1 on 2024-04-04. Score: 1

> **Can coins from sidechains to be moved to mainnet and to be converted to bitcoin?**

That seems to be intrinsic to sidechains. Assuming we use the word "move" loosely.

According to [Blockstream](https://help.blockstream.com/hc/en-us/articles/900001408623-How-does-Liquid-Bitcoin-L-BTC-work)

> Using something called a two-way peg, BTC can be “transferred” back and forth between the Bitcoin mainchain and the Liquid sidechain.

> Transferring BTC from the Bitcoin mainchain to the Liquid sidechain is called a peg-in, and involves sending BTC to a multisig wallet controlled by the Liquid Federation. Once confirmed, an equivalent amount of L-BTC can be claimed by the user that initiated the peg-in. Anyone with a Liquid node can complete a peg-in.

> Transferring BTC out of the Liquid sidechain back to the mainchain is called a peg-out, and involves a Liquid Federation member burning L-BTC that they hold. Once confirmed, an equivalent amount of BTC is sent from the Liquid Federation’s multisig wallet to one of the member’s whitelisted addresses.

So the underlying reality isn't that money disappears from the Bitcoin blockchain and reappears in a side-chain but that an amount of money is locked in the Bitcoin blockchain and an equivalent amount is created in the side-chain. By destroying that amount in the side-chain the equivalent amount locked in Bitcoin is released.

At a technical level the money doesn't *move* from side-chain to Bitcoin main-net, instead a previously locked amount of money is unlocked. It is designed that, from the end user's perspective, it just looks like money has moved.


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