A sidechain is an independent ledger which provides a way to transfer assets from the XRP Ledger to the sidechain, and return assets from the sidechain back to the XRP Ledger. Each sidechain has its own consensus algorithm and transaction types and rules.

A federator is a server on the sidechain that listens for triggering transactions on both the main chain and the side chain. Each federator has a signing key associated with it that is used to sign transactions. A transaction must be signed by a quorum of federators before it can be submitted. Federators are responsible for creating and signing valid response transactions, collecting signatures from other federators, and submitting transactions to the main chain and side chain.

Federated sidechains enable XRP Ledger developers to launch new features and innovative applications built on foundational XRP Ledger technology. You can customize the core XRP Ledger technology to the needs of a specific use case or project and run it as its own blockchain.

Learn more about the XRP Ledger: www.xrpl.org

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