Sidechains are supposed to make it possible for users to move bitcoins between different bitcoin-based blockchains with different rule sets. For example, in this way, new techniques for preserving the privacy of transactions or a smart contract system similar to ethereum's could be added to a bitcoin blockchain, without changing the bitcoin blockchain. They are as an architecture for building semi-decentralised products and services for Bitcoin that were simply impossible before. With sidechains, users won’t be affected at all by any new programming.

Drivechain is a two-way peg for interacting with the sidechain. The key difference between drivechains and regular sidechains is who ultimately submits the necessary information to transfer the bitcoins back and forth: the users or the miners.

The side chain idea allows the native cryptocurrency to compete and win out over other competitors, as they are faster confirmed.