Can cash from sidechains to be moved to mainnet and to be transformed to bitcoin?
That appears to be intrinsic to sidechains. Assuming we use the phrase “transfer” loosely.
In accordance with Blockstream
Utilizing one thing referred to as a two-way peg, BTC could be “transferred” backwards and forwards between the Bitcoin mainchain and the Liquid sidechain.
Transferring BTC from the Bitcoin mainchain to the Liquid sidechain is known as a peg-in, and includes sending BTC to a multisig pockets managed by the Liquid Federation. As soon as confirmed, an equal quantity of L-BTC could be claimed by the person that initiated the peg-in. Anybody with a Liquid node can full a peg-in.
Transferring BTC out of the Liquid sidechain again to the mainchain is known as a peg-out, and includes a Liquid Federation member burning L-BTC that they maintain. As soon as confirmed, an equal quantity of BTC is shipped from the Liquid Federation’s multisig pockets to one of many member’s whitelisted addresses.
So the underlying actuality is not that cash disappears from the Bitcoin blockchain and reappears in a side-chain however that an sum of money is locked within the Bitcoin blockchain and an equal quantity is created within the side-chain. By destroying that quantity within the side-chain the equal quantity locked in Bitcoin is launched.
At a technical degree the cash would not transfer from side-chain to Bitcoin main-net, as an alternative a beforehand locked sum of money is unlocked. It’s designed that, from the top person’s perspective, it simply seems to be like cash has moved.
