Transferring ledger assets between blockchains via pegged sidechains

A method for transferring an asset from a parent chain to a sidechain, the method comprising:

• sending, by a processor, a parent chain asset to an output of the parent chain;
• generating, by the processor for the output, a simplified payment verification (SPV) proof associated with the parent chain asset, the SPV proof meeting a predetermined threshold level of computational work, the generating taking place over a predetermined period of time;
• validating, by a sidechain validator server, that the SPV proof associated with the parent chain asset meets the threshold level of computational work indicated by the SPV proof;
• generating a sidechain asset corresponding to the parent chain asset;
• holding the sidechain asset for a predetermined contest period;
• monitoring the parent chain asset during the predetermined contest period for any reorganization proofs associated with the parent chain asset;
• releasing the sidechain asset in response to a determination that no reorganization proof associated with the parent chain asset has been created during the predetermined contest period, the reorganization proof associated with the parent chain asset being a published proof that includes more aggregate work than the SPV proof associated with the parent chain and does not include a block recording the sending of the parent chain asset to the output of the parent chain;
• sending, by a second processor, the sidechain asset to an output of the sidechain;
• generating, by the second processor, a SPV proof associated with the sidechain asset;
• validating, by a parent chain validator server, the SPV proof associated with the sidechain asset;
• holding the parent chain asset for a second predetermined contest period;
• monitoring the sidechain asset during the second predetermined contest period for any reorganization proofs associated with the sidechain chain asset;
• and
• releasing the parent chain asset in response to a determination that no reorganization proof associated with the sidechain asset has been created during the second predetermined contest period.