Nested blockchain refers to a structure where one blockchain is embedded within another. This setup allows for the creation of sub-chains that can operate with their own rules while still being connected to the main chain. The primary chain often handles critical functions like security and consensus, while the nested chains can focus on specific applications or services, such as smart contracts or token transfers. This relationship can enhance scalability and improve performance.Nested blockchains can facilitate faster transactions by offloading some processes from the primary chain. They can also provide greater flexibility, allowing developers to tailor functionalities to meet specific needs without altering the main blockchain’s core features. Overall, this architecture aims to combine the strengths of different blockchains, creating a more efficient system that can support a wide range of applications.